A Quick Look at Short-Term Rental Laws In Oakland
Navigating Oakland’s Short-Term Rental Regulations
A comprehensive guide to Oakland’s regulations for tenants and landlords regarding short-term rentals like Airbnb.
Much has been written about the current short-term rental enforcement and regulations throughout California. Most airbnb and vacation rental enforcement begins with an argument hand-written on a parking ticket, a complaint submitted to other tenants, a neighbor alerted by noise, or even a 911 call. The key to enforcing this law is the Oakland Police Department and the City of Oakland’s Revenue Department. Both are able to forward fines and complaints issued on a parking ticket to a misdemeanor charge if it is necessary. For renters and landlords of Oakland, the City’s rental policies are the next step in compliance. Eventually, renters will be removed from listings if they don’t have licenses. Along with the list below, there are various new city policies that were put into effect in order to end non-compliance of the short-term rental regulations.
These new policies are:
A. The fees are payable at the time of application to the Police Department Document and Permit Services Unit. The application fee is $208, and the complaint processing fee and surcharge for enforcement activities are calculated at $408/hour . A $147 fee must be paid to the City of Oakland for the administrative citation.
B. There a couple fines that will be given to guests to discourage short-term rentals. First, there is a TWO THOUSAND DOLLAR ($2,000) FINE for all noise-related violations and that includes, but isn’t limited to: amplified noise, noise that exceeds 85 as defined by municipal code 9.36.070, littering, impersonating police officers, intentional mischief on purpose, posting forbidden posted notices. The SECOND type of fine is a FOUR THOUSAND DOLLAR ($4,000) FINE for all noise-related violations that lead to a physical altercation such as: assault, battery, or fights. The third is a TWENTY THOUSAND DOLLAR ($20,000) FINE if, at any time, a minor has contact with liquor, drugs or gives money to buy those illegal substances.
To prevent short-term rentals from continuing in the City, the City of Oakland has set up an enforcement unit. If you do not obtain a certificate, all STRs owned or operated by you will be disabled from appearing on the website. Therefore, to continue your short-term rental business in the City you will need to submit your application, and pay the fee, and then your listing will be able to be seen. Per the new city ordinances, short-term rental users will continue to pay the transitory lodging tax (TLT), also known as the hotel occupancy tax.
Hosting or Renting: Who is Eligible?
To become an Airbnb host in Oakland, property owners must meet a series of eligibility requirements. Failing to adhere to these regulations could result in fines, legal action, and even the need to remove your property from the platform. At the very least, your credibility as a host could be damaged, affecting your bottom line.
Oakland operates under a third-party platform model. In other words, hosts list their property on the Airbnb platform but utilize a local vendor to handle registration and payment processing. Using a third-party manager doesn’t relieve you of your responsibility to comply with the law and obtain necessary permits.
There are two kinds of permits available for hosts: Home Sharing Registration Certificate (HSRC) and Business Registration Certificate for Short-Term Residential Rentals. Eligibility requirements vary based upon the specific permit.
A HSRC, which is required for people who rent out a spare bedroom to guests while they continue to live there, is only available to people who live in Oakland, and is non-transferable. In order to receive this permit, the owner or renter must have fulfilled their duty to obtain all required licenses, permits, and conditions for the property, as well as have the authority to rent the unit. The unit in question must be registered as residential and its contact information must be publicly available, so Airbnb can verify all legal obligations have been met.
For properties that are being registered for the purpose of vacation rentals, the owner of the property, not just the property owner’s agent, must provide authorization for the permit and must submit proof that they have satisfied their duty to comply with all local codes, including the basic duty to rent residential housing units in compliance with all federal, state, and local building laws. As for the property itself, whether it’s single or multi-family, it must be registered as residential property.
In either case, the dwelling must not have any pending code enforcement issues for violations of what’s deemed "serious." These issues include, but are not limited to, violations related to bed bugs, mold, lack of fire escapes, electrical hazards, water leaks, broken toilets, lack of hot water, and inadequate ventilation.
The Oakland Municipal Code also includes a residency requirement. To be eligible for a short-term rental permit, a person must maintain their primary residence in Oakland and live there for at least nine months each year. Also, they must not hold a residential rental license for the unit in question.
Even if you meet these eligibility requirements, properties that are in violation of city building or occupancy codes, or operated in violation of the Oakland Municipal Code, will be prohibited from vacation rentals until local law violations are resolved.
Registration and Permit Requirements
Hosts in Oakland have two different sets of permits they must navigate to legally rent their homes: the Site Permit and the Short-Term Rental Certificate. Obtaining each permit comes with its own set of fees and required documentation.
