Milpitas Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Milpitas, California?

In the vibrant city of Milpitas, California, the regulations surrounding short-term rentals, such as those on Airbnb and VRBO, are carefully crafted to balance the benefits of hosting visitors with the need to preserve the integrity of residential neighborhoods. Enacted by the Milpitas City Council in July 2020, these regulations aim to provide a framework for property owners to engage in short-term rental activities while ensuring compliance with specific rules and requirements.

To embark on a short-term rental venture in Milpitas, hosts must navigate a series of steps. This journey begins with registering with the city and obtaining both a business license and a short-term rental permit. These permits, accompanied by a nominal annual fee, are essential for hosts to operate legally within the city. The application process involves submitting various documents, including proof of residency and a detailed floor plan, to provide the city with a comprehensive understanding of the property and its intended use.

Moreover, hosts in Milpitas are obligated to collect and remit a transient occupancy tax (TOT) of 14% on all bookings, contributing to the city's revenue and supporting local services. Additionally, strict regulations govern the operation of short-term rentals in Milpitas, limiting stays to 30 consecutive days per guest and requiring hosts to reside on-site for a minimum of 275 nights per year. Certain property types, such as accessory dwelling units (ADUs) and single-room occupancies (SROs), are deemed ineligible for short-term rental activities.

Despite the enforcement of these regulations, the presence of numerous Airbnb listings in Milpitas suggests that hosts continue to operate within the city. Compared to neighboring Bay Area cities, Milpitas maintains a relatively accommodating stance towards short-term rentals, attracting hosts seeking to capitalize on the city's proximity to tech hubs and tourist attractions.

For individuals considering starting a short-term rental business in Milpitas, a clear roadmap is essential. This includes confirming property eligibility, registering online, obtaining the necessary licenses and permits, collecting TOT, and adhering to all regulations, such as the residency requirement and guest stay limits. By following these steps and engaging with the city's Short Term Rentals team or Planning Department for guidance, aspiring hosts can navigate the regulatory landscape with confidence.

In the online realm, discussions on platforms like Reddit and Bigger Pockets offer insights into host perspectives on Milpitas' short-term rental regulations. While opinions vary, the general sentiment suggests a balanced approach by the city, allowing for short-term rentals while implementing necessary restrictions to maintain neighborhood harmony.

In essence, the regulations governing short-term rentals in Milpitas reflect a thoughtful approach to balancing economic opportunities with community well-being. By understanding and complying with these regulations, hosts can contribute positively to the local economy while respecting the residential fabric of the city.

Starting a Short Term Rental Business in Milpitas

To legally operate a short-term rental (STR) in Milpitas, California, hosts must navigate a series of steps to ensure compliance with the city's regulations. These rules were enacted in July 2020 by the Milpitas City Council to strike a balance between allowing property owners to host visitors and preserving the integrity of residential neighborhoods.

The first crucial step is to confirm that your property is eligible for STR use. It's important to note that certain property types, such as accessory dwelling units (ADUs), are deemed ineligible under the current regulations. This initial check helps hosts avoid potential complications down the line.

Once you've confirmed your property's eligibility, the next step is to register as a host on the city's online portal. This process involves submitting an online form along with several supplemental documents, including proof of residency and a detailed floor plan. These documents provide the city with a comprehensive understanding of the property and its intended use for short-term rental purposes.

After completing the registration process, hosts must obtain both a business license and an STR permit. The business license carries an annual fee of $100, while the STR permit requires a more substantial investment of $509 per year. It's essential to note that the permit number must be included on all listings to ensure compliance with the city's regulations.

One of the key responsibilities for STR hosts in Milpitas is the collection and remittance of a 14% transient occupancy tax (TOT) on all bookings. This tax helps offset the impact of STRs on city services and infrastructure. Hosts are required to submit monthly TOT reports, even if no rentals occurred during that period.

In addition to the licensing and tax requirements, hosts must also adhere to various rules governing the operation of their STRs. These rules include limiting stays to 30 consecutive days per guest and requiring the host to live on-site for a minimum of 275 nights per year. These regulations aim to maintain the residential character of neighborhoods and prevent potential nuisances.

If your property is part of a homeowners association (HOA), it's crucial to obtain approval from the HOA before operating an STR. This step ensures that you comply with any additional rules or restrictions set forth by your HOA.

By following these steps and engaging with the city's Short Term Rentals team or Planning Department for guidance, aspiring hosts can navigate the regulatory landscape and successfully start their short-term rental business in Milpitas. The city's relatively permissive approach compared to some other Bay Area municipalities may attract hosts seeking to capitalize on the city's proximity to major tech hubs and tourist attractions.

