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

Starting a Short-Term Rental Business in Kern County

If you're looking to start a short-term rental business in Kern County, California, there are several regulations you need to be aware of. All short-term vacation rentals located in the unincorporated areas of Kern County must register an application for a Transient Occupancy Tax (TOT) certificate for each dwelling, unit, or bedroom that is individually advertised.

The TOT is authorized under State Revenue and Taxation Code Section 7280 and Kern County Ordinance 4.16. It is levied at a rate of 6% for accommodations in the unincorporated areas of Kern County. Short-term rentals differ from hotels and motels in that they are typically houses, cabins, or other dwellings located in residential areas.

To register for a TOT certificate, you must go through the Kern County Treasurer and Tax Collector's registration and payment site. There is no cost to register. If you have multiple properties or rentals on the same property, each separately advertised rental must have its own TOT certificate.

Once registered, you are required to file and remit the TOT taxes to the county on a quarterly basis, even if there was no rental activity during that quarter. Late filings will result in a 10% penalty. You must also retain all receipts, exemptions, and backup documentation related to rental activity for at least 3 years.

In 2018, Kern County supervisors took steps to further regulate short-term rentals in residential neighborhoods in response to concerns from residents. The specific rules can be found in the Kern County Code of Ordinances.

Despite the regulations, Kern County still has many appealing short-term rental options available on booking platforms like Vrbo, ranging from private mountain cabins to highly-rated properties close to local attractions. By carefully following the county's rules, you can successfully operate a short-term rental business in this region of California.

Short-Term Rental Licensing Requirements in Kern County

To legally operate a short-term rental in the unincorporated areas of Kern County, you must obtain a Transient Occupancy Tax (TOT) certificate for each individual rental unit or bedroom advertised. This is required under the Kern County Code of Ordinances.

The specific requirements to register for a TOT certificate include:

• Completing the online registration application through the Kern County Treasurer and Tax Collector's website
• Providing the address and details for each STR property or unit
• Obtaining a separate TOT certificate for each advertised rental unit, even if on the same property
• Collecting and remitting the 6% TOT tax to the county on a quarterly basis, even if there was no rental activity
• Maintaining all records, receipts, exemptions, and backup documentation related to STR activity for a minimum of 3 years

There is no cost to register for the TOT certificate itself. The registration is done entirely online through the Kern County Treasurer-Tax Collector's registration and payment portal at https://kern-ca-str.deckard.com/.

Once all required information is submitted, the TOT certificate is typically issued relatively quickly. However, it's important to register well in advance of advertising or renting out your property.

Failure to register for a TOT certificate and remit the required taxes can result in penalties:

1. Late filings incur a 10% penalty plus 1.5% interest monthly until paid
2. After 30 days of nonpayment, an additional 10% penalty applies
3. The county may also file a tax lien against the property owner for unpaid taxes

Any changes to ownership or property rental information must be updated online and reported to the Kern County Treasurer-Tax Collector by email at KernTOT@KernCounty.com within 30 days.

By carefully following Kern County's short-term rental licensing and tax requirements, STR operators can avoid costly penalties and help ensure the continued availability of vacation rentals in the region's unincorporated areas. The registration process is straightforward but mandatory for all STRs.

Required Documents for Kern County Short-Term Rentals

To register your short-term rental in unincorporated Kern County and obtain a Transient Occupancy Tax (TOT) certificate, you will need to provide the following information and documents through the online registration portal:

1. Property address and details: You must provide the full address and specific details for each STR unit or bedroom being registered, even if multiple units are on the same property.
2. Owner information: The name, mailing address, phone number, and email address of the property owner must be provided. If the property is owned by a business entity, the business name and details are required.
3. Responsible party information: If someone other than the owner will be managing the STR, their contact information must also be provided. This party will be responsible for collecting and remitting taxes, maintaining records, and serving as the primary contact for the county.
4. STR advertising details: You will need to disclose where and how the STR is being advertised, such as through Airbnb, Vrbo, or other platforms. Specific listing URLs may be required.
5. TOT account information: As part of the online registration process, you will set up a TOT account for reporting and remitting the required 6% transient occupancy tax to Kern County on a quarterly basis.

These details are primarily collected through the online TOT certificate registration process managed by the Kern County Treasurer-Tax Collector. Additional documentation, such as proof of ownership or identification, is not typically required upfront but may be requested by the county at their discretion.

It's important to note that obtaining a TOT certificate is not the same as a business license or land use permit. Depending on the specifics of your STR, additional permits or approvals may be required from the Kern County Planning and Natural Resources Department. Be sure to review all county and local requirements before starting your STR business.

Kern County Short-Term Rental Taxes

As a short-term rental operator in Kern County, there are several taxes you need to be aware of and collect from your guests:

Transient Occupancy Tax (TOT): This is a 6% tax levied on accommodations in the unincorporated areas of Kern County. It is authorized under State Revenue and Taxation Code Section 7280 and Kern County Ordinance 4.16. You must register for a TOT certificate for each individual rental unit and collect this tax from your guests.

