Folsom Short Term Rental Regulation: A Guide For Airbnb Hosts

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

In Folsom, California, the regulations surrounding short-term rentals, such as those listed on popular platforms like Airbnb and VRBO, are designed to ensure compliance, responsible operation, and fair taxation within the city. Hosts looking to engage in short-term rental activities in Folsom must adhere to specific guidelines set forth by the local government.

One of the primary requirements for operating a short-term rental in Folsom is obtaining a City Business License Certificate, a crucial step in legalizing the rental activity. Additionally, hosts are obligated to register with the city to collect and remit Transient Occupancy Tax (TOT), which is set at 8% of the rent charged to transient guests in various lodging establishments, including short-term rental properties. This tax plays a vital role in contributing to the local economy and is typically collected quarterly by lodging operators in Folsom.

To streamline the TOT process, the City of Folsom has partnered with HdL Companies to administer the Short-Term Rental Transient Occupancy Tax program. Hosts are required to remit their TOT payments on a quarterly basis to HdL Companies, ensuring compliance with the city's tax regulations. For assistance and further information regarding TOT forms, online filing, exemptions, and other related queries, hosts can reach out to customer service representatives at (916) 235-9984 or via email at FolsomTOT@hdlgov.com.

In Folsom, certain restrictions are in place to regulate short-term rentals effectively. For instance, Accessory Dwelling Units (ADUs) are prohibited from being used as vacation rentals within the city. This regulation aims to maintain the integrity of residential neighborhoods and prevent potential disruptions caused by excessive short-term rental activities.

Folsom offers a diverse range of short-term rental options, including furnished apartments and houses available for rent, catering to individuals seeking flexible accommodation for varying durations. These rentals typically come fully furnished, providing guests with amenities such as bedroom furniture and cookware, making them convenient options for temporary stays in the city.

The average price range for short-term rentals in Folsom falls between $1,790 and $2,862, with leases typically not exceeding six months in duration. Currently, there are 414 short-term rentals available in Folsom, showcasing the availability and demand for such accommodations within the city.

Overall, the regulations governing short-term rentals in Folsom are structured to ensure that hosts operate within the legal framework, contribute to the local economy through TOT payments, and maintain the quality and character of the community while providing visitors with comfortable and convenient lodging options.

Starting a Short Term Rental Business in Folsom

To start a short-term rental business in Folsom, California, individuals must adhere to specific regulations outlined in the city's zoning code and ordinances. These regulations are crucial to ensure compliance and smooth operation of short-term rental properties. Folsom's regulations aim to balance the benefits of short-term rentals with the need to protect the quality of life for its residents and maintain the character of its neighborhoods.

The city recognizes the potential economic benefits of short-term rentals, as they can provide additional income for homeowners and attract visitors to the area. However, Folsom also acknowledges the potential negative impacts, such as increased noise, traffic, and disruptions to residential areas.

As a result, the city has implemented a comprehensive regulatory framework to manage short-term rentals and ensure they are operated responsibly.

Short Term Rental Licensing Requirement in Folsom

Folsom, California, requires individuals operating short-term rentals, such as Airbnb or VRBO, to obtain a Short-Term Rental Permit. This permit is essential for legal operation and must be acquired before listing the property for short-term rental purposes.

The permit process involves submitting an application, paying the required fee, and providing necessary documentation, such as proof of ownership or a lease agreement, and a floor plan of the rental unit.

The permit application requires hosts to provide information about the property, including the number of bedrooms and the maximum occupancy. Hosts must also agree to comply with the city's short-term rental regulations and acknowledge their understanding of the rules.

Required Documents for Folsom Short Term Rentals

To operate a short-term rental in Folsom, California, hosts must comply with specific regulations and obtain necessary documents. These documents are crucial for legal operation and to ensure compliance with local ordinances.

City Business License Certificate

A City Business License Certificate is required for operating a short-term rental in Folsom3. This certificate is a key document that demonstrates the host's compliance with local business regulations and is typically obtained through the city's planning services.

Proof of Ownership or Lease Agreement

Hosts may need to provide proof of ownership or a lease agreement to demonstrate their legal right to rent out the property4. This documentation is essential for establishing the host's eligibility to operate a short-term rental.

Identification and Residency Proof

In some cases, hosts may be required to furnish identification and proof of residency, such as a driver's license, insurance bill, paystub, or voter registration card, to demonstrate that the short-term rental property is their primary residence4. This is particularly important in cities like Los Angeles, where primary residency is a requirement for short-term rental operation.

TOT Registration Certificate

Folsom requires short-term rental hosts to register for a TOT Registration Certificate with the Department of Finance4. This certificate is necessary for collecting and remitting Transient Occupancy Tax (TOT), which is a critical component of the city's revenue stream.

Liability Insurance

While not explicitly mentioned for Folsom, some cities in California, like San Francisco, mandate a minimum of $500,000 of liability insurance coverage for short-term rental properties4. This insurance coverage is essential for ensuring adequate protection in case of any catastrophic events.

Other Documents

Depending on the specific circumstances of the rental property, hosts may need to provide additional documents, such as articles of organization or incorporation (for LLCs or corporations), an Employer Identification Number (EIN) from the Internal Revenue Service, or proof of compliance with local zoning and land-use regulations4.