Short Term Rental Licensing Requirement in Milpitas

In Milpitas, California, the process of obtaining a license for short-term rentals (STRs) is a crucial step for hosts looking to operate within the city. This licensing requirement is designed to regulate and monitor the growing trend of short-term rental properties, such as those listed on platforms like Airbnb and VRBO.

To start the process, hosts are required to register with the Planning Department of Milpitas. This registration serves as the initial point of contact between hosts and the city authorities, allowing for proper documentation and oversight of the STR activities. Registering with the Planning Department sets the foundation for hosts to move forward with the licensing process.

Once registered, hosts must obtain both a business license and an STR permit to legally operate their short-term rental property. The business license carries an annual fee of $100, providing hosts with the authorization to conduct commercial activities within the city. On top of the business license, hosts are also required to secure an STR permit, which comes with a $509 annual fee. This permit is specifically tailored for short-term rental operations and ensures that hosts comply with the city's regulations and standards.

A critical aspect of the licensing requirement is the inclusion of the permit number on all listings related to the short-term rental property. This stipulation is essential for transparency and accountability, as it allows potential guests and city officials to verify that the property is operating within the legal framework set by Milpitas. By prominently displaying the permit number, hosts demonstrate their commitment to following the established guidelines and regulations governing short-term rentals in the city.

Overall, the short-term rental licensing requirement in Milpitas plays a vital role in ensuring that hosts operate their properties in a responsible and compliant manner. By obtaining the necessary licenses and permits, hosts contribute to the overall integrity of the short-term rental market in the city while upholding the standards set forth by local authorities.

Required Documents for Milpitas Short Term Rentals

Operating a short-term rental (STR) in Milpitas, California involves submitting a range of essential documents to ensure compliance with the city's regulations. These documents play a crucial role in providing transparency, verifying eligibility, and maintaining the integrity of the short-term rental market in the city.

• Proof of Residency: One of the fundamental requirements for hosting an STR in Milpitas is proof of residency for the host. This documentation serves to confirm that the host resides on-site at the property for a minimum of 275 nights per year. This requirement is in place to ensure that hosts are actively involved in the management and oversight of the short-term rental property, promoting responsible hosting practices and community engagement.
• Detailed Floor Plan: Hosts are typically required to provide a detailed floor plan of the property intended for short-term rental use. This floor plan offers city officials and regulatory bodies a comprehensive understanding of the layout and configuration of the space being utilized for STR purposes. By submitting a detailed floor plan, hosts demonstrate transparency and compliance with zoning and occupancy regulations, ensuring that the property meets the necessary standards for hosting short-term guests.
• Supplemental Forms: In addition to proof of residency and a floor plan, hosts may be required to complete supplemental forms as part of the online STR permit application process. These forms may include specific information about the property, the host's contact details, and any additional documentation deemed necessary by the city's regulatory authorities. Completing these forms accurately and thoroughly is essential to streamline the permit application process and ensure that all required information is provided to the city.
• Property Qualification Confirmation: Before initiating the online STR permit application, hosts must confirm that the property meets the city's qualifications for short-term rental use. Certain property types, such as accessory dwelling units (ADUs) and single-room occupancies (SROs), may be ineligible for STR operations. By verifying the property's eligibility, hosts can avoid potential complications and ensure that their rental activities align with the city's regulations and zoning requirements.
• Homeowners Association (HOA) Approval: If the property is part of a homeowners association (HOA), hosts must obtain approval from the HOA before operating an STR. This step is crucial to ensure compliance with any additional rules or restrictions set forth by the HOA governing the property. By securing HOA approval, hosts demonstrate respect for community guidelines and regulations, fostering positive relationships with neighbors and maintaining harmony within the residential community.

By gathering and submitting these required documents, hosts can navigate the process of obtaining an STR permit in Milpitas effectively. These documents not only demonstrate compliance with the city's regulations but also contribute to the overall transparency, accountability, and responsible operation of short-term rental properties in the city.

Milpitas Short Term Rental Taxes

Short-term rental (STR) hosts in Milpitas, California are required to collect and remit a 14% transient occupancy tax (TOT) on all bookings. This tax helps offset the impact of STRs on city services and infrastructure.Hosts must submit monthly TOT reports to the city, even if no rentals occurred during that period. The reports must include information such as the number of nights rented, total rental revenue, and TOT collected.

Taxable receipts for TOT purposes include the rent charged for the short-term rental, as well as any fees or charges that are part of the rental agreement. Hosts are responsible for calculating, collecting, and remitting the 14% TOT to the city on a monthly basis.

