The City of San Diego has implemented detailed rules for short-term rentals under the Short-Term Residential Occupancy (STRO) program. Effective from July 1, 2022, and continuing through 2025, these regulations require hosts to obtain licenses and adhere to strict limits on the rental of properties. Whether you’re using Airbnb, VRBO, or other platforms, understanding San Diego’s updated guidelines is crucial for compliant hosting.
Understanding STRO in San Diego
A short-term rental in San Diego is defined as any residential unit, or part of one, rented for less than one calendar month. To manage the growing number of rentals and address community concerns, the city has introduced a four-tiered licensing system, along with related business and tax requirements.
STRO License Tiers
San Diego issues four different STRO license types. Each tier defines the extent and manner in which a host can operate a short-term rental:
Tier One: Part-Time License
This allows a unit to be rented for no more than 20 days per year. The owner or permanent resident does not have to be on-site during the rental period.
Tier Two: Home Sharing License
This is for hosts who rent rooms in their residences for more than 20 days annually. The host must live on-site but can be away for up to 90 days per year. Home sharing also applies to duplexes, accessory dwelling units (ADUs), and granny flats.
Tier Three: Whole Home (Outside Mission Beach)
This allows entire home rentals where the host is not present for more than 20 days a year. However, rentals must be a minimum of two nights in duration. Licenses under this tier are capped at 1% of the total housing units in the city, excluding Mission Beach.
Tier Four: Whole Home (Mission Beach Only)
In Mission Beach, whole-home rentals are permitted under this special tier. Like Tier Three, rentals must be a minimum of two nights, and licenses are capped at 30% of the neighborhood’s total housing units.
Key License Rules Every Host Must Follow
- Each host is allowed only one active license at any time.
- A host cannot operate multiple STR units under different tiers.
- Licenses are non-transferable and are only valid for the approved unit.
- License applications must be complete, including:
- A valid Transient Occupancy Tax Certificate or proof of application.
- Payment of Rental Unit Business Tax, if applicable.
- Proof of primary residency for applicable tiers.
Applications will be denied if a host has had their license revoked within the past 12 months or is currently under active enforcement action with the City.
Rental Unit Business Tax
All STR hosts must also register for the Rental Unit Business Tax. This is a mandatory business tax that applies annually to anyone renting out residential real estate in San Diego, regardless of whether the rental is for short-term or long-term use. The business tax ensures that all rental operations are properly recorded and taxed as part of San Diego’s economic activity.
Transient Occupancy Tax (TOT)
In addition to licensing and business taxes, short-term rental income is subject to a 10.5% Transient Occupancy Tax. If you rent your unit for less than 30 consecutive nights, you must register for a TOT Certificate with the Office of the City Treasurer. Taxes must be filed regularly, and hosts are responsible even if a platform like Airbnb collects it on their behalf.
The TOT registration can be completed online through the city’s official tax portal.
Local Compliance Matters
Beyond city laws, hosts are responsible for respecting other rules that may apply to their property. These include HOA guidelines, community association restrictions, and lease agreements. Even if your property is eligible under city law, your building or community may have additional prohibitions on short-term rentals.
To avoid legal complications or neighborhood conflicts, always check your lease, consult with your landlord (if renting), and speak with your HOA or community council.
For full details and updated licensing information, visit San Diego’s official website. If you need expert help navigating these regulations or managing your rental, reach out to our team for local Airbnb management services in San Diego that ensure full compliance and peace of mind.