San Francisco remains a vibrant destination for travelers, making it an attractive market for short-term rental hosts. However, strict regulations govern hosting in the city, designed to balance tourism with the needs of the local community. As a host, it’s crucial to stay compliant while offering a great experience to your guests. This guide outlines key regulations, including licensing, taxes, and neighbor relations, along with hosting tips to help you navigate San Francisco’s short-term rental landscape effectively.

1. Licenses:

In San Francisco, there are two licenses involved in operating a short-term rental:

- A Short-Term Residential Rental Certificate from the Office of Short-Term Rentals.

- A Business Registration Certificate from the Office of the Treasurer & Tax Collector.

Both licenses are mandatory, and failure to obtain them can result in penalties. The application process involves a one-time registration fee, and your Short-Term Residential Rental Certificate must be renewed bi-annually.

Tip: Start the registration process early, as approval can take several weeks. Ensure all required documentation, such as proof of primary residence, is submitted promptly.

2. Primary Residence Requirement

San Francisco’s regulations stipulate that the property must be your primary residence. This means you must live in the unit for at least 275 days per year.

Tip: Keep records such as utility bills or leases to verify that the property is your primary residence, as it will be required to obtain a license.

3. Natural Person Requirement

Only a "natural person" (an individual) — not a corporation or other entity — can register as a short-term rental host. This ensures that individuals, rather than companies, operate these rentals.

Tip: If you’re managing multiple properties or considering forming a company, you do not meet the requirement for owning a short-term rental in San Francisco.

4. Length of Stay and the 90-Day Rule

For entire homes, rentals are limited to a maximum of 90 days per year. However, if you rent out part of your home while you are present, you can host year-round.

Tip: Use a calendar to track your rental days and ensure compliance with the 90-day rule. Violating this regulation can lead to significant fines.

5. Neighbor Notification

Hosts are required to notify neighbors about their short-term rental activities. This transparency aims to foster good relationships and prevent potential conflicts.

Tip: Consider delivering a brief letter or email explaining your short-term rental plans and providing your contact information in case any issues arise.

6. Parking Regulations

Parking in San Francisco can be challenging, and hosts must ensure that their guests comply with local parking laws. Guests are not allowed to block driveways or exceed on-street residential parking limits.

Tip: Provide clear parking guidelines to your guests before their arrival to avoid fines or disputes with neighbors.

7. Transient Occupancy Tax (TOT)

San Francisco requires hosts to collect and remit a 14% Transient Occupancy Tax (TOT) on all short-term rentals. Many platforms, such as Airbnb, handle this process automatically, but you are responsible for ensuring these taxes are paid.

Tip: Verify whether your platform collects taxes on your behalf. If not, you are responsible for filing the taxes directly with the city.

8. Advertisement Requirements

All rental advertisements must display your short-term rental registration number. Failing to include this number can lead to fines and removal of your listing.

Tip: Ensure that your registration number is prominently displayed on all listings and promotional materials.

9. Waste Management and Noise Control

San Francisco mandates that hosts provide clear waste management instructions, ensuring proper trash, recycling, and compost disposal. Noise control is also crucial—hosts must adhere to the city’s noise ordinances to avoid disturbing neighbors.

Tip: Post waste disposal instructions in a visible location within your property and remind guests about quiet hours to prevent noise complaints.

10. Insurance Requirement

San Francisco’s regulations require hosts to maintain adequate insurance coverage for short-term rentals. The insurance must cover personal injury and property damage liability.

Tip: Some Short-term rental hosting platforms provide this coverage specifically designed for short-term rental properties.

11. Hosting Tips for Success in San Francisco

• Offer Clear Communication: Respond quickly to inquiries and provide detailed check-in and check-out instructions.
• Enhance the Guest Experience: Include local recommendations such as nearby restaurants, attractions, and transportation options.
• Prioritize Safety: Equip your rental with smoke detectors, carbon monoxide alarms, and first aid kits. Provide emergency contact information for guests.
• Respect Local Culture: San Francisco is known for its diverse communities. Encourage guests to be mindful and respectful of the city’s unique character and neighborhoods.

Hosting a short-term rental in San Francisco can be rewarding, and complying with the city’s regulations on licenses, taxes, insurance, neighbor notifications, and more will help ensure a positive experience for both your guests and neighbors. Want to become an informed and compliant host in one of the world’s most iconic cities? Subscribe to Lodge Compliance Premium Resource to learn the intricacies of hosting in San Francisco.