San Diego Airbnb Bans & Short-Term Rental Regulations

San Diego’s stunning coastline and vibrant neighborhoods have made it a top choice for short-term rental (STR) opportunities. Yet, recent regulatory changes are shifting the landscape for both hosts and renters, aiming to balance tourism with local housing needs.

From strict caps on whole-home rentals to a tiered licensing system and rigorous enforcement protocols, San Diego’s new rules introduce challenges and opportunities for those navigating the short-term rental market. In this article, we’ll dive into the latest regulations, explaining how these changes impact property owners, travelers, and the broader rental market in this coastal city.

Are Airbnbs and Other STRs Banned in San Diego

Good news! STRs are not banned in San Diego. However, in 2022, the San Diego local government put the Short-term Residential Occupancy Ordinance (STROO) into effect. This ordinance makes renting and hosting in the San Diego area much harder. With strict caps on housing, increased restrictions, and lotteries in place, the STR market is confusing to use, but there are alternatives to this difficult situation. 

An Alternative to VRBO and Airbnb

Choosing Furnished Finder over other STR sites offers key benefits for renters and hosts in San Diego. They particularly benefit those interested in medium to long-term stays, which align well with the city's housing goals and regulatory landscape.

1. No Fees for Renters

Furnished Finder is designed specifically for medium- to long-term rentals (typically 30 days or more), which means it avoids the hefty fees that are common with short-term rental platforms like Airbnb and VRBO. For renters, this can mean more affordable rates, as they are not paying booking fees associated with daily rentals​. For hosts on Furnished Finder, there are not the usual high commissions of typical short-term rental platforms​.

2. Attracts Long-Term, Stable Tenants

Furnished Finder appeals to traveling professionals, such as healthcare workers, consultants, and students, who often require longer stays and seek fully furnished, ready-to-live-in accommodations. This matches San Diego’s efforts to reduce the number of transient visitors and increase housing for residents and long-term visitors. Long-term rentals also tend to create less disruption in neighborhoods than frequent, short-term bookings​.

3. Reduced Regulatory Complications

San Diego has capped short-term rentals and imposed rigorous licensing, which can be challenging for hosts on platforms like Airbnb and VRBO primarily catering to shorter stays. Furnished Finder's focus on stays of 30 days or more means hosts avoid the short-term rental lottery system, licensing restrictions, and frequent city inspections. This is especially beneficial in high-demand areas like Mission Beach, where vacation rentals are heavily regulated​.

4. Safety and Security Focus

Furnished Finder requires background checks for potential tenants, adding a layer of security for hosts. This feature is particularly appealing in San Diego’s residential areas, where hosts may be concerned about the security implications of renting to short-term visitors with no vetting. This focus on screening helps maintain a safer, more secure environment for both parties​.

5. Simplified Management

Furnished Finder is tailored for landlords and property managers who prefer a straightforward rental management experience, offering features such as pre-screened tenant applications, built-in lease management tools, and reliable payment structures that are less time-intensive than managing frequent turnovers on Airbnb or VRBO. For San Diego hosts, this means less hassle with the day-to-day operations associated with short-term rentals and a focus on stable, consistent income from longer-term tenants, aligning with the city's housing stability goals​

In summary, Furnished Finder supports a sustainable, tenant-friendly rental market in San Diego, aligning with the city’s goals of expanding housing availability and reducing neighborhood disruption.

New Short-Term Rental Rules and Regulations

San Diego's recent regulations on short-term rentals have imposed stringent restrictions to address housing shortages and neighborhood disruptions:

• Caps on Whole-Home Rentals: San Diego now limits whole-home rentals to 5,400 units, approximately 1% of the city’s housing stock. This cap aims to reduce vacation rentals' impact on housing availability for long-term residents and alleviate rising housing costs​.
• Tiered Licensing and Lottery System: Licenses for short-term rentals are distributed through a tiered system. Owners who wish to rent out their entire home for more than 20 days per year must apply for a Tier 3 or Tier 4 license, which is capped and subject to a lottery. This ensures a fair distribution and limits the number of homes available for short-term rental, especially in popular areas like Mission Beach​.
• Restrictions on Accessory Dwelling Units (ADUs): ADUs built after 2020 are barred from being used as short-term rentals to maintain long-term housing availability. Only ADUs existing before September 2017 are eligible, further encouraging their use for long-term tenants​.
• Enhanced Enforcement: San Diego has allocated resources to enforce these regulations, including fines for non-compliance and the hiring of 16 enforcement officers to manage violations. This action is part of the city’s commitment to minimize “party houses” and neighborhood disruptions often associated with short-term rentals​.

These measures are intended to balance tourism benefits with the needs of local communities and housing availability.

How to stay up to date

Along with keeping this article relevant with new laws and regulations regarding STRs in the Sand Diego area, here are some other alternative ways to stay current on the market:

• San Diego Office of the City Treasurer: This office provides official updates on regulations, permit requirements, and deadlines for short-term rental compliance. You can visit their website for the latest information on STRO policies, fees, and application processes.
• California Coastal Commission: Given San Diego’s coastal regulations, the California Coastal Commission plays a role in decisions impacting rental rules near the coastline. This site provides updates on any state-level adjustments affecting San Diego’s coastal rentals​
• San Diego Short-Term Rental Alliance (SDSTRA): This organization represents local rental hosts and provides insights, resources, and updates on regulatory changes. Their website often includes useful guidance for hosts seeking to navigate new policies​.