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Sunnyvale Short Term Rental Regulation: A Guide For Airbnb Hosts

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Sunnyvale, California

Disclaimer: This article is for informational purposes only and not legal advice. Regulations could have changed since this article was published. Check local zoning authorities and consult a legal professional before making any decisions.

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

These rules are often found in the zoning code, planning code, Sunnyvale ordinances, or real estate California forums like Bigger Pockets or Reddit.Short term rentals in Sunnyvale are allowed for up to 30 consecutive days where the host resides on site throughout the lodgers' stay. Lodgers may also stay in one dwelling unit of a two-family home if the host lives in the other unit1.

Hosts in Sunnyvale must register with the city and obtain a permit to host short term rentals. Registration includes collecting and remitting a 12.5% Transient Occupancy Tax to the city on a monthly basis. If renting through Airbnb, they handle tax payments on the host's behalf starting Aug 1, 2018. Hosts must still pay taxes themselves for non-Airbnb bookings2.

Starting a Short Term Rental Business in Sunnyvale

To start a short-term rental business in Sunnyvale, California, you must adhere to specific regulations. The city requires that all short-term rentals must have a permit, and hosts must reside on-site throughout their guests' stay. This means that the property used for short-term rental must be the host's primary residence, and the host must be present during the guests' stay.

Additionally, hosts are required to register with the city and obtain a permit to host short-term rentals. Registration includes collecting and remitting a 12.5% Transient Occupancy Tax (TOT) to the city. While Airbnb handles tax payments on the host's behalf for bookings through their platform, hosts must still pay taxes themselves for non-Airbnb bookings.

To initiate a short-term rental business in Sunnyvale, follow these steps:

  • Check eligibility based on zoning and primary residence requirements.
  • Register online to collect Transient Occupancy Tax.
  • List the property on sites like Airbnb and VRBO.
  • Collect and remit taxes monthly.
  • Maintain records in case of audits.
  • Renew the permit annually.

It's important to note that the city is taking steps to strengthen the requirements for short-term rental platforms and hosts. Hosting platforms such as Airbnb or VRBO would be required to list Sunnyvale's short-term rental permit number in their advertisements, making it harder for hosts to evade the rules and easier for city staff to investigate.

While there are differing opinions on the strictness of the regulations, it is crucial to comply with the established rules to ensure a successful short-term rental business in Sunnyvale.For further information and to address any inquiries regarding short-term rental regulations and zoning in Sunnyvale, hosts can contact the city and obtain the necessary permits and guidance.

Short Term Rental Licensing Requirement in Sunnyvale

Short-term rentals, such as Airbnb and VRBO, are regulated in Sunnyvale, California. To operate a short-term rental business in Sunnyvale, hosts must comply with the city's regulations. All short-term rentals must have a permit, and the owner must be on-site during the stay.

The recent amendment to the Sunnyvale Municipal Code Chapter 19.76 requires all short-term rental advertisements to include a permit number, making it harder for hosts to evade the rules and easier for City staff to investigate. The City of Sunnyvale requires hosts to collect and remit the City's monthly transient occupancy tax (TOT), which is 12.5%.

Hosts must register with the City to collect and remit the TOT. If renting through Airbnb, the company handles tax payments on the host's behalf starting Aug 1, 2018. Hosts must still pay taxes themselves for non-Airbnb bookings.To start a short-term rental business in Sunnyvale, hosts must check their eligibility based on zoning and primary residence requirements, register online to collect Transient Occupancy Tax, and register their property as a short-term rental with the City.

Hosts must also comply with the state-wide regulations for short-term rentals.While Sunnyvale has strict regulations for short-term rentals, hosts still operate in the city despite the rules. The willingness of rental companies like Airbnb to work with the City has made a significant impact on the enforcement of short-term rental rules.

Sunnyvale Vice Mayor Alysa Cisneros says the willingness of rental companies to help makes a huge difference. However, the City of Sunnyvale is taking steps to change the short-term rental rules and file a lawsuit.

Required Documents for Sunnyvale Short Term Rentals

In Sunnyvale, California, the regulations for short-term rentals (STRs) require hosts to adhere to specific rules and obtain the necessary permits. To ensure compliance, hosts must follow a straightforward process and provide the required documentation. Here's a detailed overview of the documents and steps involved in setting up a short-term rental business in Sunnyvale:

Required Documents for Sunnyvale Short Term Rentals

  • Permit Application: Hosts are required to obtain a permit for short-term rentals in Sunnyvale. This permit application will need to be submitted to the relevant city department, along with any associated fees.
  • Transient Occupancy Tax (TOT) Registration: Hosts must register with the City of Sunnyvale to collect and remit the city's monthly transient occupancy tax. This registration is essential for ensuring compliance with tax regulations.
  • Proof of Primary Residence: As part of the application process, hosts may need to provide proof that the property being used for short-term rentals is their primary residence. This could include a driver's license, utility bills, or other documentation.
  • Renewal Records: Hosts should maintain records of their permit and tax payments for annual renewal and potential audits. Keeping thorough and accurate records is crucial for ongoing compliance.

By gathering and submitting these required documents, hosts can navigate the regulatory process and establish a legal and compliant short-term rental business in Sunnyvale.For further information on the specific steps and contacts for short-term rental regulations and zoning in Sunnyvale, please refer to the City of Sunnyvale's official website or consult with local authorities.

