Everything You Need to Know About Owning a Short Term Rental in Millbrae, California

Short-Term Rental Regulations in Millbrae, California for 2026

Requirements and Restrictions

Permit and Licensing

• Residents must apply for a Short-Term Residential Rental (STRR) permit through the Community Development Department.
• A business license and a Home Occupation License are required.
• The STRR permit must be renewed every two years.

Transient Occupancy Tax

• Hosts must pay a 12% Transient Occupancy Tax (TOT) on all bookings.
• Back taxes for the TOT must be paid for up to three years if the STRR has been operating without compliance.

Health and Safety

• Properties must undergo health and safety inspections to ensure compliance with applicable codes.
• Documentation must be provided to show that all designated bedrooms meet local building and safety code requirements.

Occupancy Limits

• Nighttime occupancy is limited to two persons per bedroom, plus two additional persons per short-term residential rental unit.
• The maximum number of overnight occupants must be specified in the permit application.

Parking and Notifications

• The number and location of designated on-site parking spaces, and the maximum number of vehicles allowed for overnight occupants, must be specified.
• A proposed notification to neighbors is required, conforming to the city's requirements.

Operational Requirements

• Hosts must require prospective renters to sign an agreement acknowledging and promising to comply with the rules set forth in the ordinance.
• The rules must be posted in a prominent location inside the short-term residential rental unit.
• Each written advertisement must include the permittee’s “City of Millbrae Certified Short-Term Residential Rental” permit number and business license number.

Contact Information and Compliance

• The name and contact information of the permittee or authorized agents must be available 24 hours a day while the unit is rented.
• Violations of any operating restrictions can result in hefty fines and potential revocation of the short-term rental permit.

Annual Rental Limits

• There is a strict limit on the number of days a property can be rented out per year, currently set at 90 days for entire home rentals.

Enforcement and Reporting

• Fines up to $1,000 per day may be imposed for operating STRRs illegally.
• Complaints or issues can be reported to the Code Enforcement Hotline or the Millbrae Police Bureau.

Regulatory information last reviewed for accuracy in 2026. Local STR ordinances change frequently — verify current rules with the city or county before listing.

High-Revenue Neighborhoods for Airbnb in Millbrae, California

Why Millbrae is Appealing for Guests

Millbrae, California, is an attractive destination for Airbnb guests due to its proximity to San Francisco International Airport (SFO), its vibrant downtown area, and its convenient access to various Bay Area attractions.

Top Neighborhoods for Airbnb Revenue

While specific neighborhood data for Millbrae is not extensively detailed in the sources, here are some surrounding areas and factors that contribute to high Airbnb revenue potential in and around Millbrae:

1. Downtown Millbrae

• Appeal: Central location with easy access to shops, restaurants, and public transportation. Guests appreciate the convenience and local amenities.
• Revenue Potential: High foot traffic and demand from travelers needing quick access to SFO and other Bay Area destinations.

2. Neighborhoods Near SFO

• Appeal: Proximity to the airport makes these areas highly attractive for travelers with early flights or layovers.
• Revenue Potential: High occupancy rates due to the constant demand from air travelers.

3. Areas Near Burlingame and San Mateo

• Appeal: These neighboring cities offer additional dining, shopping, and entertainment options, making the area more appealing to a broader range of guests.
• Revenue Potential: The combined attractions of Burlingame, San Mateo, and Millbrae create a robust market for short-term rentals.

4. Neighborhoods with Easy Access to Public Transportation

• Appeal: Guests value the convenience of being able to easily travel to other parts of the Bay Area using public transportation.
• Revenue Potential: High demand from both tourists and business travelers who need to commute to various locations.

Key Statistics for Millbrae Airbnb Market

• Occupancy Rate: 78% median occupancy rate, indicating a strong demand for short-term rentals.
• Average Daily Rate: $137, contributing to a typical annual revenue of $35,000 per listing.
• Best Month: February, suggesting a peak in demand possibly due to business travel or pre-summer vacation bookings.

These factors and neighborhoods make Millbrae an attractive and profitable location for Airbnb investments.

