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

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

Short-term rentals, such as those listed on Airbnb and VRBO, have become increasingly popular in Sonoma County, California. However, it's important for property owners to understand and comply with the local regulations governing these rentals. Sonoma County has specific rules in place to ensure the safety and compatibility of short-term rentals with surrounding residential areas.

Starting a Short-Term Rental Business in Sonoma County

To operate a short-term rental in unincorporated Sonoma County, property owners must obtain a vacation rental permit and a business license. The process involves several steps:

• Check eligibility using the County's zoning tool and fire perimeter map.
• Submit required materials through the online portal, including a planning application form, indemnification agreement, vacation rental application, property report checklist, site plan, floor plan, and proof of septic capacity.
• Provide a certified property manager.
• Register to pay the County Transient Occupancy Tax (TOT).
• Once the permit number is received, add it to the rental listing.

It's crucial to note that as of April 2023, Sonoma County has introduced a new vacation rental business license requirement for homeowners operating short-term rentals. This is in addition to the existing vacation rental permit.

Short-Term Rental Licensing Requirement in Sonoma County

To legally operate a short-term rental (STR) in unincorporated Sonoma County, property owners must obtain a Vacation Rental License. This requirement was introduced in 2023 as part of the county's efforts to regulate vacation rentals. The licensing process involves several steps and requirements, as outlined on the official Sonoma County website.

Requirements for obtaining a Vacation Rental License:

1. Identify or become a Certified Vacation Rental Property Manager located within 30 miles of the vacation rental. The property manager must pass a County of Sonoma certification exam.

2. Obtain a Transient Vacation Rental (TVR) Permit (also known as a Zoning Permit) for the property by submitting complete application forms, required materials, and paying the associated fees. Required materials include:

1. Planning Application (Form PJR-001), signed by all property owners
2. Indemnification Agreement (Form PJR-011)
3. Vacation Rentals Application (Form PJR-096)
4. Site plan, floor plan, and proof of septic capacity (if applicable)

3. Secure a Transient Occupancy Tax (TOT) Number from the Sonoma County Auditor-Controller Treasurer-Tax Collector Department by submitting a TOT Registration Form for Short Term Rentals.

4. Apply for a Vacation Rental License by submitting the following:

1. Planning Application (Form PJR-001)
2. Indemnification Agreement (Form PJR-011)
3. Vacation Rental License Application and Affidavit (Form PJR-146)
4. Updated site plan and floor plan
5. Ownership verification documents (current deed, title report, trust certification)

All application materials must be submitted electronically to the Permit Sonoma department via email at PlanningApplications@sonoma-county.org. Fees for the TVR Permit and Vacation Rental License are determined by the Permit Sonoma staff and must be paid online through the applicant's Permits Online account.

The processing time for a Vacation Rental License application may take several weeks, depending on the completeness of the application and the volume of applications being processed by the county.

Property owners who have been legally operating a vacation rental before June 15, 2023, must obtain a Vacation Rental License by June 15, 2024. Vacation rentals operating without a valid license may face fines, penalties, and legal action. The county has established a 24-hour hotline for complaints about short-term rentals, and violations can result in fines starting at $1,500, reaching up to $5,000 for a third violation within one year.

It is crucial for short-term rental owners to stay informed about any updates to local regulations and to ensure compliance with all licensing requirements to avoid potential penalties and maintain a positive relationship with the community.

Required Documents for Sonoma County Short-Term Rentals

To apply for a short-term rental permit in Sonoma County, property owners must submit the following documents, as outlined on the official Sonoma County website:

