Thinking about venturing into the world of short-term rentals (STR) in the beautiful city of San Diego? Whether you’re considering turning your own home into a vacation rental or investing in an STR property, San Diego has much to offer. However, before you take the plunge, it’s crucial to be aware of the key STR ordinances in the City of San Diego.

Understanding the STR Landscape

The STRO (short-term rental occupancy) Ordinance has already been established, and the application process is expected to open in Fall 2022 after full certification from the California Coastal Commission (CCC). This process involves tiered licenses and a lottery system that takes into account the rental history and use of the property.

Get Informed with Penny Realty

For a deeper understanding of these regulations, consider reaching out to Penny Realty. With nearly 60 years of experience managing properties in San Diego, they can guide you through the process of establishing your STR, from start to finish.

Frequently Asked Questions

  1. What’s the legal definition of a short-term rental property in San Diego?

Short-term residential occupancy means the occupancy of a dwelling unit for less than one month.

  1. If I want to purchase a property for use as an STR, what’s the first thing I need to do?

Research is key! Consider your budget, expected costs vs. profits, licensing tiers, and the specific location of your home. A property management company can provide quick and straightforward answers.

  1. After purchasing a property as a short-term rental, what do I need to do first?

All hosts must have a Transient Occupancy Tax (TOT) certificate, a Rental Unit Business Tax account, and must be in current compliance with the City’s TOT requirements.

  1. Does the STRO Ordinance apply to all areas of San Diego?

Yes, it applies to all dwelling units used for short-term residential occupancy in the City of San Diego.

  1. What are the different tiers of licensing?

There are four types/tiers, each with different requirements on the number of days and type of dwelling available for the STR.

  • Tier 1 (part-time): rented for an aggregate of 20 days or less per year.
  • Tier 2 (home-sharing): renting a room or rooms in the home for more than 20 days per year, with the owner or permanent resident residing onsite.
  • Tier 3 (whole-home rentals excluding Mission Beach): renting the entire home for more than 20 days per year where the owner does not reside onsite.
  • Tier 4 (whole-home rentals in Mission Beach): renting the entire home for more than 20 days per year where the owner does not reside onsite.
  1. Are there any restrictions on the number of STR properties I can operate?

Yes, a host may only hold one license at a time and may not operate more than one dwelling unit for STR within the City of San Diego.

  1. Who is responsible for guest compliance with STR regulations?

As the property owner, you’re required to designate a local contact responsible for actively discouraging and preventing any nuisance activity at the premises.

  1. What if the property is in an HOA (Homeowner’s Association)?

Reach out to the HOA before purchasing the home to check for any regulations against STRs, in addition to ensuring qualification for a license through the city.

Navigating San Diego’s STR regulations might seem complex, but with the right information and guidance, you can smoothly embark on your short-term rental journey in this sunny Southern California destination.