Do I need a business license if I'm renting my house in Santa Clara County?

Asked by Elizabeth Kida, San Jose, CA Sun May 22, 2011

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12
Sam Shueh, Agent, Cupertino, CA
Mon Feb 15, 2016
0 votes
Mustarobrook…, Home Buyer, San Jose, CA
Thu Feb 4, 2016
I live in new york I am renting my 2 family house to roommates do I need a licence to do this
0 votes
Denise A. Sz…, , San Jose, CA
Mon May 23, 2011
Mark~ I have not attacked you are anyone, you seem to take this personal. You send me a private email that is attacking me. You are giving advice on something Elizabeth did not say she was doing but going outside her needs to gain or scare her into using you. Do not address me in this manor again~

"Hii Denise

Denise; any reason why you have chosen to contradict me twice? I would suggest you call the city of San Jose before giving advice that could cost Elizabeth money and jeopardize your E&O insurance"

Mark
Thank you.
Contact sender:
Name: Mark Burns
Email: mark.burns@cbnorcal.com
Phone: (408) 777-2083
0 votes
Denise A. Sz…, , San Jose, CA
Mon May 23, 2011
I do believe Elizabeth state she was wanting to rent our her home, not 3 units or more. Also you can rent out your home to how many people you like without a business license. But like most property owners who respect their neighborhood and property will have a rental agreement with all parties signing that agreement with respect to how many people are allowed in and on the property. Which by they way the owner can optain these rental agreements or require a realtor and/or property managment agency.
0 votes
Mark Burns, , Cupertino, CA
Mon May 23, 2011
City of San Jose Finance Department 408-535-7055
Their schedule of fees and ordinance explanation: http://www.csjfinance.org/giball.asp

Despite the contradiction you will find in some answers below; you do in fact need a business license. If you have 3 units or more it is required. Some people may believe that a single family home or a duplex is exempt but if you have three separate tenants in one property or two, the license is still required.

It is always best to work with a Certified Property Manager when renting out property. They will have answers like this and also carry liability for you if they give you incorrect advice. Just like you would rely on a CPA for tax advice and an Attorney for legal advice.

See my previous comments below.


Mark Burns, Realtor
Coldwell Banker Elite - Top 2% Worldwide
DRE #00896552 Licensed since 1985
Over 600 Homes Sold in Silicon Valley
Member - Tri-County Apartment Association
Web Reference:  http://www.markburns.com
0 votes
Christopher…, Agent, San Jose, CA
Sun May 22, 2011
Hi Elizabeth,
Great question, and I think it is always prudent to check with the city where you will be landlord to be sure. That said, we manage several properties for clients who are not "required" to obtain a business license for the purpose of leasing owned property. For some, it may be a desirable avenue based on a discussion with their CPA. My opinion is somewhat subjective, but I believe you should always use a professional property manager.

Kind regards,
Christopher
Web Reference:  http://www.cossitorgroup.com
0 votes
Denise A. Sz…, , San Jose, CA
Sun May 22, 2011
I have represented several clients in the renting out their second homes they do not have
a business license. Unless you are a property management agency I do not see why you would need a license to rent out your own home. But with that said, they do report the income on their Federal Tax Returns.

Elizabeth please check into this site: http://www.businesslicenses.com/Licenses/CA/Santa+Clara/
0 votes
Mark Burns, , Cupertino, CA
Sun May 22, 2011
Unfortunately, you might be required to pay for a business license. You'll need to contact the city in which the rental is located and ask. You should also consult with the Tri-County Apartment Association. You should find them under the CAA or California Apartment Association.

Cities are using income tax data to determine if landlords are renting property and sending out bills with 3 years or more worth of back fees due. This is another reason why landlords should join organizations like TCAA and CAA to help fight excessive business fees. Local Associations of Realtors are also working to eliminate these fees but cities are looking for revenue wherever they can to help with their budgets. Landlords are easy targets.

Mark Burns, Realtor
Coldwell Banker Elite - Top 2% Worldwide
DRE #00896552 Licensed since 1985
Over 600 Homes Sold in Silicon Valley
Web Reference:  http://www.markburns.com
0 votes
Terri Vellios, Agent, Campbell, CA
Sun May 22, 2011
Unless the lease is a business relationship? Renting to a tailor? Are you running a day care, adult or otherwise, or renting rooms as a course of a business? If so then there may be other licenses and insurance you may need to research. But a standard lease to a someone who is using the home as a resident and not a business you should be ok.

If you have concerns call the city where the home is located.

All the best to you.
Web Reference:  http://www.terrivellios.com
0 votes
Mitchell Pea…, Agent, San Jose, CA
Sun May 22, 2011
You do not need a business license. You may want a realtor to run a credit check and background check of potential tenants, which we can do through our services. You may also want a realtor to handle all aspects of renting and managing the property. I would be happy to do so. Yo can call me to discuss your particular plans for the home at 408-639-0211.
Mitchell Pearce
mitchell@handsonrealtor.com
0 votes
Gerard Carney, Agent, Spring Hill, FL
Sun May 22, 2011
No you are leasing a home not running a business!
0 votes
Denise A. Sz…, , San Jose, CA
Sun May 22, 2011
Hello Elizabeth~

No you can lease out your home as the home owner. Let me know if you need help marketing, listing or refer you to a property manager. You can do this on your own but make sure you know the process of screening and qualifying your applicants. I have listed homes for lease on the MLS, Craigslist etc. and over see all that is needed for my clients. As in showing, screening, running credit applications and rental agreements. Good luck, again please contact me if you need help.

Denise A. Szyszlo Realtor
DRE 01441160
Office:: (408) 369-2000 x319
Mobile: (408) 768-7097
Fax: (888) 334-0888
Email: denise.szyszlo@century21.com
Website: http://www.DazzleHomes.com CENTURY 21-Alpha
419 E. Hamilton Ave, Campbell, CA 95008
http://dazzlehomes.housingtrendsenewsletter.com/
http://www.schvision.com/schoolfinder2/SJUSD/
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