San Diego STR License Fees 2026 | STRO Cost Breakdown

Key Takeaways

• License fees range from $226 (Tier 1) to $1,170 (Tier 3/4) for two-year terms

• Application fees range from $48 (Tier 1) to $246 (Tier 3/4) and are non-refundable

• Fees increased March 1, 2025; new rates apply to both initial applications and renewals

• Payment processing adds $1.50 (ACH) or 2.95% (card) per transaction

• Total two-year cost ranges from $274 (Tier 1) to $1,416 (Tier 3/4)

Understanding San Diego's vacation rental licensing costs helps you budget accurately and avoid surprises. Fees increased significantly on March 1, 2025, so information from older sources may be outdated.

Current Fee Structure (Effective March 1, 2025)

Fee Type	Tier 1	Tier 2	Tier 3	Tier 4
Application Fee	$48	$67	$246	$246
License Fee	$226	$317	$1,170	$1,170
Total Initial Cost	$274	$384	$1,416	$1,416
License Duration	2 years	2 years	2 years	2 years
Annual Equivalent	$137/year	$192/year	$708/year	$708/year

Why Fees Differ by Tier

Higher fees for Tier 3 and 4 reflect the greater impact whole-home rentals have on housing availability and neighborhoods. These fees fund the City's enforcement and administration of the STRO program.

The City views Tier 1 (part-time, 20 days max) and Tier 2 (home-sharing) as lower-impact uses warranting lower fees. Tier 3 and 4 represent commercial-level vacation rental operations with proportionally higher regulatory burden.

Renewal Fees

Renewal fees match the initial application structure. When your two-year license expires, you'll pay the same application and license fees to renew.

Tier	Renewal Application	Renewal License	Total Renewal Cost
Tier 1	$48	$226	$274
Tier 2	$67	$317	$384
Tier 3	$246	$1,170	$1,416
Tier 4	$246	$1,170	$1,416

Renewal Timeline

The City emails renewal notices 60 days before your license expires. Submit renewal applications before expiration to avoid gaps in licensed operation. Unlike initial Tier 3/4 applications, renewals don't involve lottery systems. You can renew your existing license if you meet all requirements.

⚠️ Important: You cannot renew if you have pending enforcement actions. Resolve any violations before your license expires.

Payment Processing Fees

Beyond license fees, payment processing adds transaction costs:

Payment Method	Processing Fee	Example on $1,416
ACH (bank transfer)	$1.50 flat fee	$1,417.50
Credit Card	2.95%	$1,457.77
Debit Card	2.95%	$1,457.77

ACH is the cheapest option by far. For Tier 3/4 payments, credit card processing adds nearly $42 compared to ACH's $1.50.

Payments appear on your bank or card statement as "CSD DSD ONLN PMT 13881".

Additional Business Costs

STRO licensing is just one expense. Budget for these additional requirements:

Rental Unit Business Tax (RUBT)

Annual tax for anyone renting residential property more than six days per year. Amount varies by rental income. Contact RUBT Administration at (619) 615-1545 for specific calculations.

Business Tax Certificate (Non-Owners)

Non-owner hosts need a Business Tax Certificate in addition to the property owner's RUBT. Annual fee applies.

TOT Registration

TOT certificate registration is free, but you'll collect and remit 11.75-13.75% of rental income as transient occupancy tax. This passes through to guests but affects your pricing and cash flow.

Insurance

Standard homeowners insurance often excludes short-term rental activities. Commercial coverage or vacation rental-specific policies may cost $1,000-3,000+ annually depending on property value and coverage limits.

Compliance Costs

Signage, guest guideline materials, and ongoing compliance monitoring add modest costs. Professional management services (if used) typically run 15-25% of rental revenue.

Comparing Costs to Revenue Potential

To evaluate whether licensing costs make sense, compare to neighborhood revenue potential:

Neighborhood	Avg Annual Revenue	Tier 3/4 License Cost	License as % of Revenue
Mission Beach	$118,123	$1,416	1.2%
Pacific Beach	$102,800	$1,416	1.4%
La Jolla	$66,300	$1,416	2.1%
Ocean Beach	$84,200	$1,416	1.7%
North Park	$56,200	$1,416	2.5%

Even at the highest proportional cost (2.5% for North Park), licensing fees are minor relative to revenue potential. The primary barrier is license availability, not cost.

Non-Refundable Policy

⚠️ Important: All fees are non-refundable once submitted. If your application is rejected, you don't get money back. Ensure you meet all requirements before applying.

Common reasons for losing your application fee:

Missing prerequisites: No active TOT certificate or RUBT account.

Active violations: Open code enforcement cases at the property.

Ineligible property: ADU built after 2017 or other prohibited property type.

Incomplete documentation: Missing ownership proof, lease agreements, or signatures.

Frequently Asked Questions

Can I pay license fees monthly instead of upfront?

No. Full application and license fees are due at time of submission. No payment plans are available.

Are license fees tax-deductible?

License and permit fees for rental property are generally deductible business expenses. Consult a tax professional for your specific situation.

What if I can't renew on time?

Expired licenses mean you cannot legally operate. For Tier 3/4, you'd need to reapply through normal channels, potentially joining waitlists if caps are reached.

Do fees ever decrease?

Fees have only increased over time. The March 2025 increase followed City Council approval. Future decreases seem unlikely.

Budgeting for Your Vacation Rental

We help property owners understand all costs associated with vacation rental operation, from licensing through ongoing management. Contact us at (619) 738-6199 for a complete cost analysis.