It is just over four years since I wrote my first ever blog post which was entitled: Understanding the vacation rental rules in Sonoma County. (If you are interested in it, here it is - just be warned it is very out of date!). Since then a lot has changed about the rules, the permit process, and the introduction of a new license. In this blog post, I will explain why you need a permit and a license, what the process is to apply for a permit, how long it takes and what are some of the things that can trip you up in the permit process.
Not only have the areas where you can set up a vacation rental changed, but the permit process has also changed considerably since I wrote my first blog post but then last year the requirement to have a business license and a permit was introduced for anyone operating a vacation rental in Sonoma County unincorporated (in the coastal region there is still no requirement but that will change later this year).
It’s easy to think restricting people’s ability to buy a property and use it for whatever purpose they want is governmental overreach (and some of it is) but there are also some good reasons why it is important to regulate the industry with permits and licenses, so let’s discuss it in more detail.
Introduction
Firstly, let's talk about why the permit exists in the first place. To use a property for a specific purpose you need what is called a use permit. In any area, whether it is in unincorporated Sonoma County or within city limits, a piece of property will have a zoning which determines what you can use the property for. For example, a property may be in a commercial zone allowing you to use the property for retail but not residential. In the same way, there are lots of different residential zones in any city or county. Every property has a zoning and it is this zoning that determines the residential use of the property. A residential property’s underlying zoning is what determines whether you can obtain a permit to use the property as a vacation rental. For example, R1 prohibits use as a vacation rental whereas RR zoning allows use as a vacation rental. (see this blog post for a full explanation of all residential zones that allow for vacation rentals).
One of the challenges for the County by only issuing permits was that if a property owner caused a disturbance by running a vacation rental, it was incredibly difficult for the county to remove a person’s ability to operate that property as a vacation rental because the use was tied to the underlying zoning. Legally, this was a very hard thing to do.
It is for this reason that the County then introduced a license which essentially defines the operating conditions for running a vacation rental which is why you will see all the rules around noise, for example, in the license. If a vacation rental breaks any of these rules, it is then easy for the county to revoke the license for bad actors.
So in order to operate a vacation rental, an operator needs to have a permit, which defines the characteristics of a property to be eligible to run as a vacation rental, a license which defines the conditions of operation and a TOT (transient occupancy tax) number.
What Are The Key Requirements To Get A Permit?
The main condition as explained above is for a property to have the correct zoning. In short, if a property has RR, RRD, LEA, DA or AR zoning it can be operated as a vacation rental. But there are other conditions attached to getting a permit which I will explain in more detail:
Size Of The Septic System:
A property can only get a permit for the number of bedrooms that are on the septic permit. For example if a property is described as having 4 bedrooms but only has a septic permit for 3 bedrooms, the maximum permit that would be issued is a 3 bedroom vacation rental permit.
A Documented Septic Permit
In order to get a permit, a property needs to have a Septic permit filed at the county. The good thing is that most properties do but there are numerous properties, especially in places like the Russian River, where there is an old septic system that has no records in the county. This doesn’t mean you can’t get a vacation rental permit, it just means that as part of applying for the vacation rental permit you will have to do what is called a Findings report which involves getting a septic engineer to document the septic system that exists. The problem with this is that that process can take 3 months or more which will obviously then delay getting the vacation rental permit.
Off-Street Parking
Another condition of getting a permit is that you have to have at least one off-street parking space. Two on-site parking spaces are required for a three or four-guestroom vacation rental.
Guest House Bedrooms May Not Count
If you have a 3 bedroom home and a separate guest house AND a 4 bedroom septic system you can only get a 4 bedroom vacation rental permit if a) the guesthouse is 640 sq ft or less, has no kitchen and does not have a fridge bigger than 5 Cubic Ft!
Permits on Secondary Structures
You can’t get a permit for an ADU but if you do have a secondary dwelling that is bigger than an ADU then you can get a permit for the secondary structure, as long as you don’t have a permit for the main structure. In other words, you can’t have both!
