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Need To Know : Starting a Short Term Rental Business in Sacramento

What you need to know before you begin your short term rental business journey in Sacramento, CA - 2024

9/2/20242 min read

an aerial view of a city with lots of tall buildings
an aerial view of a city with lots of tall buildings

Starting a Short Term Rental Business in Sacramento

Sacramento has regulations for short-term rentals (STRs) that are enforced through the city's zoning code and planning code. These regulations apply to both primary and secondary residential dwellings, with the primary residence being defined as a unit where the permittee resides for at least 184 nights during the calendar year. Hosts with secondary residences cannot rent for more than 90 days in any calendar year without obtaining a conditional use permit. In Sacramento, short-term rentals are defined as a dwelling unit or portion of a dwelling unit that is rented for a period of less than 30 consecutive days.

This definition includes both entire homes and individual rooms within a home. Hosts must ensure that their short-term rental properties are safe and comply with all applicable building codes, zoning laws, and other regulations. Short Term Rental Licensing Requirement in Sacramento. To operate a short-term rental in Sacramento, hosts must register their properties with the city and obtain a Short-Term Rental Permit. The initial application fee is $230, and permits must be renewed annually for a fee of $160.

Hosts are also required to pay Sacramento's annual business operations tax, which is currently $54, and collect and remit transient occupancy taxes to the city. The application process for a Short-Term Rental Permit in Sacramento involves several steps. First, hosts must complete an online application and provide proof of ownership or authorization to operate the property as a short-term rental.

Hosts must also provide a Business Operation Tax Account and categorize it as a hotel. Additionally, hosts must provide a copy of any Covenants, Conditions, & Restrictions (CC&Rs) or Homeowner Association rules (HOAs) with their application and cannot operate a short-term rental in violation of any CC&Rs or similar regulations.

Who to Contact in Sacramento about Short Term Rental Regulations and Zoning

For more information about short-term rental regulations and zoning in Sacramento, hosts can contact the city's Revenue Division Business Permits office at 916-808-8500 or businesspermits@cityofsacramento.org. Hosts can also visit the city's website for more information about short-term rental regulations and the application process for a Short-Term Rental Permit.