San Diego’s New Short Term Rental Rules

Jul 29, 2018

How are the new rules on Short Term Rentals in San Diego going to effect you? As a homeowner or an investor?

San Diego City Council passed new short-term rental rules on July 16,2018. It states only an owner’s primary residence and or one other unit on the same parcel only can be rented out.

The big question is what happens to all the short-term rental market in Mission Beach? Some of the owners have been renting their units for over 30 years or more? What will happen to all the short-term rentals at the beach now? Property Values? Those questions can’t be answered right away. Right now it is a wait and see situation. 

Here is a list of New Rules for Short Term Rentals in the city of San Diego.

1. The ruling limits vacation rentals to only one’s primary residence for 6 months per year
2. These laws are scheduled to go into effect BEFORE July 2019
3. The ruling, restricting short term vacation rentals to only one’s primary
residence, is similar to rulings already adopted in San Francisco and New York
4. There are different regulations for renting out a home while the host is present, and the entire home if the host is not present 
5. If the owner is not present there is a $949 tax, believed to be the highest in the country. If the owner is staying in the property and hosting, they will not have to pay the tax
6. If a property is a legal duplex, the second unit CAN also be used as a vacation rental. If the property has a granny flat, under the current ruling, it cannot be used as a vacation rental
7. Short-term rental hosts will also have to pay an affordable housing fee of $3.96 for whole-home rentals and $2.73 for those renting out a room in their home while they are present
8. “Ground zero” is Mission Beach. In a surprising move, it was not exempt or “grandfathered in.” It’s believed that are anywhere from 1,100-1,500 vacation rental units. 44% of housing is vacation rentals
9. It’s believed that there are currently over 11,000 vacation rentals in San Diego county
10. A glimmer of hope for the pro-vacation rental constituents is that the Coastal Commission,
which governs the coast line had historically been pro- vacation rental. Their stance has been that vacation rentals play a large part in making the beach an affordable option for those whom otherwise would have to pay for pricy hotels. They will have to approve of this ruling as well.
11. The Coastal Commission will meet in October. A representative has made it clear the coastal commission has not had a chance to review the exact ruling yet.
12. Heavy fines will be issued for violators. Fines and compliance will also regulate online platforms who do not ensure that hosts are registered
13. The city will create a database to track license and registration and launch a new complaint hotline or mobile app for residents to report violations to the city’s rules. 
14. If a host receives complaints, the first is considered a warning, the second may result in a citation, and the third in a 12-month period could result in their license being revoked.
15. Those who fail to register their properties could face daily fines starting at $2,500 per violation. 
16. Revenues from the tax will be used to pay to enforce the new rules, and there will be a 24 hour complaint hotline (not online yet)

If you want more information on the new rules for short term rentals in San Diego, call or text me at 619.980.2738! Or  do you have a property you wish to buy or sell? Call me!

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