The short-term rental market in San Diego was rocked this week as the City of San Diego finalized a short-term rental ordinance that’s expected to cut local vacation rental market stock in half.
This move was a long time coming, as the San Diego rental market has been severely impacted by Airbnb’s, and the vacation rental market, since more long-term rentals have been transformed into short-term rentals.
In total, the City of San Diego's short-term rental market ordinance is expected to reduce the number of local short-term rentals to no more than 1% of the San Diego housing market stock, or 5,400 rentals.
Short Term Rental Permits Will Be Granted Via Lottery System
Yes, it’s going to be more challenging for short term rental investors in San Diego because they will no longer be able to purchase new properties and list them for rent on Airbnb.
Owners will have to obtain a permit from the City of San Diego, and those permits will be granted through a lottery system, so it’s likely that current owners and investors will be disappointed that they can’t move forward with their short-term San Diego rentals like they did in the past.
A Nationwide Trend
The City of San Diego is not alone in its fight against short-term rentals as more big cities nationwide are implementing similar ordinances.
Thankfully, fewer short-term rentals means that the owners of those properties will likely convert their properties into long-term rentals, and that’s a win-win for the SD Rental Market because, it means more choices for renter’s and eventual lower rents as well.
How Will Fewer Short-Term Rentals Affect Neighborhoods?
Another plus side of limiting short-term rentals in the San Diego area is an improved quality of life in local neighborhoods.
Long-term rentals mean stable tenants, families, and people who have a vested interest in the communities that they call home compared to short-term rentals which are filled with temporary guests who often stay, party, and go home.
San Diego’s short-term rental ordinance is expected to start this fall, and the city is planning on having a team of 16 new officers enforces the system.
Contact GoldenWest Management
At GoldenWest Management, we specialize in managing long-term single-family and multifamily properties in San Diego, Las Vegas, and Phoenix.
To learn more about the property management services we can offer you, contact us today by clicking here, or calling (866) 545-5303.
