Placer County, California Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Placer County, California?

Placer County, located in Northern California and bordering Lake Tahoe, has implemented several regulations for short-term rentals like Airbnb and VRBO. These rules aim to balance the benefits of vacation rentals with the need to protect housing affordability and neighborhood quality of life. Here's what you need to know about operating a short-term rental in Placer County.

Starting a Short-Term Rental Business in Placer County

To legally operate a short-term rental in Placer County, hosts must:

• Obtain a business license, Transient Occupancy Tax (TOT) certificate, and short-term rental permit. There is a cap of 3,900 STR permits available in Eastern Placer County, with only one permit issued per property.
• Owner-occupied rentals are exempt from the permit cap but still must obtain a permit. Permits must be renewed annually.
• Pay a $306 STR permit application fee. Existing permit holders had priority to renew in the 90 days after the new ordinance went into effect on March 31, 2022.
• Undergo a fire department inspection to verify fire code compliance and presence of smoke and carbon monoxide detectors. This is critical as carbon monoxide from snow-blocked furnace vents has caused poisonings in the Tahoe area.
• Designate a local contact person, such as a co-host or property manager, available 24/7 by phone who can be on-site within 60 minutes to address any issues.
• Follow operating requirements related to noise, trash, parking, occupancy limits (2 per bedroom plus 2, excluding children under 16), building and fire safety. Quiet hours are 10pm-7am.
• Collect and remit the 10% TOT and 1-2% TBID (Tourism Business Improvement District) tax on stays under 30 days. Airbnb and Vrbo do not collect these taxes for hosts in Placer County.

Once the 3,900 permit cap is reached, the County will maintain a waitlist. Each quarter, applications will be processed from the waitlist based on oldest receipt date as permits become available from non-renewals or revocations.

Fines for violations start at $1500 per day. A first citation is up to $500/day, increasing to $1000/day for a second offense.

The Placer County short-term rental regulations were updated in 2022 to address the impacts of the industry's rapid growth on housing prices and availability. By capping permits and requiring hosts to follow "good neighbor" rules, the County aims to allow vacation rentals to thrive while minimizing negative effects on local communities.

Short-Term Rental Licensing Requirements in Placer County

To legally operate a short-term rental in Placer County, property owners must obtain the following:

1. Business license
2. Transient Occupancy Tax (TOT) certificate
3. Short-term rental permit

There is a cap of 3,900 STR permits available in Eastern Placer County, with only one permit issued per property. Owner-occupied rentals are exempt from the permit cap but still must obtain a permit. Permits must be renewed annually.

1. The STR permit application requires the following:
2. Property owner or agent name and contact information
3. Local contact person name, phone number, and email
4. Property address and assessor's parcel number
5. Rental unit type (home, condo, etc.)
6. Number of bedrooms (min. 70 sq ft each, meets building codes)
7. Maximum occupancy (2 per bedroom plus 2, excluding children under 16)
8. Number of on-site parking spaces or alternative parking plan
9. Proof of garbage service and number of animal-proofed receptacles
10. Current TOT certificate or application
11. Number and location of fire extinguishers, smoke, and CO alarms
12. Certification of compliance with fire code and safety requirements
13. Acknowledgment of understanding noise, parking, trash, guest safety, and operational standards

The non-refundable STR permit application fee is $306. Applications can be submitted online through the Host Compliance portal at https://safe.hostcompliance.com/placer-county-ca/permit-registration/welcome or in batches by HOAs/property management to:

Placer County
Attn: STR Unit
775 North Lake Blvd.
Tahoe City, CA 96145

Once the 3,900 permit cap is reached, the County will maintain a waitlist. Each quarter starting back in July 1, 2022, applications will be processed from the waitlist based on oldest receipt date as permits become available from non-renewals or revocations.

Fines for STR violations start at $1500 per day. A first citation is up to $500/day, increasing to $1000/day for a second offense.

It's critical for STR owners to understand and abide by all legal requirements. Regulations are constantly evolving, so hosts must stay informed of changes. By capping permits and requiring "good neighbor" operational standards, Placer County aims to allow vacation rentals to thrive while minimizing negative impacts on local housing and communities.

