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

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

Sacramento County regulates short-term rentals like Airbnb and VRBO to ensure they don't disrupt neighborhoods while still allowing homeowners to earn extra income. Here's what you need to know about operating a short-term rental in unincorporated Sacramento County.

Starting a Short-Term Rental Business in Sacramento County

To legally launch and operate a short-term rental in Sacramento County, you must:

• Ensure the property is your primary residence where you live for at least 6 months out of the year. STRs cannot be the primary use of the property.
• Apply for a Short-Term Rental Permit from the Office of Planning and Environmental Review. The initial application fee is $230.
• Obtain a General Business License from the Department of Finance. You'll need your Short-Term Rental Permit first.
• Register with the Tax Collector's Office to pay Transient Occupancy Taxes on your short-term rental income.

Some key restrictions to be aware of:

1. Short-term rentals are defined as stays under 30 days. Stays of 30+ days do not require a permit.
2. You can rent out all or part of your primary dwelling, as well as accessory dwelling units (ADUs) permitted before Jan 1, 2020.
3. There are limits on maximum occupancy. For example, permits approved before Feb 2, 2023, cap the number of adult guests over age 18.

One Sacramento-area Airbnb Superhost who manages over 125 listings advises others to "Stay compliant and up to date with all the local laws and regulations." The regulations can be complex, so it's important to do your research.

These rules apply to unincorporated Sacramento County. Some incorporated cities like the City of Sacramento have their own separate short-term rental ordinances. Always check with your local jurisdiction for the most up-to-date information.

Short-Term Rental Licensing Requirements in Sacramento County

To legally operate a short-term rental in unincorporated Sacramento County, property owners must obtain the proper permits and licenses. Here are the key requirements based on information from the Sacramento County Planning and Environmental Review website:

1. Short-Term Rental Permit: Apply for a Short-Term Rental Permit through the RentalScape online portal. The initial application fee is $230. Permits are issued to allow rentals of 29 days or less.
2. Business License: Obtain a General Business License from the Department of Finance after receiving the Short-Term Rental Permit. Business licenses have additional fees.
3. Transient Occupancy Tax (TOT) Registration: Register with the Tax Collector's Office to pay TOT on short-term rental income.
4. Primary Residence Requirement: The rental property must be the owner's primary residence where they live for at least 6 months annually. Proof of residency is required.
5. Occupancy Limits: STRs are limited to a maximum of 2 adults per bedroom. Permits approved before February 2, 2023, have occupancy limits that only apply to adults over age 18.
6. Accessory Dwelling Unit (ADU) Restrictions: Only ADUs permitted before January 1, 2020 can be used as STRs.

Applications and fees are submitted through the RentalScape online portal. The collective fee for the Short-Term Rental Permit and Business License is $452.66, which is non-refundable. Review and approval of a completed application may take up to 45 days for a General Business License.

Failure to obtain the required permits and licenses can result in fines and penalties. Operating an unlicensed STR is subject to a fine of up to $1,500 for the first violation, up to $3,000 for a second violation within one year, and up to $5,000 for each additional violation within one year.

It's important to note that incorporated cities within Sacramento County, like the City of Sacramento, have their own separate STR ordinances and licensing processes. Always check with your local jurisdiction for the most current short-term rental regulations.

Required Documents for Sacramento County Short-Term Rentals

To legally operate a short-term rental in unincorporated Sacramento County, property owners must submit the following documents:

1. Short-Term Rental Permit Application: This application, submitted through the RentalScape online portal, provides details about the property and its intended use as a short-term rental. The initial application fee is $230.
2. Proof of Primary Residence: Applicants must provide documentation showing the rental property is their primary residence where they live for at least 6 months out of the year. Acceptable forms of proof include a driver's license, voter registration, or utility bill in the owner's name at the property address.
3. General Business License Application: After receiving the Short-Term Rental Permit, owners must apply for a General Business License from the Department of Finance. The business license has additional fees.
4. Transient Occupancy Tax (TOT) Registration: Owners must register with the Sacramento County Tax Collector's Office to pay TOT on their short-term rental income. Registration is done through the RentalScape portal.
5. Accessory Dwelling Unit (ADU) Permit: If renting out a permitted ADU as a short-term rental, proof that it was permitted before January 1, 2020, is required. ADUs permitted after this date cannot be used as short-term rentals.

These documents ensure short-term rental operators are in compliance with Sacramento County's rental ordinance, tax laws, and zoning codes. The RentalScape online portal streamlines the application and registration process. Failure to submit the required documents and obtain proper permits can result in fines up to $5,000 per violation.

