Owning a property affords some San Francisco residents the opportunity to derive income. If they do not want to rent the property outright, but are willing to use it as a short-term rental, it can be a lucrative endeavor, particularly for vacationers and people who will be in the area for a short time.
However, there are legal requirements to short-term rentals. That includes making sure that the renter lives in the property for the required amount of time and that their property is eligible to be a short-term rental. For those who are thinking about using their property in this way, it is important to be up to date on the applicable laws.
Understanding short-term rentals and the law
Short-term rentals can be rented in whole or in part for fewer than 30 nights. The renter must be categorized as a permanent resident at the property. That means they must live there for a minimum of 275 nights over the course of a calendar year. The property can be rented for as many as 90 nights when the owner is not present as a host.
It is imperative to register with the City of San Francisco if the property is to be used as a short-term rental. The renter needs to get a Business Registration Certificate and one of the following: a certificate from the Office of Short-term Rentals or a complete application pending review with that office while residing in the unit as a permanent resident. There cannot be complaints or enforcement against the property.
Specific properties cannot be used as short-term rentals. That includes income-restricted housing, student housing, dorms, buildings that were subject to a no-fault eviction (the Ellis Act), sleeping quarters in shipping containers or RVs, commercial spaces, boats, and group housing properties, among others.
Short-term rentals should adhere to the law
When thinking about profiting by renting a property out on a short-term basis, it is not as simple as putting an ad online and having people come to stay. There are myriad rules and requirements that must be followed. To avoid making missteps that can cause costly problems, it is wise to have comprehensive legal guidance that understands all areas of real estate law.