Tips for Furnishing and Designing an Inviting Airbnb in Millbrae, California

Planning and Layout

• Measure and Plan: Start by measuring your rooms and figuring out the best layout to ensure plenty of space to move around and to avoid blocking natural light sources.
• Define Functional Spaces: Ensure each area of your property has a clear purpose, such as a well-defined reading nook, dining area, or relaxation spot.

Furniture Selection

• Timeless and Sturdy Pieces: Opt for timeless, sturdy furniture that will last, such as solid beds with easy-to-clean surfaces and storage beds for extra space.
• Comfortable and Durable: Choose sofas with washable covers and avoid real or faux leather. Select comfy, lightweight chairs that are easy to move around.
• Space-Saving Furniture: Consider sofa beds, folding tables, or ottomans with hidden storage compartments to maximize space and functionality.

Color Palette and Decor

• Neutral Color Palette: Use a neutral color palette for walls and large furniture pieces to create a relaxed atmosphere.
• Local Touches: Incorporate elements that reflect the local culture or history of Millbrae, such as artwork, decorative items, or a guidebook with local recommendations.
• Minimalist Designs: Favor clean lines and functional layouts, which resonate well with modern tastes. Consider eco-friendly materials and sustainable furnishings.

Amenities and Essentials

• High-Quality Linens: Use white linens or a single solid color to symbolize cleanliness and ease of maintenance. Avoid old or outdated linens.
• Kitchen Essentials: Equip your kitchen with essentials like a coffee maker, microwave, toaster, kettle, and basic cookware. Include items like a cutting board, measuring cups, and a corkscrew.
• Guest Amenities: Stock up on essential items like toiletries, a first aid kit, and basic cooking ingredients. Provide a hairdryer and basic toiletries.

Lighting and Technology

• Appropriate Lighting: Use lighting fixtures that create a warm and inviting atmosphere. Avoid office-like lighting unless it is in a designated working space.
• Smart Technology: Consider adding smart home features like keyless entry, smart thermostats, or streaming devices for entertainment.

Storage and Organization

• Smart Storage: Use beds with drawers, wall hooks for coats, pegboards in the kitchen, and stackable containers to keep the space tidy and organized.
• Designated Spaces: Provide designated spots for guests' personal items, such as a luggage rack, to keep the space clutter-free.

Guest Experience

• Local Art and Decor: Incorporate local art and culturally relevant decor to impose a sense of place and make the space more inviting.
• Games and Entertainment: Leave some games, cards, and informative books to enhance the guest experience, especially on days with bad weather.
• Clean and Fresh Environment: Ensure the property smells fresh by using quality shampoo and soap, and consider perfuming the house before guests arrive.

Safety and Accessibility

• Safety Features: Install smoke detectors, carbon monoxide detectors, and a first aid kit. Consider a safe for valuables.
• Accessibility: Make your Airbnb accessible to guests with disabilities by including features like ramps, wide doorways, and grab bars in bathrooms.

Discovering Millbrae, California: Local Attractions and Insider Tips

Local Attractions

Parks and Outdoor Activities

• Bayfront Park: Enjoy a scenic walk with stunning views of the bay.
• Central Park: Stroll through the park on a nice day and visit the serene Japanese Gardens within.
• Robert E Wooley Peninsula Park: Go fishing and enjoy the outdoor scenery.
• Junipero Serra County Park: Ride the 54-foot-long slide and explore the park's amenities.
• Spur Trail: Take a hike and enjoy the natural beauty of the area.

Cultural and Historical Sites

• Millbrae Historical Society: Learn about the history of Millbrae and its rich cultural heritage.
• Millbrae Train Museum: Travel through time and explore the city's railway history.
• Burlingame Museum of PEZ Memorabilia: A short drive away, this quirky museum is a must-visit for PEZ collectors.

Food and Drink

• Millbrae Farmers Market: Get fresh produce and local goods.
• Fiddlers Green: Enjoy traditional Irish pub fare.
• New England Lobster Market & Eatery: Try a traditional lobster roll.
• Gabriel & Daniel’s Mexican Grill: Savor some of the best Mexican food in the area.
• Falafio Mediterranean Cuisine: Enjoy a delicious falafel sandwich.
• Sugandh Indian Restaurant & Bar: Have an authentic Indian dinner.
• Millbrae Pancake House: Start your day with a great breakfast.