1. Planning Application (Form PJR-001): This form must be signed by all property owners and is used to provide basic information about the property and the proposed short-term rental.
2. Indemnification Agreement (Form PJR-011): This form, signed by the owner or agent with the owner's written authorization, protects the county from legal liability related to the short-term rental.
3. Vacation Rentals Application (Form PJR-096): This form is specific to vacation rental permits and requires detailed information about the property, such as the number of bedrooms, parking spaces, and septic capacity.
4. Site Plan: A detailed site plan must be submitted, showing all existing structures, outdoor use areas, parking, and access. The plan must be legible, drawn to scale, and include a north arrow, project name, and date.
5. Floor Plan: The floor plan must identify all rooms in the home or structures, including the number and location of guest rooms to be used for the vacation rental. Exits must be clearly shown.
6. Proof of Septic Capacity: If the property is served by a septic system, the owner must provide proof of septic capacity. This documentation can be obtained from the Sonoma County Permit and Resource Management Department (Permit Sonoma) Records Division.
7. Transient Occupancy Tax (TOT) Registration Form: This form, submitted to the Sonoma County Auditor-Controller Treasurer-Tax Collector Department, is required to obtain a TOT Number. The form can be emailed to TOT@sonoma-county.org or mailed to 585 Fiscal Drive, Suite 100, Santa Rosa, CA 95403.
8. Ownership Verification: For vacation rental license applications submitted on or after June 16, 2023, property owners must provide a copy of the current ownership deed. Permit Sonoma staff may also request a current title report and trust certification to verify property ownership.

All application materials must be submitted electronically to the Permit Sonoma department via email at PlanningApplications@sonoma-county.org. Fees for the permit and license are determined by Permit Sonoma staff and must be paid online through the applicant's Permits Online account.

It is crucial for short-term rental owners to ensure they have all the required documents and follow the application process carefully to avoid delays or denials in obtaining their permits and licenses.

Sonoma County Short-Term Rental Taxes

Short-term rental owners in Sonoma County are subject to several taxes, including Transient Occupancy Tax (TOT) and Business Tax. It's essential for owners to understand these tax obligations to ensure compliance and avoid penalties.

Transient Occupancy Tax (TOT)

Transient Occupancy Tax, also known as "bed tax," is levied on short-term rentals in unincorporated Sonoma County at a rate of 12% of the gross rent charged to guests. This tax applies to rentals of 30 days or less and must be collected from guests and remitted to the Sonoma County Treasurer-Tax Collector.

Key points about TOT:

1. TOT must be charged and tracked separately from the stated room rate.
2. TOT payments are due quarterly, postmarked no later than the last day of the month following the end of the calendar quarter.
3. Operators must file a TOT return even if no rents were received during the reporting period.
4. Exemptions may apply for stays over 30 consecutive days, but an exemption form must be submitted with the quarterly return.

Some short-term rental marketplaces, such as Airbnb, automatically collect and remit TOT on behalf of hosts for bookings made through their platform. However, hosts are responsible for collecting and filing taxes for bookings made through other channels.

Business Tax

Short-term rental owners in Sonoma County may also be subject to Business Tax if their annual gross receipts exceed $100,000. The Business Tax applies to the privilege of doing business in the county and is based on the operator's gross sales.

If subject to Business Tax, short-term rental owners must:

1. Register in the county where the property is located as a Classification 3 taxpayer.
2. File Business Tax returns and pay the tax on the 15th day of the fourth month following the end of the taxpayer's fiscal year.
3. File a consolidated return if they own multiple properties.

Deductions and Write-Offs

While short-term rental owners must pay the required taxes, they may be able to deduct certain expenses related to their rental business on their income tax returns. Potential deductions include:

1. Mortgage interest
2. Property taxes
3. Rental insurance
4. Utilities
5. Cleaning and maintenance costs
6. Supplies and amenities provided to guests
7. Depreciation of the rental property and furnishings

Owners should consult with a tax professional to determine which deductions they may be eligible for and how to properly claim them on their tax returns.

By understanding and complying with Sonoma County's short-term rental tax requirements, owners can avoid penalties and ensure the long-term success of their rental business.

California Wide Short-Term Rental Rules

While most short-term rental regulations in California are determined at the city or county level, there are a few state-wide laws that Sonoma County hosts should be aware of.

Subletting Restrictions

California State Law Section 22592 requires short-term rental platforms to inform potential hosts that their current lease agreement must not contain any restrictions on subletting or renting out the property on a short-term basis. This is particularly important for hosts who are renting their property and wish to sublease it as a short-term rental. Hosts should carefully review their lease agreements to ensure compliance.

Insurance Requirements

Section 22592 also mandates that short-term rental platforms notify hosts to review their insurance coverage. Hosts must ensure that their insurance policy covers any damages or injuries that may occur as a result of operating a short-term rental. It is recommended that hosts obtain additional liability insurance specifically designed for short-term rentals.