Income Tax: The income you earn from your short-term rental is subject to federal and state income taxes. The amount will depend on your total income and tax bracket. You will need to report your rental income on your annual tax return.

Self-Employment Tax: If your short-term rental activity qualifies as self-employment, you may need to pay self-employment tax (15.3% as of 2021) on your net rental income. This tax funds Social Security and Medicare.

Local Business License Tax: Depending on where your rental is located within Kern County, you may need to obtain a business license and pay a local business license tax. Check with your city or town for specific requirements and rates.

It's important to keep detailed records of all the taxes you collect and pay, as well as any expenses related to your short-term rental business. Many of these expenses can be deducted from your taxable income, reducing your overall tax liability.

Some common tax deductions for short-term rental operators include:

1. Mortgage interest and property taxes (prorated for rental use)
2. Utilities, cleaning fees, and maintenance costs
3. Depreciation of the rental property and furnishings
4. Airbnb service fees and other platform commissions
5. Supplies, linens, and amenities for guests
6. Advertising and marketing expenses
7. Legal and professional fees (accountants, lawyers, etc.)

To maximize your deductions and ensure compliance with all tax laws, it's best to consult with a qualified tax professional who has experience working with short-term rental operators. They can help you navigate the complex world of taxes and make sure you're taking advantage of all available write-offs.

By understanding and properly collecting the required taxes, as well as tracking your expenses for deductions, you can run a successful and compliant short-term rental business in Kern County.

California Wide Short-Term Rental Rules

While most short-term rental regulations in California are determined at the city and county level, there are a few key state-wide rules that affect hosts in Kern County:

1. California does not have a state-wide lodging tax. However, the state allows cities and counties to levy their own Transient Occupancy Tax (TOT) on short-term rentals, which are defined as rentals of 30 days or less.
2. Kern County requires all short-term rentals located in its unincorporated areas to register for a TOT certificate for each individual rental unit or advertised bedroom. The TOT rate in unincorporated Kern County is currently 6%.
3. Hosts are responsible for collecting the 6% TOT from guests and remitting it to the Kern County Treasurer-Tax Collector on a quarterly basis, even if there was no rental activity during that quarter. Late filings incur a 10% penalty.
4. Some vacation rental platforms, like Airbnb, may automatically collect and remit the Kern County TOT on behalf of hosts. However, hosts are ultimately responsible for proper tax compliance on any bookings where taxes are not collected by the platform.
5. The specific short-term rental rules and regulations beyond taxes vary widely between cities and counties across California. Hosts need to research their local city and county requirements in addition to state-wide rules.

So while California leaves most of the detailed rule-making up to local authorities, short-term rental operators in Kern County need to be aware of the 6% TOT requirement for unincorporated areas and their responsibility to register, collect, and submit the tax quarterly to the county. Regulations can change frequently, so hosts should stay up-to-date on the latest state and local requirements.

Does Kern County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, Kern County appears to be relatively friendly towards short-term rentals compared to some other California cities and counties. However, the county does expect hosts to follow its STR regulations, especially registering for and remitting the required 6% Transient Occupancy Tax (TOT).

While there are always some hosts who try to operate "under the radar" and avoid regulations, this is not advisable in Kern County. The county has taken steps in recent years to more strictly enforce its STR rules, particularly in residential areas where neighbors have complained about noise, parking issues, and other nuisances sometimes associated with vacation rentals.

In a 2018 Reddit discussion, one commenter noted that Kern County supervisors were working to pass additional laws to regulate short-term rentals in response to resident concerns. So while the county may not be as restrictive as some California cities, it's not a STR free-for-all either.

Hosts on BiggerPockets have reported successfully operating short-term rentals in parts of Kern County like the Kern River Valley area. But they stress the importance of carefully following all county rules and being a responsible operator to avoid issues with county enforcement or unhappy neighbors.

The bottom line is that Kern County is generally workable for short-term rentals if you do your homework, choose your location carefully, and follow all the rules - especially registering with the county and collecting the TOT tax. Trying to skirt the regulations is a risky approach that could backfire in the form of fines, penalties, or even being shut down. Hosts are better off working within the system and being responsible community members.

