Are Vacation Rentals Legal in California?

By Alice Nichols

If you’re planning a vacation in California, one of the biggest decisions you’ll have to make is where to stay. While hotels have traditionally been the go-to option for travelers, vacation rentals have become increasingly popular in recent years. However, before you book a vacation rental in California, there are a few things you should know about their legality.

What are Vacation Rentals

Vacation rentals are privately-owned properties that are rented out on a short-term basis to travelers. They can include anything from apartments and condos to houses and villas. Unlike hotels, which offer standardized rooms and services, vacation rentals offer more space and often come with additional amenities like kitchens and private pools.

Regulations in California

In recent years, there has been a lot of debate over the legality of vacation rentals in California. In some cities, such as San Francisco, vacation rentals are heavily regulated and limited in number. In other areas, they are completely prohibited.

However, as of 2019, the laws surrounding vacation rentals in California were clarified with the passing of Assembly Bill 1731 (AB 1731). Under AB 1731, homeowners may rent out their primary residence for up to 30 days per year without obtaining any permits or licenses.

The City Level

While AB 1731 sets guidelines at the state level, individual cities still retain some control over regulations surrounding vacation rentals. For example:

  • San Francisco: Short-term rentals are only allowed if the host is registered with the city’s Office of Short-Term Rentals.
  • Palm Springs: A permit is required for all short-term rentals.
  • Santa Monica: A license is required for all vacation rentals, and hosts must also pay a transient occupancy tax.

What You Need to Know

If you’re planning to book a vacation rental in California, it’s important to do your research beforehand. Here are some things to keep in mind:

  • Check local regulations: Make sure that vacation rentals are legal in the area where you plan to stay. If they are, be aware of any specific regulations that may apply.
  • Book through a reputable platform: Look for vacation rentals on well-known platforms like Airbnb or Vrbo, which typically have measures in place to ensure that hosts are complying with local laws.
  • Read reviews carefully: Pay close attention to reviews from previous guests, as they can provide valuable insight into the property and the host.

The Bottom Line

Vacation rentals can be a great option for travelers looking for more space and flexibility than traditional hotels. However, it’s important to be aware of the laws surrounding vacation rentals in California before booking your stay. By doing your research and booking through reputable platforms, you can help ensure a safe and legal vacation rental experience.