Did you know that the average Airbnb price per night in San Francisco is US $392*, the highest in the entire US? With occupancy rates of up to 69%**, renting your San Fran property on Airbnb can be lucrative.
And yet, the California city is known for having complex short-term rental laws that could appear daunting to an Airbnb host. These include a 90-day rental limit, permanent residency requirements, registration rules, and an insurance minimum of US $500,000.
These rules have seen the number of Airbnbs plummet to just over 8,000 as of early 2024, compared to around 40,000 in other major US cities like Los Angeles and New York***. But all is not lost!
In this post, we’ve outlined the main need-to-know SF Airbnb rules and laws, plus offered tips on how to insure and protect your home with our dedicated risk management platform, for even greater peace of mind.
With a little time, patience, and understanding, you can demystify the San Francisco Airbnb regulations that apply to you, and start Airbnb-ing your home with ease. Here’s how.
What are the registration requirements for Airbnb in San Francisco?
Anyone in the City of San Francisco who wants their home to be considered as a short-term rental (fewer than 30 days at a time), such as listing and renting it via Airbnb, must register for:
- A Business Registration Certificate, issued by the San Francisco Office of the Treasurer & Tax Collectors.
- A Short-Term Rental Registration Certificate.
Since March 2022, Airbnb hosts have been required to register their short-term rentals (and renewals) directly with the City of San Francisco instead of on Airbnb (the previous system).
There are certain requirements you must follow in order to register your property.
- You must live there for at least 275 days per year, making you a permanent resident of San Francisco. If you haven’t yet lived there for a full year, you must have occupied the building for 75% of the days for which you have lived there.
- You must have lived in the property for at least 60 days.
- If you are renting your entire space (as opposed to one bedroom in your property), you may only rent out the property for a maximum of 90 days per year, when you personally are not present.
- If you only rent out part of your property (e.g. one bedroom) while you are still present in another part of the same property, there is no limit on the number of rentals allowed per year.
To register, head to the San Francisco planning website to begin the process. You will need:
- A non-refundable registration fee of $925 (good for two years)
- Your Business Registration Certificate (or receipt of application, if it has not yet been issued)
- Proof of residency (e.g. two of either Government-issued ID, proof of homeowner’s tax exemption, utility bill, or Voter Registration Card)
- Proof of insurance for no less than $500,000. Not required if you are listing exclusively through Airbnb, as the platform covers it.
A safety inspection of the property, and a fee to cover it, may be required as part of the application checking process.
Once you have applied, you must include your unique record number for your application on every listing offering your unit for short-term rental while your application is under review (e.g. in the format 2023-123456STR.)
If you have an application that is closed and approved, you must update this number with your certificate number (e.g. in the format STR-0001234.)
Once your application is granted, it is good for two years. This means it must be renewed every two years. If your application is rejected, you can file a written appeal within 30 calendar days.
And if you’re thinking about expanding your STR business, here are the Las Vegas Airbnb laws.
What zoning laws do Airbnb hosts need to know about in San Francisco?
Zoning laws in San Francisco mean that some properties in certain zones or buildings are not eligible for short-term rentals.
You can see an interactive map and search a list of these zones on the San Francisco Property Information Map.
Certain zones have extra short-term rental regulations. For example, if your unit is located in a zoning district identified as “RH-1(D)”, the Office of Short-Term Rentals will send a notice to all property owners and residential tenants who live within 300 feet of your unit, once you submit your short-term rental registration application.
These recipients will have 45 days to submit comments to the Office of Short-Term Rentals. However, these comments will only hinder your application if someone is able to submit good evidence that you or your unit is ineligible to host short-term rentals.
You can check if you are in a RH-1(D) area on the same interactive map.
What taxes apply to Airbnb in San Francisco?
There are two kinds of taxes that apply to Airbnbs and short-term rentals in San Francisco (in addition to the fees payable when registering and renewing your business, as explained above).
- Transient Occupancy Tax
Hosts must collect a Transient Occupancy Tax (TOT) from guests, for all rentals that last less than 30 days. This is currently 14% of the total rent. This tax must then be paid to the San Francisco Treasurer & Tax Collector. Hosts must have a Certificate of Authority (issued by San Francisco Treasurer & Tax Collector’s Portal) to collect this tax.
- Business Personal Property Tax
This tax is calculated based on the furnishings, appliances, and other personal items used in the rental business. These items must be reported to the Tax Collector via the host’s Business Account Number (BAN), which is given when the business is successfully registered.
What are the rules for multi-unit buildings for Airbnb in San Francisco?
Multi-unit buildings in San Francisco are covered by a number of extra regulations.
For the purposes of short-term rentals, hosts are advised to be aware of the following rules:
- Accessory Dwelling Units (ADUs)
ADUs are smaller, stand-alone (detached) residential units located on the same property lot as the main home. These are sometimes known as “granny flats”, “annexes” or “secondary suites.”
In San Francisco, ADUs are not eligible for short-term rental, as outlined by the San Francisco Planning authority.
- The Ellis Act and affordable housing
Dating to 1985, the Ellis Act is a California state law that enables landlords to evict residential tenants from their property if the landlord wishes to exit the rental market completely. In San Francisco, if a landlord invokes this law, they must comply with laws on affordable housing.
