City of San Jose Finance Department 408-535-7055
Their schedule of fees and ordinance explanation: http://www.csjfinance.org/giball.asp
Despite the contradiction you will find in some answers below; you do in fact need a business license. If you have 3 units or more it is required. Some people may believe that a single family home or a duplex is exempt but if you have three separate tenants in one property or two, the license is still required.
It is always best to work with a Certified Property Manager when renting out property. They will have answers like this and also carry liability for you if they give you incorrect advice. Just like you would rely on a CPA for tax advice and an Attorney for legal advice.
See my previous comments below.
Mark Burns, Realtor
Coldwell Banker Elite - Top 2% Worldwide
DRE #00896552 Licensed since 1985
Over 600 Homes Sold in Silicon Valley
Member - Tri-County Apartment Association