Sacramento Conditional Use Permit

Dennis679
Level 2
Sacramento, CA

Sacramento Conditional Use Permit

Hi fellow hosts,

 

I'm trying to setup my second home in the city of Sacramento as an AirBnB. The city requires a Conditional Use Permit for any non-owner-occupied rental that gets rented for over 90 days in a calendar year. Just wondering if anyone has had to deal with this process in the past? 

 

The city got back to me and said the CUP is going to cost a whopping $6500/yr!! Absolutely outrageous and this would completely wipe out any hope of turning a profit beyond paying for the mortgage. Is this the price you have seen before? Do you know why they charge so much and what these fees are going towards to? 

 

If you have a property like mine, I'd love to hear about your experiences and whether there's any loophole in the code so I can still operate legally and not have to be bogged down by this ridiculous law. 

 

Best,

Dennis

8 Replies 8
Patti234
Level 2
Sacramento, CA

@Dennis679 Wow. Not at all we just went live with our posting and fees were no where near that cost. Any chance you have any house cleaners that you could recommend to us for the Sacramento area?

@Dennis679  I am currently looking to list my home and have also ran into the city of Sacramento requiring  me to apply for a short-term rental permit, pay an annual business tax as a hotel of $50, and collect and remit transient occupancy tax of 12% from renters. Did you go through this process? if so, any tips or a newbie? 

Amber653
Level 2
Sacramento, CA

@Dennis679 I am dealing with this now and actually have a meeting with planning on May 18.  The more people I can include to try to get this code changed the better off.  Just to be clear make sure you re-read the conditional use permit because they sent it to me as well and the cost is 6750 and if you are not an owner occupied the 90 day rule still applies so it seems like a catch 22.  We want the code revised as we would like our properties to be able to be rented for 365 days a year.  

The conditional fee of $6750 is for the year and so does that mean that we can have what almost 4 sets of 90 days then?      -government taking care of their corporate people I take it? Assuming they’re protecting the hotel industry “?” Are you involved or needing people to support in changing these laws? 

Do you know what are the requirements regarding applying for short-term rental permit?  Do you come inspect your property prior to issuing the permit?  I just don't like to invite inspectors into my house for potential issues they may bring up. 

Bryan702
Level 2
Sacramento, CA

I have a rental property near the UC Davis Medical Center. I recently turned the garage into an ADU and have decided to rent it furnished with a 31 day minimum, which avoids the 90-day only rule. I believe I could also apply for the $50 permit which would allow shorter stays but just for 90 days in the year. 

This is a completely accurate strategy 🙂 

Chhoury0
Level 2
San Pablo, CA

$6750 for conditional use permit! That's outrageous! Didn't realize Sacramento have such a restriction. Should have sold my property when I had the chance.