San Diego Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in San Diego, California?

In San Diego, California, regulations governing short-term rentals (STRs) like Airbnb and VRBO have been put in place to manage the balance between tourism and residential neighborhoods. To operate an STR business in the city, property owners must first secure a license under the Short-Term Residential Occupancy (STRO) Ordinance. These licenses are categorized into four tiers based on factors such as the number of days rented and whether the owner is present on-site.

There is a strict cap on the number of properties allowed to be used for STRs, set at 1% citywide, except for Mission Beach where up to 30% of properties can be designated as STRs. Additionally, STR operators are required to obtain a Transient Occupancy Tax (TOT) Certificate and collect and remit an 8% TOT. If a property is rented for more than 6 days per year, owners must also pay the Rental Unit Business Tax.

Certain uses are prohibited under the regulations, such as using Accessory Dwelling Units (ADUs) for STRs. Live/work units can only be utilized for STRs if the host is a permanent resident of the unit. While the city has established these regulations, there have been concerns about loopholes in the system, with some property owners exploiting multiple licenses. Efforts are being made to address these loopholes and ensure the regulations are effective.

The sentiment among Airbnb hosts in San Diego varies, with some appreciating the stability provided by the regulations, while others criticize them for being overly restrictive. Overall, the regulations aim to strike a balance between supporting the tourism industry and preserving the residential character of neighborhoods in San Diego.

Starting a Short Term Rental Business in San Diego

For those interested in operating a short-term rental (STR) business in San Diego, California, there are several key steps to follow to ensure compliance with the city's regulations.The first step is to confirm that your property is eligible for use as an STR. This involves understanding the different license tiers and requirements set forth by the city's Short-Term Residential Occupancy (STRO) Ordinance.

Once you've determined your property's eligibility, you'll need to obtain a Transient Occupancy Tax (TOT) Certificate. This certificate is required for any property that will be rented out for less than one month. Additionally, you'll need to ensure that your rental unit business taxes are paid up before applying for an STR license.

The next step is to decide which of the four license tiers is most appropriate for your rental plans. The tiers are as follows:

• Tier 1: For properties rented 20 days or less per year, with the owner not required to be present.
• Tier 2: For rentals that are a portion of a home, rented more than 20 days per year, with the owner or permanent resident on-site.
• Tier 3: For whole-home rentals (excluding Mission Beach) rented more than 20 days per year, without the owner on-site.
• Tier 4: For whole-home rentals in Mission Beach, with up to 30% of properties allowed to be STRs.

After selecting the appropriate license tier, you can complete the application process, providing details such as the property address, number of bedrooms, contact information, and estimated rental days.

Lastly, you'll need to comply with all tax requirements, including collecting and remitting the 8% Transient Occupancy Tax, as well as paying the Rental Unit Business Tax if renting for more than 6 days per year. It's also crucial to adhere to the city's other rules and regulations regarding STRs, such as the prohibition on using Accessory Dwelling Units (ADUs) for this purpose.

The city of San Diego is actively enforcing its STR regulations, so property owners must have a valid license to legally operate an STR within the city limits.

Short Term Rental Licensing Requirement in San Diego

San Diego has a licensing system in place for STRs. There are four types of licenses: Tier 1 for part-time rentals, Tier 2 for rentals that are a portion of a home, Tier 3 for whole-home rentals except in Mission Beach, and Tier 4 for whole-home rentals only in Mission Beach. The city has a cap on the number of STRs, with only 1% of properties allowed to be used for STRs, except in Mission Beach where 30% of properties can be used for STRs.

Required Documents for San Diego Short Term Rentals

To operate an STR in San Diego, property owners must have a Transient Occupancy Tax Certificate and collect and remit Transient Occupancy Tax (TOT). Additionally, property owners who rent out all or a portion of their property for more than 6 days in a calendar year are responsible for remitting Rental Unit Business Tax to the City of San Diego.

The required documents for short-term rentals in San Diego include:

• Transient Occupancy Registration Certificate: Property owners must obtain this certificate to comply with the San Diego Municipal Code requirements. It is necessary for collecting tourist taxes from guests and is mandatory for short-term rentals in most jurisdictions13.
• Transient Occupancy Tax (TOT) Certificate: This certificate is essential for properties rented out for less than one month and is required for the collection of tourist taxes from guests1.
• Rental Unit Business Tax: Property owners who rent out their property for more than 6 days in a calendar year are responsible for remitting this tax to the City of San Diego23.

These documents are crucial for operating a short-term rental business in San Diego and ensuring compliance with the city's regulations.

San Diego Wide Short Term Rental Rules

The city has implemented rules to ensure that STRs do not disrupt the residential character of neighborhoods. For example, the use of Accessory Dwelling Units (ADUs) for STRs is prohibited, and live/work units can only be used for STRs if the host is a permanent resident of the unit and only hosts guests in the residential portion of the unit.

Does San Diego Strictly Enforce STR Rules?

While the city has implemented regulations to govern STRs, there have been concerns about loopholes in the system. For example, some property owners have found ways to obtain multiple licenses, which can lead to more units being taken off the long-term rental market. The city is working to close these loopholes and ensure that the regulations are effective in achieving their intended goals.

