San Mateo, California Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in San Mateo County

San Mateo County has specific regulations for operating short-term rentals like Airbnb and VRBO properties. As of June 2017, property owners in certain parts of the unincorporated San Mateo County Coastal Zone may legally rent part or all of their home as a short-term rental (less than 30 days) with a permit and payment of Transient Occupancy Tax.

Key requirements include:

• STRs are only allowed in legal residences zoned for Single Family (R-1) or Multi-Family (R-3) residential use within the Coastal Zone
• Accessory Dwelling Units (ADUs) cannot be used for STRs
• STRs cannot be rented for more than 180 nights per calendar year
• Maximum occupancy is limited to 2 persons per bedroom plus 2 additional persons (children under 12 not counted)
• At least 1 on-site parking space required, or 2 spaces if occupancy exceeds 8 tenants
• A designated local contact person, such as a property manager or co-host, must remain within 20 miles and be available to respond to issues

An annual STR permit from the county is required, with a fee of $300. Proof of registering to pay the Transient Occupancy Tax (TOT) is also needed.

The City of San Mateo has its own STR ordinance that went into effect in February 2021. It requires an annual registration and $250 fee, limits rentals to 120 days per year when the host is not present, prohibits parties, and has other operating standards.

On real estate forums, some San Mateo County residents have discussed the feasibility of converting backyard sheds into STRs. However, the county ordinance specifies only legal dwelling units can be used, likely precluding sheds. Parking has also been noted as a potential challenge for STRs in suburban areas without nearby public transit.

Others on Reddit have sought advice for finding short-term sublets and rentals in San Mateo County. Suggestions included looking at corporate housing, extended stay hotels, and other sites as alternatives to pricey Airbnb listings. However, forum members noted the general difficulty of securing short leases in the competitive Bay Area rental market.

In summary, San Mateo County allows STRs in legal residences in certain coastal areas with a permit, occupancy limits, parking requirements, and other standards. The City of San Mateo has its own STR registration process and operating rules. Researching the specific regulations based on the property location is critical before starting an STR business.

Short-Term Rental Licensing Requirement in San Mateo County

To legally operate a short-term rental in the unincorporated coastal areas of San Mateo County, property owners must obtain a Short-Term Rental Permit from the county Planning Department. The key requirements for the permit include:

1. The STR must be in a legal residence zoned for Single Family (R-1) or Multi-Family (R-3) residential use within the Coastal Zone. Accessory Dwelling Units (ADUs) cannot be used as STRs.
2. Rentals are limited to a maximum of 180 nights per calendar year.
3. Occupancy is capped at 2 persons per bedroom plus 2 additional persons, not counting children under 12.
4. At least 1 on-site parking space is required, or 2 spaces if maximum occupancy exceeds 8 tenants.
5. A designated local contact person must remain within 20 miles and be available to respond to issues at all times during rentals.

To apply for the STR permit, the property owner must submit:

1. A completed Short Term Rental Application Form
2. Proof of registering for a Transient Occupancy Tax (TOT) certificate
3. The $300 application fee payable to San Mateo County

The application and supporting documents can be submitted to the San Mateo County Planning Department by mail or in person. Processing typically takes 3-4 weeks.

Failure to obtain the required STR permit can result in significant penalties. Under a county ordinance passed in 2017, fines for unpermitted short-term rentals can be up to $1,500 for the first violation, $3,000 for a second violation within one year, and $5,000 for each additional violation within a year of the first offense. Violations that pose a health or safety threat are subject to these increased fine amounts.

In addition to the fines, the county may suspend or revoke an operator's ability to receive an STR permit for the same property for a period of time for violating the ordinance. So it is critical for STR hosts in San Mateo County to secure the necessary permit, pay occupancy taxes, and follow all operating requirements to avoid costly penalties and jeopardizing their ability to continue their rental business.