Transient Occupancy Tax (TOT)

While not a state-wide law, it is important to note that most cities and counties in California, including Sonoma County, require short-term rental hosts to collect and remit Transient Occupancy Tax (TOT). The TOT rate varies by jurisdiction, and hosts are responsible for registering with their local tax authority, collecting the tax from guests, and filing regular tax returns. In some cases, short-term rental platforms like Airbnb may collect and remit the TOT on behalf of hosts.

Other Considerations

In addition to these state-wide regulations, Sonoma County hosts must comply with any local ordinances, zoning requirements, and permit processes specific to their area. It is crucial for hosts to thoroughly research and understand the local regulations in their specific city or town within Sonoma County to ensure full compliance and avoid potential penalties.

By staying informed about both state-wide and local short-term rental regulations, Sonoma County hosts can operate their rentals legally and successfully while contributing to the local economy and providing valuable accommodations for visitors to the area.

Does Sonoma County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like BiggerPockets and Reddit, it appears that Sonoma County does enforce its short-term rental regulations relatively strictly compared to some other cities and counties. The county has established a 24-hour hotline for complaints about STRs and has the ability to levy substantial fines starting at $1,500 for a first violation, increasing to $5,000 for a third violation within one year. Licenses can also be revoked for up to five years for repeated violations.

While there may be some hosts operating STRs without proper permits or not fully complying with all the rules, the consensus seems to be that Sonoma County is not particularly friendly to this type of activity compared to areas with more lax enforcement. The county has taken steps to limit the concentration of STRs in certain neighborhoods and has implemented caps and exclusionary zones.

That said, with between 2,300-2,400 STRs operating in unincorporated Sonoma County at any given time, short-term rentals are still prevalent in the area for hosts who go through the proper permitting and licensing process. But the county appears to be taking a stricter stance in recent years to regulate the industry and crack down on bad actors.

Overall, while operating an STR in Sonoma County is very feasible, hosts should be prepared to closely follow the county's rules and regulations to avoid fines and other penalties. The county seems to be taking a more active enforcement approach compared to some other STR markets. Hosts should factor in the time and costs of compliance when evaluating the viability of short-term rentals in Sonoma County.

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

Starting a short-term rental business in Sonoma County requires careful planning and adherence to local regulations. Follow these steps to successfully launch your STR:

1. Research local regulations: Thoroughly review Sonoma County's short-term rental ordinances, zoning requirements, and permit processes. Understand the rules governing STRs in your specific area, including occupancy limits, parking requirements, and safety standards.
2. Determine eligibility: Check if your property is eligible for a short-term rental permit using the county's zoning tool and fire perimeter map. Ensure that your property meets all the necessary criteria before proceeding with the application process.
3. Prepare your property: Make any necessary repairs, upgrades, or renovations to ensure your property is safe, comfortable, and attractive to guests. Consider hiring a professional photographer to showcase your rental's best features in your listing.
4. Obtain necessary permits and licenses: Apply for a Transient Vacation Rental (TVR) Permit and a Vacation Rental License by submitting the required forms, documents, and fees to the Permit Sonoma department. This process includes providing a certified property manager, registering for Transient Occupancy Tax (TOT), and securing a business license.
5. Set up your rental listing: Choose a short-term rental platform like Airbnb or VRBO to list your property. Create an engaging, informative listing with high-quality photos, detailed descriptions, and accurate information about amenities, house rules, and local attractions.
6. Establish pricing and policies: Research comparable rentals in your area to determine competitive nightly rates. Set clear policies regarding minimum stays, cancellations, check-in/check-out times, and guest behavior. Consider using dynamic pricing tools to optimize your rates based on demand.
7. Implement a cleaning and maintenance plan: Develop a thorough cleaning checklist and schedule to ensure your rental is always guest-ready. Consider hiring a professional cleaning service or property management company to handle turnovers and maintenance tasks.
8. Provide excellent guest communication: Respond promptly to inquiries, send detailed check-in instructions, and be available to answer questions or address concerns during your guests' stay. Provide local recommendations and insider tips to help guests make the most of their visit.
9. Comply with ongoing requirements: Regularly file TOT returns, renew permits and licenses as needed, and address any neighbor complaints or issues promptly. Stay informed about any changes to local STR regulations and adjust your operations accordingly.
10. Continuously improve your listing: Encourage guests to leave reviews and use their feedback to make improvements to your rental. Regularly update your listing photos, description, and amenities to keep your property competitive and attractive to potential guests.