By following these guidelines and ensuring full compliance with the regulations, hosts can operate their short-term rentals within the legal framework established by the City of Sunnyvale.

Sunnyvale Short Term Rental Taxes

In Sunnyvale, California, the Transient Occupancy Tax (TOT) rate for short-term rentals is 12.5%1. If you rent through platforms like Airbnb, they handle the tax payments on your behalf, starting from August 1, 20181. However, for non-Airbnb bookings, hosts are responsible for collecting and paying the TOT themselves1.

This tax must be registered and paid monthly to the city2. Failure to comply with these tax requirements may result in penalties2.The TOT, also known as a "hotel tax," applies to anyone renting any number of rooms for lodging, living, or sleeping purposes3. Hosts are required to collect, report, and pay this tax to the City of Sunnyvale3. It is essential to register for and pay the TOT to ensure compliance with the city's regulations3.

In summary, hosts in Sunnyvale must be aware of the TOT rate of 12.5% for short-term rentals and ensure that they comply with the tax collection, reporting, and payment requirements to avoid any potential penalties123

California wide Short Term Rental Rules

California has state-wide regulations for short-term rentals, which may vary from city to city. It is essential to research and comply with both local and state-wide regulations. Some key points to consider include:

  • Transient Occupancy Tax: The Transient Occupancy Tax, also known as a "hotel tax," requires anybody renting any number of rooms for lodging, living, or sleeping purposes to collect, report, and pay this tax to the City1. The City of Sunnyvale's Transient Occupancy Tax rate is 12.5%1.
  • Eligibility: Short-term rentals are permitted in many single-family residences under certain regulations. However, the following are not eligible for short-term rental under state law: New units created under Sunnyvale Municipal Code Chapter 19.78, Dual Urban Opportunity Housing, Title 191.
  • Residency Requirement: The host must reside on-site throughout guests' (lodgers') stay. To reside on-site means that the property used for short-term rentals is the host's primary and the host uses the property for eating, sleeping, and other activities of daily living during the periods that lodgers are present1.
  • Guest Limit: Limit guests to a maximum of four adult guests3.
  • Permit Requirement: All short-term rentals in Sunnyvale must have a permit3.
  • Advertisement Requirement: The amendment would require all short-term rental advertisements to include a permit number, making it harder for hosts to evade the rules and easier for City staff to investigate2.

It is crucial to stay informed about the regulations and comply with them to ensure a successful short-term rental business in Sunnyvale and other cities in California.

Does Sunnyvale strictly enforce STR rules?

Sunnyvale does enforce their short term rental regulations. Fines for violations start at $500 for a first offense and go up to $1000 for a third offense. The city can also revoke rental permits for repeat violations5.

Compared to other cities in California, Sunnyvale's rules are not extremely restrictive but do still limit short term rental activity compared to places without regulations.Hosts on Reddit and BiggerPockets acknowledge the regulations but some still operate rentals despite the restrictions. Others say it is not worth the risk of fines to violate the rules. Overall opinions on the strictness vary.

How to Start a Short Term Rental Business in Sunnyvale?

To start a short-term rental business in Sunnyvale, California, you must adhere to specific steps and regulations. Here's a comprehensive guide to help you navigate the process effectively.

  • Check Eligibility: Ensure that your property is eligible for short-term rentals based on zoning and primary residence requirements4.
  • Register Online for Transient Occupancy Tax (TOT): Hosts in Sunnyvale must register with the city and obtain a permit to host short-term rentals. This includes collecting and remitting a 12.5% Transient Occupancy Tax to the city on a monthly basis4.
  • List Property on Rental Sites: Once registered, list your property on platforms like Airbnb and VRBO to attract potential guests.
  • Collect and Remit Taxes Monthly: It's essential to collect and remit the Transient Occupancy Tax to the city on a monthly basis. If renting through Airbnb, they handle tax payments on the host's behalf4.
  • Maintain Records: Keep thorough records of your rental activity in case of audits or legal requirements.
  • Renew Permit Annually: Ensure that you renew your permit annually to maintain compliance with the regulations.

By following these steps, you can establish and maintain a successful short-term rental business in Sunnyvale, California, while complying with the city's regulations and requirements.

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

For questions on short term rental regulations and eligibility based on zoning in Sunnyvale, contact:City of Sunnyvale
Community Development Department
Phone: 408-730-7444
Email: planning@sunnyvale.ca.gov

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

Airbnb hosts in Sunnyvale have expressed varied opinions regarding the local regulations. Some hosts have voiced concerns about the restrictions, citing the limitations on the number of days that can be rented per year, occupancy caps, and parking requirements. However, others have acknowledged the necessity of these regulations to maintain the quality of life in the city.

One Reddit user highlighted the potential risks of violating the rules, emphasizing that the fines for non-compliance can be substantial, starting at $500 for a first offense and escalating to $1000 for a third offense. Additionally, the city has the authority to revoke rental permits for repeat violations, further underscoring the importance of adhering to the regulations.Overall, opinions on the strictness of the regulations vary among Airbnb hosts in Sunnyvale.

While some view the rules as somewhat restrictive, others recognize the significance of compliance and the need to operate within the established framework to ensure a successful and sustainable short-term rental business in the city.

🤔 Confused? Get your vacation rental license, tax registration and inspections done for you

Get Help

⚡️
Reveal any property's Airbnb and Long-Term rental profitability

Buy this property and list it on Airbnb.