Airbnb & VRBO Performance in San Francisco California.

Short-Term Rental Regulations in San Francisco, California for 2024

Registration and Eligibility

• Primary Residence Requirement: The property must be the host's primary residence, where they live for at least 275 nights per year.
• Residency and Ownership: Hosts must be a permanent resident of San Francisco and either own or be a tenant of the unit. They must have lived in the unit for at least 60 days before applying.
• Business Registration Certificate: Hosts must obtain a valid Business Registration Certificate from the San Francisco Treasurer & Tax Collector's Office.
• Short-Term Residential Rental Certificate: Hosts must obtain a Short-Term Residential Rental Certificate from the Office of Short-Term Rentals.

Insurance Requirements

• Liability Insurance: Hosts must maintain liability insurance with a minimum coverage of $500,000. Hosting platforms like Airbnb may provide this coverage.

Rental Restrictions

• Occupancy Limits:
• No limit on rental nights if the host is present overnight with guests (hosted rental).
• Limited to 90 nights per calendar year if the host is not present overnight with guests (un-hosted rental).
• Guest Limits: The number of guests is limited to the lesser of two people per bedroom or a maximum of six people per rental unit.

Prohibited Spaces

• Excluded Areas: Short-term rentals are not allowed in areas such as The Presidio, Fort Mason, or Treasure Island.
• Excluded Housing Types: Prohibited in Below-Market-Rate (BMR) units, Public Housing units, Single-Room-Occupancy (SRO) units, and dormitories.

Taxation

• Transient Occupancy Tax (TOT): Hosts must collect a 14% TOT from guests. Airbnb handles this if all hosting is done via their platform.

Compliance and Enforcement

• Quarterly Reporting: Hosts must submit quarterly reports detailing the number and dates of short-term rentals.
• Record Keeping: Hosts must keep records demonstrating compliance with the law, including proof of primary residence and rental dates.
• Fines and Penalties: Non-compliance can result in fines of at least $484 per day, and potential revocation of the rental certificate.

Additional Requirements

• City Codes Compliance: The unit must comply with all City codes and be permitted and designed for residential use.
• No Outdoor Sleeping Quarters: No sleeping quarters are allowed in outdoor areas, including treehouses and vehicles.
• Ellis Act Eviction: Properties subject to an Ellis Act eviction after November 2014 are not eligible.

Top Airbnb Revenue-Generating Neighborhoods in San Francisco, California

1. The Castro District

• Appeal: Home to the LGBTQ community, the Castro District offers a rich cultural experience, historic landmarks like the Castro Theatre, and a vibrant dining scene. Its centralized location near other popular neighborhoods such as Hayes Valley and the Castro makes it highly attractive.
• Financials: Average annual revenue of $57,376, occupancy rate of 72%, and a gross rental yield of 5.32%.

2. Twin Peaks

• Appeal: Known for its serene views of San Francisco, including the Bay Bridge and downtown skyscrapers. The area offers hiking opportunities and a tranquil atmosphere, making it ideal for guests seeking a mix of natural beauty and urban access.
• Financials: Average annual revenue of $96,377, occupancy rate of 86%, and a gross rental yield of 5.40%.

3. Mission District

• Appeal: Famous for its Mexican cuisine, fine dining restaurants, vintage boutiques, and vibrant street art. The neighborhood's dynamic street life and proximity to Dolores Park make it a favorite among guests.
• Financials: Average annual revenue of $43,941, occupancy rate of 84%, and a gross rental yield of 3.25%.

4. South of Market (SoMa)

• Appeal: This area is a hub for cultural and sports enthusiasts, with attractions like the San Francisco Museum of Modern Art (SFMOMA) and Oracle Park. SoMa's hip vibe, easy access to public transportation, and diverse amenities make it highly appealing.
• Financials: Average annual income of $57.6K, occupancy rate of 62%, and a peak occupancy rate of 65% in June.

5. Fisherman’s Wharf

• Appeal: Ideal for families, this neighborhood offers family-friendly outdoor activities, waterfront restaurants, shopping centers, and easy access to cruises and other tourist attractions.
• Financials: Average annual revenue of $43,941, occupancy rate of 84%, and a gross rental yield of 4.24%.

6. Outer Sunset

• Appeal: This tranquil and scenic neighborhood combines urban living with coastal charm. It features a relaxed community vibe, local gatherings, a vibrant surf culture, and an emerging culinary scene. Guests appreciate its proximity to Ocean Beach, Golden Gate Park, and the Land’s End.
• Financials: Average annual income of $48K, with the highest earnings in July at $4,500, and a balanced market indicated by a Market Score of -69.

