San Diego Short-Term Rental Regulations: Compliance Guide for Property Owners

Understanding San Diego's Short-Term Rental Regulations

Operating a vacation rental in San Diego requires navigating a complex regulatory landscape that has evolved significantly in recent years. As a property owner, staying compliant with these regulations isn't just about avoiding fines—it's about building a sustainable business that contributes positively to San Diego's communities while providing quality accommodations for visitors.

San Diego's short-term rental ordinance, which went into effect in 2022, created a tiered licensing system that aims to balance tourism benefits with neighborhood preservation. This guide walks you through the essential requirements, application processes, and best practices to keep your rental property both profitable and compliant.

The Basics of San Diego's STR Ordinance

San Diego defines short-term rentals as properties rented for less than one month. The city's regulations divide STRs into several categories:

• Whole-Home STRs: Properties where the host doesn't live on-site during the rental period
• Home-Sharing STRs: Properties where the host remains on-site, renting out a room or portion of their primary residence
• Part-Time STRs: Properties rented for 20 days or fewer per calendar year

The most significant restrictions apply to whole-home rentals, which are capped at approximately 1% of San Diego's housing stock (roughly 5,400 licenses). Meanwhile, home-sharing and part-time rentals face fewer limitations but still require proper licensing.

License Requirements and Application Process

All short-term rentals in San Diego require a license, regardless of category. The application process involves several steps:

• Obtaining a Transient Occupancy Registration Certificate
• Securing a Short-Term Residential Occupancy (STRO) License
• Paying applicable fees (ranging from $100 for part-time rentals to $1,000+ for whole-home rentals)
• Providing proof of property ownership or landlord permission
• Demonstrating compliance with safety requirements

Whole-home STR licenses are distributed through a lottery system when demand exceeds the city-wide cap. Priority is given to hosts with good rental histories and no code violations.

Operational Requirements for Compliance

Once licensed, San Diego STR operators must follow specific operational guidelines:

• Collecting and remitting the required 10.5% Transient Occupancy Tax
• Maintaining liability insurance (minimum $1 million coverage)
• Providing 24/7 contact information for guest and neighbor concerns
• Responding to complaints within one hour
• Limiting overnight occupancy based on bedroom count
• Enforcing quiet hours (typically 10 PM to 7 AM)
• Posting license information visibly within the rental property

Additionally, hosts must keep detailed records of rental activity and be prepared to provide these to city officials upon request.

Neighborhood-Specific Considerations

San Diego's regulations include some neighborhood-specific elements. Mission Beach, for example, has a special allocation of whole-home rental licenses (approximately 1,100) due to its historical significance as a vacation destination. Other coastal communities and high-demand areas may have additional restrictions or enforcement priorities.

Understanding the specific dynamics of your neighborhood is crucial for maintaining good relationships with permanent residents and avoiding complaints that could jeopardize your license.

Penalties for Non-Compliance

The city takes violations seriously, with penalties including:

• Fines starting at $1,000 for operating without a license
• Escalating penalties for repeat violations (up to $5,000 per violation)
• License suspension or revocation
• Potential ban from obtaining future licenses

Additionally, property owners may face civil penalties if their renters consistently violate noise ordinances or other neighborhood disturbance rules.

Staying Ahead of Regulatory Changes

San Diego's short-term rental regulations continue to evolve. Smart property owners stay informed through official city channels, industry associations, and professional property management partners. Regular attendance at community meetings and monitoring of City Council agendas can provide early warning of potential regulatory shifts.

Many successful STR operators in San Diego join local host associations or work with professional management companies that specialize in regulatory compliance and can navigate changes efficiently.