Short-term rental platforms like Airbnb and VRBO have transformed the hospitality industry, allowing homeowners to rent out properties for extra income. However, California cities enforce strict regulations on short-term rentals, including permit requirements, taxes, and zoning restrictions. If you are a property owner looking to rent on Airbnb or VRBO, it’s essential to understand local laws to avoid fines and legal issues. In this blog post, we’ll explore California’s short-term rental regulations and what hosts need to know.
Are Short-Term Rentals Legal in California?
Short-term rentals (stays of 30 days or less) are generally allowed in California, but local city laws vary. Some cities ban or limit Airbnb and VRBO rentals, while others require permits and taxes.
Common Short-Term Rental Restrictions
- Host Residency Requirements – Some cities only allow short-term rentals if the owner lives on the property (e.g., Los Angeles).
- Cap on Rental Nights – Many cities limit short-term rentals to 90-120 days per year.
- Zoning Laws – Some residential areas prohibit short-term rentals entirely.
City-Specific Regulations for Airbnb and VRBO in California
Los Angeles
- Requires Home-Sharing Registration for primary residences.
- Short-term rentals limited to 120 days per year unless granted an extended-stay permit.
- Hosts must collect and pay transient occupancy taxes (TOT).
San Francisco
- Hosts must live in the property at least 275 days per year.
- Rentals limited to 90 days per year for unhosted stays.
- Requires business registration and short-term rental certificate.
San Diego
- Tiered permit system limits short-term rentals, with lotteries for non-owner-occupied properties.
- Hosts must pay transient occupancy tax (TOT).
Tax Obligations for Airbnb and VRBO Hosts
California short-term rental hosts may be required to:
- Register with the city for tax collection.
- Pay Transient Occupancy Tax (TOT) (varies by city).
- Report rental income on state and federal tax returns.
How to Legally Operate a Short-Term Rental in California
To stay compliant with California laws:
- Check local city regulations before listing a property.
- Obtain permits and business licenses if required.
- Pay all applicable taxes on rental income.
- Follow HOA and lease agreement rules if renting a condo or apartment.
While Airbnb and VRBO offer great income opportunities, California’s local laws and taxes make compliance essential. If you are facing short-term rental disputes, permit issues, or tax concerns, Law Advocate Group, LLP can help. Contact us today for expert legal guidance on Airbnb and VRBO regulations.
