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

What are Short-Term Rental (Airbnb, VRBO) Regulations in Riverside County?

Short-term rentals like Airbnb and Vrbo have become increasingly popular in Riverside County. However, the county has enacted specific regulations to minimize the negative impacts of STRs on residential neighborhoods. Here's what you need to know about operating a short-term rental in Riverside County.

Starting a Short-Term Rental Business in Riverside County

To legally operate a short-term rental in Riverside County, hosts must obtain a Short-Term Rental Certificate from the Riverside County Planning Department. The certificate is required for rentals of less than 30 consecutive days.

The application fee is $740, with an annual renewal fee of $540. Hosts must also collect and remit a 10% Transient Occupancy Tax from guests.

Short-term rentals are subject to specific operational requirements under Ordinance No. 927:

1. Occupancy limits based on property size:

• 10 people max for properties 0.5 acres or less
• 16 people max for properties 0.5-2 acres
• 20 people max for properties over 2 acres

2. Outdoor noise monitors must be installed and quiet hours observed from 10pm-7am

3. Hosts must notify neighbors within 300 feet and post contact info on exterior

4. A local contact person must respond to complaints within 60 minutes

5. Violations can result in fines up to $5,000

Riverside County estimates there are 1,100 registered STRs, but the actual number including unregistered rentals could be 3 times higher. The county has established a special enforcement team to police "party house" complaints, with fines ranging from $1,500 to $5,000.

Some cities within Riverside County have enacted additional restrictions:

1. Rancho Mirage banned all STRs effective July 1, 2022
2. Cathedral City will not issue new STR permits valid beyond Jan 1, 2023, except for home-sharing and HOA-approved properties
3. La Quinta indefinitely paused new STR permits in residential areas

According to posts on Reddit, STRs are not allowed within the city limits of Temecula, only in the unincorporated areas of Temecula Valley Wine Country and De Luz. Noise ordinances are strictly enforced, with neighbors quick to file complaints about loud parties after 10pm.

The Riverside County Board of Supervisors has been working on revisions to the STR ordinance throughout 2022. Some of the proposed changes include:

1. Minimum renter age of 21 (25 in Wine Country)
2. Restricting transfers of STR permits to family in Wine Country
3. Biannual lottery system for new permits if under the cap
4. Allowing RV rentals on private land

However, there are concerns the county has been drafting the changes "behind closed doors" without sufficient public input, according to a post on the Bigger Pockets real estate investing forum.

In summary, while it is possible to operate a short-term rental business in Riverside County, hosts need to carefully review and comply with all the county regulations and permitting requirements. Failure to do so can result in costly fines and penalties. As the regulatory landscape continues to evolve, it's important for hosts to stay informed of any upcoming changes to the county's STR ordinance.

Short-Term Rental Licensing Requirement in Riverside County

To legally operate a short-term rental in unincorporated areas of Riverside County, property owners must obtain a Short-Term Rental Certificate from the county's Planning Department. The certificate is required for rentals of less than 30 consecutive days.

According to the Riverside County Transportation & Land Management Agency (TLMA) website, the application process involves the following key requirements:

1. Completed Short-Term Rental Certificate Application form
2. Application fee of $740 for the first year, with an annual renewal fee of $540
3. Proof of current Transient Occupancy Tax (TOT) registration with the County Tax Collector
4. Floorplan of the rental property showing all bedrooms, living spaces, and locations of required safety equipment
5. Site plan showing all structures, driveways/parking, and outdoor amenities like pools, fire pits, etc.
6. Copy of the "Good Neighbor Brochure" and signed acknowledgment form
7. Designation of a local contact person who can respond to complaints within 60 minutes
8. Proof of notification to neighbors within 300 feet of the property

The completed application package must be submitted either in person or by mail to:

County of Riverside
Planning Department
P.O. Box 1409
Riverside, CA 92502-1409

Once an application is received, county staff will review it for completeness and compliance with all requirements. The review process typically takes 2-4 weeks. If approved, the Short-Term Rental Certificate will be valid for one year from the date of issuance.

Property owners who operate an STR without a valid certificate are subject to fines and penalties:

1. $1,500 for the first offense
2. $3,000 for the second offense within one year
3. $5,000 for each additional offense within one year

Unpaid fines may result in a lien being placed on the property. The county has established a special enforcement team to investigate complaints and issue citations for non-compliant STRs.

In addition to the certificate, STR operators must collect and remit a 10% Transient Occupancy Tax (TOT) to the County Tax Collector's Office. The TOT is calculated on the gross rent paid by guests.

Failing to register for TOT and make required tax payments is a violation subject to additional penalties of up to 25% of the amount due, plus interest.

