Wednesday, April 17, 2013

Vacation Rental Owners Blog

Vacation Rental Owners Blog

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San Francisco’s Rules & Regulations for Vacation Rentals

Posted: 17 Apr 2013 02:00 AM PDT

san francisco rentalsUrban environments tend to be trickier for vacation rental owners. In San Francisco, city administrators are pressed to protect the tight rental market for residents of varying income levels while recognizing the new reality of short-term rentals. The fact that Airbnb is headquartered in San Francisco has made it a heated political issue.

Technically, short-term rentals in San Francisco are illegal as spelled out in Administrative Code 41A, which includes corporate rentals. Enforcement, however, is passive; and last year the city decided to apply the 14% transient occupancy tax (also called hotel tax) to vacation rentals (defined in San Francisco as occupancy of less than 30 days). In addition to the hotel tax, you must remit a 1% or 1.5% tourism fee depending on your zone.

In theory you can become a licensed operator by obtaining a B&B permit, but it's reportedly a lengthy (years) and expensive (thousands of dollars) process that isn't guaranteed to result in success.

If you do get reported, you will be asked to discontinue renting before any legal action is taken. If you don't stop, and you are found in violation, fines are $1,000 per rental day plus legal fees.

The debate rages on, though, so stay tuned. The board of supervisors recently amended the code so that nonprofits that protect housing rights can initiate proceedings against short-term rentals and keep the fines. This could increase the number of complaints being filed unless other agreements are reached to protect the number of affordable long-term rentals.

* Note: Be sure to verify rules and regulations for your city or consult a lawyer before making any decisions about your short-term rental.

photo credit: Thomas Hawk
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