Contra Costa County, California Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Contra Costa County

To legally operate a short-term rental (STR) in Contra Costa County, property owners must obtain a STR permit from the Department of Conservation and Development. The permit application has a $380 fee and requires submitting documentation such as:

• Proof that the rental is the host's primary residence (driver's license, voter registration, utility bill, etc.)
• A site plan showing the property layout and parking spaces
• A floor plan of the dwelling unit
• Written consent if the property has restrictive covenants (HOA rules, etc.)

Ministerial STR permits expire after one year and must be renewed at least 30 days before expiration. Permits are not transferable to new owners.

In addition to the STR permit, hosts must also obtain a business license and transient occupancy registration certificate before renting their property. The county is working on a voluntary collection agreement to have platforms like Airbnb collect the transient occupancy tax on behalf of hosts.

Short-Term Rental Licensing Requirements in Contra Costa County

To legally operate a short-term rental in Contra Costa County, property owners must obtain a STR permit from the Department of Conservation and Development. The permit application has a $380 fee and requires submitting the following documentation:

1. Proof that the rental is the host's primary residence, documented by at least two of the following:

1. Motor vehicle registration
2. Driver's license
3. California state identification card
4. Voter registration
5. Income tax return
6. Property tax bill
7. Utility bill

2. A site plan showing all structures on the property, the dwelling unit proposed for short-term rental, and the location of required parking spaces (1 space for STRs with 3 or fewer bedrooms, 2 spaces for 4+ bedrooms)

3. A legible floor plan of the dwelling unit proposed for short-term rental

4. Written consent from the appropriate party (HOA, etc.) if the property is protected by restrictive covenants

Ministerial STR permits expire one year from the approval date. Renewal applications must be submitted to the Department of Conservation and Development at least 30 calendar days before the permit expires, along with any updated documentation. Permits are not transferable to new property owners.

In addition to the STR permit, hosts must also obtain a valid business license from the Tax Collector's Office and a transient occupancy registration certificate before renting their property. The county is working on a voluntary collection agreement to have platforms like Airbnb collect the transient occupancy tax on behalf of hosts.

Failure to comply with the county's short-term rental regulations can result in fines, penalties, and legal action. Operating a STR without the required permit is subject to administrative fines ranging from $150 to $250, plus potential late filing fees.

Required Documents for Contra Costa County Short-Term Rentals

To apply for a short-term rental permit in Contra Costa County, you must submit the following documents to the Department of Conservation and Development:

1. Completed Short-Term Rental Application Form: This form collects key information about the applicant, property owner, rental property, and responsible party. It also requires the applicant to agree to indemnify the county and acknowledge permit terms and licensing requirements. The form can be downloaded from the county's website.
2. Primary Residence Documentation: If the short-term rental will be hosted at any time, you must provide documentation proving the rental is the host's primary residence. At least two of the following are required: motor vehicle registration, driver's license, state ID card, voter registration, income tax return, property tax bill, or utility bill.
3. Site Plan: You must provide a site plan showing all structures on the property, the dwelling unit proposed for short-term rental, and the location of required parking spaces (1 space for rentals with 3 or fewer bedrooms, 2 spaces for 4+ bedrooms).
4. Floor Plan: Submit a legible floor plan of the dwelling unit proposed for the short-term rental.
5. Written Consent (if applicable): If the property is protected by restrictive covenants (HOA rules, etc.), you must provide written consent from the appropriate party.
6. Business License: After receiving planning approval for your short-term rental, you must obtain a valid business license from the Tax Collector's Office before operating. Apply through the Business License Online Portal and pay the applicable fees.
7. Transient Occupancy Registration Certificate: You must also obtain this certificate from the Tax Collector's Office before renting out your property. The county is working on an agreement with Airbnb and other platforms to collect this tax on behalf of hosts.

Failure to obtain required permits and licenses before operating a short-term rental may result in fines from $150-$250 per violation, plus potential late fees, penalties, and legal action. By gathering these documents and submitting a complete application, you can ensure a smooth permitting process for your short-term rental business.

Contra Costa County Short-Term Rental Taxes

When operating a short-term rental in the unincorporated areas of Contra Costa County, hosts are responsible for collecting and remitting the following taxes:

Transient Occupancy Tax (TOT)

1. Rate: 10% of the listing price, including any cleaning fees, for reservations 30 nights and shorter
2. Remitted to: Contra Costa County Tax Collector's Office
3. Due Date: Quarterly tax returns and payments are due on the last day of the month following the close of each quarter (April 30, July 31, October 31, January 31)
4. Permit Required: Transient Occupancy Registration Certificate from the Tax Collector's Office

In addition to the county-level TOT, short-term rental hosts may also be subject to a new statewide tax starting in 2025:

California Short-Term Rental Tax (SB 584)

1. Rate: 15% of the rental price, beginning January 1, 2025
2. Applies to: Occupancy of a home, house, room, or other lodging that is not a hotel/motel for 30 days or less
3. Collected by: Short-term rental facilitator (like Airbnb) or rental operator if no facilitator processes payment
4. Revenues deposited in: Laborforce Housing Fund to finance affordable and workforce housing

Hosts should also be aware of income tax obligations on their short-term rental earnings. Rental income must be reported on your annual state tax return, due April 15th each year (with an automatic extension to October 15th).