Required Documents for Placer County Short-Term Rentals

To apply for a short-term rental permit in Placer County, owners must submit the following documents:

1. Property Ownership Verification: Provide a deed, title, or property tax bill showing the name of the property owner matches the permit applicant. Establishes legal ownership.
2. Local Contact Person Designation: Name, phone number, and email address for a local contact available 24/7 who can be on-site within 60 minutes to address any issues. Required by ordinance.
3. Assessor's Parcel Number (APN): Found on property tax bills. Used to identify the property in County records.
4. Rental Unit Details: Specify the type of unit (whole home, condo, etc.), number of bedrooms (minimum 70 sq ft each), and maximum occupancy. Bedrooms must meet building code egress requirements. Occupancy limited to 2 per bedroom plus 2, excluding children under 16. Verified by County.
5. Parking Plan: Total number and location of on-site parking spaces. If no on-site parking, must provide County-approved off-site parking plan. Ensures compliance with parking rules.
6. Garbage Service Proof: Copy of trash collection contract or receipts. Cans must be bear-proofed within one year. Prevents litter and wildlife issues.
7. Transient Occupancy Tax (TOT) Certificate: Current TOT certificate or TOT application required. 10% tax on stays under 30 days funds County services.
8. Fire Safety Details: Number and location of fire extinguishers, smoke alarms, and carbon monoxide detectors. Subject to fire inspection. Protects guest safety.
9. Fire & Safety Certification: Self-certification of compliance with fire codes and safety requirements. Signed under penalty of perjury.
10. Owner Acknowledgement: Signed statement that owner has read and understands STR ordinance rules on noise, parking, trash, and guest safety. Ensures owner awareness and accountability.

The STR permit application with all required documents can be submitted online through the County's Host Compliance portal or in batches by property management companies. Incomplete applications will not be processed.

Placer County Short-Term Rental Taxes and Fees

Short-term rental (STR) owners in Placer County are required to collect and remit the following taxes and fees:

Transient Occupancy Tax (TOT): 10% of the rent charged. This tax applies to stays of 30 days or less.

Tourism Business Improvement District (TBID) Assessment:

1. 2% in the North Lake Tahoe area
2. 1% in the rest of eastern Placer County
3. Does not apply in western Placer County

TOT and TBID are paid by the guest but collected and remitted by the host. They are due quarterly and must be postmarked by the last day of the month after each quarter ends:

1. 1st Quarter (Jan-Mar): Due April 30
2. 2nd Quarter (Apr-Jun): Due July 31
3. 3rd Quarter (Jul-Sep): Due October 31
4. 4th Quarter (Oct-Dec): Due January 31

New STR permit holders will receive TOT and TBID registration forms with their permit. Registration is required within 30 days. Existing STRs should already be registered.

Unlike some other counties, Airbnb and Vrbo do NOT collect and remit these taxes on behalf of hosts in Placer County. It is the host's responsibility to collect the tax from guests and file regular returns with the County.

Late payments are subject to a 10% penalty plus 1.5% interest per month. Failing to collect and remit TOT and TBID is a misdemeanor punishable by fines and/or imprisonment.

In addition to taxes, there is a non-refundable STR permit application fee of $306. Permits must be renewed annually.

Some possible tax deductions for short-term rental businesses may include:

1. Mortgage interest
2. Property taxes
3. Rental insurance premiums
4. Cleaning and maintenance costs
5. Utility expenses
6. Depreciation on furniture and equipment
7. Advertising and platform fees (like Airbnb or VRBO)
8. Accounting and legal fees

By requiring STRs to collect TOT and TBID, Placer County aims to ensure vacation rentals contribute equitably to local government services and tourism promotion. Detailed information on registering, filing and paying these taxes can be found on the Placer County website.

California Wide Short-Term Rental Rules

While most short-term rental regulations in California are set at the city and county level, there are a few state laws that Placer County hosts should be aware of:

1. California's 30-Day Rule: California Civil Code Section 1940 states that any guest staying longer than 30 days may establish tenant's rights to the property. To avoid this, many cities and counties, including Placer County, limit short-term rentals to stays of 30 days or less.
2. TOT Collection: The California Revenue and Taxation Code (Section 7280) allows cities and counties to collect transient occupancy tax (TOT) on stays of 30 days or less. Placer County requires STR hosts to collect a 10% TOT from guests and remit it to the county.
3. Business Licenses: California requires anyone conducting business in the state to obtain the necessary licenses and permits. For STR hosts in Placer County, this means obtaining a TOT certificate and STR permit from the county.
4. ADA Compliance: The California Fair Employment and Housing Act requires that all rental properties comply with accessibility standards. While this primarily applies to long-term rentals, STR hosts should be aware of potential accessibility needs of guests.
5. Fire Safety: The California Fire Code sets standards for fire safety equipment in residential properties, including smoke alarms, carbon monoxide detectors, and fire extinguishers. Placer County requires STRs to meet these standards and undergo a fire inspection.

