It's no secret that San Diego is a tourist destination. San Diego homeowners and investors make good money on short-term rentals. This has pushed hopeful homebuyers out of the market. Residents of San Diego have complained for years about the housing market and the negative impact short-term rentals have on the community. Homes that rent for 30 days or less are considered short-term rentals.
The city has finally responded to the concerns of San Diego residents. The new ordinance, set to be implemented on May 1, 2023, will significantly reduce the number of short-term rentals available.
There are four tiers of permits:
- Tier 1 - The owner does not need to reside in the home and it can be rented out for less than 20 days in a calendar year.
- Tier 2 - The owner lives in the home for at least 275 days of the year (home share permits) and includes duplex properties.
- Tier 3 - The owner rents out the property more than 20 days in a calendar year. The whole-home is rented out (not including Mission Beach) and the owner does not need to live in the property. Guests must stay at least two nights. The number of Tier 3 permits will be limited to 1% of the city's total housing unit.
- Tier 4 - This permit applies to Mission Beach only. Guests must stay a minimum of two nights and the number of units cannot go over 30% of the total housing units in the area.
Starting on October 3rd, owners of short-term rentals will apply for permits. If the requested permits exceed 1,080 for Mission Beach and 5,400 for San Diego, a lottery will be held. Those who have obeyed city laws will get priority. The lottery is set to take place on December 16th. Approved hosts will need to pay license fees by January 6th or they will have their permit revoked.
For more detailed information, visit SanDiego.gov.
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