Potential Deductions and Write-Offs

Short-term rental hosts may be able to deduct certain expenses to reduce their taxable rental income, such as:

1. Mortgage interest
2. Property taxes
3. Rental operating expenses
4. Depreciation
5. Maintenance and repairs

However, deduction eligibility depends on factors like how many days the property is rented vs. used personally. For example, under the 14-day rule, you don't have to report rental income if the property is rented for less than 15 days per year. But if you use the rental personally for more than 14 days, the IRS limits what expenses you can deduct.

To maximize deductions and ensure compliance with all tax laws, short-term rental hosts should consult with a tax professional. Properly structuring your rental business and diligently tracking expenses can help minimize your tax liability.

California Wide Short-Term Rental Rules

While most short-term rental regulations in California are set at the city or county level, there are a few state laws that affect hosts in Contra Costa County:

California Short-Term Rental Tax (SB 584)

1. Beginning January 1, 2025, short-term rentals will be subject to a new statewide tax of 15% of the rental price
2. Applies to occupancy of a home, house, room, or other lodging that is not a hotel/motel for 30 days or less
3. The tax will be collected by short-term rental platforms like Airbnb or by the rental operator if no platform processes the payment
4. Revenues will be deposited in the Laborforce Housing Fund to finance affordable and workforce housing

Transient Occupancy Tax (TOT)

1. While not a state-mandated tax, California law allows cities and counties to levy TOT on short-term rentals of 30 days or less
2. Contra Costa County charges a 10% TOT on the listing price, including cleaning fees, for stays under 30 nights
3. Hosts must register for a TOT certificate with the county and submit quarterly tax returns, unless the STR platform collects the tax on their behalf

Rental Agreements and Tenant Protections

1. California Civil Code and case law govern the rights and responsibilities of landlords and tenants, even for short-term rentals
2. Hosts should use a written rental agreement that complies with state law and clearly outlines the terms of the stay
3. Hosts cannot discriminate against guests based on protected characteristics under the California Fair Employment and Housing Act

Building and Housing Standards

• Short-term rentals in California must meet basic habitability and safety standards set forth in state law and building codes
• This includes requirements for working plumbing and electrical systems, adequate heating, and fire safety devices like smoke alarms
• Hosts may need to obtain permits for renovations or improvements made to prepare a property for short-term rental use

While not comprehensive, these examples show how California state laws create a regulatory framework that local STR ordinances build upon. Contra Costa County hosts should be aware of their obligations under both state and county rules to operate legally and avoid potential fines or legal issues.

Does Contra Costa County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like Bigger Pockets and Reddit, Contra Costa County appears to take a balanced approach to short-term rental regulation and enforcement compared to other Bay Area cities. The county is not as restrictive as some cities that have banned non-owner occupied STRs entirely, but also not a free-for-all.

The general consensus is that Contra Costa County is "Airbnb friendly" as long as hosts follow the rules laid out in the 2020 ordinance. This includes obtaining the required permits and business license, limiting non-hosted rentals to 90 days per year, notifying neighbors, and complying with occupancy limits, parking requirements, and other standards.

However, the county does enforce these rules when made aware of violations. Several Bigger Pockets members shared anecdotes of the county shutting down unpermitted STRs after neighbor complaints. One host said an inspector showed up at their door after a guest threw a disruptive party. Another had their listing removed by Airbnb for not having a permit number.

So while the county allows STRs to operate, it expects hosts to do so legally and responsibly. Attempting to fly under the radar is risky. As one Reddit user put it, "Follow the Contra Costa STR ordinance to the letter and you'll be fine. Try to skirt the rules and eventually you'll get caught and fined."

Compared to some cities with outright bans, the county's regulated approach is workable for responsible hosts. But it's not a hands-off environment where anything goes. Hosts must do their due diligence, obtain proper permits, and be respectful of neighbors to stay in the county's good graces. Those looking to operate STRs with little oversight may want to look elsewhere.

How to Start a Short-Term Rental Business in Contra Costa County

Starting a short-term rental business in Contra Costa County can be a lucrative venture. Here are the key steps to get your rental up and running:

• Check Zoning Requirements: Before applying for permits, verify that short-term rentals are allowed at your property's location. Contact the Department of Conservation and Development or use their online map tool to determine your zoning district and allowed uses. If STRs are prohibited, you may need to seek a zoning variance or conditional use permit. If you don't have a specific property in mind yet, work with the Economic Development Office to find a location that allows STRs and suits your business goals.
• Obtain a Short-Term Rental Permit: Submit a completed STR Application Form to the Department of Conservation and Development, along with the $380 fee and required documentation like proof of primary residence, site plan, floor plan, and HOA consent if applicable. The county will notify neighbors within 300 feet upon permit issuance. Thoroughly review the STR ordinance requirements and have all your documents in order before applying to streamline the process. Incomplete applications can cause delays.
• Get a Business License: After receiving STR permit approval, you must obtain a business license from the Tax Collector's Office before operating. Apply through the online Business License Portal and pay the applicable fees. You'll need to provide your STR permit, fictitious business name statement, and other information. Consider forming an LLC or other business entity to protect your personal assets and take advantage of tax benefits. Consult with an attorney or tax professional for guidance.
• Comply with Regulations: Familiarize yourself with the county's STR rules, including rental day limits (90/year for unhosted, 180/year for hosted), occupancy caps (2/bedroom + 2, under 12 excluded), parking requirements (1 space for 3- bedrooms, 2 for 4+), and operational standards like no events or signage. Violations can result in fines and permit revocation. Provide guests with a clear, written rental agreement that outlines all the county rules and your own house policies. This can help prevent misunderstandings and encourage compliance.
• Set Up Operations: List your property on platforms like Airbnb and VRBO, or create your own website. Invest in high-quality photos, write a compelling description, and set competitive rates. Decide if you'll manage cleaning and maintenance yourself or hire professionals. Implement a reliable system for handling bookings, communication, and check-ins. Use dynamic pricing tools to automatically adjust rates based on demand, seasonality, and local events. This can help maximize revenue and occupancy. Providing self check-in with a lockbox or smart lock is also convenient for you and guests.

By following these steps and tips, you can launch a successful and compliant short-term rental business in Contra Costa County. While the process requires some upfront work, it can be a rewarding way to earn extra income and meet travelers from around the world. Just remember to stay on top of permit renewals, tax obligations, and guest communication to keep your operation running smoothly.

Who to Contact in Contra Costa County about Short-Term Rental Regulations and Zoning?

For questions about short-term rental permits, regulations, and zoning in the unincorporated areas of Contra Costa County, you can contact:

Contra Costa County Department of Conservation and Development

30 Muir Road
Martinez, CA 94553
Phone: (925) 655-2700
Email: dcd@dcd.cccounty.us

The Department of Conservation and Development handles the STR permitting process and can provide guidance on zoning districts that allow short-term rentals. They can also assist with questions about the county's STR ordinance requirements.

For business license and transient occupancy tax questions, contact:

Contra Costa County Tax Collector's Office

625 Court Street
Martinez, CA 94553
Phone: (925) 608-9500
Email: taxinfo@tax.cccounty.us

The Tax Collector's Office oversees business licensing for short-term rentals and collection of the 10% transient occupancy tax. You can apply for a business license through their online portal at https://blrenewal.cctax.us/PrimeWeb/Apply/GettingStarted/BusinessLicense.

In addition to official county resources, connecting with other local hosts can provide valuable insights and support. Some online communities to check out include:

• Contra Costa County Short-Term Rental Alliance Facebook Group: https://www.facebook.com/groups/1239887089697923/
• East Bay Short-Term Rental Operators Meetup Group: https://www.meetup.com/east-bay-str-operators/
• Airbnb Contra Costa County Hosts Forum: https://community.withairbnb.com/t5/Hosting/Contra-Costa-County-Hosts/td-p/1297214

These groups allow hosts to share experiences, ask questions, and stay up-to-date on local regulations. However, always verify information with official county sources.

By utilizing these county contacts and tapping into the knowledge of the local host community, you can get the support you need to run a successful and compliant short-term rental business in Contra Costa County.

What Do Airbnb Hosts in Contra Costa County on Reddit and Bigger Pockets Think about Local Regulations?

While there aren't many online discussions from short-term rental hosts in Contra Costa County specifically, some insights can be gleaned from hosts in nearby Bay Area counties facing similar regulations:

On the Bigger Pockets forums, one prospective investor asked about starting a short-term rental in Contra Costa County, but received no replies with host experiences about navigating the local rules. The lack of responses may suggest the county's regulations are not a hot topic among the site's users.

However, a Reddit thread about a proposed cap on short-term rental licenses in neighboring Marin County generated comments that may reflect the sentiments of some Contra Costa hosts:

One user suggested the license limits are "NIMBYs actually get[ting] heard by local government while everyone else has to deal with the negative effects of Airbnbs in their community." This implies some hosts feel the regulations unfairly restrict their property rights.

Another commenter supported the cap, arguing that "housing shouldn't be an investment at the cost to housing supply" and that limiting short-term rentals is a "win-win." This view aligns with the county's stated rationale of preserving housing for long-term residents.

A different user was skeptical the license cap would accomplish its goals, based on other cities' experiences. Some hosts may doubt the effectiveness of the regulations.

While not directly related to short-term rentals, a post on the Bay Area subreddit about a Contra Costa County landlord who failed to properly notify a tenant about a rent increase drew comments about the importance of knowing local laws. The same principle would apply to short-term rental operators needing to understand the county's rules.

So while there are few first-hand accounts from Contra Costa hosts about the impact of the regulations, discussions from the broader region suggest a mix of opinions. Some see the rules as needed to protect housing stock, while others view them as overreach that makes it harder to operate short-term rentals. Hosts are advised to thoroughly research the county's requirements to ensure compliance.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.