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Short-Term Rentals Prompt Long-Term Regulations

On Behalf of | Mar 4, 2016 | Firm News |

Spring Break is just around the corner, and many travelers are taking advantage of online booking sites such as Airbnb and VRBO, which allow homeowners to lease their properties or individual rooms to guests for short-term stays.  With the increase of popularity of these home-sharing vacation sites, cities have begun to address concerns by implementing new regulations.

In January, Sacramento City Council unanimously approved two ordinances regarding short-term rental services wherein property owners wishing to rent their homes or portions of their homes no longer need to apply for a Conditional Use Permit (which costs approximately $5,000.00).  Instead, they need only pay for a Business Operations Tax Certificate and Transient Occupancy Tax which is 12% of the regular room charge.  Also included in the ordinance, was a cap on the number of guests and duration of stays; six guests at a time and no more than 90 days of rentals annually.  All homeowners participating in these short-term rental services must keep a log of their guests and refer to their homeowners association for any further issues that may arise.

As always, the attorneys at Smith, McDowell & Powell are well-versed on real estate and property issues, so if you are looking to use your home as a place for tourists to crash for spring break, we are here to answer any questions you may have!  For further reading on the city council’s decision, click here.