San Diego Vacation Rental Regulations

When were the San Diego vacation rental regulations approved, what are they & who approved them?

On February 23, 2021, the San Diego City Council, via an 8-1 vote, approved their initial step in approving San Diego vacation rental regulations, capping these rentals to “1 percent of the total housing units in the City of San Diego, excluding the total housing units within the Mission Beach Community Planning Area, based on the most recent Demographic  and Socioeconomic Housing estimates issued by the San Diego Association of Governments (SANDAG), rounded up to the next whole number,” according to the ordinance posting on the City’s website.

Furthermore, the ordinance provides leniency for properties located within Mission Beach, due to the long-standing history of tourism and local vacation rentals. As such, Mission Beach is capped at 30 percent of the total housing units.

What are the new San Diego vacation rental regulations?

Currently, there is still plenty of work left to finalize all the rules required by the San Diego short-term rental ordinance. However, below are the likely required San Diego vacation rental regulations:

1. An approved short-term rental license

2. Maximum of one license per person

3. Minimum rental period of two nights

4. Pay San Diego TOT Tax

What is the STRO Timeline?

How do I apply for a license?

The City of San Diego will make the application process available online through the city website. The city will then have a lottery system to approve San Diego vacation rental licenses.

What are the details of the lottery system?

The full details are still to be determined, but the City will prioritize “Good Actors” based on past history of hosts who have:

1. Paid the Transient Occupancy Tax (TOT) directly to the City or via a third-party listing site

2. Has recent booking activity

3. Received two (2) or fewer verifiable complaints.

For more information about the lottery system and how to qualify as a “Good Actor” you can read our blog post regarding the City of San Diego announcing details regarding the San Diego vacation rental lottery and how to qualify .

What if I own multiple short-term vacation rentals?

Licenses are limited to one per person.

How many licenses will be available outside of Mission Beach?

Depending on the timing of the most recent Demographic  and Socioeconomic Housing estimates issued by the San Diego Association of Governments (SANDAG), likely slightly over 5,000.

How many licenses will be available inside of Mission Beach?

Depending on the timing of the most recent Demographic  and Socioeconomic Housing estimates issued by the San Diego Association of Governments (SANDAG), around 1,000.

What is the Transient Occupancy Tax (TOT)?

According to the City of San Diego’s Treasury website:

“The Office of the City Treasurer is responsible for the administration and collection of the Transient Occupancy Tax (TOT) and Tourism Marketing District (TMD) assessment. The TOT applies to all properties rented to Transients. A Transient is any person who exercises occupancy or is entitled to occupancy for less than one (1) month.”

How much is the TOT?

For typical short-term vacation rentals, the tax is 10.5 percent of the total amount of each reservation, including any fees, less than one month.

How do I apply for a TOT certificate?

According to the City of San Diego’s website:

You must submit a completed application in order to obtain a Transient Occupancy Registration Certificate.  Applications for a Transient Occupancy Registration Certificate may be submitted:

• Online through the Transient Occupancy Registration System
• Via email by submission of a completed  Application for Transient Occupancy Registration Certificate to the Office of the City Treasurer at sdtot@sandiego.gov
• By mailing a completed  Application for Transient Occupancy Registration Certificate to:    

Office of the City Treasurer
Attn: TOT/TMD Desk
PO Box 122289
San Diego, CA 92112-2289

Operators will receive the certificate via email once the application is processed. 

The certificate number is the account number associated with the lodging business and should be referenced on all remittances and/or correspondence submitted to our office.

How do I pay the TOT each month?

The TOT and TMD assessment must be remitted monthly and is due no later than the last day of the following month. For example, the TOT and TMD assessment collected in the month of April must be remitted by May 31. A penalty is due on all late payments. The penalty is 1 percent of the TOT and TMD assessment due for the first delinquent day, plus one-third (1/3) of 1 percent for each additional day, not to exceed 25 percent.

To assist with the calculation of the penalty percentage, see the Penalty Table(PDF). The TOT and TMD assessment may be paid online, by mail or in person.

For additional assistance, please contact the TOT/TMD Administration desk at 619-615-1530 or sdtot@sandiego.gov.

