The local short-term rental market is set to change as the City of San Diego recently approved a new short-term rental ordinance that will make the easy-going vacation rental market here a thing of the past.
If you own vacation rentals in the San Diego area, this article will share with you several important dates that you must be prepared for, especially if you want to continue running a successful short-term rental in 2023, and beyond.
October 3rd, 2022 – Apply for A License
The first date to be prepared for is October 3rd, 2022 when short-term rental owners can apply for a license regardless of their property tier which includes:
· Tier 1 – Property must be rented for an aggregate of 20 days or less per year.
· Tier 2 (home sharing) – Ideal for owners renting a room, or rooms in their home for more than 20 days per year.
· Tier 3 – Rentals (excluding Mission Beach) that are rented for more than 20 days per year, where the owner or permanent resident does not reside onsite.
· Tier 4 – For owners with vacation rentals in the Mission Beach area.
November 30th, 2022 – Applications for Tier 3 And Tier 4 Licenses Will Close
Owners can apply for licenses online via the sandiego.gov website, or in person at the city treasurer’s office.
Tier 3 and Tier 4 license issuance will be done via computer-generated randomization and will be conducted by a third party or department independent of the Office of the City Treasurer.
December 16th, 2022 – Tier 3 & 4 Lottery Conducted
As we’ve stated in our previous blog post, a lottery will be conducted based on the City of San Diego’s ‘Good Actor” priority system.
Good actors are defined as owners who have paid their Transient Occupancy Tax (TOT), had recent booking activity at their property, and had less than three verifiable complaints.
Once the lottery is conducted, owners will be notified if their application has been approved or denied and it’s likely that most applications will be denied since the total amount of vacation rentals in San Diego must not exceed 1% of San Diego housing stock or 30% of housing stock in the Mission Bay area.
January 6th, 2023 – Tier 3 & 4 License Fees Due
With the start of the new year, owners who have their applications approved will be required to pay their Tier 3 and 4 license fees by January 6th, 2023, with the new program projected to be implemented by May 1st, 2023.
Get A Rental Property Analysis Here
Are you thinking about converting your single-family vacation rental into a long-term rental? We can help!
At GoldenWest Management, we specialize in long-term property management for the San Diego area.
To learn more about what your property can rent for, contact us today by calling (866) 545-5303 or clicking here to connect with us online.