By obtaining the necessary certificate, paying applicable taxes and fees, and following all operational requirements, STR hosts can legally welcome guests while contributing to the local economy in Riverside County's unincorporated communities.

Required Documents for Riverside County Short-Term Rentals

To legally operate a short-term rental in unincorporated areas of Riverside County, hosts must submit the following documents as part of their Short-Term Rental Certificate application:

Completed Short-Term Rental Certificate Application form: This form collects basic information about the property owner, rental location, and local contact person. It is available for download on the Riverside County Planning Department website.

Proof of current Transient Occupancy Tax (TOT) registration: Short-term rental operators must register with the Riverside County Treasurer-Tax Collector to collect and remit the required 10% TOT on gross rental receipts. Proof of registration is required with the certificate application.

Property site plan and floorplan: A site plan must show all structures, driveways, parking areas, and outdoor amenities like pools or fire pits. A floorplan is required depicting bedrooms, living spaces, and locations of safety equipment like fire extinguishers and smoke detectors.

Signed Good Neighbor Brochure acknowledgment: This brochure outlines best practices and regulations for short-term rentals to minimize impacts on neighbors. Hosts must provide a signed acknowledgment form confirming they will abide by the guidelines.

Evidence of notification to neighbors within 300 feet: For properties under 5 acres, hosts must notify neighbors within 300 feet that the property will be used as a short-term rental and provide valid contact information. Documentation of this notification must be submitted.

Designation of local contact person: A local contact capable of responding to issues within 60 minutes must be designated for each short-term rental. Their name and contact details are required on the application.

Payment of application fees: An initial application fee of $740 must be paid, with an annual renewal fee of $540 thereafter. Payments are submitted along with the completed application package.

These documents must be compiled and submitted to the Riverside County Planning Department either in person or by mail at:

County of Riverside
Planning Department
P.O. Box 1409
Riverside, CA 92502-1409

Incomplete applications will not be processed. Once all documentation is received, the Planning Department will review the application for compliance with all short-term rental regulations. If approved, the Short-Term Rental Certificate will be valid for one year from the date of issuance.

By carefully assembling and submitting the required documents, short-term rental hosts can ensure they are operating legally and in full compliance with Riverside County's vacation rental ordinance. This protects the interests of hosts, guests, and the wider community.

Riverside County Short-Term Rental Taxes

In addition to obtaining the required Short-Term Rental Certificate, hosts in Riverside County are responsible for collecting and remitting the following taxes on their rental income:

Transient Occupancy Tax (TOT): Riverside County imposes a 10% Transient Occupancy Tax on the gross receipts from short-term rentals, defined as stays of 30 consecutive days or less. The tax is calculated on the total rent collected, including any cleaning fees. Hosts must register with the Riverside County Treasurer-Tax Collector's Office to receive a TOT certificate and file quarterly tax returns.

Airbnb collects and remits the TOT on behalf of its hosts in Riverside County. However, hosts listing on other platforms like Vrbo are responsible for collecting the tax from guests and submitting it to the county.

Failure to register for TOT and make required tax payments can result in penalties of up to 25% of the amount due, plus interest.

Possible Deductions and Write-Offs: While short-term rental income is subject to TOT, hosts may be able to deduct certain expenses to reduce their taxable income. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Depreciation of the rental property over 27.5 years
4. Repairs and maintenance costs
5. Utilities paid by the host
6. Insurance premiums
7. Advertising and platform service fees
8. Cleaning and property management fees
9. Supplies used for the rental

Hosts should keep detailed records and receipts for all rental-related expenses. It's advisable to work with a qualified tax professional to ensure compliance and maximize allowable deductions.

By understanding their tax obligations and taking advantage of available write-offs, short-term rental operators in Riverside County can run a profitable business while contributing to the local economy. Careful record-keeping and timely filing of required tax returns will help hosts avoid penalties and maintain good standing with county authorities.

California Wide Short-Term Rental Rules

In addition to Riverside County's specific short-term rental regulations, hosts must also comply with state-level laws and requirements that apply across California.

Definition of a Short-Term Rental: The State of California defines a short-term rental as a residential dwelling unit or portion thereof that is rented to a tenant for 30 or fewer consecutive days. This broad definition encompasses the majority of vacation rentals listed on platforms like Airbnb and Vrbo.

Transient Occupancy Taxes: While there is no state-wide transient occupancy tax in California, the state allows cities and counties to impose their own TOT on short-term rentals. Riverside County's 10% TOT applies in addition to any city-level taxes. Hosts are responsible for registering with tax authorities, collecting the tax from guests, and remitting tax returns, unless the listing platform like Airbnb collects the tax on their behalf.