Entertainment and Shopping

• Artichoke Joe's Casino: Test your luck at this nearby casino.
• The Shops at Tanforan: Shop from brand stores, dine at various restaurants, and catch a movie.
• Millbrae Annual Art and Wine Festival: Experience a collaboration of arts, entertainment, food, and wine.

Insider Tips

Transportation

• Millbrae Station: Conveniently located and served by both BART and Caltrain, making it easy to explore the Bay Area.

Local Events

• Check the Millbrae Farmers Market schedule: Ensure you don’t miss out on fresh produce and local goods.
• Attend the Millbrae Annual Art and Wine Festival: A great event for arts, entertainment, food, and wine enthusiasts.

Nearby Attractions

• Golden Gate Bridge and Fisherman's Wharf: Only a short drive away, these iconic San Francisco attractions are a must-visit.
• Coyote Point Recreation Area and CuriOdyssey: Explore these nearby attractions in San Mateo for more outdoor and educational activities.

Dining on the Go

• Antojitos Mexicanos Jovanni Food Truck: Track down this food truck for a quick and delicious meal.

By sharing these local attractions and insider tips, you can help your Airbnb guests make the most of their visit to Millbrae, California.

Practical Tips to Run a Successful Short Term Rental Business in Millbrae, California

To operate a successful short-term rental business in Millbrae, California, several key practices must be implemented to ensure compliance with local regulations and to enhance the guest experience.

Noise Regulations and Guest Communication

Inform guests about quiet hours and noise regulations to avoid potential fines and complaints. Include clear guidelines on noise levels in both the digital and physical house manual to set expectations from the outset.

Comprehensive House Manual

Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important information. This manual should cover all aspects of the property, from appliance usage to emergency contact numbers, to ensure guests have a smooth and hassle-free stay.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, along with photos of the parking area and any specific parking instructions. This approach ensures a seamless arrival experience and reduces the likelihood of issues or delays.

By adhering to these practical tips, you can maintain compliance with Millbrae's regulations, such as the transient occupancy tax and the 90-day rental limit, while also enhancing guest satisfaction and reducing potential conflicts.

Short-Term Rental Management Fees in Millbrae, California (2026)

Short-term rental management fees in Millbrae, California in 2026 typically range from 15% to 30% of gross rental revenue, depending on the scope of services provided. Full-service management — covering guest communication, channel distribution across Airbnb, Vrbo, and Booking.com, dynamic pricing, cleaning coordination, and 24/7 guest support — generally falls in the 22% to 30% range. Co-hosting or partial-service arrangements that leave more responsibility with the owner usually run 15% to 20%.

Industry-wide management fees have crept upward by roughly 1–2 percentage points since 2024 as operating costs, insurance premiums, and labor expenses have risen across the vacation rental sector. Millbrae-area managers may also charge separately for cleaning turnovers, maintenance dispatch, linen programs, and listing optimization. Some full-service operators in California now offer guaranteed-rent or revenue-share hybrid models, which can be worth comparing against a flat percentage structure for higher-revenue properties.

Market estimates as of 2026. Conditions vary; consult local operators for current data.

Short-Term Rental Market in Millbrae, California (2026)

Granular market data for Millbrae, California remains limited as of 2026, as smaller and emerging short-term rental markets are not consistently captured by major data providers like AirDNA. However, broader California trends suggest continued demand for vacation rentals, particularly in markets offering unique experiences, scenic appeal, or proximity to established tourist destinations.

Through 2025–2026, the California short-term rental market has seen modest ADR growth of 3–5% industry-wide, partially offset by occupancy compression as supply has continued to expand. Operators in markets like Millbrae should evaluate hyperlocal factors — seasonality, regulatory environment, and competing accommodation supply — before making investment decisions.

Market estimates as of 2026. Conditions vary; consult local operators for current data.