Short-term rentals (STRs), such as those listed on Airbnb or Vrbo, can be profitable — but they also bring legal complexities, especially in California. Statewide regulations, city-specific ordinances, and community rules all play a role in how you can operate a short-term rental. Attorneys at SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) law firm provides professional legal advice and services to clients in Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, Coachella Valley, and surrounding communities.
Local Regulations Come First
California allows local jurisdictions to regulate STRs. This means that:
– Each city or county sets its own rules
– Permits or licenses are often required
– Some areas ban or heavily restrict STRs
Before listing your property, check with your local city planning or housing department.
Common Legal Requirements
– Registration: Most cities require hosts to register and pay a fee.
– Transient Occupancy Tax (TOT): Similar to hotel tax, TOT must be collected and paid by hosts.
– Occupancy Limits: Restrictions on the number of guests and days per year.
– Zoning Compliance: Not all properties are zoned for STR use.
Failure to comply can result in fines, penalties, and delisting.
HOA and Lease Restrictions
If your property is in a condo or planned community, the Homeowners Association (HOA) may restrict or prohibit STRs. Additionally, if you’re renting a property yourself, subletting as an STR may violate your lease.
Insurance and Liability
Standard homeowners insurance often doesn’t cover STR-related incidents. You may need:
– Short-term rental insurance
– Commercial liability coverage
– Coverage for property damage caused by guests
Proper insurance protects you from lawsuits or uncovered claims.
Neighbor and Nuisance Laws
Complaints about noise, parking, or trash can lead to citations or loss of your rental license. Maintaining good relationships with neighbors and enforcing house rules with guests is essential.
Short-term rentals in California offer great earning potential, but they come with significant legal responsibilities. Understanding and complying with local laws is key to running a successful and lawful rental business.
Have any legal questions? Contact the Attorneys at SBEMP Law Firm:
For more information or to request a consultation please contact the law offices of SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) by clicking here.
SBEMP LLP is a full service law firm with attorney offices in Palm Springs (Palm Desert, Inland Empire, Rancho Mirage, Indian Wells), CA; Indian Wells, CA; Costa Mesa (Orange County), CA; San Diego, CA; New Jersey, NJ; and New York, NY.
DISCLAIMER: This blog post does not constitute legal advice, and no attorney-client relationship is formed by reading it. This blog post may be considered ATTORNEY ADVERTISING in some states. Prior results do not guarantee a similar outcome. Additional facts or future developments may affect subjects contained within this blog post. Before acting or relying upon any information within this newsletter, seek the advice of an attorney.
