San Diego Short-Term Rental Licensing & Regulations

San Diego Short-Term Rental Licensing Guide

San Diego's thriving tourism industry and year-round sunshine make it a prime location for short-term rental (STR) investments. However, the city's Short-Term Residential Occupancy (STRO) Ordinance has established strict regulations that every host must follow. Whether you're considering your first STR investment or managing multiple properties, understanding San Diego's licensing requirements is essential for legal operation and long-term success.

This comprehensive guide breaks down everything you need to know about San Diego's STR licensing process, from choosing the right tier to maintaining compliance with city regulations.

Disclaimer: This information is provided for general guidance only - regulations and licensing details may change, so always verify current requirements directly with the City of San Diego before making any decisions.

Understanding the STRO Ordinance

The STRO Ordinance regulates all short-term rentals within San Diego city limits. Under this ordinance, any rental of a dwelling unit for less than one month requires proper licensing. As of May 1, 2023, operating an STR without a valid license is illegal and subject to penalties.

The ordinance establishes a four-tier licensing system designed to balance tourism revenue with housing availability for residents. Each tier has specific requirements, limitations, and operating rules that hosts must follow.

Before diving into the application process, verify your property falls within San Diego city limits using the City Council District Map. Properties outside these boundaries may fall under different jurisdictions with separate regulations.

The Four STR License Tiers Explained

San Diego's four-tier system categorizes STRs based on how frequently you rent your property and whether you reside onsite. Each tier has distinct requirements and restrictions.

Tier 1: Part-Time Rentals (20 Days or Less)

Tier 1 licenses are designed for hosts who rent occasionally throughout the year. You can operate either as a home share (renting individual rooms while residing onsite) or whole home rental, as long as total rental days don't exceed 20 per calendar year.

Key features of Tier 1:

• No requirement to reside onsite during rentals

• Maximum 20 rental days per year

• Two-night minimum stay for guests

• Unlimited licenses available

• Lower licensing fees compared to other tiers

This tier works well for homeowners who travel frequently and want to offset mortgage costs or those testing the STR market before committing to full-time hosting.

Tier 2: Home Sharing (More Than 20 Days)

Tier 2 licenses allow you to rent rooms in your primary residence for more than 20 days per year while maintaining your home as your primary dwelling. This tier emphasizes the "home sharing" model, where hosts live onsite alongside guests.

Tier 2 requirements include:

• Must be your primary residence

• Host must occupy the property for at least 275 days per calendar year

• Can be absent during whole-home rentals for up to 90 days per year

• Two-night minimum stay requirement

• Unlimited licenses available

This tier suits homeowners looking for steady supplemental income while maintaining their living situation. It's ideal for those with extra bedrooms or separate guest quarters.

Tier 3: Whole Home Rentals Outside Mission Beach (More Than 20 Days)

Tier 3 licenses permit whole-home rentals outside the Mission Beach Community Planning Area for more than 20 days annually. Unlike Tier 2, you don't need to reside onsite during rentals.

Tier 3 specifications:

• Property must be located outside Mission Beach

• No onsite residency requirement

• Two-night minimum stay for guests

• Must operate a minimum of 90 days annually to maintain license

• Limited number of licenses (913 remaining as of the latest count)

This tier appeals to real estate investors seeking rental income without the constraints of home sharing. However, license availability is capped at 1% of San Diego's total housing units outside Mission Beach, making competition for available licenses fierce.

Tier 4: Mission Beach Whole Home Rentals (More Than 20 Days)

Tier 4 licenses function similarly to Tier 3 but specifically for properties within the Mission Beach Community Planning Area. Due to high demand in this coastal neighborhood, Tier 4 licenses are the most competitive and currently unavailable.

Tier 4 characteristics:

• Only for properties within Mission Beach boundaries

• Same requirements as Tier 3

• Two-night minimum stay requirement

• Must operate minimum 90 days annually

• Application period is currently closed with no available licenses

The Tier 4 waitlist periodically reopens through a lottery system. If you're interested in Mission Beach properties, monitor the city's website for announcements about future application periods.

Comparing the Tiers

How to Apply for Your STR License

The application process requires several steps and supporting documents. Start by gathering the necessary paperwork before beginning your online application.

Prerequisites Before Applying

Before submitting your STRO license application, you must obtain:

1. Transient Occupancy Tax (TOT) Certificate: Register with the City Treasurer's Office to collect and remit the 10.5% TOT on all rentals. Contact TOT Administration at (619) 615-1530 or sdtot@sandiego.gov.

2. Rental Unit Business Tax (RUBT) Account: All STR properties must have an active, paid RUBT account. This separate tax applies to rental property operations.

3. Business Tax Certificate (if applicable): Required if you're not the property owner. This applies to property managers and operators leasing properties for STR purposes.