Site Permit
Before taking on your first guest, you’ll need to apply for and obtain a Site Permit. The permit is for the property you intend on making into a STR regardless of your residency status. You’ll be charged $150 for the permit, both for the initial registration and every time you file for renewal. To obtain a Site Permit, you’ll need: Obtaining a Site Permit doesn’t mean that you’re in the clear yet, however. Oakland has some strict amendment requirements that require you to make a request to amend your permit if you do any of the following: Once you submit the request, you will be charged $60 for either the amendment or the first renewal. Every renewal after this will cost $50.
Short-Term Rental Certificate
In addition to the Site Permit requirements, Oakland requires that you also obtain a STR Certification. The only exception to this rule is if you are renting a room or other unit in your own home where you have registered six or fewer STR guests. A STR Certification costs $80 to obtain and renew. In order to obtain a STR Certification, you’ll need the following documents: Like the Site Permit, the STR Certification is also subject to various amendments. You’ll have to apply for one of these every time you take on any changes or additions. The renewal process costs $60 for the amendment or the first renewal; all subsequent renewals cost $50 through the program. As you can see, obtaining — and maintaining — your Oakland STR permits and certifications is not a simple task.
Enforcement, Penalties and Other Risks of Non-Compliance
Like many other municipalities, the City of Oakland is ready to step in and issue penalties for any unregistered or non-compliant short-term rental host. In proving an unregistered rental exists, the city looks for the following evidence: Once the city has sufficient evidence, it will issue a Notice of Violation that denotes a fine amount and a compliance deadline (it may be an immediate compliance deadline in certain cases). As it currently stands, the fine amount is $250 for the first offense, $500 for the second, and $1,000 for the third. If the Notice of Violation goes ignored, the city reserves the right to levy a Tax A lien against a short-term rental property . A Tax A lien automatically applies a tax rate of 4 percent to the property’s assessed value and ensures the fines are paid come tax bill time. If you think about it, it’s not unlike the process in which the IRS places a tax lien on your home if you fail to pay bills for long enough.
A Tax A lien is something every Airbnb property host wants to avoid. If you deliberately ignore local tax codes, the city may take legal action to pursue money owed under the law. This means the potential for an illegal rental to be deemed non-owner-occupied property, making it subject to all of the legal standards required of non-owner-occupied property.
Staying Compliant and Succeeding with Airbnb and Short-Term Rentals
As you continue on your Airbnb journey in Oakland, staying compliant with regulations and creating a seamless and profitable operation requires diligence and flexibility. We’ll walk you through some of the things that will make you and your guests happy, and keep the City of Oakland happy in the process.
Stay on top of regulations and fees
The rules surrounding Airbnb and other homesharing platforms are constantly changing, in both Oakland and the rest of the country. Make sure you’re staying up-to-date on the requirements for short-term rentals to avoid any unwanted fines.
Communicate with your guests
The best way to get a five-star review is to have open and clear lines of communication with your guests. Airbnb even has an automated messaging feature that allows you to send messages during the pre-booking phases and between booking and check-in. Always respond to any messages you receive. These little steps will help you secure great reviews and return customers.
Provide a listing write-up that’s creative and engaging
We’ve previously discussed what to include in your listing to make it shine above the competition. Being vague with your listing or including too much jargon could turn away your ideal guest. Instead, be yourself and give details that apply to your own rental.
Set expectations before they arrive
No one wants to receive a nasty review, but the best way to avoid the problems that might result in one is to just be clear and direct. Put together a welcome book that details everything from house rules and check-in/check-out procedures to instructions on how to operate appliances or lock-up upon leaving. Guests will appreciate the added effort and you’ll be rewarded.
Provide a local guide
When traveling , guests don’t want to have to do all of the research on what to do and where to go. Make this an easier process for them by providing a local list of some of your favorite places to visit in Oakland or the surrounding area. Include restaurants and bars (with menu recommendations if possible), parks, museums, and shops. This will be one of the most appreciated additions to your rental that you can provide.
Encourage reviews
It’s common sense that the more five-star reviews you have, the more likely you’ll be to attract future customers. Thank guests for their feedback and encourage them to leave a review. Reply to the review – both good and bad. Responding to negative feedback lets potential customers that you care about your service and that you’re willing to rectify issues that may arise.
Automate what you can
All of the automation tools and features provided by the Airbnb platform are there to make your job easier. It’s somewhat silly not to take advantage of them. In addition to the welcome messaging features we spoke about earlier, consider providing automatic responses to any guest inquiries about availability, house rules, pricing, etc. Automating the check-in process, payments, and administrative tasks also keeps your income flowing with little effort.
Becoming a host on Airbnb is an exciting prospect, and opening your home up to travelers can be a rewarding experience. Follow these tips to keep yourself – and your guests – satisfied with the service you provide.