Business Licenses: Short-term rental operators are generally required to obtain a business license in their local jurisdiction. This is separate from the specific short-term rental permit or certificate required by many cities and counties. Hosts should check their local city and county requirements for obtaining a business license.

Liability Insurance: While not legally mandated, short-term rental platforms like Airbnb and Vrbo strongly encourage or require hosts to carry liability insurance. Hosts should review their current homeowners or renters insurance policy and consult with their insurer to determine appropriate coverage for their rental operations.

Safety Requirements: The California Department of Public Health establishes health and safety standards for public accommodations, including short-term rentals. This includes requirements for items like smoke detectors, carbon monoxide detectors, fire extinguishers, and pool safety. Local jurisdictions may impose additional safety requirements.

Tenant Law Considerations: Standard tenant-landlord laws generally do not apply to short-term rentals of less than 30 days. However, hosts should still have a written rental agreement with guests. Rental platforms usually provide a standard agreement, but hosts can add their own addendums with special terms like quiet hours, occupancy limits, etc.

By complying with both state-wide and Riverside County-specific regulations, short-term rental hosts can operate legally while contributing to the local tourism economy. Failure to adhere to applicable laws can result in fines, penalties, and even prohibitions on future short-term rental activities.

Does Riverside County Strictly Enforce STR Rules?

Compared to some California cities that have banned or severely restricted short-term rentals, Riverside County takes a more moderate approach. The county allows STRs to operate legally as long as hosts obtain the required permits and follow the rules outlined in Ordinance No. 927.

However, Riverside County does actively enforce its STR regulations, with dedicated code enforcement officers responding to complaints and issuing citations for violations. Fines can range from $1,500 for a first offense up to $5,000 for repeat violations.

A 2021 Riverside County Civil Grand Jury report found that the county's STR ordinance had some weaknesses when it came to enforcement. The report recommended increasing fines, requiring property inspections, and hiring more code enforcement staff to better address issues like noise complaints.

In response, the county has proposed updates to its STR ordinance that would implement many of these recommendations, including mandatory property inspections for STR permit applicants. These changes aim to strengthen the county's enforcement capabilities.

Despite the rules and potential for penalties, many hosts continue to operate STRs in Riverside County. A search on Airbnb and Vrbo shows hundreds of active listings. On the Bigger Pockets real estate investing forum, several hosts have shared their experiences successfully running STRs in the county while complying with local regulations.

One host emphasized the importance of thoroughly researching the applicable rules, keeping detailed records, and maintaining positive relationships with neighbors to avoid complaints. They noted that as long as you "dot your i's and cross your t's," it's very possible to legally operate STRs in Riverside County.

While the county may not be as laissez-faire as some jurisdictions, it's clear that many hosts find the regulatory environment workable. By carefully following the permitting process, paying required taxes, and being responsible operators, STR hosts can find opportunity in Riverside County's growing vacation rental market. The key is to stay informed of any regulatory changes and make sure to remain in full compliance.

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

Starting a short-term rental business in Riverside County requires careful planning and compliance with local regulations. Follow these steps to legally operate a vacation rental:

Research local zoning and regulations: Before investing in a rental property, thoroughly review Riverside County's short-term rental ordinance and any additional rules specific to your area. Ensure your property is eligible for use as a short-term rental and familiarize yourself with operational requirements.

Obtain necessary permits: Apply for a Short-Term Rental Certificate from the Riverside County Planning Department. Submit a completed application along with the $740 fee, a property site plan, floorplan, and other required documents. Once approved, your certificate will be valid for one year.

Register for tax collection: Register with the Riverside County Treasurer-Tax Collector's Office to obtain a Transient Occupancy Tax (TOT) certificate. You will be required to collect a 10% TOT from guests and file quarterly tax returns.

Prepare your property: Ensure your rental is safe, clean, and well-maintained. Install required safety equipment like smoke and carbon monoxide detectors, fire extinguishers, and pool safety features. Provide essential amenities and consider hiring a professional cleaning service between guest stays.

Establish house rules and rental agreement: Develop a comprehensive set of house rules covering issues like occupancy limits, quiet hours, parking, and pet policies. Have a written rental agreement outlining terms of stay, payment, and cancellation policies. Consult with a lawyer to ensure your agreement is legally sound.

Obtain proper insurance: Contact your homeowners insurance provider to discuss appropriate coverage for your short-term rental. Consider additional liability coverage or a separate vacation rental policy to mitigate risks.

Create a listing: Take high-quality photos of your property and write a compelling description highlighting its best features and amenities. List your rental on popular platforms like Airbnb and Vrbo, being sure to include all required information, like your STR certificate number and occupancy limits.

