Short‑Term Rental Rules in Corte Madera: What to Know

Short-term rentals can be a useful tool in Corte Madera, but the rules are strict. The town launched a formal licensing program in 2024 with a clear cap on nights, safety and parking standards, and ongoing tax reporting. In this guide, you will learn who needs a license, how the application works, what the limits mean for cash flow, and the exact steps to stay compliant.

Quick takeaways

• A one-year STR license is required, with renewal and ongoing reporting. Town STR page
• The town caps STR use at 75 days per calendar year. Application PDF
• Expect occupancy, parking, safety, interior signage, and local contact rules.
• Transient occupancy tax applies, and monthly reporting is required even for zero revenue. Town STR page
• Investor takeaway: underwrite with a 75-day cap, tax drag, and a non-transferable license.

Overview: How Corte Madera handles short‑term rentals

Cities take a few common paths with short-term rentals. Some require a simple registration. Others require a full license with strict operating rules. A few cities restrict or prohibit STRs in some zones.

Most programs also set limits on who can operate, where it can happen, and how many nights are allowed. Occupancy and parking rules keep guest activity in check. Safety and emergency planning protect visitors and neighbors.

Taxes matter too. Transient occupancy tax (TOT) is standard in California for stays of 30 nights or fewer. Many towns also require a local business license. These elements give the town a way to track activity and enforce rules when needed.

In Corte Madera, the Town adopted a licensing program by Ordinance No. 1031 in late 2023, effective January 1, 2024. The official STR page links to the rules, application, and reporting portals so you can review details and stay current. Town STR page | Ordinance archive listing

Who needs a permit or registration (scope)

If you plan to rent a furnished residence for 30 days or less, you are in STR territory. The Town defines short-term rentals this way and treats them as a distinct use that requires a license. Town STR page

Here is what that means in practice:

• Owner-occupied homes: Even if you live in the home most of the year, short-term stays still trigger the licensing rules when stays are 30 days or less.
• Non-owner-occupied homes and second homes: These often face the same STR rules and caps. Check eligibility before you buy or start hosting.
• Multi-unit buildings and ADUs: Some multifamily zones or HOAs do not allow STRs at all. The Town directs applicants to confirm eligibility with Planning before applying. Application PDF If you are unsure, start with Planning. Ask them to confirm the parcel’s eligibility under CMMC §5.34.040 before you spend on setup.

Permits and application basics (process)

Corte Madera runs a formal license program. Expect a one-year license that expires on December 31 and must be renewed. The current application fee listed in town materials is $500. Renewals have a window, so plan ahead. Application PDF

Typical items you will prepare:

• Property and owner details, including a 24/7 local emergency contact within 30 miles
• A business license for the Town
• A parking plan, including number and location of off-street spaces
• Safety self-inspection checklists and required photos of smoke/CO detectors and fire extinguisher
• Interior signage with emergency rules, limits, and evacuation info posted by the front door
• Floor plan and egress diagram, a vicinity map with an evacuation route, and any Wildland Urban Interface vegetation checklist if applicable

Keep good records. You must follow the operating conditions in the approval and maintain compliance to avoid penalties.

Zoning, occupancy and owner‑occupancy rules (operational limits)

Zoning drives eligibility in many towns, and Corte Madera is no different. The Town points applicants to the municipal code for zone-specific rules and asks you to contact Planning to confirm eligibility under CMMC §5.34.040. Application PDF

Operational limits include:

• Occupancy: The town limits overnight occupancy to two people per bedroom, plus up to two more if there is a separate living space. Only named guests may be present between 10 p.m. and 6 a.m. Application PDF
• Parking: You must follow your town-approved parking plan. Blocking shared access is not allowed, and in some cases front setback parking is restricted. Clear signage is often required for shared driveways. Application PDF
• Owner-occupancy: The Town limits scale by restricting licenses. An owner cannot hold a valid STR license for more than one property in town. Application PDF

For investors, these rules shape guest counts, car counts, and use patterns. They also reduce noise risk and neighbor friction when managed well.

Duration limits, caps and platform rules

Corte Madera sets a firm cap: no more than 75 days per calendar year as a short-term rental. That is a major driver of income assumptions. Application PDF

Many towns also set quiet hours and party rules. Corte Madera requires your interior notice to include local noise rules. You must give guests clear instructions on garbage, parking, and emergency steps. Hosting platforms have their own standards. If your listing triggers repeated complaints, the platform can suspend or remove it. Even when a platform collects some taxes, the host remains responsible for correct remittance if the platform does not submit to the Town. Town STR page

Taxes, licensing and financial obligations

Expect three layers: a town STR license, a Town business license, and transient occupancy tax for stays of 30 days or less. Corte Madera requires licensed STR operators to register for TOT, report monthly, and pay online. Monthly reporting is required even if you had zero revenue. Town STR page

Key financial points:

• Set your pricing with TOT in mind and confirm if your platform collects it for Corte Madera. If it does not, you must collect and remit it yourself. Application PDF
• Budget for the application fee, annual renewals, safety equipment, signage, and compliance time.
• Keep detailed records of bookings, rates, taxes, and guest counts. Good records help with renewals and reduce audit risk.

