Overview: Are Short-Term Rentals Allowed in Potrero Hill, San Francisco?

Yes—short-term rentals are allowed in San Francisco, including Potrero Hill, under the city’s Office of Short-Term Rentals (OSTR) framework. However, they are tightly regulated. Hosts may rent only their primary residence, must be permanent residents of the unit, and must register annually with OSTR while maintaining all required insurance and tax obligations. Unhosted rentals (entire home without the host present) are capped at 90 nights per year. There is no separate Potrero Hill–specific ordinance; Potrero Hill is governed by citywide rules. Hosts must also comply with county and state requirements, including San Francisco’s 14% Transient Occupancy Tax (TOT) and California’s statewide short‑term rental laws.

How to Start a Short-Term Rental Business in Potrero Hill

1. Confirm Eligibility and Zoning

• Ensure your property is eligible under San Francisco law:
  • Primary residence requirement: You must occupy the unit as your permanent residence.
  • Property type: Affordable housing units, student dormitories, and other ineligible categories are excluded.
  • Zoning and building compliance: Ensure the unit meets zoning and building/safety codes.
  • Hosts may rent hosted stays without a night cap; unhosted stays are limited to 90 nights per year.
• Verify you have the right to operate an STR (e.g., check HOA/Condo rules if applicable).

2. Register Your STR (Two Certificates)

• Obtain a Business Registration Certificate from the Treasurer & Tax Collector’s Office.
• Apply for a Short-Term Residential Rental Certificate (often abbreviated STR or “OSTR Certificate”) from the Office of Short-Term Rentals (OSTR), Planning Department.
• Display your registration number on all listings (Airbnb, VRBO, etc.).

3. Maintain Required Insurance

• Carry liability insurance of at least $500,000 for your short-term rental unit. Maintain records to demonstrate ongoing compliance.

4. Set Up Tax Collection and Remittance

• Collect the 14% Transient Occupancy Tax (TOT) from guests.
• Register with the Treasurer & Tax Collector’s Office to report and remit TOT.
• Quarterly reporting to OSTR is required (nights rented, activity summaries).
• Budget for compliance costs and potential audits.

5. Prepare and Operate

• Prepare the unit to meet safety and amenity expectations.
• Comply with platform requirements (e.g., showing the registration number on listings).
• Track nights rented, guest data, and income; keep records for at least two years.
• Understand that annual renewal is mandatory for continued operation.

Required Documents, Permits, Licenses, and Guidelines

• Short-Term Residential Rental Certificate (OSTR)

  • Issued by OSTR; primary residence proof is required; annual renewal.
  • Registration number must be displayed on all listings.
  • Application includes business registration certificate and insurance.
  • Keep compliance records for at least two years; OSTR may conduct reviews.

• Business Registration Certificate

  • Issued by the Treasurer & Tax Collector’s Office.
  • Required before or alongside OSTR registration; needed for tax compliance.

• Liability Insurance

  • Minimum $500,000 in liability coverage for the STR unit.
  • Keep current policies and proof of coverage.

• Transient Occupancy Tax (TOT) Registration

  • Register with the Treasurer & Tax Collector to collect and remit the 14% TOT.
  • Maintain guest records and remittance history.

• Platform Requirements

  • Display the city-issued registration number on listing platforms.
  • Follow platform rules (occupancy limits, cancellation, safety, etc.).

• Record-Keeping

  • Maintain detailed records for at least two years.
  • Be prepared for audits and enforcement checks.

Specific Regulations: City, County, and State

City (San Francisco) Regulations

• Primary Residence Only

  • Only permanent residents (owner or lessee) may operate an STR in their primary residence.
  • Unhosted rentals capped at 90 nights per year.
  • No cap on hosted stays (host present).

• Registration and Fees

  • Business Registration Certificate required (Treasurer & Tax Collector).
  • OSTR registration required (Planning Department).
  • A non-refundable registration fee of $750 is required during application; hosts must renew annually.

• Insurance and Compliance

  • $500,000 minimum liability insurance.
  • Registration number displayed on all listings.
  • Quarterly reporting to OSTR.
  • Detailed record-keeping for at least two years.

• Taxes

  • 14% Transient Occupancy Tax (TOT) applies to all short-term rentals.
  • Hosts are responsible for collecting and remitting TOT.

• Ineligible Property Types

  • Affordable housing units and student dormitories are not eligible for STR operation.

• Enforcement

  • OSTR conducts enforcement investigations and may issue fines for violations.
  • Penalties for non-compliance can be significant; daily fines may be assessed.
  • Hosting platforms have obligations to inform users about regulations; some enforcement efforts are driven by resident complaints.

County (San Francisco County) Regulations

• San Francisco is a consolidated city-county. City rules apply countywide.

State (California) Regulations

• California applies statewide short‑term rental frameworks and obligations (e.g., tax collection responsibilities). Confirm the latest statewide rules through the city’s official resources or the California Department of Tax and Fee Administration (CDTFA) if you need tax specifics.
• Statewide anti‑price gouging rules apply during emergencies but are not directly operational constraints for normal STR activity.

Contact Information for Local STR Authorities

• Office of Short-Term Rentals (OSTR), Planning Department

  • Phone: (415) 558-6470
  • Email: [email protected]
  • Website: sf.gov/departments/planning/office-of-short-term-rentals
  • OSTR handles registration, compliance review, and enforcement for STRs in San Francisco.

• Treasurer & Tax Collector (Business Registration & TOT)

  • Phone: (415) 554-4400
  • Website: sftreasurer.org/
  • Issues Business Registration Certificates; oversees Transient Occupancy Tax.

• Rent Board (related rental compliance context)

  • Website: www.sf.gov/departments/rent-board
  • Provides broader rental compliance context and resources.

Source Links

• Move East: Short-Term Rentals Upon Arrival in SF (legal requirements and process):
  • www.moveeast.com/blog/short-term-rentals-upon-arrival-in-sf/
• Ray Realtor: Navigating 2025 Rental Laws in San Francisco (rent control context and OSTR overview):
  • rayrealtor.com/blog/navigating-2025-rental-laws-in-san-francisco
• The San Francisco Standard: San Francisco Airbnb bookings plunge as city battles bad press (host landscape, occupancy trends, OSTR enforcement context):
  • sfstandard.com/2023/07/05/san-francisco-airbnb-bookings-plunge-as-city-battles-bad-press/
• City Budget & Legislative Analyst Report (2016): Short-Term Rentals Update (compliance, registration, enforcement):
  • www.sfbos.org/Modules/ShowDocument.aspx?documentid=55575
• SF Treasurer & Tax Collector: Transient Occupancy Tax (TOT):
  • sftreasurer.org/business/taxes-fees/transient-occupancy-tax-tot
• San Francisco Office of Short-Term Rentals (OSTR):
  • sf.gov/departments/planning/office-of-short-term-rentals
• San Francisco Rent Board:
  • www.sf.gov/departments/rent-board

Note on Updates: Regulations can change. For the latest requirements, fees, and enforcement practices, confirm directly with OSTR and the Treasurer & Tax Collector before applying or renewing.