Required Documents for San Mateo County Short-Term Rentals

To operate a short-term rental in the unincorporated coastal areas of San Mateo County, property owners must obtain a Short-Term Rental Permit from the county Planning Department. The following documents are required as part of the application process:

1. Short Term Rental Application Form: This form collects essential information about the property owner, the rental unit, and the local contact person. It can be downloaded from the San Mateo County Planning Department website.
2. Proof of Transient Occupancy Tax (TOT) Registration: All STR permit holders must pay transient occupancy tax for each night the unit is rented. Applicants must provide proof that they have obtained a TOT certificate as part of the STR permit application. The TOT application form and information about the county's TOT regulations are available on the Planning Department website.
3. Application Fee: A non-refundable application fee of $300, payable to San Mateo County, is due at the time of STR permit application submittal.
4. Proof of Residence in Allowed Zoning: STRs are only permitted in legal residences on parcels zoned for Single Family (R-1) or Multi-Family (R-3) residential use within the Coastal Zone. Applicants can confirm their property's zoning using the Planning Department's "Find My Zoning" portal.

These required documents, along with the completed application form and fee, can be submitted to the San Mateo County Planning Department by mail or in person. Processing of the STR permit typically takes 3-4 weeks.

It's important to note that additional documents may be requested during the application review process. Applicants are encouraged to carefully review the county's Short-Term Rental Ordinance for the Coastal Zone to understand all the requirements and property owner responsibilities associated with obtaining an STR permit.

San Mateo County Short-Term Rental Taxes

Short-term rental operators in San Mateo County are required to collect and remit Transient Occupancy Tax (TOT) for each night their property is rented. The TOT rate varies depending on the exact location of the rental:

Unincorporated San Mateo County: The TOT rate is 10% of the rent charged by the operator. This applies to short-term rentals in the coastal zone areas of the county that are not within city limits.

City of San Mateo: The TOT rate is 14% of the rent charged for any short-term rental located within San Mateo city limits.

TOT is collected by the rental operator and must be remitted to the appropriate tax authority (county or city) on a monthly basis. Proof of registering for a TOT certificate is required as part of the short-term rental permit application process in unincorporated San Mateo County.

As of October 2022, San Mateo County has contracted with HdL Companies to collect and process TOT returns. Short-term rental operators can register and file TOT online through the HdL portal.

In addition to TOT, short-term rental income is subject to federal and state income taxes. However, rental operators can deduct many of their business expenses to reduce their taxable income. Some common tax deductions for short-term rentals include:

1. Depreciation of the rental property over 27.5 years
2. Cleaning and maintenance costs
3. Utility expenses
4. Insurance premiums
5. Advertising and marketing fees
6. Home office expenses (if you use part of your home exclusively for managing the rental)

It's important to keep detailed records and consult with a tax professional to ensure you are properly reporting your short-term rental income and maximizing your deductions. Failure to comply with TOT and income tax requirements can result in penalties, interest, and legal action from tax authorities.

California Wide Short-Term Rental Rules

While California has a statewide definition of short-term rentals as properties rented for 30 days or less, the state largely leaves it up to cities and counties to establish their own specific regulations. This means the rules impacting hosts can vary significantly depending on the exact location of the rental property.

At the state level, the key points for San Mateo County hosts to be aware of include:

TOT Collection: The state allows cities and counties to levy a transient occupancy tax (TOT) on short-term rentals. San Mateo County and many of its cities have implemented such taxes, so hosts need to register with tax authorities, collect the TOT from guests, and remit it to the appropriate agency.

Business Licenses: California requires short-term rental operators to obtain any business licenses mandated by their local jurisdiction. San Mateo County hosts likely need to secure a business license from their city or the county.

Rental Agreements: Written rental agreements between hosts and guests are required under state law. These should cover the rental period, pricing, occupancy limits, house rules, and cancellation policies.

Liability Insurance: While not legally mandated, the state strongly recommends short-term rental operators carry liability insurance to protect themselves and their property. Certain cities or hosting platforms may actually require proof of insurance.

Eviction Protections: A state law passed in 2019 (Civ. Code § 1946.2) limits evictions in properties that have operated as short-term rentals. Hosts in rent-controlled jurisdictions may face additional limitations on removing long-term tenants to convert to short-term rentals.

Beyond these general provisions, the bulk of the regulatory framework falls to local governments. San Mateo County, for example, requires permits for short-term rentals in certain unincorporated coastal areas, along with TOT certificates, occupancy limits, parking requirements, and other obligations.

Many cities within the county have their own ordinances too. The City of San Mateo has a short-term rental program requiring an annual registration, capping rentals at 120 days per year when the host is not present, banning parties, and imposing other operating standards.