Implement a pricing strategy: Research comparable rentals in your area to determine competitive nightly rates. Consider using dynamic pricing tools that automatically adjust rates based on demand. Don't forget to factor in cleaning fees, taxes, and platform service fees.

Develop a marketing plan: In addition to listing on major booking platforms, create a property website and social media presence to market your rental. Encourage satisfied guests to leave online reviews and consider offering special promotions or discounts during slower periods.

Automate and streamline operations: Utilize vacation rental software to manage reservations, guest communication, cleaning schedules, and accounting. Consider hiring a reputable property management company if you don't live locally or want to be a hands-off owner.

By following these steps and staying informed of any regulatory changes, you can launch and grow a successful short-term rental business in Riverside County. Focus on providing exceptional guest experiences while being a responsible operator and good neighbor.

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

If you have questions about short-term rental regulations, permits, or zoning in Riverside County, here are some key contacts and resources:

Riverside County Planning Department

1. Phone: (951) 955-3200
2. Email: RiversideCountyPlanning@rivco.org
3. Address: 4080 Lemon St. 12th Floor, Riverside, CA 92501
4. Website: https://planning.rctlma.org/

Contact the Planning Department for questions about the short-term rental permit application process, zoning, and land use regulations.

Riverside County Treasurer-Tax Collector

1. Phone: (951) 955-3900
2. Email: ttcinfo@rivco.org
3. Address: 4080 Lemon St. 4th Floor, Riverside, CA 92501
4. Website: https://www.countytreasurer.org/

Contact the Treasurer-Tax Collector for questions about registering for and paying the required Transient Occupancy Tax (TOT) on short-term rental income.

Short-Term Rental Hotline

Phone: (888) 223-7068

Riverside County has set up a 24/7 hotline for neighbors to report non-emergency problems related to short-term rentals, such as noise, parking, or trash issues.

In addition to official county resources, connecting with other short-term rental hosts can provide valuable insights and support. Here are some active online communities:

1. Riverside County Short-Term Rental Alliance (Facebook Group): https://www.facebook.com/groups/2327980544114671/
2. Airbnb Community Center - Riverside County Hosts: https://community.withairbnb.com/t5/Riverside-County/bd-p/Riverside-County
3. BiggerPockets Forums - Short-Term & Vacation Rental Discussions: https://www.biggerpockets.com/forums/530-short-term-amp-vacation-rental-discussions
4. r/AirBnB - Riverside County (Reddit): https://www.reddit.com/r/AirBnB/search/?q=riverside%20county&restrict_sr=1

Joining these forums and social media groups can help you stay up-to-date on regulatory changes, get advice from experienced hosts, and advocate for fair short-term rental policies in Riverside County.

By utilizing official county resources and tapping into the knowledge of the host community, short-term rental operators can ensure they are complying with all applicable regulations while running successful and neighborly businesses.

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

Hosts on Reddit and BiggerPockets have shared their experiences and opinions regarding short-term rental regulations in Riverside County. Here are some relevant discussions:

On the r/AirBnB subreddit, a host shared their story of operating an Airbnb in an unspecified city in Riverside County for one year before deciding to unlist it. They noted the city was "VERY strict with their BnBs" requiring business licenses, short-term rental permits that had a waiting list, and collecting nearly 14% in occupancy taxes. The host found it challenging to make a consistent profit, especially during the slower winter months.

In a BiggerPockets forum post titled "Riverside County sneaking in a Vacation Rental Ordinance Change", a member warned that the county was drafting major changes to their vacation rental policy "behind closed doors" with plans to vote on it by the end of the year. They urged others to speak out against the changes being made without sufficient public input and debate.

Another BiggerPockets member asked about short-term rental permits in the Lake Arrowhead area of Riverside County, wondering if there were any special restrictions. While no definitive answer was provided in the replies, it highlights the importance of carefully researching local regulations before purchasing a property with the intent to use it as a short-term rental.

A host on BiggerPockets shared their experience applying for a short-term rental permit in Yucca Valley, an unincorporated community in Riverside County near Joshua Tree National Park. They described the application process as "shockingly thorough", requiring a long list of submittal items to bring the property up to county code.

In a separate post, another Yucca Valley host expressed frustration with the lengthy wait time of 45+ days to get their short-term rental application approved. They considered starting to host on Airbnb while waiting on the permit, but commenters warned of the risks of operating an unpermitted rental, including large fines and potentially getting banned from later obtaining a permit.

These discussions provide a glimpse into the challenges Airbnb hosts face in navigating the strict and evolving short-term rental regulations in Riverside County. Many express a desire for more transparency and input into the county's rule-making process. Hosts emphasize the importance of thoroughly researching local requirements, obtaining proper permits, and complying with tax collection obligations to avoid fines and penalties

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.