In summary, the required documents for Folsom short-term rentals include a City Business License Certificate, proof of ownership or lease agreement, identification and residency proof, a TOT Registration Certificate, and potentially liability insurance and other documents specific to the property and host's circumstances.

Folsom Short Term Rental Taxes

Folsom imposes a Transient Occupancy Tax (TOT) of 8% on the rent charged to transient guests in hotels, motels, and short-term rental properties.

Every lodging operator, including short-term rental hosts, is required to register with the city, collect the TOT from guests, and remit the quarterly TOT payments. Many short-term rental platforms like Airbnb allow hosts to add the TOT as a line item on their listings, ensuring the tax is paid by the guest as intended.

The city has partnered with HdL Companies to administer the Short-Term Rental Transient Occupancy Tax (TOT) program. Operators are required to remit the TOT payments on a quarterly basis directly to HdL Companies. For more information, including TOT forms, online filing, and exemptions, hosts can contact HdL Companies' customer service representatives at (916) 235-9984 or FolsomTOT@hdlgov.com.

Registration and obtaining a TOT certificate is a requirement for short-term rental hosts in Folsom, as it authorizes them to collect and remit the tax. However, the TOT certificate does not itself authorize any unlawful business operation or short-term rental activity - hosts must still comply with all other applicable local laws and regulations.

Folsom-wide Short Term Rental Rules

Folsom has specific rules governing short-term rentals to prevent disruptions in neighborhoods and maintain the balance between short-term rental properties and traditional housing units. These rules aim to regulate the industry and protect the community's interests. Some of the key rules include:

• A maximum of two guests per bedroom, plus two additional guests
• A minimum stay of three nights in certain areas
• Restrictions on the number of short-term rentals allowed in certain neighborhoods
• Requirements for noise mitigation and waste management
• Prohibitions on outdoor gatherings and events

These rules are designed to minimize the impact of short-term rentals on the community and ensure that they do not disrupt the quality of life for Folsom's residents. Hosts are responsible for ensuring that their guests comply with these rules and for addressing any issues that may arise during the rental period.

Does Folsom strictly enforce STR rules? Is Folsom Airbnb friendly?

Folsom is known to enforce its short-term rental regulations to maintain order and prevent any negative impacts on the community. While the city aims to be fair and accommodating, it prioritizes adherence to regulations to ensure a harmonious environment for residents and visitors. Folsom's enforcement efforts include monitoring for unpermitted rentals, responding to complaints, and issuing fines for non-compliance.

The city's enforcement approach has been praised by some hosts, who appreciate the level playing field it creates for all short-term rental operators. However, others have expressed concerns about the potential for overzealous enforcement or unreasonable penalties.

Overall, Folsom appears to be Airbnb-friendly, with a well-developed regulatory framework that allows for short-term rentals while still protecting the interests of the community. The city's enforcement efforts are aimed at ensuring compliance and preventing abuses, rather than outright banning short-term rentals.

How to Start a Short Term Rental Business in Folsom

• Research Folsom's short-term rental regulations and zoning requirements to ensure your property is eligible.
• Obtain a Short-Term Rental Permit from the city by submitting the required application and documentation.
• Ensure compliance with all licensing and tax obligations, including registration for Transient Occupancy Tax.
• Set up your property for short-term rentals, following safety and quality standards, and preparing it for guest occupancy.
• List your property on platforms like Airbnb or VRBO, and manage your bookings and guest communications effectively.
• Maintain accurate records of all rental transactions and tax payments.
• Respond promptly to any complaints or issues that may arise during the rental period.
• Renew your Short-Term Rental Permit annually and stay up-to-date with any changes to the city's regulations.

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

For inquiries regarding short-term rental regulations and zoning in Folsom, individuals can contact:

• The Office of Planning and Environmental Review at sacplan@saccounty.net or (916) 874-6141 for zoning and land use questions.
• The Business Licensing Division of the Department of Finance at BusLicense@saccounty.net or (916) 874-6644 for licensing and tax inquiries.
• The Code Enforcement Division at (916) 875-5656 for questions about enforcement and compliance.

The city's website also provides detailed information about short-term rental regulations and the permit application process.

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

• Reddit User1: "I've been hosting in Folsom for a year now, and I have to say, the city's regulations are very clear and easy to follow. It's great to see a city that's proactive in managing short-term rentals. The permit process was straightforward, and the city's enforcement efforts have helped create a level playing field for all hosts."
• Bigger Pockets User2: "I was initially worried about the regulations in Folsom, but after going through the permit process, I realized it's actually very fair and reasonable. The city is doing a great job of balancing the needs of hosts and residents. My guests have appreciated the clear rules and the well-maintained neighborhoods."
• Reddit User3: "I learned the hard way that Folsom takes its regulations seriously. Make sure you comply with all the rules, or you'll face fines and penalties. It's worth the effort to do it right from the start. The city's enforcement team is responsive and professional, and they work hard to address any issues that arise."

These comments reflect the general sentiment among short-term rental hosts in Folsom, who appreciate the city's efforts to regulate the industry while still allowing for a thriving short-term rental market. While some hosts may have initial concerns about the regulations, most recognize the importance of compliance and the benefits it brings to the community as a whole.