Are you one of the 36% of San Francisco residents who own a home here? Whether it's your primary residence or a second home, you can turn it into a passive income generation machine.
We're talking about home sharing!
If you have an extra room, you can rent it out to travelers and even residents who are looking for short-term stays. And because the city receives over 20 million visitors every year, there's a good market for short-term rentals.
Continue reading this article for a few home sharing tips that will help you get started on solid footing.
Understand the Regulations for Short-Term Rentals
In San Francisco, the short-term rental market is regulated. You cannot just decide to rent out your property just because you own it.
For a property to be eligible for use as a vacation rental, you must be a permanent resident. This means living in the property for at least 275 nights in a year. Furthermore, you can only rent it out for a maximum of 90 un-hosted days in a year, and a stay can't be longer than 30 nights.
So, if your San Francisco property is a vacation or second home you rarely stay in, you won't be able to use it as a short-term rental. You'd perhaps consider renting it out on a long-term basis.
Certain types of properties are also ineligible for this business, including income-restricted affordable housing, accessory dwelling units, and student housing.
Get a Registration Certificate
After you've established you can use your home as a short-term rental, the next step is to get a business registration certification. This involves making an application to the San Francisco Office of the Treasurer and Tax Collector.
You'll get a certificate number from the Office of Short-term Rentals, after which you can proceed to the most exciting part.
Prepare Your Home for Listing
With the regulatory process behind you, it's time to focus on getting the property ready for its first guest.
If the property is in decent condition, you might want to go ahead and open it for business. However, it's important to make it more attractive to your target market. This might involve making some upgrades, such as installing new kitchen cabinets or giving the bathroom a facelift.
List Your Home on a Home Sharing Platform
You have a property that's ready to welcome vacation guests, but where will you find those guests?
This is where home sharing platforms like Airbnb and VRBO come in handy. All you need to do is create an optimized listing for your property on these platforms and wait for the bookings to start coming.
You can list the home on multiple platforms, but you have to be on the lookout for double bookings.
Home Sharing Tips for San Francisco Residents
Home sharing is an excellent way to generate some income from your property, but a lot goes into making it a successful short-term rental. Use these home sharing tips to set yourself up for success as a vacation host.
If you'd like professional assistance managing the property, come to PMI SF Peninsula. We're a full-service short-term rental management company, led by a CEO who majors in business administration and fintech.
Contact us to schedule a consultation.
