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Renting out your home is a great way to earn extra income. If you’re a homeowner in San Francisco, you’ll want to make sure you understand local laws and regulations. San Francisco’s new regulations for short-term rentals take effect on February 1, 2015. To get into compliance, please follow the steps below.

  1. Register Your Short-Term Rental. To register your rental with the city, you must schedule an in-person appointment with the Planning Department.
  2. Pay a $50 fee. For more information about the process check out the Planning Department’s page to start an application.
  3. Prove Permanent Residency. You need to show that you are a permanent resident of the property you are renting out and that you’ve been a resident there for at least 60 days.
    • Bring at least 2 forms of identification such as a motor vehicle registration, a driver’s license, voters registration, specific tax documents, or a utility bill.
    • Please note: Each document must have been issued at least 60 days prior to the date of the application.
  4. Obtain Liability Insurance. You will need to show proof of insurance for at least $500,000. Some hosting platforms (like Airbnb) provide this, so you’ll want to check before you list your place. If you don’t have insurance, is offering short term rental insurance starting for $7/night and you only pay for the nights you rent out to guests.
  5. Collect Transient Occupancy Tax.  It is a host’s responsibility to collect and remit the transient occupancy tax (TOT) to the city. Pillow can help make sure that you are collecting this tax, some hosting platforms already do this for you. In San Francisco this tax is 14% for the rent collected.
  6. Adhere to a 90-Day Limit. If you are renting out your home, you can rent it for up to 90 days a year.

To find out more information, please check out the resources we’ve provided below. We’re here to help!

Pillow’s Legal FAQ

Airbnb’s Helpful Hosting Blog

Planning Department’s Information Page

Short-Term Residential Rental Application

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