Any property subject to an Ellis Act eviction after 2014 is not eligible for short-term rental.
Hosts in San Francisco cannot operate several Airbnb units at once, because they must live in the listed property for at least 275 days per year. This is only possible to do in one, main residence.
What are the insurance requirements for Airbnb in San Francisco?
Hosts in San Francisco must maintain at least $500,000 of liability insurance, and show proof of this when submitting their Short-Term Rental Registration Certificate application.
Airbnb offers Host Liability insurance that satisfies this requirement, but this only applies for stays organized through Airbnb. If you list or rent your property on any other website (or take direct bookings), Airbnb’s Host Liability does not apply.
Similarly, Airbnb’s Host Liability is not comprehensive, and is not considered the same as having short-term rental property insurance. Instead, responsible short-term rentals hosts typically have a separate insurance policy or coverage that adds extra safety and protection for renters and hosts.
For example, Superhog’s services are specially designed for short-term rentals, to put your mind at ease, and protect your property. They also comply with San Francisco’s $500,000 insurance minimum.
Superhog’s Know Your Guest services include:
- Short-term rental protection of up to $5 million for all verified bookings.
- ID verification for guests (including ID checking and biometric screening), so you know exactly who is staying at your home.
- Extra guest screening, including of criminal databases, to prevent fraud and criminal activity, and reduce your risk of hosting unscrupulous or bad guests.
- Damage deposit facility, to automate the collection and remittance of a guest security deposit.
- Damage waiver facility, to cover small guest damages, and create a new line of revenue for you.
Read about the best Airbnb host insurance.
What compliance checks apply to Airbnb in San Francisco?
To stay compliant as a short-term rental host in San Francisco, in addition to paying the required taxes and having the correct registration documents, you must:
- File reports four times a year. This must be done in January, April, July, and October via the Quarterly Rental Reporting Portal, at the City’s Office of Short Term Rentals. You must share the number and dates of short-term rentals of your unit.
- Maintain records. You must keep records that prove your primary residence in the unit, show how many days per year you occupy the unit, and indicate the number and dates of short-term rentals of your unit.
- Clearly display safety precautions. You must affix a clearly printed sign inside your unit, on the inside of the front door, providing information about the location of all the fire extinguishers in the unit and building, the location of all gas shut off valves, the location of fire exits, and fire alarms.
- Accessibility and fire safety. All properties rented short-term must comply with building standards, accessibility code, and fire safety regulations, to ensure the safety of occupants. Not complying with these standards may see your authorization to host revoked, and could also void your insurance policy.
Are there any other regulations or penalties Airbnb hosts need to know about in San Francisco?
Other major regulations that Airbnb hosts need to know in San Francisco include:
- No code complaints. San Francisco law states that hosts may only rent out their property or unit if there are no unresolved building, housing, or planning code complaints that apply to the space.
- Hosted v unhosted listings. If you operate both “hosted” rentals (when you are present, e.g. renting out one bedroom in your wider home) and “unhosted” rentals (when you rent out your entire home when you are not present), you must create separate listings for each. One listing will be covered by the 90-day limit, and the other will not.
- Contract clauses. You must follow any other rules or contracts that you have signed or are bound by in the building, such as leases, condo board, HOA rules, co-op rules, or tenant organization rules.
- Leaseholder rules. If you do not own the building, or have a lease, you may need permission from your landlord or leaseholder to operate the property as an Airbnb. You will need to check your lease, agreement, and/or contract to be sure, and get the required permissions, if applicable.
- Eligibility. Your unit must be eligible for short-term rental. As well as the regulations outlined above, this also means it:
- Cannot be in The Presidio, Fort Mason, or Treasure Island districts
- Cannot be a Single-Room-Occupancy (SRO) or dormitory
- Cannot be a Below-Market-Rate (BMR) or Public Housing unit
- Cannot be an Accessory Dwelling Unit (ADU)
- Must be permitted and designed for residential use. Commercial and industrial spaces are not permitted to conduct short-term rentals.
- Cannot have sleeping quarters for guests or hosts in outdoor areas, including treehouses and vehicles, or in a separate detached structure.
San Francisco Airbnb laws: The bottom line
Operating Airbnbs in San Francisco can appear fraught with pitfalls.
It comes with strict regulations, including limits on “unhosted” stays, permanent residency requirements, zoning restrictions, and mandatory insurance. To comply, hosts must register, report rental activities quarterly, and adhere to safety and zoning laws.
And while these regulations may feel like a lot, hosts can gain greater peace of mind by employing a dedicated short-term rental risk management platform like Superhog to manage safety and insurance.
Superhog helps hosts meet San Francisco insurance coverage requirements by offering damage waiver and protection services, guest screening, and damage deposit processing, ensuring compliance and peace of mind for short-term rental operations.
So you can stop worrying about whether you’re complying with regulations, safety, and rules; and get back to doing what you do best: hosting!
*Statista, February 2024. **Airbtics.com, 2024. ***Airbnb.com and Statista, 2024.
Frequently asked questions about San Francisco Airbnb laws