So in summary, while California sets some broad parameters, San Mateo County hosts must carefully research the specific city and county regulations that apply to their rental's location. Failure to comply with local registration, tax collection, and operating rules can result in significant penalties.

Does San Mateo County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and on Reddit, it appears San Mateo County does actively enforce its short-term rental regulations, especially compared to some other Bay Area cities. However, this has not completely deterred determined hosts from trying to operate STRs, even if it means risking fines.

In one BiggerPockets thread, an investor looking to develop property in San Mateo County was warned about the many regulatory "hoops to jump through." While no clear deal-breakers were identified, the county was characterized as having a strict approval process for new development.

On the Airbnb Community forum, a host pointed out that the county does not allow short-term rentals in many unincorporated areas, yet they still see Airbnb listings in those same neighborhoods. This suggests some hosts are willing to operate under the radar, despite the rules.

In the San Mateo subreddit, a studio owner debated selling versus renting their unit as a short-term rental. Replies highlighted the need to carefully review city and county regulations, as San Mateo is known to be less lax than other markets when it comes to STR oversight.

So in summary, San Mateo County appears to take its short-term rental ordinances seriously, with active enforcement aimed at reeling in non-compliant listings. The county is less "Airbnb friendly" than some neighboring areas. Yet a subset of hosts seem to be operating STRs regardless, whether due to lack of awareness of the rules or a willingness to risk getting caught. Aspiring hosts should assume the county will hold them accountable for any violations and be prepared to pay fines if they proceed without the proper permits and tax registrations.

How to Start a Short-Term Rental Business in San Mateo County

Starting a short-term rental business in San Mateo County requires careful planning and adherence to local regulations. Here are the key steps to get started:

Determine if your property is eligible for short-term rentals:

1. Check your property's zoning using the county's "Find My Zoning" portal. STRs are only allowed in legal residences zoned for Single Family (R-1) or Multi-Family (R-3) residential use within the Coastal Zone.
2. Accessory Dwelling Units (ADUs) cannot be used for STRs.
3. Review your HOA rules, lease agreements, or other restrictions that may prohibit or limit short-term rentals.

Obtain necessary permits and registrations:

1. Apply for a Short-Term Rental Permit from the San Mateo County Planning Department. The application requires personal info, property details, a local contact person, and a $300 fee.
2. Register for a Business License with the city or county. In the City of San Mateo, the business license costs $50 annually.
3. Register to collect and remit Transient Occupancy Tax (TOT). Provide proof of your TOT registration when applying for the STR permit.

Prepare your property for rental:

1. Ensure your property meets all building, fire, and safety codes. Make any necessary repairs or upgrades.
2. Furnish and equip the rental to provide a comfortable and appealing experience for guests. Consider hiring a professional photographer to showcase your listing.
3. Provide essential amenities like linens, toiletries, kitchen supplies, and Wi-Fi.
4. Install smoke and carbon monoxide detectors as required by law.

Create your rental listing:

1. Choose a reputable booking platform like Airbnb or VRBO to list your property. Craft an enticing title and description highlighting your rental's best features.
2. Set competitive rates based on comparable listings in your area. Consider dynamic pricing to maximize occupancy.
3. Establish clear house rules and communicate expectations upfront to guests.

Manage your rental business:

• Implement a system to handle inquiries, bookings, check-ins, and guest communication promptly and professionally. Consider using vacation rental software to automate tasks.
• Arrange for regular cleaning and maintenance between guest stays. Hire a reputable cleaning service or do it yourself to ensure consistent quality.
• Have a reliable local contact person available to address any guest issues that may arise.

Comply with ongoing regulations:

• Collect and remit the 10% Transient Occupancy Tax (TOT) to the county monthly, even if you had no bookings. In the City of San Mateo, the TOT rate is 14%.
• Limit your STR to 180 rental nights per year in the county or 120 nights per year in the city when you are not present.
• Adhere to occupancy limits of 2 people per bedroom plus 2 additional people, not counting children under 12.
• Provide the required number of on-site parking spaces for guests.

Some tips for success:

• Provide exceptional customer service to earn positive reviews and repeat business. Go above and beyond to create a memorable experience.
• Stay up-to-date on changing STR regulations and tax requirements. Non-compliance can result in significant fines and penalties.
• Maintain detailed records of income and expenses for tax purposes. Consult with a tax professional experienced with STRs.
• Continuously improve your property and listing to stay competitive. Reinvest a portion of your profits into upgrades and amenities.
• Consider obtaining additional liability insurance to protect yourself and your property beyond any coverage provided by the booking platform.