How to Start a Short-Term Rental Business in Kern County

1. Research local regulations: Before getting started, thoroughly review the short-term rental regulations for Kern County and any incorporated city where your property is located. Pay close attention to zoning restrictions, permit requirements, and tax obligations.
2. Register for a TOT certificate: If your property is located in unincorporated Kern County, you must register for a Transient Occupancy Tax (TOT) certificate for each individual rental unit or advertised bedroom. Apply through the Kern County Treasurer-Tax Collector's online portal at https://kern-ca-str.deckard.com/apply-str-license. There is no cost to register. Apply for your TOT certificate well before you plan to start renting, as you cannot operate legally without it.
3. Prepare your property: Make any necessary repairs or upgrades to ensure your rental is safe, clean, and appealing to guests. Consider the amenities and furnishings that will make your property attractive to your target market. Look at similar listings in your area to get a sense of what guests expect in terms of decor, amenities, and overall experience.
4. Set up your listing: Choose the platform(s) you want to use to advertise your rental, such as Airbnb, Vrbo, or a personal website. Craft a compelling listing description, take high-quality photos, and set a competitive nightly rate. Highlight any unique selling points of your property and consider offering special deals or discounts to attract your first guests and garner positive reviews.
5. Establish your business operations: Decide how you will handle key tasks like cleaning, maintenance, and guest communication. Will you do these yourself or outsource to a professional service? Set up a system for managing bookings, collecting payments, and issuing refunds. Automate as much as possible using tools provided by your booking platform or third-party services to streamline operations and provide a seamless guest experience.
6. Comply with tax requirements: In addition to registering for your TOT certificate, be prepared to collect and remit the 6% TOT tax to Kern County on a quarterly basis. You will also need to report your rental income on your federal and state tax returns and pay any applicable income and self-employment taxes. Keep detailed records of all income and expenses associated with your rental, as you may be able to deduct certain costs like cleaning fees, utilities, and depreciation.
7. Protect yourself and your property: Secure appropriate insurance coverage for your short-term rental, such as landlord insurance or a specialized vacation rental policy. Consider requiring guests to sign a rental agreement that outlines your house rules and expectations. Screen potential guests carefully and trust your instincts. Don't be afraid to decline a booking if something seems off.
8. Be a responsible host: Once you start welcoming guests, prioritize clear communication, prompt issue resolution, and a clean, well-maintained property. Be respectful of your neighbors and make sure your guests follow any community rules or noise restrictions. Provide a welcome book or digital guidebook with key information about your property, house rules, and the local area to help guests feel at home and minimize questions or issues during their stay.

Starting a short-term rental business in Kern County requires careful planning and compliance with local regulations. But by following these steps and continually working to improve the guest experience, you can build a successful and rewarding vacation rental operation.

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

If you have questions about short-term rental regulations or zoning in Kern County, there are several key contacts and resources available:

Kern County Treasurer and Tax Collector: For questions about registering for a Transient Occupancy Tax (TOT) certificate and remitting the required taxes, contact the Treasurer-Tax Collector's office at (661) 868-3490 or by email at KernTOT@KernCounty.com. You can also visit their website at https://www.kcttc.co.kern.ca.us/index.cfm?fuseaction=kcttcinternet.showShortTermRental for more information and to register online.

Kern County Planning and Natural Resources Department: For general questions about zoning, property use, and permit applications, call the Planning Department at (661) 862-5263 or email zoning@kerncounty.com. If you have questions about oil and gas permitting that may impact your short-term rental, email oilandgasplanning@kerncounty.com.

Kern County Community Development Division: If your short-term rental project involves any state or federal housing funds, you may need to contact the Community Development Division at (661) 862-5050 or by email at CommunityDevelopment@kerncounty.com.

In addition to these official county resources, short-term rental hosts in Kern County may find it helpful to connect with other local operators through online forums and communities. While not endorsed by the county, these groups can provide valuable peer advice and support:

1. The Kern County Short-Term Rental Alliance (KCSTRA) is a local host community with an active Facebook group at https://www.facebook.com/groups/KernCountySTR/. Members discuss county regulations, marketing strategies, and operational tips.
2. BiggerPockets, a national real estate investing forum, has several threads about short-term rentals in Kern County, particularly in the Kernville and Kern River Valley areas. Check out this thread for host experiences and advice: https://www.biggerpockets.com/forums/530/topics/972441-kernville-for-short-term-rental

By utilizing these official county contacts and tapping into the knowledge of experienced local hosts, you can get the information and support you need to successfully navigate short-term rental regulations and zoning in Kern County.

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

Based on discussions in local Kern County forums on Reddit and BiggerPockets, here are some key insights into how hosts view the county's short-term rental regulations:

In a thread on the Bakersfield subreddit, one commenter noted that while there are nice areas on both sides of Highway 99, hosts need to be careful about investing in certain neighborhoods with high crime rates. They advised a potential investor to rent short-term first to get to know the area before buying.

On BiggerPockets, a host with short-term rentals in the Kern River Valley area (near Lake Isabella and the Kern River) shared their experience successfully operating STRs in that part of the county. They emphasized the importance of carefully following all county rules and being a responsible operator to avoid issues with neighbors or county enforcement.

Another BiggerPockets user considering investing in Kernville asked about the feasibility of self-managing a STR there versus using a management company. They wanted insights into finding reliable housekeeping and maintenance services in that area, suggesting a desire to comply with county regulations while operating independently.

In a discussion about landlord-tenant laws in Bakersfield compared to Los Angeles, a BiggerPockets member noted that Kern County is growing in terms of jobs and population. While regulations differ from LA, the Bakersfield market appealed to them for its cash flow potential, as long as they could navigate the local rules.

Overall, the sentiment among Kern County hosts on these forums seems to be that the county's STR regulations are manageable as long as you do your due diligence, select your location carefully, and operate professionally. While there are some areas to avoid, hosts report success in parts of the county like Kernville and the Kern River Valley by working within the regulatory framework. The key is taking the time to thoroughly understand and comply with all local rules

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.