Overview of Short-Term Rental Allowance in Oakland

Short-term rentals (STRs) are currently NOT legally permitted in Oakland, California. As of January 2024, all existing short-term rentals operating on platforms like Airbnb, VRBO, and FlipKey are operating illegally under current city regulations. The city administration reports approximately 2,600 Oakland properties listed on Airbnb alone, all operating without proper authorization.

Current Oakland Planning Code regulations prohibit any rental of residential properties (single-family homes, duplexes, apartments/condos, live/work units, or rooms) for periods of less than 30 consecutive days. Properties rented for under 30 days are classified as "Transient Habitation" (essentially hotels), which require major Conditional Use Permits and are only allowed in specific designated zones.

How to Start a Short-Term Rental Business in Oakland

Currently, there is no legal pathway to operate a short-term rental business in Oakland. However, the city is developing new regulations expected to be introduced in spring or summer 2024. Based on preliminary discussions, the future framework may include:

Anticipated Requirements (Subject to Change):

• Primary Residence Restriction: Hosts may only be permitted to rent their permanent residence
• Single Unit Limitation: Each host limited to one short-term rental license for one unit
• Annual Cap: Potential 90-day per year maximum rental period
• Registration System: Online licensing system for approved hosts
• Owner-Occupancy Requirements: Property owners must reside in the residence for a portion of the year

Required Documents, Permits, and Licenses

Current Requirements (For Tax Compliance Only):

1. Business Tax Certificate: Required for all rental property operators
2. Transient Occupancy Tax (TOT) Collection: 14% tax rate on rental charges (up to 30 consecutive days)

Anticipated Future Requirements:

• Short-term rental permit/license from the city
• Proof of insurance
• Safety inspection certificate
• Compliance with building and fire safety codes
• Annual registration renewal

Specific Regulations for Oakland Short-Term Rentals

Current Restrictions:

• 30-Day Minimum: All rentals must be for 30+ consecutive days
• Secondary Units: Explicitly prohibited from rentals under 30 days per Planning Code Section 17.103.080(A)(2)
• Transient Habitation: Rentals under 30 days classified as commercial hotel activity, requiring major Conditional Use Permits

Planning Code Classifications:

1. Permanent Residential Activities: 30+ day occupancy only
2. Semi-Transient Residential Activities: Mixed occupancy with less than 30% of units under 30 days (requires Conditional Use Permit)
3. Bed and Breakfast Residential Activities: Specific requirements including:
   • Maximum 12 adult guests, 6 guest units
   • Owner-occupied facility required
   • Historic property rating requirement
   • Conditional Use Permit required
4. Transient Habitation Commercial Activities: Under 30-day rentals (currently prohibited in most areas)

Tax Obligations:

• Business Tax: Required for all rental property operations
• Transient Occupancy Tax (TOT): 14% rate, collected from guests, remitted to city
• Tax amount must be reported separately from rent charges

Contact Information for Local Authorities

Short-Term Rental Regulation Inquiries:

• Website: www.oaklandca.gov/topics/short-term-residential-rental-regulations
• Email Updates: Sign up at the city website for regulation updates
• City Hall: 1 Frank H. Ogawa Plaza, Oakland, CA 94612

Business Tax and TOT:

• Finance Department: www.oaklandca.gov/Government/Finance-Budget/Taxes
• Revenue Division: For business tax certificates

Planning and Building:

• Planning Code Inquiries: Oakland Planning and Building Department
• Zoning Questions: Review Oakland Planning Code Title 17

Source Links

1. Oakland Official Short-Term Rental Regulations: www.oaklandca.gov/Community/Housing-Programs-Support/Rent-Adjustment-Program-RAP/Short-Term-Rental-Regulations

2. City of Oakland Business/Landlord Information: www.oaklandca.gov/Business/For-Landlords/Rent-Adjustment-Program/Short-Term-Rental-Regulations

3. Steadily Insurance Guide: www.steadily.com/blog/airbnb-short-term-rental-laws-regulations-oakland

4. Oaklandside News Coverage: oaklandside.org/2023/10/10/airbnb-vrbo-regulations-oakland/

Important Considerations for STR Investors

Investment Caution: Given that short-term rentals are currently illegal in Oakland, potential investors should:

1. Wait for New Regulations: The city expects to release new regulations in 2024
2. Monitor City Updates: Sign up for email updates from the city planning department
3. Consider Compliance Costs: Future regulations may include licensing fees, safety upgrades, and operational limitations
4. Understand Enforcement: The city plans to implement a 24-hour violation hotline and active enforcement measures
5. Evaluate Limited Scope: Future regulations may significantly restrict the number of properties that can operate as STRs

Housing Impact Awareness: Oakland's regulations are being developed specifically to address concerns about STRs removing long-term housing from the market and affecting housing affordability for residents.

The regulatory landscape is expected to change significantly in 2024, so staying informed through official city channels is essential for any potential short-term rental investment decisions in Oakland.