Short-Term Rental Laws in San Francisco – What Hosts Need to Know
San Francisco attracts millions of visitors and short-term rental services like Airbnb and VRBO have become a popular option to traditional leases. San Francisco has implemented strict rules and regulations that govern short-term rentals, To avoid potential fines and legal repercussions – make sure you know the rules that apply to your property.
1. Are there Registration Requirements?
Hosts must register their short-term rental with the San Francisco Office of Short-Term Rentals (OSTR) before listing it on platforms like Airbnb or VRBO. Registration ensures that you are in compliance with local regulations and pay applicable taxes.
You need the following:
A Business Registration Certificate for your property from the San Francisco Office of the Treasurer & Tax Collector; and either
Then received a certificate from the Office of Short-Term Rentals, and posted the certificate number on all listings advertising a short-term rental; or
You have a complete application pending review with the Office of Short-Term Rentals, currently reside in the Residential Unit as a Permanent Resident, and no City complaints or enforcement actions are pending against the entire property.
LEARN MORE: San Francisco Office of Short-Term Rentals (OSTR)
2. Are there limitations on how many days a year I can rent?
Short-term rentals in San Francisco are subject to strict limitations on what type of buildings can host short-term rentals and the number of days a property can be rented out each year. Know the restrictions that apply to your property:
If you own a multi-unit building, you may only offer for short-term rental one of the Residential Units in the multi-unit building.
Even if you or your family may use all units, only one may be offered for short-term rental AND you must no longer live in any of the other Residential Units.
Hosts may only conduct 90 un-hosted short-term rentals per calendar year.
3. Do I have to be a resident of San Francisco?
Hosts must be permanent residents of the property they wish to rent out for short-term stays.
Non-resident hosts are prohibited from offering short-term rentals, with few exceptions.
To be a permanent resident, you must reside in your unit for at least 275 nights per year.
Absentee owners who live in San Francisco less than 275 days per year are not eligible to engage in short-term rentals.
4. Can I Airbnb my Condo, TIC or Coop?
The answer is almost always No.. Multi-unit buildings are restricted by the governing documents (CCRs, TIC Agreement or Master Lease). Governing documents generally specify the terms under which an owner can lease their unit, and if so, any terms that must be included. Homes in multi-unit buildings in San Francisco typically require that a lease be for a minimum of 30 days, effectively outlawing short term rentals in the building. Make sure you have read the governing documents for your building.
5. What properties are ineligible for short-term rentals?
Certain types of properties are never eligible for short-term rental. Below is a list of inelgible property types based on the current rules.
Income-restricted affordable housing, including Below-Market-Rate (BMR) units and public housing.
Student housing, dormitories, and Single-Room-Occupancy (SRO) buildings.
Buildings subject to an Ellis Act (No Fault) eviction after November 1, 2014 (even if by a prior property owner).
Legally established Accessory Dwelling Units (ADUs) or Junior ADUs (JADUs); which are a specific type of "in-law" or "granny flat" approved by the Department of Building Inspection. Only rentals/listings for 30 days or longer, per guest (30-day minimum stay), are allowed in ADUs. Please note that "housekeeping units" are not classified as ADUs; but are considered an entirely separate individual dwelling unit. Short-term rentals hosts must live in the same individual dwelling unit, so they could not reside in the main unit and utilize the "housekeeping units" for short-term rentals (or vice versa).
Sleeping quarters in most shipping containers and outdoor areas, including tipis (teepees) and tree houses.
Sleeping quarters in vans or recreational vehicles (RVs; this may also violate the Police Code). RVs are not considered residential units.
Non-residential areas within buildings, such as living/sleeping quarters added in garages, storage areas, closets, halls, or utility spaces without benefit of permit.
Commercial office/retail or industrial (warehouse) spaces.
Properties located in Treasure Island, Fort Mason, or The Presidio.
Boats or similar watercraft (prohibited by Harbormasters); unless a sole operator at Pier 39 not subject to OSTR registration.
6. Compliance with Building Codes
Ensure that your property complies with all applicable building and housing codes. Certain safety and accessibility requirements must be met to ensure the well-being of guests.
7. Transient Occupancy Tax (TOT)
Hosts are responsible for collecting and remitting transient occupancy tax on short-term rental income. Make sure you know the tax rates and reporting procedures to fulfill your obligations. Sites like Airbnb take care of collecting these taxes in most major cities.
LEARN MORE: San Francisco Treasurer & Tax Collector - Transient Occupancy Tax
TIPS
Keep Detailed Records: Maintain thorough records of all revenue and costs associated with your short-term rental, including guest information, rental agreements, and tax documents.
Stay Informed: Stay updated on any changes or amendments to short-term rental regulations in San Francisco.
It's important to understand San Francisco's short-term rental laws, follow best practices, and stay informed to enjoy the benefits of short-term rentals.