Where can I read the San Diego vacation rental regulations ordinance?

You can read the entire ordinance by clicking here.

How are the two San Diego vacation rental regulations tiers defined?

Licenses will be issued based on tier regulations.

Tier One License: Short-Term Residential Occupancy for 20 Days or Less Per Calendar Year.

• This license is required for home sharing or whole home, short-term vacation rentals throughout San Diego for an aggregate of 20 days or less per calendar year.
• A license may only be issued for host’s primary residence.
• A license may only be issued for a dwelling unit per calendar year.
• Expires two years from the date of issuance, but may be renewed based on Municipal Code section 510.0106(d).

Tier Two License: Home Share for More than 20 Days Per Calendar Year.

• This license is required for home sharing short-term vacation rentals throughout San Diego for an aggregate of more than 20 days per calendar year.
• A license may only be issued for host’s primary residence.
• The host must occupy the primary residence for no less than 275 days of the calendar year in which the property is rented as a home share, short-term vacation rental.
• Expires two years from the date of issuance, but may be renewed based on Municipal Code section 510.0106(d).

Tier Three License: Whole Home Short-Term Vacation Rentals Outside of Mission Beach

• This license is required for home sharing short-term San Diego vacation rentals, outside of Mission Beach, for an aggregate of more than 20 days per calendar year.
• Requires guests stay for at least two consecutive nights.
• Expires two years from the date of issuance, but may be renewed based on Municipal Code section 510.0106(d).
• The total number of licenses issued shall not exceed 1% of the total housing units in the City of San Diego, excluding Mission Beach. The number of available licenses will be updated every two years. However, the number of licenses available shall not be reduced below the previous two-year total.

Tier Four License: Whole Home Short-Term Mission Beach vacation rentals

• This license is required for home sharing short-term Mission Beach vacation rentals, for an aggregate of more than 20 days per calendar year.
• Requires guests stay for at least two consecutive nights.
• Expires two years from the date of issuance, but may be renewed based on Municipal Code section 510.0106(d).
• The total number of licenses issued shall not exceed 30% of the total housing units in the City of San Diego, excluding Mission Beach. The number of available licenses will be updated every two years. However, the number of licenses available shall not be reduced below the previous two-year total.

Why is the signed San Diego vacation rental regulations ordinance not fully approved in the coastal zones?

The California Coastal Commission must grant approval for any changes in the state’s beach communities which are covered by the California Coastal Act of 1976.

How is the California Coastal Commission involved in San Diego Airbnb and Vacation Rentals?

According to their website:

“The California Coastal Commission was established by voter initiative in 1972 (Proposition 20) and later made permanent by the Legislature through adoption of the California Coastal Act of 1976.

In partnership with coastal cities and counties, The Coastal Commission plans and regulates the use of land and water in the coastal zone. Development activities, which are broadly defined by the Coastal Act to include (among others) construction of buildings, divisions of land, and activities that change the intensity of use of land or public access to coastal waters, generally require a coastal permit from either the Coastal Commission or the local government.

The Coastal Act includes specific policies (see Division 20 of the Public Resources Code) that address issues such as shoreline public access and recreation, lower cost visitor accommodations, terrestrial and marine habitat protection, visual resources, landform alteration, agricultural lands, commercial fisheries, industrial uses, water quality, offshore oil and gas development, transportation, development design, power plants, ports, and public works. The policies of the Coastal Act constitute the statutory standards applied to planning and regulatory decisions made by the Commission and by local governments, pursuant to the Coastal Act.”

How can Titan Beach Rentals help?

First, we have a long history of paying the TOT on time for all the San Diego vacation rentals we manage, and have managed previously. As such, we can guarantee a timely and accurate payment of San Diego’s Transient Occupancy Tax, thus putting your property in good standing prior to applying for a Mission Beach vacation rental license, or one elsewhere throughout San Diego.

Secondly, we can provide some insight into how you may be able to apply, and be granted, multiple licenses if you own more than on San Diego vacation rental. 

Lastly, we care about our local communities and police our vacation rentals in accordance with the “Good Neighbor Policy”, with the local community quiet hours, plus we require a signed vacation rental agreement for every reservation made.