Redwood City Short Term Rental Regulation: A Guide For Airbnb Hosts

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

In the vibrant city of Redwood City, California, a new chapter has unfolded in the realm of short-term rentals, encompassing popular platforms like Airbnb and VRBO. These regulations, introduced to safeguard the essence of residential neighborhoods and uphold the availability of housing for local residents, have brought about a wave of change for property owners venturing into the world of temporary lodging.

As of May 1, 2019, a pivotal requirement emerged for property owners in Redwood City embarking on the short-term rental journey: the mandatory registration of their properties and the acquisition of a license from the city. This step, crucial in ensuring compliance with the city's regulations, serves as a gateway to the world of hosting transient guests.

Delving deeper into the documentation realm, Redwood City mandates that owners furnish essential details such as property addresses, owner contact information, and the provision of a local point of contact for addressing any concerns that may arise during guest stays. This meticulous approach underscores the city's commitment to transparency and accountability in the short-term rental landscape.

Moreover, a significant financial aspect comes into play with Redwood City's requirement for short-term rental operators to collect a 12% Transient Occupancy Tax (TOT) from guests. This tax, earmarked for the city's Affordable Housing Fund, reflects a community-focused initiative aimed at supporting housing accessibility and affordability for residents.

In the tapestry of regulations woven by Redwood City, a distinctive thread emerges concerning the types of properties eligible for short-term rentals. Only primary residences are deemed suitable for such endeavors, with second homes or investment properties excluded from this transient domain.

Additionally, a distinction is drawn between unhosted and hosted rentals, with unhosted stays limited to 120 days per calendar year while hosted rentals face no such temporal constraints.In this narrative of regulatory evolution, Redwood City stands as a beacon of balance, seeking to harmonize the aspirations of property owners with the preservation of residential sanctity.

These regulations, though stringent in nature, embody a vision of sustainable growth and community well-being, shaping the landscape of short-term rentals in this dynamic city.

Starting a Short Term Rental Business in Redwood City

Redwood City, like many cities, has implemented regulations governing short-term rentals to address concerns about housing availability, neighborhood impacts, and taxation. These rules typically apply to platforms like Airbnb and VRBO, requiring hosts to comply with specific requirements to operate legally within the city.

Starting a short-term rental business in Redwood City, California, requires compliance with the city's regulations, which aim to preserve housing stock for residents and reduce negative impacts on neighborhoods. Here's a step-by-step guide to help you navigate the process:

1. Determine Eligibility

Only primary residences in Redwood City are eligible for short-term rentals. This means the property must be the owner's full-time residence12.

2. Register Your Property

Starting May 1, 2019, property owners must register their short-term rental properties with the city and obtain a license12. This registration process is crucial for ensuring compliance with local regulations.

3. Comply with Regulations

Redwood City's regulations restrict short-term rentals to primary residences, limiting unhosted rentals to 120 days per calendar year. There is no limit on the number of days for "hosted" rentals where the owner remains on-site12.

4. Collect Transient Occupancy Tax (TOT)

Short-term rental operators must collect a 12% TOT from guests, which will be dedicated to the city's Affordable Housing Fund12. This tax is intended to fund programs and new units for low-income residents.

5. Designate a Local Contact

Hosts must designate a local contact person who will respond to complaints while the host is absent4.

6. Provide On-Site Parking

Hosts must provide on-site parking for guests4.

7. Register with the City and Obtain a Business License

Short-term rental operators must register with the city and obtain a business license4.

8. Manage Lodging Taxes

If you're using Airbnb, you'll need to collect lodging taxes from guests and pass those taxes to the city. For other platforms like VRBO and HomeAway, you'll be responsible for managing lodging taxes yourself4.

9. Review and Comply with City Ordinances

Familiarize yourself with the city's ordinances and regulations, which may change over time. It's essential to stay up-to-date to avoid any legal or financial issues12.

10. Consider Professional Help

If you're new to the short-term rental business, consider consulting with a professional or seeking guidance from the city's Community Development Department to ensure you're meeting all the necessary requirements12.

By following these steps, you can successfully start and operate a short-term rental business in Redwood City, while also contributing to the city's efforts to preserve housing stock and support local residents.

Short Term Rental Licensing Requirement in Redwood City

In Redwood City, property owners engaging in short-term rentals are mandated to register their properties and obtain a license from the city. This process is crucial for ensuring compliance with local regulations and maintaining transparency in the short-term rental market.

