People from all over the world flock to Joshua Tree to enjoy its picturesque landscape and bask in the tranquility of the high-desert. Because of this, in recent years, those offering short-term rentals have been able to earn extra cash through sites like Airbnb, FlipKey, and VRBO.
However, there are certain steps that all property owners need to take before opening the doors to potential guests. Part of this process involves complying with local regulations, which are always subject to change. For that reason, it’s important to stay on top of these rules in order to help ensure that your Joshua Tree rental business flourishes for years to come.
Make Sure You Can List Your Home
With that in mind, if you own property that is within a homeowners association (HOA), it is important to first review the governing rules to confirm that these types of rentals are allowed. If you are a renter, you will need to check the terms of your lease. Keep in mind that it’s always good policy to obtain the permission of your landlord before listing the property.
Note that here in the county of San Bernardino, so-called “alternative shelters” cannot be used as short-term rentals. These include tents, yurts, travel trailers, RVs, and recreational cabins. In other words, the structure you decide to rent must actually be a house.
Bring Your Home Up to Code
As mentioned, your home must comply with the applicable county regulations. After submitting an application with the permitting body, your home will be inspected. In order to pass inspection it is important that you have the following:
- Smoke and CO detectors in all hallways and bedrooms
- Fire extinguishers on each level of the home
- Power failure emergency lights
- Onsite parking available (note that you cannot have offsite parking)
- Animal-proof trash cans
- Compliant electrical, mechanical, and plumbing systems
Bear in mind that you need to also display signage with the required information for guests. This includes the maximum occupancy, the maximum number of vehicles, trash removal information, a property boundary map, and emergency contacts.
Form a Business Entity
Although it’s not required, you may want to consider forming a separate business entity, like a limited liability company (LLC). These business structures help shield you from personal liability. This means that if you are sued due to something that occurs with your rental, you will not be held legally responsible. Forming a business entity typically requires filing what are known as Articles of Incorporation with the state and paying a fee.
Apply for Transient Occupancy Tax Certificate
Now, in order to be issued a short-term rental permit you must first obtain a Transient Occupancy Tax (TOT) certificate from San Bernardino county. You may apply for this document online through the county tax website.
Keep in mind that there is a 7% tax for all rentals that are shorter than 30 days. This is paid by the guests and submitted to the county by the site that lists the property. In addition, property owners must submit a form to the county every quarter that reports the amount that was paid to you through your rental.
Apply for a Short-Term Rental Permit
Once you have your TOT certificate, the next step is to obtain a rental permit. This is done by paying the $667 filing fee, plus the biennial $401 renewal fee. As part of this application process you will be required to provide detailed information about the property, including the:
- Number of bedrooms
- Square footage
- Proposed occupancy
- Number of parking spaces
- Completed Plot Plan
In addition, you must have an emergency contact listed. This is the person who can be reached 24/7 with any issues related to guests or the property. Once your application is submitted it will be followed up with an inspection by a county official.
Review Your Insurance Policies
It’s important to note that your existing homeowner’s insurance or renter’s insurance policy may not cover Airbnb rentals. This means that if something happens to your home while you have paying guests (like a fire or damage caused by one of the occupants), you may not be covered.
Similarly, if a guest sues you due to an incident that occurred during the rental period you may also not have coverage. For these reasons, you should consider purchasing a home-sharing policy through a private insurance company. Airbnb and other websites may also offer coverage, such as Host Protection Insurance and Host Guarantee.
All Short-Term Rentals on Hold Due to COVID-19
Note that in response to Coronavirus, San Bernardino County has ordered all short-term rentals to cease operations. This means that future bookings must be canceled for the foreseeable future. It also means that no new arrivals may be processed and no new reservations may be accepted until the order is rescinded.
If you have any current guests, they should be immediately directed to return home or should remain in place until further notice. However, if you are considering operating a short-term rental you can still apply for a permit and start organizing your business. But, keep in mind that application process times are likely very slow right now.