San Francisco, California Short Term Rental Regulations Guide for Airbnb hosts

Executive Overview: STR Status in San Francisco

Short-term rentals are allowed in San Francisco, CA, but under strict regulatory framework. The city permits short-term residential rentals (stays under 30 nights) only for permanent residents who live in their units as their primary residence. This represents a significant shift from pre-2015 when all short-term rentals were illegal in the city. San Francisco operates under a charter city authority that allows local regulation of short-term rentals while maintaining compliance with state law.

Key Framework: The city operates under the "hosted vs. un-hosted" model where permanent residents can host unlimited stays when present with guests, but are limited to 90 un-hosted nights per calendar year. This regulatory structure balances housing preservation with legitimate home-sharing opportunities.

How to Start a Short-Term Rental Business in San Francisco

Step 1: Eligibility Assessment

Before proceeding with any applications, you must verify that both you and your property meet all eligibility requirements:

Host Requirements:

You must be a permanent resident of San Francisco
Must be an owner or tenant of the unit you plan to rent
Must have lived in the dwelling for at least 60 days before applying
Plan to live in the unit for at least 275 nights per year
Must maintain only one primary residence

Property Requirements:

Must be compliant with all City codes
Cannot be located in The Presidio, Fort Mason, or Treasure Island
Cannot be a Single-Room-Occupancy (SRO) or dormitory
Cannot be a Below-Market-Rate (BMR) or Public Housing unit
Must be permitted and designed for residential use
Cannot be subject to an Ellis Act eviction after November 2014
Cannot have sleeping quarters in outdoor areas, including treehouses and vehicles

Step 2: Business Registration

You must register your hosting business with the Treasurer & Tax Collector BEFORE applying for short-term rental certification.

Apply for a Business Registration Certificate (Business Account Number/BAN)
If you already have another business registered, update your account to add hosting
Select industry type "Accommodations"
Fee structure is variable based on gross receipts or payroll expenses

Step 3: Short-Term Rental Application

After obtaining your Business Registration Certificate, apply to the Office of Short-Term Rentals:

Complete the online application through the SF Public Planning Portal
Submit all required documentation (detailed in next section)
Pay the non-refundable $925 application fee
Application is valid for two years upon approval

Step 4: Platform Compliance

Once approved, you must ensure your listing complies with hosting platform requirements:

Display your registration number prominently in all listings
Separate listings are required for hosted vs. un-hosted stays
Maintain accurate property descriptions
Comply with platform-specific insurance and safety requirements

Required Documents, Permits, and Licenses

Primary Registration Documents

1. Business Registration Certificate

Issued by San Francisco Office of the Treasurer & Tax Collector
Receipt of pending application is sufficient to begin certification process

2. Short-Term Rental Application

Available through SF Public Planning Portal: sfplanning.org/str/become-certified-host
Non-refundable fee: $925 (valid for two years upon approval)

3. Proof of Property-Liability Insurance

Minimum $500,000 coverage required
Proof not required if hosting exclusively through platforms providing this coverage (Airbnb, VRBO)
Encourage discussion with personal insurer about coverage adequacy

4. Proof of Permanent Residency Two of the following documents (no more than one utility bill):

California Driver's License
SF City ID Card
Vehicle Registration Card from California DMV
Proof of Homeowner's Tax Exemption (single-family dwelling or condominium only)
Original utility bill from SFPUC, Recology, or PG&E (with payment stub)
Voter Registration Card or Certificate

Ongoing Compliance Documents

5. Quarterly Reports

Required for approved hosts only
Due January 31, April 30, July 31, and October 31
Submitted through OSTR Public Portal

6. Transient Occupancy Tax (TOT) Registration

14% tax on gross rental income for stays under 30 days
Administered by Treasurer & Tax Collector
Airbnb currently the only Qualified Website Company in San Francisco

7. Business Personal Property Tax

Form 571-STR required annually
Filed with San Francisco Assessor-Recorder's Office

Specific Regulations for Short-Term Rentals

Host Limitations and Requirements

Residency Requirements:

Must spend at least 275 nights per calendar year in the rental unit
Can only register one residential unit (if you own a multi-unit building, only the unit where you reside)
Must be present at least 75% of days occupied if haven't lived there full year

Rental Activity Limits:

Hosted stays: Unlimited when host is present overnight in same unit as guests
Un-hosted stays: Maximum 90 nights per calendar year
Must create separate listings for hosted vs. un-hosted stays

Revenue Restrictions (Tenants Only):