Required Documents for Redwood City Short Term Rentals

To register a short-term rental property in Redwood City, owners are typically asked to provide essential information such as property address, owner contact details, and a local point of contact for addressing any issues that may arise during guest stays.

Redwood City Short Term Rental Taxes

Short-term rental operators in Redwood City are required to collect a Transient Occupancy Tax (TOT) from guests, typically set at a specific percentage of the rental rate. This tax revenue is often allocated to support various city initiatives, such as affordable housing programs.

Redwood City wide Short Term Rental Rules

The Redwood City wide Short Term Rental Rules encompass several key regulations governing short-term rentals in the city:

• Primary Residences Only: Short-term rentals are permitted only in primary residences where the owner lives full-time. Second homes or investment properties are not eligible for short-term rentals13.
• Limit on Unhosted Rentals: Unhosted short-term rentals, where the owner is not present, are restricted to 120 days per calendar year. In contrast, there is no limit on the number of days for "hosted" rentals where the owner remains on-site13.
• Transient Occupancy Tax (TOT): A 12% Transient Occupancy Tax (TOT) is collected from guests staying in short-term rentals. This tax revenue is dedicated to the City's Affordable Housing Fund to support programs and new units for low-income residents13.
• Prohibition of Special Events: Short-term rentals are prohibited for special events such as weddings or corporate retreats3.
• Local Contact Requirement: Hosts must designate a local contact person who can respond to complaints in the host's absence3.
• On-Site Parking: Hosts are required to provide on-site parking for guests staying in short-term rentals3.

These rules aim to strike a balance between allowing residents to earn extra income from their properties while preserving the city's housing stock, limiting neighborhood disruptions, and ensuring compliance with local regulations.

Does Redwood City strictly enforce STR rules? Is Redwood City Airbnb friendly?

While Redwood City's regulations may appear stringent, enforcement can vary in practice. Some hosts may choose to operate outside the established rules, leading to challenges in monitoring compliance effectively. Overall, the city's approach to short-term rentals reflects a balance between supporting the sharing economy and safeguarding community interests.

How to Start a Short Term Rental Business in Redwood City

• Understand the local regulations and determine if your property qualifies for short-term rentals.
• Register your property with the city and obtain the necessary license.
• Collect and remit Transient Occupancy Tax from guests as required.
• Adhere to the rules regarding hosted and unhosted stays, including any limitations on rental days.
• Establish a local contact person for addressing guest concerns and city inquiries.

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

For inquiries regarding short-term rental regulations and zoning in Redwood City, the Community Development Department is a primary point of contact. They can provide guidance on compliance, licensing, and any questions related to operating short-term rentals within the city.

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

Delving deeper into the perspectives of Airbnb hosts in Redwood City, as expressed on platforms like Reddit and Bigger Pockets, reveals a nuanced and multifaceted understanding of the local regulations governing short-term rentals.

On the one hand, many hosts have voiced frustrations with the stringent requirements imposed by the city. The mandatory registration and licensing process, which requires providing detailed property and owner information, is seen by some as an unnecessary bureaucratic hurdle that adds to the administrative burden of operating a short-term rental business.

Furthermore, the limitations on unhosted rentals, where the property owner is not present during guest stays, have been a point of contention for many hosts. The 120-day cap on unhosted rentals is perceived by some as an arbitrary and overly restrictive measure that undermines their ability to maximize the earning potential of their properties. Hosts argue that this rule fails to account for the diverse needs and preferences of both guests and owners.

Another area of concern raised by Redwood City Airbnb hosts is the prohibition of using short-term rentals for special events, such as weddings or corporate retreats. This regulation is viewed by some as a missed opportunity to cater to a lucrative market segment and diversify their rental offerings.

However, it's important to note that not all Airbnb hosts in Redwood City are opposed to the local regulations. Some hosts acknowledge the city's efforts to strike a balance between supporting the short-term rental industry and addressing the pressing issues of housing availability and neighborhood preservation.

These hosts recognize that the regulations, while potentially inconvenient, serve a broader purpose of maintaining the residential character of Redwood City's neighborhoods and ensuring that housing stock remains accessible to local residents. They may view the Transient Occupancy Tax (TOT) as a reasonable contribution to the city's affordable housing initiatives, even if it reduces their overall profit margins.

Ultimately, the discussions on Reddit and Bigger Pockets reveal a diverse range of perspectives among Redwood City Airbnb hosts. While some express frustration with the perceived restrictiveness of the regulations, others demonstrate a more nuanced understanding of the city's objectives and the need to balance the interests of short-term rental operators with those of the broader community.