HOA, deed and lease restrictions

Private rules can be stricter than city law. Many HOAs in multifamily buildings limit or ban STRs outright. You must check CC&Rs and HOA guidelines before you apply or go live. The Town explicitly reminds applicants to confirm eligibility, including HOA limits. Application PDF

Tenants and investors should also review lease terms. Many leases prohibit subleases or short stays. Insurance and mortgage agreements can have notice or coverage requirements for STR use.

Enforcement, penalties and compliance risks

By applying, you consent to inspections with reasonable notice. The Town can suspend a license if a condition is unsafe and can use administrative citations, civil action, or criminal charges for serious or repeat violations. Application PDF

Penalty exposure can be material:

• Civil penalties up to $1,000 per day if the Town prevails in civil action
• Escalating administrative fines for repeat violations, with higher amounts after three citations in 12 months
• If there are repeated violations over 24 months, some may be treated as misdemeanors
• Licenses can be revoked for unpaid taxes, material misstatements, attempted transfer, or three upheld citations within 24 months

Practical risk reducers: set quiet hours, share neighbor contact info for your local agent, respond fast to any complaint, and stick to the parking plan and guest caps.

What this means for investors and sellers (financial & underwriting implications)

The 75-day cap, occupancy limits, and tax reporting obligations are the big levers in Corte Madera. They shape income, guest mix, and operating cost.

Investor implications:

• Revenue model: Underwrite with a hard 75-night annual limit. Focus on peak-season ADR and high-quality bookings. Conservative seasonality is wise.
• Expense model: Add the application fee, safety gear, signage, business license, insurance adjustments, cleaning, and a reserve for citations.
• Tax drag: Account for TOT on each qualifying stay and build a workflow to remit monthly. Platforms may not remit for you.
• Exit risk: Licenses are non-transferable and do not run with the land. A buyer cannot assume they will inherit your license or eligibility. This affects exit cap rates and marketing.

Seller implications:

• If your property is STR-eligible, lead with compliant, light-footprint hosting potential. Show documentation, approved parking, and clean reporting.
• If STR use is restricted, position the home for long-term rental strength or lifestyle value. Avoid implying that a buyer can continue short-term hosting without their own license.

Practical owner checklist and next steps

• Confirm parcel eligibility with the Town’s Planning Division under CMMC §5.34.040. Town STR page
• Review CC&Rs, HOA rules, and any lease or loan terms that may restrict STRs.
• Prepare your application: business license, 24/7 local contact, parking plan, safety checklists, floor and egress plans, interior signage, photos, and maps. Application PDF
• Model income with a 75-day cap and build in taxes and compliance costs.
• Set up the Town’s online tax account, confirm platform tax settings, and schedule monthly reporting. Town STR page
• Build a neighbor and complaint-response plan before you launch.

Local resources & contacts (where to confirm authority)

• Town of Corte Madera Short-Term Rentals hub: program overview, application package, reporting links, and contacts. Start here and follow the steps to reach Planning, Finance/TOT, and Code Enforcement. Town STR page
• Short-Term Rental License Application Package: full checklist, safety forms, signage template, parking plan requirements, reporting obligations, and penalty details. Application PDF
• Ordinance archive: see Ordinance No. 1031 listing and confirm effective dates. Ordinance archive listing

Conclusion and client next step

Local rules in Corte Madera are clear and strict, and they can make or break your short-term rental plan. Before you list or buy, confirm eligibility, budget for the cap and taxes, and set up a compliant operation.

If you would like a property-specific assessment or help modeling cash flow, I am here to help. I will review eligibility, underwriting, and exit strategy and connect you with the right local contacts. To talk through your plan with a seasoned Bay Area advisor, Schedule a strategy call.

Looking for tailored guidance on a specific address? Connect with Steve Giannone for a discreet, data-driven consultation.

FAQs

What counts as a short‑term rental in Corte Madera?
A furnished residential space rented for 30 days or fewer. This use requires a town STR license. Town STR page

How many nights can I rent each year?
The town caps STR use at 75 days per calendar year. Application PDF

Is an STR license transferable if I sell?
No. Licenses are non-transferable and do not run with the land. A buyer must apply on their own. Application PDF

Do Airbnb or VRBO collect taxes for me?
Sometimes, but not always. If a platform does not collect and remit TOT to the Town, the host must collect and pay it. Monthly reporting is required even for zero revenue. Town STR page

What are the occupancy and parking rules?
Occupancy is limited to two people per bedroom, plus up to two more if there is a separate living space. You must follow your approved parking plan and avoid blocking shared access. Application PDF

What happens if I do not comply?
Expect inspections, citations, escalating fines, possible civil penalties up to $1,000 per day, and license suspension or revocation for repeat or serious violations. Application PDF