No More Physical Inspections:
The good news is that the county no longer requires an applicant to do a physical inspection. Previously, an inspection was required to inspect the overall safety of the property to ensure railings were present on stairs or to make sure GFCI sockets were in the right place. This is no longer required (this makes no sense to me but it makes life easier for homeowners)
Requirement For A Floorplan:
As part of the permit process, a homeowner is required to submit both a floor plan of the home and an overall site plan, which also needs to identify the parking spaces.
I often get asked if it matters if a remodel was done without a permit when it comes to getting a vacation rental permit. The short answer is no. There needs to be a building record for the property and that needs to verify the number of bedrooms but apart from that there is no requirement to verify any work is completed with permits.
What Are The Steps To Get Permitted and Licenced To Operate?
There are a number of steps you need to follow to get up and running to operate a vacation rental in Sonoma County:
Appoint a Certified Manager:
You used to have to have a designated property manager within 30 miles of the property but this is no longer the case, so you are now able to self-manage regardless of where you live but you will need to pass the Sonoma County certification exam to become a Certified Vacation Property Manager. This is an online, open-book exam to get issued with a certificate. However, it's probably more likely you will be working with a third-party property manager, so this will not be necessary.
Getting a Permit
Assuming the property qualifies for a permit, when applying for a vacation rental permit you will need to complete an application form which will require providing details such as the septic permit number and answering some basic questions about the property. The most time-consuming requirement is to provide a detailed site map.
The site map needs to be a scaled map of your property including all buildings, pools or spas, patios, parking spots, fences, places for trash bins, and any outdoor areas for activities like grilling. It also needs to include the sizes of all buildings, and identify all roads, driveways, and gates. You also need to clearly mark where cars can park, how many spots there are, and how to get onto the property.
Of course, there is a fee. The permit application fee, at the time of writing this, is $819. The good news is that it is a one-time fee so not an annual fee.
Secure a Tax Number:
You will also need to get a Transient Occupancy Tax Number from the county which is another form that needs to be completed and submitted. The good news is that you will have this in about a week and once you have it, you can then submit for your license because you need the TOT number to add onto the license application
Applying For a License:
Once you have your TOT number you can submit to get a license. You guessed it, it’s another form of Get a Vacation Rental License, valid for one year. Remember to apply for renewal annually to keep operating your vacation rental.
The cost for a license in its first year of operation is $595 but while this is an annual fee, next year the fee will be $400.
Should You Outsource The Process?
You have a couple of options. You can apply for it yourself by completing the necessary forms or you can work with someone who specializes in getting permits. I strongly recommend working with someone who is an expert. It will cost you money, but to do it yourself is penny wise, pound foolish!! I’ll explain why. Let's say you expect your vacation rental to earn $8000 per month. If you submit a permit yourself and you make one small error on it, it will get returned to you and then you will have to resubmit it which could delay you getting a permit by four weeks which could cost you $8000 in missed rent.
I partner with Lindsay Darrimon who charges $1500 to apply for the permit, and the license and get the TOT number. Given the number of forms and the number of people I have seen get forms kicked back by the county, I would definitely leave it to an expert..
How Long Does The Entire Process Take?
The good news is that you can actually apply for the license, TOT number, and permit almost concurrently. Once you submit the permit application you will get issued with an invoice which has the permit number on it. Once this is paid, then you can expect to get the permit within 30 days but make sure you pay that invoice as soon as it arrives.
The good news is that you can apply for a TOT number right at the start of the process which will only take a week to get and then once you have that you can then submit your license application
As long as you run the applications concurrently, you can expect to get your permit, license and TOT number within 30-45 days.
If you are really canny, you can even start the process during the last week of escrow although there is a chance that if the county starts processing it and checks the title records they may kick it back. This is not a big deal as you would then just need to re-submit.
What Are The Common Pitfalls?
One of the hardest things to navigate is the septic permit. This is definitely something that you need to work on with your realtor during the course of escrow because this could make or break the decision to purchase the property.
