A short-term rental (or vacation rental) is the renting out of your residence, rooms in your residence or an accessory unit (granny flat). Short-term rentals are for a period of 30 consecutive calendar days or less. Such rentals have become a popular option for visitors, and the City has regulations in place to ensure the needs of everyone in the community are balanced.
If you host a short-term rental, you must collect and pay Transient Occupancy Tax (TOT). If you do not, you’ll be subject to a penalty.
You are also legally required to:
Learn about your legal requirements: Municipal code 19.76
Sunnyvale has a two-step approval process for becoming a short-term rental host.
The Transient Occupancy Tax, sometimes called a "hotel tax," requires that any person or business engaged in the renting of any number of rooms for lodging, dwelling, or sleeping purposes, must collect, report and pay this tax to the City on any guest rentals.
The Transient Occupancy Tax rate for the City of Sunnyvale is 12.5%.
Notice: Effective Aug. 1, 2018, if you're hosting through Airbnb, the company will collect and pay TOT on your behalf. Hosts must still pay TOT for non-Airbnb bookings.
Some guests may be exempt from paying Transient Occupancy Tax:
Notice: If you have separate listings for three or more spaces or rooms, you are required to obtain a business license.