Sacramento County Short-Term Rental Taxes

Short-term rental operators in Sacramento County are responsible for collecting and remitting several types of taxes. Here's a breakdown of the main taxes that apply:

1. Transient Occupancy Tax (TOT): Sacramento County requires short-term rental hosts to collect a 12% Transient Occupancy Tax from guests and remit it to the Tax Collector's Office. This tax applies to stays of 30 days or less. Hosts must register with the Tax Collector to obtain a TOT certificate.
2. Sacramento Tourism Marketing District (STMD) Assessment: In addition to the TOT, some areas are subject to the Sacramento Tourism Marketing District assessment. The STMD rate varies based on the property's location, ranging from 1-3% of the rental amount. This assessment funds tourism marketing efforts.
3. Income Taxes: Income earned from short-term rentals is generally subject to federal and state income taxes. The rental income must be reported on your tax return. The exact tax rate depends on your overall income and filing status.

Possible Deductions and Write-Offs

Short-term rental operators may be able to deduct certain expenses to reduce their taxable income. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Rental insurance premiums
4. Utilities
5. Cleaning and maintenance costs
6. Depreciation of the rental property
7. Supplies and amenities provided to guests
8. Fees paid to rental platforms like Airbnb or VRBO
9. Mileage or actual vehicle expenses for trips related to the rental

It's important to keep detailed records and consult with a tax professional to ensure you are properly tracking income and claiming allowable deductions.

By understanding the applicable taxes and strategically utilizing deductions, short-term rental hosts can optimize their tax liability while remaining in compliance with Sacramento County regulations.

California Wide Short-Term Rental Rules

While many short-term rental regulations are set at the city and county level in California, there are a few state laws that Sacramento County hosts need to be aware of:

1. Definition of Short-Term Rental: California Senate Bill No. 60, Chapter 307 defines a short-term rental as any residential property rented out for 30 days or less. This broad definition applies across the state, including in Sacramento County.
2. Transient Occupancy Taxes (TOT): The state of California allows cities and counties to collect transient occupancy taxes on short-term rentals. While there is no state-mandated TOT rate, many jurisdictions impose their own. Sacramento County requires short-term rental hosts to collect a 12% TOT from guests and remit it to the Tax Collector's Office.
3. Business Licenses: California requires anyone operating a business, including short-term rentals, to obtain the necessary licenses and permits. In Sacramento County, this means getting a General Business License from the Department of Finance in addition to a Short-Term Rental Permit.
4. Rental Agreements and Guest Disclosures: California law requires short-term rental operators to provide guests with a rental agreement that includes specific disclosures, such as the operator's contact information, emergency instructions, and house rules. Hosts must also disclose if the property is the host's primary residence.
5. Building and Housing Standards: All short-term rentals in California must comply with state building and housing codes related to health, safety, and habitability. This includes having working smoke detectors, carbon monoxide detectors, and fire extinguishers.

While these state-wide laws provide a baseline, it's crucial for Sacramento County hosts to also understand and comply with the county's specific short-term rental ordinance. The county's rules go further in regulating issues like permit requirements, occupancy limits, and operating restrictions.

By staying informed of both state and local regulations, short-term rental operators in Sacramento County can run successful and compliant businesses.

Does Sacramento County Strictly Enforce STR Rules?

Based on discussions among hosts on platforms like Bigger Pockets and Reddit, Sacramento County does appear to strictly enforce its short-term rental regulations compared to some other California cities. The county is generally not considered very Airbnb-friendly due to its restrictive rules and active enforcement.

Sacramento County requires all short-term rental operators to obtain a permit, which is only available for properties that are the host's primary residence. Hosts can only rent out their property for a maximum of 180 days per year if not present during the rental. The county also limits occupancy and requires hosts to collect and remit transient occupancy taxes.

Many hosts on real estate forums report that Sacramento County is quite aggressive in cracking down on unpermitted short-term rentals. The county actively investigates complaints and can issue fines of $1,500 or more for violations. Repeat offenders may face fines up to $5,000.

As a result, it appears most hosts try to operate within the county's rules to avoid penalties, even though the regulations are restrictive. Some have chosen to only rent their property long-term (31+ days) to avoid the short-term rental permit requirements altogether.

Compared to cities like San Diego or Palm Springs that have more relaxed rules and allow non-owner occupied rentals, Sacramento County is much less accommodating to Airbnb and short-term rental businesses. Hosts can still operate profitably, but must be diligent about staying in compliance with the county's ordinances.

In summary, while short-term rentals are allowed, Sacramento County's strict rules and enforcement make it one of the less Airbnb-friendly areas in California. Hosts should carefully review and abide by all regulations to avoid costly penalties.

