Oakland Short Term Rental Regulation: A Guide For Airbnb Hosts

What are Short Term Rental (Airbnb, VRBO) Regulations in Oakland, California?

Oakland is in the process of regulating Airbnb and Vrbo short-term rentals, with a proposal expected in the spring or summer of 20241. Currently, there are no city policies that permit short-term rentals under 30 days, and transient habitation (rental of a dwelling unit for seven days or less) is expressly prohibited in much of Oakland1. The city administration reports that there are 2,600 Oakland lodgings listed on Airbnb alone, despite these restrictions1.

Critics argue that short-term rentals take much-needed rental housing off the market, driving up prices and reducing options for residents. Safety concerns also arise when there is little oversight or accountability1. However, short-term rentals can offer flexibility to visitors beyond traditional hotels and provide supplemental income for homeowners, as well as tax revenue for the city1.

Although the city says all short-term rentals in Oakland are operating unlawfully, the city does collect taxes from their occupants, the same tax that hotel guests pay1. Oakland never devised a policy clarifying its approach to short-term rentals, even while the market for them expanded enormously over the past 15 years1.

The proposed regulations aim to balance the benefits of short-term rentals with the potential adverse impacts on long-term housing affordability and neighborhood impacts1. The city will hold a public workshop early next year to collect input on the proposal, which may include limiting hosts to listing their own house only, setting up an online licensing system for hosts, and launching a hotline for neighbors and others to report violations1.

Hosts could be limited to listing their own house only, but representatives from short-term rental companies have told Oakland that it would be difficult for them to confirm that licenses are valid1. Safety concerns also arise at unregulated rentals, as demonstrated by a tragic incident in which two teenage brothers were fatally shot at a party that took place at a North Oakland Airbnb1.

The city is currently scouting a contractor to help implement the regulations, which would include fining-tuning the proposal, setting up an online licensing system for hosts, and launching a hotline for neighbors and others to report violations1. The proposed regulations aim to address housing affordability issues and help reduce safety concerns1.

Starting a Short Term Rental Business in Oakland

Starting a short term rental business in Oakland, California, requires understanding and complying with specific local laws and regulations. The City of Oakland is currently preparing new regulations for the rental of residential dwelling units for periods of less than 30 days, known as Short-Term Residential Rentals (STRRs).

These regulations aim to balance the benefits of short-term rentals with the potential adverse impacts on long-term housing affordability and neighborhood impacts.In Oakland, the proposed regulations for short-term rentals include:

• Hosts must live in their primary residence for a minimum number of days annually, which encourages owner-occupancy and discourages commercial short-term rental operations.
• Hosts must register their properties with the city and comply with owner-occupancy rules and maximum rental duration restrictions.
• Hosts are responsible for collecting and remitting Transient Occupancy Tax (TOT) to the city.

Short Term Rental Licensing Requirement in Oakland

The Short Term Rental Licensing Requirement in Oakland mandates that hosts offering short-term rentals must register their properties with the city to ensure compliance with local regulations. This registration process includes providing the property address and assessor’s parcel number, rental unit details, and proof of liability insurance.

Additionally, some areas in Oakland require hosts to live in their primary residence for a minimum number of days annually, which encourages owner-occupancy and discourages commercial short-term rental operations.

The registration fee for short-term rentals in Oakland is $500.00, with an annual renewal fee of $250.00. Inspections incur a fee of $150.00, and a change of agent or modification of Vacation Rental Registration requires a $50.00 fee. Changing ownership necessitates a new initial registration fee. The city's regulations aim to ensure that short-term rentals are safe, well-maintained, and compliant with local laws to protect both hosts and guests.

Required Documents for Oakland Short Term Rentals

To start an Oakland Airbnb business, hosts need to obtain a business tax certificate and, in some cases, a business permit. Furthermore, all rental properties need to be registered with the City. The required documents include:

• Property address and assessor’s parcel number
• Rental unit details, such as the number of rooms and occupancy limits
• Proof of liability insurance
• Compliance with zoning and land use regulations

Oakland Short Term Rental Taxes

Hosts are responsible for collecting and remitting Transient Occupancy Tax (TOT) to the city. This tax helps fund essential services in Oakland. The rate is 14% of the rent charged, as stipulated in Chapter 4.24 of the Oakland Municipal Code.

Oakland-wide Short Term Rental Rules

Oakland's short-term rental laws do not allow non-owner occupied vacation rentals, making the City suboptimal for investors. Most residential and commercial zones in the City of Oakland do not allow Transient Habitation, with the exception of designated zones in downtown, along the waterfront, near the airport, along the I-880 freeway, and in Specific Plan areas.

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

Oakland's short-term rental laws do not allow non-owner occupied vacation rentals, making the City suboptimal for investors. Most residential and commercial zones in the City of Oakland do not allow Transient Habitation, with the exception of designated zones in downtown, along the waterfront, near the airport, along the I-880 freeway, and in Specific Plan areas. However, the city does collect taxes from short-term rental occupants, indicating some level of acceptance for the practice.

Some hosts on Bigger Pockets have expressed frustration with the strict regulations in Oakland, while others have found ways to operate within the rules. On Reddit, some hosts have expressed confusion about the City Business Tax of 1.395% that is assessed on the annual gross rental income and the "Oakland parking tax" and a "rental parking tax".

However, more recent and comprehensive opinions from hosts on platforms like Reddit and Bigger Pockets would need to be researched to provide a definitive answer.

How to Start a Short Term Rental Business in Oakland

• Understand the local regulations and the proposed changes to the STRRs in Oakland.
• Register your property with the city by providing the required documents.
• Obtain a business tax certificate and, if necessary, a business permit.
• Comply with owner-occupancy rules and maximum rental duration restrictions.
• Prepare the required documents, including the property address and assessor’s parcel number, and rental unit details.
• Collect and remit Transient Occupancy Tax (TOT) to the city.

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

For any questions about Short-Term Residential Rentals (STRRs), you can email STRR@oaklandca.gov.

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

The opinions of Airbnb hosts in Oakland on Reddit and Bigger Pockets regarding local regulations are varied. Some hosts have expressed confusion about the City Business Tax, the "Oakland parking tax," and the "rental parking tax." However, more recent and comprehensive opinions from hosts on platforms like Reddit and Bigger Pockets would need to be researched to provide a definite answer.

There is also a discussion about the challenges faced by hosts, such as the difficulty of confirming license validity and safety concerns at unregulated rentals. The city is currently scouting a contractor to help implement the regulations, which would include setting up an online licensing system for hosts, issuing licenses and monitoring listings, and launching a hotline for neighbors and others to report violations.

The city administration is finally putting together a proposal for regulating short-term rental sites, expected in the spring or summer of 2024. The legislation is not yet available, but city materials indicate what might be included, such as limiting hosts to listing their own house only and setting up an online licensing system for hosts. The city will hold a public workshop early next year to collect input on the proposal.

The new 24-hour hotline would field "minor, non-health and safety related issues." Members of the public can sign up for email updates from the city on the short-term rental regulation process and the progress of the proposal.In conclusion, while there are concerns about the impact of short-term rentals on long-term housing affordability and safety, there is also recognition of the benefits they offer, such as flexibility to visitors beyond traditional hotels and supplemental income for homeowners. The city is working to balance these considerations and develop regulations that address the needs and interests of the community.