While not legally required, it's also a good idea for STR hosts in California to maintain adequate liability insurance coverage. Platforms like Airbnb and Vrbo provide some host protection, but a short-term rental insurance policy can provide more comprehensive coverage.

Overall, California leaves most of the specifics of short-term rental regulation to local jurisdictions. But hosts in Placer County should understand these statewide rules as a baseline and then dive deeper into the county's specific ordinances to ensure full compliance.

Does Placer County Strictly Enforce STR Rules?

Placer County has become increasingly strict in enforcing its short-term rental (STR) regulations in recent years, particularly in the Lake Tahoe area. The county is less Airbnb-friendly compared to some other California destinations due to concerns about housing affordability and neighborhood quality of life.

In 2022, Placer County implemented a cap of 3,900 STR permits (about 25% of homes in the region) and began requiring all STR operators to hold a permit. The county estimates about 3,900 STRs were operating, but only 2,500 had permits, indicating many were operating illegally.

To obtain a permit, STRs must pass a fire inspection, designate a local contact person, and follow rules on noise, parking, trash, and occupancy. Fines for violations start at $1500 per day. The county has hired additional code enforcement officers to investigate complaints and issue citations.

On forums like Bigger Pockets and Reddit, hosts report Placer County is cracking down hard on unpermitted STRs. Many long-time hosts are concerned about the future of their businesses due to the permit caps, increased regulations, and enforcement. Some worry the county is heading toward banning STRs entirely in certain areas.

Despite the risks, some hosts continue to operate STRs without permits in Placer County. But with the county's increased enforcement efforts, it's becoming much harder to fly under the radar. Getting caught operating an illegal STR can result in hefty fines and even criminal penalties.

Overall, while Placer County hasn't banned STRs completely, it has become a challenging environment for Airbnb hosts due to the strict regulations and enforcement. The county seems committed to reining in STRs to preserve housing and neighborhood character, making it a less attractive location for vacation rental investments compared to more Airbnb-friendly markets.

How to Start a Short-Term Rental Business in Placer County

Starting a short-term rental business in Placer County can be a lucrative venture, but it's important to follow the proper steps to ensure compliance with local regulations. Here's a numbered list of steps to get started, along with tips for success:

Research local regulations: Thoroughly review Placer County's short-term rental ordinance and any additional rules specific to your area. Understand the permit requirements, taxes, and operational standards you'll need to follow.

Create a business plan: Develop a comprehensive plan that outlines your target market, pricing strategy, marketing approach, and financial projections. Use market data to inform your decisions and set realistic goals. A solid business plan will guide your efforts and help secure financing if needed.

Choose a property: Select a rental property that aligns with your business plan and target guests. Consider factors like location, amenities, and local demand. If purchasing, review HOA rules and zoning restrictions. If leasing, ensure your landlord allows STRs.

Obtain necessary permits and licenses: Apply for a Placer County STR permit, business license, and transient occupancy tax (TOT) certificate. Schedule required inspections promptly. Maintain detailed records of all permits and licenses.

Set up your business entity: Choose an appropriate legal structure (sole proprietorship, LLC, etc.) and register your business with the state. Open a separate bank account to manage rental income and expenses.

Furnish and equip your rental: Create a welcoming space that meets the needs of your target guests. Invest in quality furniture, linens, and amenities. Ensure all required safety equipment like smoke detectors and fire extinguishers are in place.

Establish policies and procedures: Develop rental agreement terms, house rules, check-in/out procedures, and cleaning/maintenance protocols. Document all policies and share them with guests. Consider using a vacation rental software platform to automate processes.

