Thinking about buying a place in San Francisco and offsetting costs with short-term rentals? The idea is appealing, but the city’s rules are strict and detailed. You want a clear, reliable picture before you commit money, time, and energy.
In this guide, you’ll learn how San Francisco’s short-term rental program works, including host registration, the primary-residence requirement, the 90-night cap on unhosted stays, tax obligations, and the property-level issues that often stop investor models. You’ll also get a step-by-step feasibility checklist to stress-test a deal before you buy. Let’s dive in.
San Francisco rules at a glance
San Francisco’s short-term rental framework is designed to keep homes available for residents and to ensure safe, compliant lodging. If you plan to list for stays under 30 days, you must operate within the city’s program.
Register before you list
You must register with the City’s short-term rental program and obtain a host certificate before listing. During registration, you will certify that you understand the rules, including occupancy limits and tax responsibilities. Your registration number must appear on every listing so platforms and neighbors can verify your legal status.
Primary residence is required
San Francisco limits most short-term rentals to your primary residence. You need to live in the unit as your permanent home and be able to prove it with documents such as a driver’s license, voter registration, and utility bills. This requirement makes absentee or purely investor-run STRs difficult or impossible to do legally.
90-night cap on unhosted stays
There is a citywide cap on unhosted short-term rental nights, commonly cited as 90 nights per year. Unhosted means you are not present during the guest’s stay. Hosted stays, where you remain on site, are treated differently and are not subject to the same cap. The city enforces the cap through registration, monitoring, and compliance checks.
Platform listing responsibilities
Listing platforms are required to display your registration number and may be required to remove unregistered or noncompliant listings. This helps the city enforce rules and gives consumers and neighbors visibility into a listing’s legal status.
Enforcement and penalties
If you violate the rules, the city can impose fines, suspend or revoke your registration, and pursue civil penalties. Persistent noncompliance can also lead to delisting by platforms.
Taxes and financial compliance
Short-term rentals trigger city and state tax obligations, plus recordkeeping requirements. Plan for these early so there are no surprises.
Transient Occupancy Tax and business registration
San Francisco imposes a Transient Occupancy Tax on short stays. You are responsible for collecting and remitting this tax and for registering with the Treasurer and Tax Collector as required. Accurate books and periodic returns are a must, and you may be audited.
State tax and marketplace collectors
Depending on your setup, California’s tax rules for lodging and marketplace transactions can apply. Some platforms collect certain taxes on your behalf, but not all. You need to confirm exactly which taxes a platform collects and what remains your responsibility. Even when a platform collects, you are still responsible for correct reporting.
Recordkeeping and audits
Keep detailed records: nightly stays, guest names and length of stay, taxes collected and remitted, host registration certificates, and proof of primary residence. Good records reduce audit risk and help you respond quickly if the city requests information.
Property and legal roadblocks
Even if you meet city program rules, property-level constraints can stop a short-term rental plan.
Zoning and safety compliance
Your unit must meet applicable building and life-safety codes. This includes smoke and carbon monoxide detectors, safe egress, and other safety standards. Certain buildings or districts can have additional restrictions.
HOA and CC&R limits
Many HOAs prohibit or limit short-term leasing. Always review HOA bylaws, CC&Rs, and any building STR policy before you buy. If the HOA requires approval or enforces a quota, plan for timing and the possibility of denial.
Tenant and rent-control issues
If a tenant occupies the unit or the property is under rent control or local tenant protections, your ability to use the unit for short-term rentals may be limited or require explicit tenant consent. Lease clauses often forbid subletting for short stays.
Insurance and lender considerations
Standard homeowner policies often exclude short-term rental activity. Obtain quotes for STR coverage or commercial general liability. Lenders and mortgage covenants may disallow STR use or require disclosure, which can affect financing terms.
House rules and occupancy limits
Other rules may cap guest counts, set quiet hours, and require trash and contact procedures. Build these into your house manual and guest communications to reduce complaints and risk.
Investor feasibility checklist
Use this sequence of filters to evaluate a potential purchase. A single “no” on the first filters often ends the deal for a pure STR model.
- Step 0: Confirm the legal baseline directly with the San Francisco Office of Short-Term Rentals and the Treasurer and Tax Collector so you have the most up-to-date requirements in writing.
Filter A: Primary-residence feasibility
- Can you, or an owner-occupant, lawfully make the unit your primary residence year-round and document it? If you are an absentee investor, San Francisco’s primary-residence rule will likely block STR use except possibly for hosted stays.
- If the answer is no, the investor STR model is unlikely to be legal.