How to Start a Short Term Rental Business in San Diego

Navigating the world of short-term rentals (STRs) in San Diego can seem daunting, but with the right approach, you can successfully launch your STR business in the city. Let's walk through the key steps to get you started.

The first crucial step is to obtain a Transient Occupancy Tax (TOT) Certificate. This certificate is required for any property that will be rented out for less than one month in San Diego. It's the foundation upon which your STR business will be built.

Next, you'll need to ensure that your rental unit business taxes are in good standing. This is a prerequisite before you can even apply for an STR license, so be sure to have this taken care of.Now, it's time to determine which of the four STR license tiers is the best fit for your rental plans. The tiers are as follows:

• Tier 1: For properties rented 20 days or less per year, with the owner not required to be present.
• Tier 2: For rentals that are a portion of a home, rented more than 20 days per year, with the owner or permanent resident on-site.
• Tier 3: For whole-home rentals (excluding Mission Beach) rented more than 20 days per year, without the owner on-site.
• Tier 4: For whole-home rentals in Mission Beach, with up to 30% of properties allowed to be STRs.

Once you've selected the appropriate license tier, you can proceed with the application process. This will involve providing details about your property, such as the address, number of bedrooms, contact information, and estimated rental days.

The final steps involve ensuring compliance with the city's tax requirements. You'll need to collect and remit the 8% Transient Occupancy Tax, as well as pay the Rental Unit Business Tax if your rental exceeds 6 days per year. Additionally, be mindful of other regulations, such as the prohibition on using Accessory Dwelling Units (ADUs) for STRs.

It's important to note that San Diego takes the enforcement of its STR regulations seriously. To operate legally within the city, you must have a valid license, so be sure to follow the guidelines closely.

By navigating these steps diligently, you'll be well on your way to establishing a successful short-term rental business in the vibrant city of San Diego.

Who to Contact in San Diego about Short Term Rental Regulations and Zoning?

For those seeking information or assistance regarding short-term rental (STR) regulations and zoning in San Diego, California, there are a few key contacts to reach out to:

City of San Diego's Office of the City Treasurer
The Office of the City Treasurer is the primary point of contact for matters related to STR regulations in San Diego. This office oversees the administration and enforcement of the city's Short-Term Residential Occupancy (STRO) Ordinance, which governs the licensing and operation of STRs.

Specific contacts within the Office of the City Treasurer include:
TOT/TMD Administration Desk
Phone: 619-615-1530
Email: sdtot@sandiego.gov
This desk can provide guidance on the Transient Occupancy Tax (TOT) requirements, as well as answer questions about the STR licensing process.
Rental Unit Business Tax
For inquiries related to the Rental Unit Business Tax, which applies to properties rented for more than 6 days per year, you can contact the Rental Unit Business Tax team.
In addition to the Office of the City Treasurer, the City of San Diego's Development Services Department may also be a helpful resource for questions regarding zoning and land use regulations as they pertain to STRs.
Development Services Department
Phone: 619-446-5000
Email: DSDInfo@sandiego.gov
This department can provide information on zoning requirements, permitted uses, and any other land use-related aspects of operating an STR in San Diego.
By reaching out to these city offices, short-term rental hosts and operators in San Diego can obtain the necessary information and guidance to ensure they are in compliance with the local regulations and zoning requirements.

What do Airbnb Hosts in San Diego on Reddit and Bigger Pockets Think about Local Regulations?

The short-term rental (STR) landscape in San Diego has been a topic of much discussion among Airbnb hosts in the city, with opinions on the local regulations varying widely across online forums like Reddit and Bigger Pockets.

On the Reddit r/sandiego subreddit, some hosts have praised the city's efforts to bring stability and predictability to the STR market through its licensing system and caps on the number of permitted units. One host commented, "The new regulations have actually helped me feel more secure in my business. I know the rules and can plan accordingly." They appreciate the clarity the regulations provide, even if the requirements are more stringent.

However, other hosts have been more critical of the San Diego regulations, describing them as "overly restrictive" and "difficult to navigate." Concerns have been raised about the city's prohibition on using Accessory Dwelling Units (ADUs) for STRs, as well as the 1% citywide cap on the number of STR properties (with the exception of Mission Beach's 30% cap). Some hosts feel these rules significantly limit their ability to operate their businesses effectively.

Discussions on the Bigger Pockets real estate forum have also highlighted the challenges faced by San Diego Airbnb hosts in complying with the evolving regulations. Posts detail the complexities of obtaining the required licenses and permits, as well as the need to stay up-to-date on tax obligations like the Transient Occupancy Tax and Rental Unit Business Tax.

One Bigger Pockets user shared their experience, stating, "I thought I had everything figured out, but then the city changed the rules again. It's been a constant struggle to keep my STR business running smoothly." This sentiment reflects the ongoing frustration felt by some hosts as they navigate the regulatory environment.

Despite the mixed reactions, it's clear that the short-term rental regulations in San Diego have had a significant impact on Airbnb hosts in the city. While some appreciate the stability the rules provide, others find the restrictions to be overly burdensome, leading to a complex and ever-evolving landscape for those operating STRs in San Diego.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.