When it comes to the application form, it is easy to miss off some of the key information or not draw the site plans to the detailed specifications required by the county.
There are a few other nuances which can trip people up such as if a property is in the Williamson Act or if it is a JADU, this means that it can’t be operated as a vacation rental.
If you are looking at properties in the Russian River, then it will be important to pay close attention to the parking requirements and exactly where lot lines are. I have definitely seen properties where it looks like there is a parking space but it turns out the parking is actually on the wrong side of the lot line. All of these things are easy to catch as part of the purchase process but you need to make sure you are working with someone who understands some of these nuances.
In Summary
It probably sounds quite daunting going through this entire process but trust me, it really isn’t if you get the right advice. When it comes to finding an eligible property, I have a website that I share with clients that has all eligible vacation rental properties on it. For every property that comes on the market, I will run a series of eight checks to ensure it is eligible so I do all the hard work for you.
When it comes to going through the application process, I would recommend you work with someone who processes over a hundred applications a year. I guarantee it will save you both time and money in the long run!
Once you find the right property, and get all the paperwork you will then get to enjoy the rewards of your new vacation rental property investment
Frequently Asked Questions?
FAQ: Understanding Vacation Rental Rules in Sonoma County
1. Why do I need both a permit and a license to operate a vacation rental in Sonoma County?
To operate a vacation rental in Sonoma County, you need a permit to verify your property’s eligibility based on zoning and other conditions, and a license to outline the operational conditions, such as noise regulations. This system helps the county manage and enforce vacation rental standards effectively.
2. What are the key zoning requirements for a property to be eligible for a vacation rental permit?
Your property must be zoned as RR, RRD, LEA, DA, or AR to be eligible to operate as a vacation rental. These zones are designated areas where vacation rentals are permitted under county regulations.
3. How do septic systems affect my ability to obtain a vacation rental permit?
The size and documentation of your septic system directly impact your eligibility. You can only receive a permit for the number of bedrooms covered by your septic permit. If your system is undocumented, you'll need a septic engineer to complete a Findings report, which may delay the permit process.
4. What parking requirements must be met for vacation rental properties?
You must provide at least one off-street parking space for your rental, with additional requirements based on the number of guestrooms.
5. Can secondary structures or guest houses be included in the vacation rental permit?
Yes, but with restrictions. Guest houses and secondary structures larger than an ADU may qualify, but specific size and amenity limits apply. Permits for ADUs as vacation rentals are generally not issued.
6. Is a physical inspection of my property required to obtain a permit?
No, Sonoma County has eliminated the physical inspection requirement. However, you must submit detailed floor and site plans, including parking space identification, as part of your application.
7. What steps are involved in getting permitted and licensed to operate a vacation rental?
The process includes appointing a certified manager or becoming one by passing a certification exam, securing a permit by meeting all property requirements, obtaining a Transient Occupancy Tax (TOT) number, and applying for a license. There are application fees for both the permit and license.
8. Should I handle the application process myself or hire an expert?
While you can apply yourself, working with an expert is highly recommended. This can save you time and avoid costly mistakes that could delay your application or result in missed rental income.
9. How long does it take to obtain a permit, license, and TOT number?
If you run the applications concurrently, the entire process can take about 30-45 days. Applying for a TOT number is the quickest step, usually taking about a week.
10. What are common pitfalls in the vacation rental application process?
Challenges often arise from issues with septic permits, inaccuracies in application forms, and specific property restrictions, such as the Williamson Act or JADU designation. Ensuring accuracy and completeness in your application and site plans is crucial.
11. Can I start the application process before owning the property?
Yes, but there's a risk. If the county processes the application and finds discrepancies in title records, your application may be returned. It's better to wait until you have clear ownership or are very close to it.
This FAQ aims to clarify the most common questions and concerns related to vacation rental regulations in Sonoma County. For more detailed information or specific inquiries, consider consulting with a local expert or the county’s planning department.