Monthly STR revenue cannot exceed monthly rent payment
Applies only to units subject to rent control provisions

Ineligible Property Types

Permanently Ineligible Properties:

Income-restricted affordable housing and BMR units
Student housing, dormitories, and SRO buildings (except seasonal exceptions)
Buildings subject to Ellis Act eviction after November 2014
Legally established ADUs or JADUs (only 30+ day rentals permitted)
Sleeping quarters in shipping containers, outdoor areas, vehicles
Non-residential areas in commercial/industrial buildings
Properties in Treasure Island, Fort Mason, or Presidio
Boats or watercraft
Group Housing properties

Special Regulations for Specific Property Types:

Residential Hotels: Limited tourist room allowances based on DBI list
Tourist Hotels and Timeshares: Exempt from OSTR registration, use BAN number
Live/Work Units: STR allowed only in "live" area, not "work" portion

Intermediate Length Occupancies (ILOs)

Definition: Rentals for 30+ consecutive days but less than 364 days

Maximum 1,000 ILO units permitted citywide
Requires specific permit separate from STR certification
Not subject to short-term rental regulations or TOT

Tax and Fee Obligations

Transient Occupancy Tax (TOT):

14% tax on gross rental income for stays under 30 days
Currently collected and remitted by Airbnb
If hosting through other platforms, individual collection and remittance required

Tourism Improvement District (TID) Assessment:

Additional assessment administered with TOT
Applies to same stay duration as TOT

Business Personal Property Tax:

Annual reporting of business property inventory
Potential tax liability based on reported property value

Platform and Listing Requirements

Registration Display:

Unique record number for pending applications (e.g., 2023-123456STR)
Certificate number for approved applications (e.g., STR-0001234)
Incorrect numbers can result in listing removal and reservation cancellation

Listing Accuracy:

Must clearly indicate hosted vs. un-hosted stays
Cannot describe hosted stay as entire unit or exclusive access
Must reflect actual spaces and occupancy arrangements

Compliance and Enforcement

Quarterly Reporting Requirements:

Only approved hosts must file quarterly reports
Report all short-term stays during three-month periods
Failure to file can result in certificate suspension

Insurance and Safety Requirements:

Maintain minimum $500,000 liability insurance
Post safety information sign inside front door with emergency information
Ensure unit complies with all building and housing codes

Appeals Process:

30-day window to appeal application denials or certificate revocations
Must cease STR activity during appeal process
Violations result in $484 per day penalties

Contact Information for Local Authorities

Primary Authority: Office of Short-Term Rentals (OSTR)

Physical Address: San Francisco Planning Department Office of Short-Term Rentals 1650 Mission Street, Suite 400 San Francisco, CA 94103

Phone: 628-652-7599

Email: shorttermrentals@sfgov.org

Website: sfplanning.org/office-short-term-rentals

Quarterly Reporting Portal: aca-prod.accela.com/CCSF/Default.aspx

Supporting Agencies

San Francisco Treasurer & Tax Collector Business Registration and TOT Administration

Phone: 311 (for general inquiries)

Website: sftreasurer.org/business/register-business

Business Registration: sftreasurer.org/registration

TOT Information: sftreasurer.org/business/taxes-fees/transient-occupancy-tax-tot

Help Center: sftreasurer.org/help-center

San Francisco Assessor-Recorder Business Personal Property Tax

Website: www.sfassessor.org/property-information/business-owners/571-l-business-property-statement-e-file

San Francisco Rent Board Long-term Rental and Tenant Protection Information

Website: sf.gov/departments/rent-board

Source Documentation Links

Critical Compliance Notes for Investors

Zoning Verification: Always verify property zoning and eligibility before purchase, as many property types are permanently ineligible for STR conversion.
Insurance Gaps: Platform-provided insurance may not cover all scenarios; consult with licensed insurance professionals about comprehensive coverage.
Tax Complexity: Multiple tax obligations apply (TOT, TID, business personal property tax); maintain detailed records and consider professional tax preparation.
Regulatory Changes: San Francisco actively enforces and periodically updates STR regulations; stay current through regular OSTR communication.
Neighborhood Relations: While not regulatory requirements, maintaining positive relationships with neighbors and adherence to noise/parking rules can prevent complaints that trigger enforcement actions.

This guide represents the regulatory landscape as of the provided documentation date. Short-term rental regulations in San Francisco are actively enforced and periodically updated; investors should verify current requirements with the Office of Short-Term Rentals before making business decisions.

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