Thinking about listing your San Jose home on Airbnb or VRBO? The city’s 180‑day rule and primary‑residence requirement can make or break your plan. You want a clear, practical path that keeps you compliant while maximizing revenue. This guide explains what the rules mean, how to register, how to track your nights, and the simple math to test if short‑term renting is worth it. Let’s dive in.
The 180‑day rule, in plain English
San Jose separates hosted and unhosted stays. Hosted means you are present and renting out rooms while you live there. Unhosted means guests have the entire home while you are away. The city caps unhosted rentals at 180 days per calendar year. Hosted nights typically do not count toward that cap.
Short‑term rentals are generally stays of fewer than 30 consecutive days as defined by the city. These rules apply within San Jose city limits. Separate rules may apply at the county or state level, and private restrictions can still limit your options.
Primary residence is required
Only your primary residence can be used for short‑term rentals. You should be ready to prove you live there most of the year. Common documents include a driver’s license, voter registration, utility bills, and tax returns. The city sets the accepted proof list during registration, so confirm what they require before you apply.
Registration, business tax, and TOT
You must register your short‑term rental with the city and obtain a registration or permit number. That number usually needs to appear on your listings so guests and platforms can confirm compliance. You also need a City of San Jose business tax certificate for operating an STR, and you may need to renew it annually.
San Jose requires you to collect and remit Transient Occupancy Tax on taxable short stays. Some platforms offer tools to collect and remit TOT for you, but you are responsible for confirming if they remit on your behalf and for keeping records of those filings. Many cities also require a 24/7 local contact to address complaints quickly. Check San Jose’s specific contact and response rules.
Safety, occupancy, and recordkeeping
Expect occupancy limits tied to building and fire codes. You are responsible for working smoke and carbon‑monoxide detectors, proper egress, and basic safety equipment. Many hosts also post simple house rules and emergency instructions inside the unit.
Keep thorough records. Maintain booking logs, guest dates, proof of primary residence, TOT collected and remitted, and copies of your listings that show the registration number. Cities often expect you to retain records for several years. Confirm the exact retention period San Jose requires.
Private restrictions still apply
Even if you qualify under city rules, private agreements can still limit or prohibit STRs. Review your HOA or CC&Rs, your lease if you are a renter, and your mortgage and insurance policies. HOAs can enforce their own rules, and a city registration does not override them. If you are in a multi‑unit building, confirm zoning and building rules before you list.
A step‑by‑step compliance checklist
Use this quick checklist to get set up the right way:
- Verify eligibility
- Confirm the home is your primary residence and gather proof documents.
- Review HOA/CC&Rs, leases, and mortgage or insurance limits.
- Confirm local rules and caps
- Verify the unhosted 180‑day cap and hosted stay rules with the city.
- Register with the city
- Apply for the STR registration, pay any fees, and obtain your number.
- Obtain a business tax certificate
- Set a reminder for renewal and filings.
- Arrange TOT collection and remittance
- Confirm if your platform remits TOT or if you must file directly.
- Prepare the unit
- Install smoke/CO detectors, a fire extinguisher, and post house rules and emergency contacts.
- Set up recordkeeping
- Keep booking logs, TOT records, proof of residence, and listing copies.
- Establish a local contact
- Provide a 24/7 contact to resolve issues quickly.
- Monitor nights
- Track all unhosted nights across every platform toward the 180‑day cap.
- Review insurance and taxes
- Notify your insurer about STR use and consult a tax professional on income reporting and deductions.
How to track your 180 days
Count every unhosted night across all platforms and direct bookings. Keep a single calendar and a monthly tally. Some cities count canceled bookings in certain situations, so make sure you understand San Jose’s approach and document changes. Save reservation screenshots and platform statements to support your totals.
A simple revenue framework
Before you list, build a quick pro forma for the year.
- Available nights
- If most stays are unhosted, your annual maximum is 180 nights, adjusted for demand and your own blackout dates.
- Hosted nights are not capped the same way, but consider whether frequent hosted stays fit your lifestyle.
- Net revenue estimate
- Estimate your average nightly rate using comparable listings.
- Multiply by expected booked nights.
- Subtract platform fees, cleaning, management, and guest consumables.
- Subtract fixed costs: insurance increases, supplies, maintenance, registration and business tax costs spread over the year.
- Subtract TOT you remit, unless your platform remits for you.
- Include a vacancy buffer for maintenance and personal use.
- Break‑even check
- Compare your net STR number to alternatives like long‑term rent or your housing costs. Include one‑time costs for safety upgrades, furnishings, and listing preparation.
- Example formula
- Net annual STR income = (nightly rate × booked nights) − platform fees − cleaning − guest costs − increased insurance − management fees − start‑up costs amortized − TOT remitted.
- Net comparison metric = Net annual STR income − alternative (such as annual long‑term rent). Use this to decide if STR makes financial sense.
Common pitfalls to avoid
- Missing the primary‑residence rule. Second homes are not eligible under San Jose’s framework.
- Exceeding 180 unhosted nights. Track every platform in one place and set alerts.
- Ignoring HOAs or leases. Private restrictions can stop an STR even if the city would register it.
- Insurance gaps. Standard homeowner policies often exclude STR use. Confirm coverage or get an endorsement.
- Weak guest rules. Noise, parking, and trash issues often trigger complaints and enforcement.
Enforcement and what to expect
San Jose typically uses complaint‑driven enforcement. If a neighbor reports problems or a suspected unregistered STR, the city may investigate. Penalties can include fines, administrative action on your registration, orders to stop renting, and potential platform delisting for repeated violations. Solid records are your best defense. Keep proof of primary residence, booking logs, TOT filings, and your local contact information. Rules can change, so monitor city updates and be aware that denials or penalties often have an administrative appeal process with deadlines.
Your next step
If you are weighing STR income against selling, renting long‑term, or holding for future plans, you deserve clear numbers and a smooth process. Real Smart Group can help you evaluate value, timelines, and go‑to‑market options so you choose the path that fits your goals. Get your free home valuation and a strategy session tailored to your property and neighborhood.
FAQs
What is the 180‑day cap for San Jose short‑term rentals?
- It limits unhosted rentals to 180 days per calendar year. Hosted stays, where you are present, typically do not count toward that cap.
Can I short‑term rent a second home in San Jose?
- No. San Jose’s rules allow STR use only in your primary residence. You must be able to prove you live there most of the year.
Do hosted stays count toward the 180 days?
- Typically no. Hosted stays are treated differently from unhosted rentals. Verify details with the city’s STR program when you register.
Do I need a business license and to pay TOT?
- Yes. You must obtain a City of San Jose business tax certificate and collect and remit Transient Occupancy Tax on taxable stays, subject to the city’s rules.
What records should I keep to stay compliant?
- Keep booking logs, guest dates, proof of primary residence, copies of listings showing your registration number, and TOT filings for several years.
How do HOAs or leases affect short‑term rentals?
- HOAs, CC&Rs, leases, and mortgage terms can prohibit or limit STRs even if the city would register your home. Always confirm private restrictions first.
What happens if I exceed 180 unhosted nights?
- You may face fines, administrative action, or platform delisting. Enforcement is often complaint‑driven, so maintaining records and staying within the cap is key.
