San Francisco Passes 'Airbnb Law' for Short-Term Home Rentals

Establishes tax regulations and other limits

San Francisco has legalized short-term residential rentals, clearing the way for companies like Airbnb to operate legally in the city—though with a lot of caveats.

SFGate covered the board meeting during which the legislation was approved Tuesday. It reported that the new law allows permanent city residents to offer short-term rentals; establishes a city directory of hosts; mandates that hosts collect hotel taxes (as expected); limits entire-home rentals to 90 days per year; requires each listing to carry $500,000 in liability insurance; and establishes jurisdiction and enforcement of the guidelines by the municipality's planning department.

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