Filter B: Title, HOA, and lease constraints
- Review CC&Rs and HOA rules for STR prohibitions or quotas. Confirm if any approvals are required. If tenants are in place, check lease subletting clauses and rent-control status.
- If the answer is no, STR use may be restricted or require approvals that change the deal.
Filter C: Zoning, building, and safety
- Confirm the use is allowed and that the unit meets required life-safety standards. Estimate any permit timelines and upgrade costs.
- If the answer is no, budget for upgrades or rule out the purchase.
Filter D: Market economics and break-even
- Estimate average daily rate and expected occupancy from credible market data. Calculate gross annual revenue, then subtract platform fees, TOT and other taxes, cleaning, utilities, supplies, management, insurance increases, maintenance, vacancy, and startup costs.
- If required occupancy looks unrealistic or net revenue is below long-term rent, the STR case likely does not pencil.
Filter E: Tax and admin burden
- Confirm TOT filing frequency, platform collection policies, and bookkeeping needs. Include the cost of an accountant or compliance support.
- If the administrative load erodes margins, reconsider.
Filter F: Insurance and lending
- Get written confirmation that your lender allows STR use and price appropriate insurance.
- If coverage is unavailable or the lender disallows STRs, do not proceed.
Filter G: Neighborhood risk and grievances
- Check complaint and enforcement trends in the area. High complaint zones can raise risk and operating costs.
- If risk is elevated, adjust your projections or avoid the location.
Quick decision matrix
- Primary residence: Yes/No
- HOA and lease clearance: Yes/No
- Building and safety compliance: Yes/No
- Financial viability: Yes/No
- Tax and admin tolerance: Yes/No
- Insurance and lender approval: Yes/No
Practical scenarios in San Francisco
Owner-occupied condo with hosted stays
If you live in the condo as your primary residence and host while you are on site, you can avoid the unhosted-night cap. You still need to register, follow safety and house rules, meet HOA policies, and handle taxes.
Primary home with occasional unhosted nights
If you plan to travel and rent your primary residence while you are away, the 90-night unhosted cap will apply. You must track unhosted nights carefully to avoid penalties. Make sure your insurance and lender permit this use.
Absentee investor seeking full-time STR
Buying a unit for year-round short-term rental use generally does not fit San Francisco’s rules. The primary-residence requirement and the unhosted cap make a full-time STR model unworkable in most cases.
Alternatives to consider
- Long-term rental: Stable occupancy and simpler compliance compared to STRs.
- Furnished monthly rental: A possible middle ground that can align better with local rules than stays under 30 days.
- Corporate housing: Case-by-case feasibility depending on building rules and demand.
If your main goal is ownership plus supplemental income, consider a primary-residence purchase plan where hosted stays are possible within building rules. Run careful numbers for both STR and long-term scenarios so you can choose the path that best fits your risk tolerance and lifestyle.
What to do next
- Contact the San Francisco Office of Short-Term Rentals to confirm registration and primary-residence documentation requirements.
- Pull and review HOA and CC&R documents, plus any building STR policy, before you make an offer.
- Build a conservative pro forma that includes TOT, platform fees, insurance, management, compliance, and a vacancy buffer.
- Get written approval from your lender and firm quotes from your insurance carrier.
- If STR is not viable, compare net outcomes for long-term or furnished monthly strategies.
Ready to pressure-test a San Francisco purchase or weigh alternatives on the Peninsula? Get local insight, clear communication, and hands-on coordination from a trusted advisor. Connect with Unknown Company to talk through your plan and next steps.
FAQs
Can I run a full-time short-term rental in San Francisco?
- Generally no. The city requires primary residence for most STRs and enforces a 90-night annual cap on unhosted stays.
What is the 90-night cap on unhosted stays in San Francisco?
- It is a limit on nights you can rent your primary residence when you are not present, commonly cited as 90 nights per year.
How do I prove primary residence for San Francisco STR rules?
- You typically provide documents such as a driver’s license, voter registration, and utility bills that show the unit as your permanent home.
Do platforms remove noncompliant San Francisco listings?
- Platforms that follow local rules display registration numbers and may remove listings that lack valid registration or repeatedly violate rules.
What taxes apply to San Francisco short-term rentals?
- You must collect and remit the city’s Transient Occupancy Tax and may have state-level obligations depending on services and platform collection policies.
Can my HOA block short-term rentals in San Francisco?
- Yes, many HOAs restrict or prohibit STRs. Always review CC&Rs and building rules before purchasing.
What happens if I exceed San Francisco’s STR limits?
- You risk fines, back taxes, registration suspension or revocation, and potential delisting by platforms.
