New Regulations Capping Short-Term Rentals In a nutshell

ADVICE Josh Taylor. October 29, 2024

New Regulations Capping Short-Term Rentals

In a nutshell, here’s how the City of San Diego reduces short-term rentals in 2022:

- Entire home short-term rentals capped at 1% of the entire city’s housing units allowing around 5,400 to get licensed;
- Only allows short-term rental owners one license per person;
- Allowing an exception for the Mission Beach community for up to 1,100 licenses;
- Exempting all home-sharing room rentals when the owners occupy the home;
- Allows part-time short-term rental operators to get a special license to accommodate high visitor events at a lower fee;
- Requires the availability for a local contact to respond within one hour to disturbances at the home;
- Creates a Good Neighbor Policy to enforce strict guidelines, set up fines for violations, and a license revocation process; and
- Makes a yearly assessment of the program’s effectiveness and fairness.

Short Term Rentals will have a tier system:

Tier 1: is partial owner occupied. Rented for 20 days or less out of the year.
Tier 2: is owner occupied. The owner lives on site either in a room in the house you're renting or in duplex or ADU on the property.
The number of Tier and Tier 2 licenses that are available are unlimited.
Tier 3: Is non owner occupied. Limited tp 1% of all housing units in San Diego - decided on a lottery.
Tier 4: Is non owner occupied within Mission Beach: capped at 30% of all housing units decided on a lottery.

The license application period is expected to open in the Fall of 2022