Thinking about Airbnb-ing your downtown San Jose condo but not sure what the city or your HOA will allow? You are not alone. The rules can feel complex when you are balancing city permits, building policies, and taxes. This guide breaks down what applies to downtown condo owners so you can plan with confidence, avoid penalties, and protect your investment. Let’s dive in.
What counts as a short-term rental in San Jose
Short-term rentals are guest stays of fewer than 30 consecutive nights. San Jose regulates these stays across homes, condos, and apartments within city limits. Downtown condo owners must follow both city rules and any HOA or building restrictions.
Primary residence only
San Jose’s program ties short-term rental activity to your primary residence. You must live in the condo as your main home and show proof when you register. This is designed to prevent investment units from operating as full-time vacation rentals.
If the unit is not your primary residence, you should not list it for short stays. Always confirm eligibility during registration and keep documentation like a driver’s license or utility bills that link you to the address.
Hosted vs. unhosted stays
The city separates rentals into two categories:
- Hosted stays: You are physically present in the unit during the guest stay. Hosted rentals typically face fewer night limits.
- Unhosted stays: Guests occupy your primary residence while you are away. San Jose applies a commonly cited cap of 180 nights per calendar year for these non-hosted stays. Confirm the current cap before you list and track your bookings to stay under the limit.
Registration and what to display on listings
Before hosting, register your short-term rental with the City of San Jose. The city will issue a registration or permit number.
Show your permit number
Every online listing should display your city-issued registration or permit number. Not showing the number is a violation and can lead to fines or delisting by platforms. Keep your number consistent across all sites where you advertise.
Provide a 24-hour local contact
You must designate a local contact who can respond to complaints at all times. The city expects prompt responses to noise, parking, trash, or other issues. Have a written plan for how your contact will handle calls and document any resolutions.
Guest limits, nuisance rules, and safety
Short-term rental rules aim to protect neighbors and maintain building harmony.
Occupancy and house rules
Expect limits on the number of guests based on unit size or bedrooms. Parties are not allowed. You should prepare a clear guest sheet that explains occupancy limits, quiet hours, trash and recycling, and parking instructions. Post the 24-hour contact number in a visible spot inside the unit.
Building and fire safety
Your condo must meet building and fire code requirements. Install and regularly test smoke and carbon monoxide detectors, provide a fire extinguisher, and keep exits clear. The city may require inspections as part of registration or after complaints. Save receipts, manuals, and any inspection documents.
Taxes and business obligations in San Jose
Short-term rentals operate like a small lodging business. Plan for the following before your first booking.
City business registration
You will need the appropriate city business tax registration to operate. Registration is separate from your STR registration. Calendar renewal dates so your license stays current.
Transient Occupancy Tax (hotel tax)
Short-term stays are generally subject to Transient Occupancy Tax (TOT). Some platforms collect and remit taxes in certain cities, but the responsibility falls on you to confirm how it works in San Jose. Verify what your platform collects, what you must file directly, the current rate, and the filing schedule. Missing filings can trigger penalties and interest.
Income tax and records
Report STR income on your federal and California tax returns. Keep a simple file with nights rented, gross receipts, fees, and deductible expenses. Accurate records help at tax time and during any city review.
Your HOA can override your plans
Many downtown San Jose condo associations restrict short stays or set a minimum lease length. Both city and HOA rules apply, and you must meet both to operate legally.
Read the CC&Rs and get clarity in writing
Start with your CC&Rs, bylaws, and house rules. Look for specific short-term rental language and check for board resolutions that add detail. If anything is unclear, request written confirmation from the HOA or building manager. Keep copies for your records.
Understand building procedures
Even if your HOA allows short stays, there may be added steps. Some buildings require guest registration at the front desk, keycard or fob coordination, elevator access instructions, amenity reservations, or parking permits. Confirm these rules and explain them to guests in advance to avoid violations.
Insurance, lender, and deed restrictions
Check your homeowners or condo insurance to confirm short-term rental coverage. Some policies exclude STR use or require endorsements. Lender or deed restrictions may also limit rentals. Notify your insurer and review your loan documents before you host.