Market your rental: Create appealing listings on popular STR platforms like Airbnb and Vrbo. Hire a professional photographer to showcase your property's best features. Develop a website and social media presence to expand your reach. Encourage satisfied guests to leave reviews.

Manage bookings and guests: Respond promptly to inquiries and booking requests. Provide excellent customer service throughout each guest's stay. Be available to address any issues that arise. Solicit feedback and continuously improve the guest experience.

Comply with ongoing requirements: Collect and remit TOT and tourism assessments monthly. Renew permits annually and schedule any required re-inspections. Maintain accurate records of all bookings, income, and expenses for tax purposes.

Some key tips for success:

1. Understand and closely follow all regulations to avoid fines and legal issues
2. Prioritize guest satisfaction to earn positive reviews and repeat bookings
3. Optimize your pricing based on demand, competition, and operating costs
4. Develop efficient systems and consider hiring help as your business grows
5. Stay informed about industry trends and adapt your strategy as needed

With careful planning, attention to detail, and a commitment to providing outstanding guest experiences, you can build a thriving short-term rental business in Placer County. The vacation rental market offers exciting opportunities for motivated entrepreneurs who are willing to put in the work to succeed.

Who to Contact in Placer County about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations or zoning in Placer County, there are several resources available:

Placer County Short-Term Rental Program: This is the main point of contact for all STR-related questions in the county. You can reach them by:

• Phone: 530-581-6234
• Email: str@placer.ca.gov
• Website: https://www.placer.ca.gov/6109/Short-Term-Rental-Program

Placer County Planning Services Division: For questions related to land use and zoning, contact the Planning Services Division at:

• Phone: 530-745-3000
• Email: planning@placer.ca.gov
• Website: https://www.placer.ca.gov/2845/Planning-Services

Placer County Assessor's Office: If you disagree with the assessed value of your STR property, contact the Assessor's Business Division at:

• Phone: 530-889-4300
• Website: https://www.placer.ca.gov/2854/Assessor

In addition to these official resources, connecting with other STR hosts in Placer County can provide valuable insights and support. Some online communities to check out include:

• Placer County Short-Term Rental Alliance (Facebook group)
• Placer County Airbnb Hosts Forum (BiggerPockets)
• Placer STR Owners and Managers (private Facebook group)

These groups offer a space for hosts to share experiences, ask questions, and stay up-to-date on the latest local regulations. However, always verify any information with official county sources.

By engaging with both county officials and experienced peers, STR owners and managers in Placer County can navigate the complex regulatory landscape and build successful, compliant vacation rental businesses.

What Do Airbnb Hosts in Placer County on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Placer County have mixed feelings about the local short-term rental regulations, based on discussions on forums like Reddit and Bigger Pockets. Here are a few examples of what hosts are saying:

On the r/tahoe subreddit, one commenter expressed frustration with the rapid growth of STRs, saying "Residential housing is being absorbed by mostly out-of-town investors who buy so-called second homes to turn them into investments as vacation rentals. Ironically, we have full-time residents living in motels and our tourist visitors now staying in our residential neighborhoods."

However, another Redditor pointed out that second homes have always been common in Tahoe, and banning STRs won't necessarily make those homes available to locals. "80% of Tahoe is second homes. That won't change if AirBnB is kicked out entirely, it's just that different people would own them. Cutting short term rentals benefits the rich, not the poor or middle class."

On Bigger Pockets, a host asked about STR regulations in Lake Tahoe. One response advised "The only restriction you would find is within a HOA. There is talk of this potentially changing in the near future. Another option is Placer County, CA (Kings Beach, Tahoe Vista, Carnelian Bay, etc.) Placer County has been a bit more friendly to STR's but that can always change."

Another Bigger Pockets thread discussed how a host in New York dealt with a city that instituted an STR permit cap and 90-day annual rental limit. The host ended up converting her STR property to a 30+ day rental to avoid the new restrictions. Some suggested this approach could work in Tahoe as well to get around the permit caps.

Overall, it seems STR hosts in Placer County have concerns about the evolving regulations and how they may restrict their businesses. Some feel the county is unfairly targeting STRs for issues like housing affordability. But others acknowledge the need to balance the vacation rental market with quality of life for local residents. Many are taking a "wait and see" approach to see how strictly the new rules will be enforced and whether further restrictions are on the horizon.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.