By following these steps and prioritizing regulatory compliance and guest satisfaction, you can launch and grow a successful short-term rental business in San Mateo County. It will take diligence and dedication, but the rewards can be well worth the effort.

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

If you have questions about short-term rental regulations or zoning in San Mateo County, here are the key contacts and resources to consult:

San Mateo County Planning Department

• General Planning Questions: (650) 363-1825 or planningprojects@smcgov.org
• Zoning Questions: Use the county's "Find My Zoning" portal or contact a planner directly. Planner email addresses are listed on the Planning Department's contact page.
• Short-Term Rental Permits: Download the application from the Planning Department website and submit with the $300 fee. Email planningprojects@smcgov.org with any questions.

City of San Mateo Short-Term Rental Program

• Registration and TOT Questions: Contact the city's short-term rental consultant, HdL Companies, at (650) 443-9056 or sanmateoTOT@hdlgov.com.
• Complaints about Short-Term Rentals: Call the Code Enforcement Hotline at (650) 522-7150. For noise issues, contact the Police Department's non-emergency line at (650) 522-7700.

Online Communities for San Mateo County Hosts

• BiggerPockets San Francisco Forum: Network with other local real estate investors and discuss STR strategies and regulations. Several threads focus on San Mateo County.
• Airbnb Community Center: Connect with experienced hosts in the Bay Area to get advice on navigating the regulatory landscape. Look for posts specific to San Mateo cities.
• San Mateo Subreddit: Engage with residents and officials to stay on top of local sentiment and policy discussions around short-term rentals.

By reaching out to these official contacts and participating in relevant online forums, aspiring San Mateo County hosts can get their regulatory questions answered and tap into the knowledge of the local STR community. It's important to do your own due diligence and obtain information directly from city and county authorities to ensure compliance.

What Do Airbnb Hosts in San Mateo County on Reddit and BiggerPockets Think about Local Regulations?

Discussions on Reddit and BiggerPockets reveal a range of experiences and opinions among short-term rental hosts in San Mateo County regarding local regulations:

Reddit - r/SanMateo

In a thread titled "Renting our studio as short term rental?", a San Mateo studio owner sought advice on potentially listing their unit on Airbnb. Commenters highlighted some regulatory challenges:

One host shared that the City of San Mateo required them to register their rental and pay a 14% Transient Occupancy Tax (TOT) administered by an "annoying and aggressive" third party. They ultimately decided it wasn't worth the hassle.

Another suggested looking into mid-term rentals (over 30 days) through sites like Furnished Finder that cater to traveling nurses, as a way to avoid some of the short-term rental restrictions.

BiggerPockets Forum

Several BiggerPockets threads touch on the STR landscape in San Mateo County. In a post titled "Backyard shed as a short term rental", an investor explored the feasibility of converting a shed into an Airbnb unit. Respondents raised potential regulatory roadblocks:

One reply questioned whether a shed would be zoned and permitted for habitation, especially with plumbing for a bathroom and kitchen.

Parking was another concern, with the original poster wondering if neighbors might object to guests parking on the street in a suburban area not well-served by public transit.

In another thread on "Development obstacles in San Mateo County?", an aspiring investor noted the many "hoops to jump through" to develop property in the county, though no clear deal-breakers were identified by those familiar with the area.

And in a discussion comparing metrics for evaluating short-term vs long-term rentals, commenters pointed out the need to factor in higher maintenance, property management, and turnover costs for STRs compared to traditional leases.

Overall, the online forums paint a picture of San Mateo County as a challenging environment for Airbnb hosts to navigate. While the potential for high rents is appealing given the desirable location, the county's stringent permitting process, occupancy taxes, and zoning restrictions pose hurdles for would-be STR operators.

Experienced hosts seem to have the most success when they thoroughly research the regulations, budget for the added costs of compliance and higher turnover, and target longer stays when possible to avoid some of the red tape associated with true short-term rentals. But for many, the consensus seems to be that the regulatory burdens diminish the appeal of hosting STRs in San Mateo County compared to other markets.

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.