Owning a Rental in Yolo County: Davis Registration, Woodland Short-Term Rules and State Caps

Yolo County is a renter’s county. The Census puts the owner-occupancy rate at 54.3%, so nearly half of occupied homes are rented, and UC Davis, with 39,414 students, makes university-linked housing an important part of the local market. Many Yolo buyers are investors, parents buying near the university, or owners who plan to rent later. The rules that apply depend on the city.

This guide summarizes the main state and local rules and what to check before buying a rental. It draws on city and state pages and is general information, not legal advice; have a California landlord-tenant attorney review your plans. For prices, cities and county rules, start with the Yolo County overview.

State rules apply everywhere

For long-term rentals, the state Tenant Protection Act caps annual rent increases for covered units and requires just cause for many evictions. Yolo is in the Attorney General’s “all other counties” row, where the cap is 8.6% for increases that start between August 1, 2026 and July 31, 2027, up from 7.7% the year before. Whether a unit is covered depends on its age, its ownership and whether the required notice has been given; many single-family homes owned by individuals are exempt if the tenant received the exemption notice. Our guide to AB 1482 for landlords explains the details. Check any applicable local and mobilehome protections separately; the state chart does not resolve every tenancy.

Davis: registration, local management and inspections

The City of Davis requires covered rental properties to be registered, with a published exemption procedure. According to the city’s landlord resources, owners who live more than 50 miles away must designate an authorized non-tenant local contact or property manager within 50 miles, single-family rentals are subject to random inspections, landlords must provide a move-in inspection checklist, and tenants must receive renters’ rights information. Before buying a Davis rental, ask the seller for the registration and any inspection records, and confirm what will need to change when ownership transfers.

Davis also limits growth at its edge through Measure J/R/D, which requires a public vote to develop farmland or open space there, so most rentals are in existing neighborhoods. Near campus, the student calendar often shapes leasing.

Woodland: short-term rental permits

Woodland allows short-term rentals in five zoning districts with a zoning administrator permit and a business license, and transient occupancy tax applies. According to the city, only the owner may apply, the owner must have held the property for at least two years, each person may hold only one permit, and permits cannot be transferred. A buyer cannot take over a seller’s short-term rental permit, and a new owner would need to wait two years to apply.

West Sacramento, Winters, Davis short-term rentals and the county

We could not confirm current official short-term rental rules for West Sacramento, Winters, Davis or unincorporated Yolo County. If short-term rental income matters to your purchase, ask the city or county planning department in writing before you rely on it, and ask whether a business license and transient occupancy tax apply.

Buying a rental that already has tenants

If the home is occupied, ask for the lease, rent history, deposits, any notices given and any estoppel certificate the tenant will sign. Confirm whether the unit is covered by the Tenant Protection Act and whether the exemption notice was given. Our guides to buying tenant-occupied property and estoppel certificates explain the steps.

Run the numbers on the actual costs

Before buying, build a rental budget with the actual tax bill, including any Mello-Roos lines, insurance, HOA dues, management, registration and inspection costs, and a vacancy allowance. Our rental property analysis guide and Yolo special tax guide can help.