San Diego, California Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in San Diego?

YES, short-term rentals are allowed in San Diego, CA, but under a highly regulated framework. Short-term rentals are permitted through the city's Short-Term Residential Occupancy (STRO) Ordinance, implemented May 1, 2023. However, the city has implemented strict licensing requirements, operational caps, and comprehensive compliance standards that investors must navigate carefully.

Critical Market Reality: San Diego has implemented one of the most restrictive short-term rental frameworks in California, with:

Strict licensing caps (1% of housing stock for whole-home rentals outside Mission Beach, 30% cap within Mission Beach)
Non-transferable licenses (licenses cannot be transferred with property sales)
Four-tier licensing system with different requirements and limitations
Mandatory quarterly reporting for whole-home rentals

What do Airbnb hosts actually earn in San Diego?

San Diego hosts earn a median $53,481/year with $267 ADR and 73% occupancy.

Top performers pull in $85,195+ per year.

See the full San Diego market breakdown

How to Start a Short-Term Rental Business in San Diego

Step 1: Determine Eligibility and Tier Classification

Before investing, assess your property against the STRO licensing tiers:

Tier 1 - Part-Time (20 days or less per year)

Rented for 20 days or less annually
No host residency requirement
Unlimited licenses available

Tier 2 - Home Sharing (Host resides on-site)

Rent rooms while living on-site
Maximum 90 days absent per calendar year
Host must reside at property at least 275 days annually
Unlimited licenses available

Tier 3 - Whole Home (excluding Mission Beach)

Rent entire property when not residing on-site
Must rent minimum 90 days annually to maintain license
Capped at 1% of city's housing stock
Two-night minimum stay required

Tier 4 - Mission Beach Whole Home

Same requirements as Tier 3 but specific to Mission Beach CPA
Capped at 30% of Mission Beach housing stock
Currently closed with waitlist system
Two-night minimum stay required

Step 2: Property Compliance Verification

CRITICAL: Verify your property qualifies for STR use:

PROHIBITED: ADUs, RVs, boats, commercial spaces, temporary structures
RESTRICTED: Live/work units (only residential portion, host must be permanent resident)
REQUIRED: Proper residential zoning and permits

Step 3: Business Structure Setup

Host must be a natural person (LLC ownership requires individual host designation)
Non-owner hosts must obtain Business Tax Certificate
Only one license per host across entire city

Required Documents, Permits, Licenses, and Guidelines

Primary Licenses and Certificates

1. Short-Term Residential Occupancy (STRO) License

Application Fees: $33-$41 depending on tier
License Fees: $193-$1,129 depending on tier
Validity: 2 years, non-transferable
Application Portal: Accela Citizen Portal

2. Transient Occupancy Tax (TOT) Certificate

Cost: FREE
Application: Online via Transient Occupancy Registration System
Alternative: Email completed PDF application to sdtot@sandiego.gov
Rate: 10.5% of rental amount including cleaning fees

3. Rental Unit Business Tax (RUBT) Account

Applies to: Properties rented more than 6 days annually
Components: Base fee + per-unit fee
Verification: Check OpenData RUBT Information portal

4. Business Tax Certificate (if host is not owner)

Cost: $34 for ≤12 employees, $125 + $5/employee for ≥13 employees
Requirement: Annual renewal mandatory
Online Registration: Business Tax Online Registration portal

Documentation Requirements

Pre-Application Prerequisites:

Active TOT Certificate
Current RUBT account (if applicable)
Proof of ownership or lease authorization
Business Tax Certificate (non-owners only)

Ongoing Compliance Documentation:

Host signage (8.5x11", black, bold, 20-point font)
Human trafficking awareness training certificate
Good Neighbor Policy posting
Quarterly reports (Tier 3 & 4 only)
Local contact information posting

Safety and Health Standards

Smoke detectors, carbon monoxide detectors, fire extinguishers
Compliance with commercial lodging health and safety codes
Proper sanitation facilities and secure egress routes

Specific Regulations for Short-Term Rentals

Licensing Caps and Limitations

Tier 3: Maximum 1% of San Diego's total housing units
Tier 4: Maximum 30% of Mission Beach housing units
Current Status (October 2025):
- Tier 1: 145 licenses issued, unlimited remaining
- Tier 2: 2,367 licenses issued, unlimited remaining
- Tier 3: 4,638 licenses issued, 913 remaining
- Tier 4: 1,097 licenses issued, 0 remaining

Operational Requirements

Host Responsibilities:

Only one STRO license per host citywide
Maintain posted signage with required information
Respond to guest complaints within 1 hour
Submit quarterly utilization reports (Tier 3 & 4)
Complete human trafficking awareness training
Post Good Neighbor Policy and human trafficking reporting guidance

Property Use Restrictions:

Minimum 90 days annual utilization for Tier 3 & 4
Two-night minimum stay (Tier 3 & 4)
No party houses or commercial operations
Maximum occupancy limits enforced
Noise and nuisance control mandatory

Guest Requirements:

Adherence to Good Neighbor Policy
Noise ordinance compliance
Parking restrictions
No local contact required for Tier 1 & 2

Tax Obligations

Transient Occupancy Tax (TOT):

Rate: 10.5% of gross rental amount
Collection: Monthly or quarterly remittance
Platforms may collect on behalf of hosts

Rental Unit Business Tax:

Applies to properties rented >6 days annually
Structure: Base fee + per-unit assessment

Business Tax Certificate:

Required for non-owner hosts
Annual renewal mandatory
Based on employee count

Enforcement Mechanisms

Violations and Penalties:

Operating without license: Immediate violation
Non-compliance: Notice of Violation with penalties
Pending enforcement actions block new license applications
License revocation for repeated violations

Reporting System:

Get It Done portal for violations
Building and Land Use Enforcement (BLUE) team oversight
1-hour response requirement for local contacts

Contact Information for Local Authority

STRO Administration

Phone: 619-615-6120
Email: stro@sandiego.gov
Website: City of San Diego STRO Portal

Tax Administration

Transient Occupancy Tax (TOT):

Phone: 619-615-1530
Email: sdtot@sandiego.gov
Website: TOT Information

Rental Unit Business Tax:

Phone: 619-615-1545
Email: rtax@sandiego.gov
Website: RUBT Information

Business Tax Compliance:

Phone: 619-615-1539
Email: compliance@sandiego.gov
Website: Business Tax Portal

Enforcement Contacts

Building and Land Use Enforcement (BLUE):

Phone: 619-533-6489
Email: dsdstrocomplaint@sandiego.gov
Online Reporting: Get It Done Portal

Development Services Department

Virtual Appointments: Schedule Consultation
Phone: 619-236-5500

Links to Source Pages

Official City Resources

Application and Compliance Resources

Data and Reporting

Legal Framework

Investment Note: San Diego's STR market presents opportunities but requires careful navigation of regulatory requirements. The non-transferable license structure significantly impacts property values, and the licensing caps create scarcity that benefits existing license holders. Investors should factor these unique characteristics into their investment calculations and consider working with established local operators who understand the regulatory landscape.

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Ask the AI Advisor about San Diego

San Diego, located in San Diego County, California, is the second-largest city in the state with an approximate population of around 1.4 million residents. Known for its year-round mild climate, roughly 70 miles of coastline, and a laid-back coastal character, the city serves as a gateway to both Mexico, with Tijuana just across the international border to the south, and the broader Southern California region. The nearest major city is Los Angeles, about 120 miles to the northwest along Interstate 5, while the Sonoran and Anza-Borrego deserts begin roughly an hour to the east.

Balboa Park, a short drive from downtown, is a 1,200-acre cultural and recreational complex that anchors much of the city's identity. The park is home to the San Diego Zoo, a sprawling complex of art and history museums, the Old Globe Theatre, and the Spanish Colonial Revival architecture left from the 1915 Panama-California Exposition. Its central lawns, gardens, and free-admission walking paths make it a favorite for visitors and an easy stop from many of the city's central neighborhoods.

Just north of downtown, the coastal community of La Jolla offers dramatic ocean cliffs, sea caves, and sheltered coves that draw visitors year-round. About a 15- to 20-minute drive from central San Diego, La Jolla features the Children's Pool area where harbor seals commonly haul out, the La Jolla Caves, and a walkable village of galleries, boutiques, and oceanfront restaurants. A short distance further north, Torrey Pines State Natural Reserve, roughly 20 to 25 minutes from downtown, protects rare pine groves and sandstone bluffs above the Pacific, with trails that overlook one of the area's most photographed beaches.

At the southern tip of the Point Loma peninsula, about a 15- to 20-minute drive from downtown, Cabrillo National Monument commemorates the 1542 landing of explorer Juan Rodríguez Cabrillo and offers sweeping views of the bay, the downtown skyline, and the open Pacific. Across the water, Coronado is reached via the long arched San Diego–Coronado Bridge and is known for its broad sandy beaches and the historic Hotel del Coronado. Closer to the city center, Old Town San Diego State Historic Park preserves the site of California's first European settlement, with restored adobe buildings, museums, and restaurants that introduce visitors to the region's Mexican and early American heritage.

San Diego's combination of mild weather, diverse coastal and inland neighborhoods, and a deep bench of natural and cultural attractions make it a strong base for short-term rentals. Visitors can spend one day exploring Balboa Park, the next tide-pooling in La Jolla, and a third crossing the border for food in Tijuana or driving into the Anza-Borrego Desert. With appeal that stretches across families, couples, and business travelers, the city supports steady year-round demand for well-located rental properties.