The City of San Diego City Council recently approved their new short term rental law that’s going to be enforced in 2023.
This means that the short-term rental market in San Diego is changing, and like most of the country, rules are being placed on vacation rentals that will ultimately bring stability back to neighborhoods, and most importantly, stability to the long-term rental market.
In this article, we will take a deep dive into short-term rental rules so that you will know what to expect if you own a vacation rental in the San Diego area.
Owners Must Apply for A Short-Term Residential Occupancy License
Starting this fall, short-term rental home owners here must apply for a short-term residential occupancy (STRO) license.
This license will be available for four different types of properties including:
· Part-Time Rentals - Rented for an aggregate of 20 days or less per year.
· Home Sharing – Renting a room or (rooms) in a home for more than 20 days per year.
· Whole Home - Rentals for more than 20 days per year where the owner or permanent resident does not reside onsite.
· Whole Home (Mission Beach) - The number of licenses issued will not exceed 30% of the Mission Beach Community Planning Area.
Although the application period hasn’t opened yet, most STRO owners in the San Diego area are preparing now because they will also be required to pay a transient occupancy tax, rental unit business tax, and submit an application that includes detailed information about their property.
A priority will be placed on ‘good actors’, or owners who meet the criteria of the City of San Diego which includes:
· Proof of booking activity of more than 90 days per calendar year
· Must have verifiable proof of payment of Transient Occupancy Tax
· No verifiable code violations during the previous two (2) calendar years
With the short new term rental ordinance expected to reduce short-term rentals to just 1% of the city’s housing stock, it’s likely that many SD owners won’t qualify for permits, but the California Coastal Commission stipulated that these rules must be revisited in 7 years.
Learn More About GoldenWest Management
If you’ve been thinking about converting your short-term rental into a long-term rental property, GoldenWest Management can help.
We specialize in managing long-term single-family and multifamily properties in San Diego, Phoenix, and Las Vegas.
To learn more about the property management services we can offer you, or to get a quote, contact us today by calling (866) 545-5303 or click here to connect with us online.
