Is Rental Arbitrage Legal in California?
In California, short-term rental rules are set by cities, and Los Angeles, San Diego and San Francisco each run their own registration or license system. Each city also sets its own transient occupancy tax, for example 14% in Los Angeles and San Francisco.
Requirements
- Check the rules of the city the property is in
- Register for the city's transient occupancy tax
Taxes and Fees
- City transient occupancy tax, set by each city
Cities in California
Next Step
Legal is one half of the decision. The other half is whether the deal earns enough to be worth the risk.
Sources
Frequently Asked Questions
- Does California Have a Statewide Short-Term Rental Law?
- No. Cities set the rules, and Los Angeles, San Diego and San Francisco each run their own system.
- Where in California Is Rental Arbitrage Possible?
- Of the cities on this site, only San Diego licenses a renter to run a whole unit, one license per person. Los Angeles and San Francisco only allow the host's own home.
- What Tax Applies to California Short-Term Rentals?
- Each city sets its own transient occupancy tax, for example 14% in Los Angeles and San Francisco.