Step-by-Step Application Guide

Step 1: Create Your Online Account

Navigate to the Accela Citizen Portal and create an account. This portal manages all STRO applications and renewals.

Step 2: Complete the Application Form

Select your appropriate tier and fill out the comprehensive application. You'll need to provide:

• Property address and ownership documentation

• Proof of residency (for Tier 2 applications)

• Floor plans showing bedroom locations and square footage

• Fire safety compliance documentation

• Local contact information for guest complaints

Step 3: Submit Required Documents

Upload digital copies of your TOT Certificate, RUBT account confirmation, and any additional required documentation. Ensure all documents are current and clearly legible.

Step 4: Pay Application and License Fees

As of March 1, 2025, the following fees apply:

All fees are non-refundable. Licenses expire two years from the issuance date and can be renewed according to the ordinance guidelines.

Step 5: Wait for Approval

The city reviews applications for completeness and compliance. Processing times vary depending on application volume and tier selection. You'll receive notification of approval or requests for additional information through your portal account.

Important Application Notes

Remember these key points:

• Hosts may only hold one license at a time across all tiers

• Licenses are non-transferable between owners or properties

• Selling your property or transferring ownership requires the new owner to apply for their own license

• Application periods for Tier 1, 2, and 3 remain open; Tier 4 is currently closed

Operating Requirements and Best Practices

Once licensed, you must comply with specific operating requirements to maintain your legal status and avoid penalties.

Required Signage and Documentation

Exterior Host Signage

Display an 8.5" x 11" sign on the exterior of your property containing:

• STRO license number

• TOT certificate number

• Host or local contact name and phone number

• City of San Diego Code Enforcement Division contact information

This sign must be visible from the street and remain posted at all times.

Good Neighbor Policy

Provide every guest with a Good Neighbor Policy outlining:

• Property rules and quiet hours

• Parking instructions and restrictions

• Trash and recycling procedures

• Contact information for issues or questions

• Local ordinances guests must follow

Make this policy easily accessible, either through your booking platform, email confirmation, or physical posting within the property.

Human Trafficking Awareness

Complete required human trafficking awareness training and post guidance for guests in a conspicuous location within your dwelling unit. This requirement helps combat human trafficking by educating both hosts and guests on warning signs and reporting procedures.

Local Contact Requirements

Designate a local contact who can respond to complaints or issues within one hour, 24 hours a day, seven days a week. This contact can be you, a property manager, or another responsible party with authority to address problems immediately.

The local contact must be able to physically access the property and resolve issues ranging from noise complaints to maintenance emergencies.

Occupancy and Stay Requirements

Minimum Stay Requirements

Tier 3 and Tier 4 properties must enforce a two-night minimum stay. This requirement reduces property turnover and neighborhood disruption while discouraging party rentals.

Maximum Occupancy

Adhere to maximum occupancy limits based on:

• Bedroom count and square footage

• Fire safety codes

• Parking availability

• Septic or sewer system capacity

Exceeding maximum occupancy violates health and safety codes and can result in penalties or license revocation.

Minimum Operating Days (Tiers 3 and 4)

Properties licensed under Tier 3 or Tier 4 must operate as STRs for at least 90 days per calendar year. This prevents hosts from holding licenses without actively using them, ensuring license availability for active operators.

Quarterly Reporting (Tiers 3 and 4 Only)

Tier 3 and 4 license holders must submit quarterly reports detailing:

• Number of rental days

• Gross revenue

• TOT collected and remitted

• Occupancy rates

Tier 1 and 2 license holders are exempt from quarterly reporting requirements.

Compliance, Enforcement, and Penalties

San Diego takes STR compliance seriously. Understanding enforcement procedures helps you avoid violations and maintain your license.

Who Enforces STR Regulations?

STRO Administration Office

For licensing questions and general information:

• Email: stro@sandiego.gov

• Phone: (619) 615-6120

Building and Land Use Enforcement (BLUE) Team

For reporting violations and enforcement actions:

• Email: dsdstrocomplaint@sandiego.gov

• Phone: (619) 533-6489

TOT Administration

For tax-related questions:

• Phone: (619) 615-1530

• Email: sdtot@sandiego.gov

Common Violations and Penalties

Operating without a license constitutes the most serious violation. After May 1, 2023, unlicensed STR operation can result in:

• Civil penalties and fines

• Cease and desist orders

• Legal action by the city

• Liability for back taxes and penalties

Other common violations include:

• Exceeding maximum occupancy limits

• Failing to display required signage

• Not maintaining a responsive local contact

• Violating minimum stay requirements

• Operating outside your licensed tier parameters

Reporting STR Violations

Neighbors and guests can report suspected STR violations through:

• The online complaint form on the city's website

• Direct contact with the BLUE Team

• The 24/7 enforcement hotline

Complaints trigger investigations that may include property inspections, neighbor interviews, and booking platform reviews.