These neighborhoods stand out due to their unique blend of cultural richness, accessibility, and diverse attractions, making them highly profitable and appealing for Airbnb guests in San Francisco.

Furnishing and Design Tips for an Inviting Airbnb in San Francisco

General Tips

• Set a Budget: Define your budget before starting to furnish your Airbnb. This will help you make informed decisions and ensure a return on your investment.
• Choose Timeless and Sturdy Pieces: Opt for furniture that is easy to clean and maintain, and select pieces that fit a timeless aesthetic to appeal to a wide range of guests.

Space Optimization

• Boost Your Space with Smart Storage: Use beds with drawers, wall hooks, pegboards, and stackable containers to maximize storage and keep the space tidy.
• Select Space-Saving Furniture: Invest in multi-purpose furniture like sofa beds, folding tables, and ottomans with hidden storage to optimize the use of space.

Lighting and Mirrors

• Use Mirrors to Enhance Space: Mirrors can make your Airbnb feel bigger and brighter by reflecting natural light. Place them strategically across from windows.
• Layered Lighting: Replace harsh overhead lighting with smaller, warmer lights to create a soothing ambiance. Use lamps, floor lamps, and table lamps to mix up the lighting.

Furniture Selection

• Bedroom Essentials:
• Choose a solid bed with a mattress that is at least 8 inches thick. Consider memory foam mattresses for durability.
• Use a storage bed to stash laundry and linens.
• Provide hotel-quality pillows and hypoallergenic comforters.
• Living Room:
• Select a comfortable and durable sofa with washable covers. Avoid real and faux leather.
• Add accent chairs for additional seating without taking up too much space.
• Dining Area:
• Use a sturdy and functional dining table that can be dressed up with tablecloths and decor. Choose comfy, lightweight chairs.

Decor and Aesthetic

• Neutral Color Palette: Use muted tones of whites, grays, beiges, and browns to create a calm and serene atmosphere.
• Minimalist Design: Ensure window treatments, coffee tables, and TV stands align with a minimalist theme. Choose simple, clean lines and neutral colors.
• Creative Use of Decor: Utilize wall art, throw rugs, and layered lighting to add warmth and design to the space without breaking the bank.

Guest Amenities

• Essential Amenities: Provide a coffee maker, microwave, toaster, kettle, and basic toiletries. Include a hairdryer, first-aid kit, and high-quality towels.
• Accessibility: Consider making your Airbnb accessible to guests with disabilities by adding ramps, wide doorways, and grab bars in bathrooms.

Maintenance and Updates

• Timing of Updates: Plan furniture updates during the off-season or short gaps between bookings to minimize disruption to guests.
• Input from Cleaning Crew: Ensure your cleaning crew is aware of any new furniture or layout changes and get their input on what furniture holds up best to wear and tear.

Outdoor Spaces

• Minimalist Outdoor Furniture: Use benches or chairs with clean lines and neutral colors. Ensure outdoor tables and lights are simple and easy to clean.

By following these tips, you can create an inviting and stylish Airbnb in San Francisco that reflects the city's unique style and appeals to a diverse range of guests.

Discover the Best of San Francisco: Local Attractions and Insider Tips

Must-Visit Attractions

Golden Gate Bridge

• Walk or bike across the bridge for stunning views of the San Francisco Bay and the city skyline. Best times are between 5am and 6:30pm/9pm depending on the season.

Alcatraz Island

• Take a guided tour to explore the historic prison and enjoy the scenic views of the Bay. Consider an Alcatraz Skip the Line Boat Tour for convenience.

Fisherman’s Wharf

• Visit early in the morning to avoid crowds. Watch the sea lions at Pier 39, check out street performers, and explore the Aquarium of the Bay and Madame Tussauds wax museum.

Golden Gate Park

• A vast urban park with numerous attractions, including the California Academy of Sciences, the de Young Museum, and the Japanese Tea Garden. Perfect for picnics and outdoor activities.

Lombard Street

• Known as the “crookedest” street in the world, offering spectacular views of the San Francisco Bay, the Bay Bridge, and Coit Tower. Take a photo at the bottom or top for memorable shots.

Coit Tower

• Located on Telegraph Hill, this tower offers 360-degree views of the city and the bay. Admire the beautiful murals in its interior base.

Insider Tips and Hidden Gems

Ghirardelli Square

• A historical chocolate factory turned into a boutique shopping and dining destination. Enjoy chocolate desserts and explore the nearby Aquatic Park.

