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Sacramento Enacts Short Term Rental Law – What Real Estate Owners Need to Know

The City of Sacramento recently passed ordinances that allow and regulate “short-term rentals”, which are of the type advertised non-Airbnb, VRBO, and similar sites. This is welcome news, as this type of rental has been in a state of limbo under the law of most communities. Usually, it fits in with motels or bed and breakfasts and is governed by rules for those types of operations. Now, in Sacramento, as in San Francisco and other communities throughout California, they have their own classification and regulations. Owners who are interested in renting their properties on this basis should consult with a Sacramento real estate attorney to be sure they understand the ordinances and have an appropriate short-term rental agreement.

sacramento short term rental attorneyShort-Term Rental
Under the new ordinance, A short-term rental@ means a bed and breakfast inn that is limited as follows:

1. Lodging is provided for no more than six persons at any time; and

2. If the dwelling unit is not the primary residence of the permittee/owner, lodging is provided for no more than an aggregate of 90 days in any calendar year. Over 90 days requires a conditional use permit. 17.228.104 (d)

The Application
An owner, lessee, or holder of a similar interest in a dwelling unit may apply for a
short-term rental permit by filing an application with the city manager. The Permit is good for one year. The fee for a new applicant is $125; fee for renewal is $90. This permit allows the applicant to rent a residential unit or part of a residential unit on a short term basis. A short term basis is 30 days or less to the same person.

weird extra bedroom that smelled like cat and death. also, bikes in the bedroom. cause, yeah.
Pay Taxes
An annual business tax as a hotel of $50 plus collection and remittance of the “transient occupancy tax” of 12% from renters is required of all short term vacation rental operators.

Registry required.
A. The permittee shall keep a register that documents the following information:

1. All dates on which the permittee provided lodging for compensation;
2. The number of lodgers on each date; and
3. The amount of rent paid by lodgers for each night of lodging.

B. The permittee shall maintain this register in a printed format for at least three years
and shall provide the register to the city upon request. 5.114.220

Posting of permit.
A permittee shall post a copy of the short-term rental permit in a conspicuous place in
each room in which a lodger is expected to sleep. 5.114.230

california short term rental airbnb attorneySigns prohibited.
No permittee shall post on the short-term rental dwelling unit property any sign or writing
visible from the exterior of the dwelling indicating that the dwelling unit is available for
rent. 5.114.240

Special events prohibited.
No permittee shall allow any conferences, weddings, fundraisers, or similar gatherings
at the short-term rental dwelling unit. 5.114.260.

Given the restrictions that come with such a permit, they might not be for everybody, but the owner who is interested now has a clear path to proceed.