TOT payments can be made online or by mail, with checks payable to the City of Milpitas. Hosts who fail to collect and remit the TOT are in violation of the city's short-term rental laws and may face enforcement action and penalties.

Milpitas wide Short Term Rental Rules

The regulations and discussions surrounding this topic are multifaceted and aim to address various aspects of short-term rental operations within the city. Here is an expanded overview based on the information from the sources:

City Regulations and Compliance

• Short-Term Rental Definition: A short-term rental (STR) in Milpitas refers to a furnished, self-contained residence rented for a short period, typically up to 30 consecutive days. These rentals are also known as vacation rentals or transient rentals and are facilitated through platforms like Airbnb, HomeToGo, and Vrbo.
• Regulatory Authority: The City of Milpitas has the authority, as a charter city, to create and enforce local laws and regulations that align with the California Constitution. This includes the regulation of short-term rentals to ensure compliance with city ordinances and standards.
• Permit Requirements: Hosts must obtain a Home Occupation Business License and a Short-Term Rental permit from the Planning Department before offering short-term rentals. The permit number must be prominently displayed on all rental listings.
• Eligibility and Ineligibility: Certain property types, such as accessory dwelling units (ADUs) and single-room occupancies (SROs), are ineligible for short-term rentals. Hosts are advised to confirm the eligibility of their property with the city before applying for a permit.

Taxation and Reporting

• Transient Occupancy Tax (TOT): Hosts are required to collect and remit a 14% transient occupancy tax on all bookings. Monthly TOT reports must be submitted to the city, even if no rentals occurred during that period. Taxable receipts include the rent charged for the rental and any associated fees.
• Compliance and Penalties: Failure to collect and remit the TOT may result in enforcement actions and penalties. Hosts are responsible for ensuring compliance with the city's short-term rental laws to avoid potential violations and penalties.

Community Engagement and Policy Development

• Public Engagement: The City of Milpitas is actively engaging with the community to gather feedback on short-term rental policies. Residents and stakeholders are encouraged to provide input on the development of effective regulations for short-term rentals in the city.
• Policy Considerations: Discussions are ongoing regarding the regulation of short-term rentals to maintain the long-term rental housing stock, provide income opportunities for residents, and ensure that rental activities do not pose a nuisance or threaten public safety. The city aims to safeguard residents and collect TOT effectively through the implementation of appropriate regulations.

In summary, the regulations and discussions surrounding short-term rentals in Milpitas reflect a comprehensive approach to balancing the economic benefits of hosting with the need to maintain community standards and compliance with city ordinances. By addressing eligibility, taxation, compliance, and community engagement, the city aims to create a framework that supports responsible and sustainable short-term rental practices within the community.

Does Milpitas strictly enforce STR rules?

Milpitas has taken steps to enforce rules and regulations regarding short-term rentals (STRs) within the city. The Milpitas City Council has implemented a pilot program to oversee STRs, aiming to regulate limited lodging rentals effectively. The program includes restrictions on the number of renters allowed in a unit simultaneously, requirements for owners to be present during the rental period, the need for permits and business licenses, and penalties for rule violations. Additionally, owners must obtain approval from their homeowners association (HOA) before converting their property into an STR, and the use of accessory dwelling units (ADUs) for STRs is prohibited.

These regulations were put in place partially in response to community concerns about noise and disturbances caused by short-term rental guests. The city council members have shown support for enforcing these rules to address issues related to noise, overstaying, and the transformation of residential properties into temporary accommodations.

Therefore, based on the information provided, it can be inferred that Milpitas is taking steps to strictly enforce STR rules through the implementation of regulations, penalties for non-compliance, and a pilot program aimed at overseeing and regulating short-term rentals within the city.

How to Start a Short Term Rental Business in Milpitas

To start a successful short-term rental business in Milpitas, California, aspiring hosts should follow a detailed roadmap that encompasses various essential steps and considerations. Here is an expanded guide on how to initiate and establish a short-term rental business in Milpitas:

1. Property Eligibility Assessment

• Confirm Property Eligibility: Before diving into the short-term rental market, hosts must ensure that their property is eligible for STR use in Milpitas. Certain property types, such as accessory dwelling units (ADUs), may be ineligible for short-term rentals. Understanding the eligibility criteria is crucial to avoid potential complications down the line.

2. Registration and Documentation

• Register as a Host: Begin by registering as a host on the city's designated online portal. This registration process serves as the initial step towards legally operating a short-term rental in Milpitas. Hosts will be required to provide essential information and documentation during this registration phase.
• Submit Required Documents: Hosts must submit supplemental documents, such as proof of residency and a detailed floor plan of the property. These documents play a vital role in providing the city with a comprehensive understanding of the property and its intended use for short-term rental purposes.