The Ferry Building

• A restored landmark with stunning bay views, housing a marketplace with artisanal food stalls, restaurants, and shops. Don’t miss the weekly farmers markets.

Palace of Fine Arts

• A picturesque spot for picnics, weddings, and cultural events. Features a Greco-Roman-inspired rotunda and a tranquil lagoon with turtles and ducks.

Local Parks and Viewpoints

• For quieter experiences, visit Tank Hill, Corona Heights, Bernal Heights, Ina Coolbrith, and Fay Park, which offer beautiful views over the city.

North Beach and Telegraph Hill

• Explore the charming streets of North Beach, visit Coit Tower, and enjoy Italian gelato or cannoli in the local delicatessens.

Cable Cars

• Ride the historic cable cars, especially the Powell-Hyde line, which passes through Lombard Street and Russian Hill. Best spot for photos is on Hyde Street and Beach Street at Fisherman’s Wharf.

Baker Beach

• A popular beach with stunning views of the Golden Gate Bridge. Ideal for picnics and sunset watching. Occasionally spot dolphins and whales in the summer.

Food and Culture

Local Restaurants

• Recommend State Bird Provisions for urban rustic cuisine, Foreign Cinema for its outdoor courtyard and foreign film screenings, and Cotogna for Italian dining.

Chinatown Walking Food Tour

• Take a guided tour to explore the hidden gems of Chinatown, sampling local cuisine and learning about the neighborhood's history and culture.

Day Trips

Point Reyes

• A coastal town great for fresh seafood, hikes, and scenic views. About a 1-hour drive from San Francisco.

Yosemite National Park

• A 3.5-hour drive each way, but a must-visit for its natural beauty. Plan ahead and book reservations if necessary.

Napa Valley

• Known for wine tasting and scenic views. A great day trip for wine enthusiasts.

Stinson Beach + Mount Tamalpais + Muir Woods

• Popular for hiking and seeing the redwoods. Reservations required for Muir Woods.

By sharing these tips and attractions, you can help your guests experience the best of what San Francisco has to offer.

Practical Tips to Run a Successful Short-Term Rental Business in San Francisco, California

To ensure a smooth and compliant short-term rental business in San Francisco, several practical tips can make a significant difference in the guest experience and your operational efficiency.

Noise Regulations and Quiet Hours

Inform your guests about the city's noise regulations and designated quiet hours to avoid any potential issues with neighbors. Include a section in your house manual outlining the quiet hours and the importance of respecting the local community.

Comprehensive House Manual

Create both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also cover specific rules and regulations unique to San Francisco, like the primary residence requirement and occupancy limits.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to use the smart locks and ensure that all necessary access codes are communicated in advance.

Parking Instructions with Photos

If your property includes parking, provide detailed instructions with photos to help guests navigate the parking area. This can include information on parking permits, designated parking spots, and any specific rules or restrictions.

By implementing these tips, you can enhance guest satisfaction, reduce potential conflicts, and ensure that your short-term rental business operates smoothly within San Francisco's regulatory framework.

Here is a brief list of house cleaning providers in San Francisco, California:

House Cleaning Providers in San Francisco

Cleaning Glow

• Offers standard, deep, move-in/out, vacation/Airbnb, tile and grout, office/janitorial, carpet & upholstery, and hardwood floor cleaning.
• Rigorous vetting process for cleaners, insured and bonded for safety.
• Online booking and payment system.
• 100% satisfaction guarantee.

San Francisco Maid Service & House Cleaners

• Provides residential, Airbnb, and various specialized cleaning services.
• Services include dusting, sweeping, scrubbing, sanitizing, bed making, and more.
• Offers one-time, monthly, and bi-weekly cleaning options.
• 100% satisfaction guarantee.

Adriana's House Cleaning

• Offers standard, deep, post-construction, individual room, and Airbnb cleaning services.
• Easy online booking system.
• Services include whole-home and single-room cleaning, move-in/out, and commercial cleaning.
• Almost 17 years of experience in the industry.

House Cleaning SF

• Provides apartment cleaning, move-in/out cleaning, home cleaning, deep house cleaning, and recurring services.
• Uses latest cleaning techniques and eco-friendly products.
• Supports local dog shelters and rescue organizations.
• Services available in San Francisco, Peninsula, East Bay, and North Bay.

Handy

• Connects customers with top-quality cleaners through their platform.
• Offers next-day availability and a happiness guarantee.
• Services include sanitizing bathrooms, vacuuming carpets, sweeping and mopping floors, and taking out trash.
• Additional add-on services available such as window cleaning and laundry.