Is Rental Arbitrage Legal in San Francisco, CA?
Only in your own home. San Francisco registers short-term rentals only for permanent residents who live in the unit at least 275 nights a year, and stays without the host present are generally capped at 90 nights a year. Tenants can register, but can't charge more in short-term rent than their own rent.
Can a renter do rental arbitrage here? Only your own home. Short-term rentals are licensed only in the host's own primary residence, so leasing a separate unit to rent out is not possible.
Requirements
- Business Registration Certificate from the Treasurer and Tax Collector
- Short-term rental registration with the Office of Short-Term Rentals ($925 application fee; valid for two years)
- Permanent residence: at least 275 nights a year in the unit, after living there at least 60 days
- Liability insurance of at least $500,000, unless the platform provides it
- Registration or certificate number on every listing
- Quarterly reports for approved registrations, due at the end of January, April, July and October
- Separate listings for hosted stays and un-hosted stays, and neither listing may misrepresent the other
- Questions go to the Office of Short-Term Rentals at shorttermrentals@sfgov.org or 628.652.7599
Restrictions
- Unhosted stays are generally limited to 90 nights a year
- Only the host's own residence can be rented, even in a multi-unit building
- Tenants can't earn more from short-term rentals than their monthly rent
- Hosted stays, where you are in the unit overnight with the guest, have no stated night limit
- Ineligible units include income-restricted affordable housing, student housing, buildings where a tenant was evicted under the Ellis Act after November 1, 2014, accessory dwelling units and junior ADUs, RVs, non-residential spaces, and units in the Presidio, Fort Mason and Treasure Island
- Single room occupancy hotels are ineligible except during the May to September tourist season
- Continuing to host after a denial can cost $484 per day for each unit
Taxes and Fees
- Transient occupancy tax: 14% (Airbnb and other qualified platforms collect it for the host)
Official permit or registration page
Next Step
Legal is one half of the decision. The other half is whether the deal earns enough to be worth the risk.
Run the numbers for San Francisco, CA See the San Francisco, CA market
Sources
Frequently Asked Questions
- Can I Lease an Apartment in San Francisco Just to Rent It Out Short-Term?
- No. The host must be a permanent resident who lives in the unit at least 275 nights a year, and unhosted stays are generally capped at 90 nights a year.
- Can Tenants Register?
- Yes, for their own residence. The Office of Short-Term Rentals doesn't enforce lease terms, but tenants can't earn more from short-term rentals than their rent.
- What Does Registration Cost and How Long Does It Last?
- A $925 application fee, and the certificate is valid for two years.
- What Insurance Is Required?
- Liability insurance of at least $500,000, unless the platform provides the cover.
- What Tax Applies?
- The 14% transient occupancy tax. Airbnb and other qualified platforms collect and remit it for the host.