3. Licensing and Permits

• Obtain Business License and STR Permit: To operate an STR in Milpitas, hosts must obtain a business license and a Short-Term Rental (STR) permit. The business license incurs an annual fee of $100, while the STR permit requires a $509 annual fee. It is essential to include the permit number on all listings to ensure compliance with the city's regulations.

4. Taxation and Reporting

• Collect Transient Occupancy Tax (TOT): Hosts are required to collect a 14% transient occupancy tax on all bookings. Monthly TOT reports must be submitted to the city, even if no rentals occurred during that period. Compliance with tax regulations is essential to avoid penalties and ensure adherence to the city's financial requirements.

5. Compliance with STR Rules

• Adhere to Short-Term Rental Regulations: Hosts must comply with various STR rules, including limiting guest stays to 30 consecutive days, residing on-site for a minimum of 275 nights per year, and following parking requirements. Understanding and adhering to these regulations are essential for maintaining compliance and operating within the legal framework.

6. Homeowners Association Approval

• Obtain HOA Approval: If the property is part of a homeowners association (HOA), hosts must obtain approval from the HOA before operating an STR. This step ensures alignment with additional rules or restrictions set forth by the HOA governing the property.

By meticulously following these steps and engaging with the relevant city departments for guidance and support, hosts can navigate the process of starting a short-term rental business in Milpitas effectively. Understanding the regulatory landscape, fulfilling documentation requirements, and ensuring compliance with taxation and operational rules are key to establishing a successful and legally compliant short-term rental venture in the city.

Who to contact in Milpitas about Short Term Rental Regulations and Zoning?

For detailed information and assistance regarding Short Term Rental Regulations and Zoning in Milpitas, individuals can reach out to the following contacts:

1. Short Term Rentals Team

• Email: Contact the city's Short Term Rentals team at ShortTermRentals@ci.milpitas.ca.gov for inquiries related to Short-Term Rental Operating Standards, permit application process, eligibility criteria, and general regulations. The team can provide guidance on navigating the requirements for operating a short-term rental property in Milpitas.

2. Planning Department

• Phone: For zoning inquiries and information on property eligibility for short-term rentals, individuals can contact the Planning Department at 408-586-3279. The Planning Department can offer insights into zoning regulations, land use requirements, and any specific considerations related to short-term rental operations within the city.

3. Transient Occupancy Tax (TOT) Department

• Phone: To address questions regarding the collection and remittance of Transient Occupancy Tax (TOT) on short-term rental bookings, individuals can call the TOT Department at 408-586-3100. The department can provide guidance on TOT reporting, tax compliance, and related financial obligations for short-term rental hosts.

By contacting these key departments and individuals in Milpitas, individuals can access valuable information, guidance, and support related to short-term rental regulations, zoning requirements, and tax obligations. These contacts can assist hosts in understanding and navigating the regulatory landscape, ensuring compliance with city ordinances, and fostering a successful short-term rental business in Milpitas.

What do Airbnb hosts in Milpitas on Reddit and Bigger Pockets think about local regulations?

One notable comment mentioned that the 275-night residency requirement imposed by the city was considered "a bit high" by at least one host. This suggests that some Airbnb operators in Milpitas may find this particular regulation challenging or overly restrictive. The residency requirement mandates that hosts live on-site for a minimum of 275 nights per year to be eligible for short-term rental activities. For some hosts, maintaining this level of on-site presence throughout the year may be difficult or impede their ability to operate their STR business effectively.

While specific opinions and discussions are limited in the provided sources, the existence of this comment highlights the importance of considering host perspectives when developing and implementing local STR regulations. Regulations that are perceived as too burdensome or impractical by hosts may face resistance or non-compliance, potentially undermining the city's efforts to balance the benefits of short-term rentals with the need to maintain the character of residential neighborhoods.

It's worth noting that despite the regulations in place, Milpitas still has a significant number of active Airbnb listings. This suggests that many hosts are able to navigate the regulatory landscape and operate their STRs successfully within the city's guidelines. The city's relatively permissive approach compared to some other Bay Area municipalities may also contribute to the continued presence of short-term rentals in Milpitas.

In summary, while direct feedback from Airbnb hosts in Milpitas is limited, the available comments indicate that at least some hosts find certain regulations, such as the residency requirement, to be challenging. As the city continues to refine and enforce its STR regulations, engaging with hosts to understand their perspectives and concerns may help strike a balance between promoting economic opportunities and preserving the quality of life in residential neighborhoods.

Disclaimer: While we here at BNBCalc strive to keep all of our city 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 city 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.