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

Starting a short-term rental business in Sacramento County requires careful planning and compliance with local regulations. Here are the key steps to get started:

• Determine Eligibility: Ensure your property qualifies for a short-term rental permit. It must be your primary residence where you live for at least 6 months per year. Only permitted accessory dwelling units (ADUs) built before Jan 1, 2020, can be used as STRs.
• Prepare the Property: Get your home ready for guests. This may include decluttering, deep cleaning, making repairs, and upgrading furnishings and amenities. Consider hiring a professional photographer to showcase your listing.
• Apply for a Short-Term Rental Permit: Submit a Short-Term Rental Permit application through the RentalScape online portal, along with the $230 fee. You'll need to provide proof of primary residence and other documentation. Thoroughly review the application requirements and gather all necessary documents before starting to avoid delays.
• Obtain a Business License: After receiving your Short-Term Rental Permit, apply for a General Business License from the Department of Finance. You'll need to pay additional licensing fees. Keep detailed records of all business expenses for tax purposes.
• Register for Transient Occupancy Tax: Register with the Sacramento County Tax Collector's Office to collect and remit the 12% Transient Occupancy Tax (TOT) on your rental income. This is done through the RentalScape portal.
• Create Your Listing: Once permitted, set up your listing on platforms like Airbnb and VRBO. Write a compelling description, take high-quality photos, and set competitive rates. Establish house rules and a rental agreement that comply with local regulations. Research similar listings in your area to ensure your pricing and amenities are competitive.
• Manage Your Rental: Be responsive to guest inquiries and maintain a high level of cleanliness and safety. Consider using a reputable cleaning service and offering contactless check-in. Promptly address any guest concerns to maintain positive reviews. Automate as much of the rental process as possible, such as booking and communication, to save time.
• Stay Compliant: Keep your permit, license, and tax registration up to date. Comply with all Sacramento County short-term rental rules, including occupancy limits and operating restrictions. Failure to follow regulations can result in hefty fines.

By following these steps and prioritizing compliance with local regulations, you can launch a successful short-term rental business in Sacramento County. While the county's rules are relatively strict, hosts who operate legally and provide exceptional guest experiences can still thrive in this market.

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

If you have questions about Sacramento County's short-term rental regulations or zoning requirements, here are some key contacts and resources:

1. Sacramento County Office of Planning and Environmental Review: For general questions about short-term rental permits and zoning, email sacplan@saccounty.net or call (916) 874-6141.
2. Sacramento County Business Licensing: For questions about business licenses for short-term rentals, contact the Department of Finance at BusLicense@saccounty.net.
3. Sacramento County Tax Collector: For questions about registering to pay transient occupancy taxes, visit the Tax Collector's website or call (916) 874-6644.
4. Sacramento County 311 Connect: To report an issue with an unpermitted or problematic short-term rental, submit a request online through the 311 Connect system or call 311 from within Sacramento County. Outside the county, dial (916) 875-4311.

In addition to official county contacts, connecting with other local hosts can be a valuable way to navigate the complexities of short-term rental regulations. Here are a few active online communities for Sacramento hosts:

1. Airbnb Community Center - Sacramento Hosts: This is a dedicated group on Airbnb's Community Center forums where Sacramento hosts can ask questions and share experiences.
2. Sacramento Short-Term Rental Alliance (SSTRA): SSTRA is a non-profit trade association representing short-term rental owners and hosts in the Sacramento area. Their website offers regulatory information and membership perks.
3. /r/AirBnB Sacramento Subreddit: This is an active subreddit where Sacramento Airbnb hosts discuss local regulations, zoning issues, and hosting tips.

By utilizing these official contacts and tapping into the knowledge of the local host community, you'll be well-equipped to ensure your Sacramento County short-term rental operates in compliance with all applicable rules and regulations.

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

Discussions on platforms like Reddit, Bigger Pockets, and Airbnb Community forums provide insight into how Sacramento County hosts feel about the local short-term rental regulations. Here are some key takeaways:

Permits and Fees: Several hosts express frustration with the permitting process and associated costs. On the Airbnb Community forum, one host noted, "The short term rentals only allows 90 days per year. To get more days per year, you need to apply for conditional use permit, which cost $6750/year! That's insane."

Primary Residence Requirement: The requirement that short-term rentals be the host's primary residence is a point of contention. In a Reddit thread about starting an Airbnb in Sacramento, one commenter pointed out, "Airbnb houses are not legal in [Sacramento] County unless you jump through all the hoops to obtain a permit (and the permits are limited)."

Enforcement: Some hosts feel the county is strict in enforcing the regulations. A Bigger Pockets user seeking advice on investing in Sacramento rentals was told, "Just google Sacramento Short term regulations and go to the city website and read their requirements. Permits are needed for short term rentals."

Impact on Rental Market: There are mixed opinions on how the regulations affect the long-term rental market. In an Oakland-focused Reddit thread (which may reflect similar sentiments to Sacramento), one commenter estimated, "Assuming 1) a very low percentage of people are going to rent out their rooms or ADUs if they get kicked off Airbnb...that means that only about ~50% of these rentals would result in new long-term housing."

Overall, Sacramento County hosts seem to find the regulations restrictive and burdensome, with concerns about high permit fees, limitations on rental days, and strict enforcement. However, hosts also acknowledge the importance of operating legally to avoid penalties. As one Bigger Pockets user advised, it's crucial to thoroughly research the local requirements before starting a short-term rental business in Sacramento County.

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.