Enforcement and common violations downtown
San Jose uses a complaint-driven system. Neighbors or building staff can report issues to the city, which may investigate.
What triggers fines and penalties
Common violations include:
- Operating without STR registration or business registration
- Exceeding the unhosted stay night cap
- Failing to collect or remit TOT
- Skipping the 24-hour local contact requirement
- Over-occupancy, parties, or nuisance behavior
Penalties can escalate for repeat issues. The city may issue administrative fines, order you to stop hosting, deny future registration, or pursue civil enforcement.
Platform delisting and recordkeeping
Platforms can remove listings that do not show a valid permit number or that break local rules. Protect yourself with thorough records. Keep copies of permits, TOT filings, booking calendars, guest communications, and your house rules. These documents help you respond if a complaint comes in.
Step-by-step checklist for downtown condo owners
Use this quick checklist before you publish a listing.
Administrative and legal
- Confirm you meet San Jose’s primary residence requirement and gather proof.
- Complete STR registration and get your permit number. Add the number to all listings.
- Obtain city business tax registration and set reminders for renewals.
- Verify TOT details. Confirm the rate, who collects, and when to file. Register with the City Finance office if required.
- Plan for federal and California income tax reporting.
Operational and safety
- Install and test smoke and carbon monoxide detectors. Add a fire extinguisher and post emergency info.
- Create a one-page guest rules sheet with occupancy limits, quiet hours, parking, trash and recycling, and the 24-hour contact number.
- Designate a reliable 24-hour local contact. Document response steps for complaints.
HOA and building
- Review CC&Rs, bylaws, house rules, and board resolutions for STR policies. Get written clarification if needed.
- Confirm guest registration, keycard or fob procedures, elevator access, amenity reservations, and parking rules.
- Ask about HOA penalties for violations and whether the HOA coordinates with city enforcement.
Insurance and liability
- Notify your insurer and secure short-term rental coverage if required.
- Consider a security deposit, damage protections, guest vetting within platform rules, and post-stay inspections.
Listing and platform details
- Display your city registration number and required disclosures on every listing.
- Confirm whether your platform collects and remits TOT, and document their policy.
- Set blackout dates to stay within the unhosted night cap and keep a precise booking calendar.
Records and dispute readiness
- Keep registration documents, tax filings, booking logs, and HOA correspondence for several years.
- Save incident reports, photos, and a response log if a complaint occurs.
When short-term renting may not be the best fit
If your HOA restricts short stays or the primary residence rule does not fit your situation, consider alternatives. A longer minimum lease can align with many building rules and reduce turnover. If you are weighing a sale, a local valuation and market plan can help you compare the net return of selling versus renting.
Get local guidance before you list
Rules shift, and details matter. If you own a condo in downtown San Jose, a quick review of your HOA documents and the city’s program can save time and money. If you want a second set of eyes on your plan or need to evaluate renting versus selling, reach out for calm, step-by-step guidance.
Prefer Spanish? Con gusto. If you are considering a sale, Get Your Instant Home Valuation. To talk through a strategy tailored to your building, contact Unknown Company.
FAQs
What is the primary residence rule for San Jose condo STRs?
- San Jose limits STRs to your primary residence, and you must show proof of residency during registration.
How does the 180-night cap work for unhosted stays?
- If you are not present during guest stays, the city applies a commonly cited cap of 180 nights per calendar year; track bookings and confirm the current cap.
Do I need both STR registration and a business license in San Jose?
- Yes, you must register your STR and also obtain the city’s business tax registration, which is separate and typically renewed annually.
Does the platform handle my Transient Occupancy Tax in San Jose?
- Sometimes, but not always; verify what your platform collects and what you must file directly, then register with the city finance office if needed.
Can my downtown San Jose HOA ban short-term rentals?
- Yes, HOA rules can prohibit or further restrict STRs, and you must comply with both city and HOA requirements.
What if I do not display my permit number on my listing?
- Missing or invalid registration numbers can lead to enforcement by the city and possible delisting by hosting platforms.