By following these steps and prioritizing compliance with local regulations, you can successfully launch and operate a short-term rental business in Sonoma County. Remember to stay informed, be a responsible host, and provide exceptional guest experiences to build a thriving STR business.

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

If you have questions or need assistance regarding short-term rental regulations and zoning in Sonoma County, there are several resources available:

Permit Sonoma: This is the main department responsible for short-term rental permits and enforcement in Sonoma County. You can contact them at:

1. Phone: (707) 565-1932
2. Email: PRMD-VacationRentals@Sonoma-County.org
3. Address: 2550 Ventura Avenue, Santa Rosa, CA 95403

Sonoma County Treasurer-Tax Collector: For questions related to Transient Occupancy Tax (TOT) registration and payment, contact:

• Phone: (707) 565-2281
• Email: TOT@sonoma-county.org
• Address: 585 Fiscal Drive, Suite 100, Santa Rosa, CA 95403

Sonoma County Planning Commission: To contact the Planning Commission with general questions or comments:

Email: PlanningAgency@sonoma-county.org

In addition to these official resources, short-term rental hosts in Sonoma County may find support and useful information through local organizations and online communities, such as:

• Sonoma County Coalition of Hosts: This group advocates for fair and reasonable short-term rental regulations in Sonoma County. They provide updates on local ordinances and host regular meetings. Visit their website at https://www.sonomacountypermits.org/boardofzoningadjustmentsandplanningcommissioncombinedmeetingjune292023 for more information.
• Airbnb Sonoma County Host Forum: This is a Facebook group where Sonoma County hosts can connect, share experiences, and ask questions. You can find the group at https://www.facebook.com/groups/airbnbsonomacounty/.
• Sonoma County Subreddit: The Sonoma County subreddit (r/sonomacounty) on Reddit occasionally features discussions and posts related to short-term rentals in the area. While not exclusively focused on this topic, it can be a useful resource for staying informed about local issues and connecting with other hosts.

By utilizing these official contacts and community resources, short-term rental hosts in Sonoma County can stay informed about regulations, seek assistance when needed, and connect with fellow hosts for support and advice.

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

Airbnb hosts in Sonoma County have shared their experiences and thoughts about local short-term rental regulations on various online forums and communities. Here are some insights from verified Sonoma County threads on Reddit and Bigger Pockets:

Reddit - r/sonomacounty: In a thread titled "Is it just me or is every single vacation rental on AirBnB and VRBO illegal?", a user mentioned that most rentals in Sonoma County are legal and that they receive mailers with property manager information. They added that the county has little tolerance for reports of illegal rentals, and such properties get shut down quickly.

Reddit - r/AirBnB: In a discussion about the challenges of hosting in Sonoma County, a user shared that the county has completely shut down the issuance of new short-term rental permits in certain areas like West County (Russian River Valley). They mentioned that enforcement is sparse in some regions, and paying fines is sometimes considered a reasonable cost of doing business for some owners.

Airbnb Community Forum: In a thread about Sonoma County Transient Occupancy Tax (TOT), hosts discussed the challenges of collecting and remitting the tax. Some hosts expressed frustration that Airbnb did not provide a built-in feature to collect the tax on their behalf, forcing them to manually calculate and collect it from guests. They also mentioned that many hosts in the area were not paying the TOT, putting compliant hosts at a disadvantage.

Bigger Pockets Forum: In a thread seeking recommendations for short-term rental property managers in Sonoma County, a user mentioned that most companies they researched had poor or concerning reviews, suggesting that finding a reliable property manager in the area may be challenging.

Bigger Pockets Forum: In another thread about investing in vacation homes in Napa and Sonoma, a user cautioned that there are area-specific restrictions on short-term rentals. They advised thoroughly researching local regulations and restrictions before investing in a property intended for Airbnb use.

These experiences and comments from Sonoma County hosts highlight some of the challenges they face in navigating local short-term rental regulations. While many hosts strive to comply with the rules, they often encounter difficulties with permit availability, tax collection, and enforcement inconsistencies. It's essential for prospective hosts to thoroughly research and understand the local regulations before investing in a short-term rental property in Sonoma County.

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.