Short-term rentals continue to be a popular way for San Diego property owners to generate income, but local regulations are evolving to keep the market balanced. As 2026 approaches, updates to the city’s short-term rental ordinances mean owners must stay informed and proactive to avoid penalties and maintain profitability. Understanding these rules will help you operate within city guidelines while ensuring your guests enjoy a seamless experience.
Key Takeaways
San Diego has specific licensing and occupancy rules for short-term rentals.
Only certain property types and zones are eligible for short-term rental permits.
Staying compliant requires consistent documentation and timely renewals.
Partnering with local property management experts simplifies ongoing compliance.
San Diego’s Short-Term Rental Regulations
San Diego’s short-term rental ordinance, first enacted in 2022, limits the number of whole-home rentals operating for more than 20 days per year to just 1% of the city’s housing stock. Each property must be registered and permitted through the city’s Short-Term Residential Occupancy (STRO) system.
There are four license tiers depending on how frequently and where the property is rented. For instance, Mission Beach has a higher cap than other neighborhoods, reflecting its status as a prime tourist destination. Owners who fail to comply with these limits can face fines or license revocation, so accurate records and timely renewals are essential.
Keeping your property in top condition also supports compliance efforts. Regular upkeep through reliable maintenance services helps prevent guest complaints and ensures that safety standards are met year-round.
Permitting and Documentation Requirements
To operate legally, all short-term rental hosts must obtain a valid STRO license and include the license number in their listings. Applications often require proof of ownership, floor plans, and local contact information for emergencies.
Furthermore, property owners must maintain detailed records of each rental period and the taxes collected. The city of San Diego requires hosts to remit Transient Occupancy Tax (TOT) and Tourism Marketing District (TMD) assessments, similar to hotel operations.
For owners who allow pets, it’s important to have clear pet policies in place. Ensuring that guests complete a pet screening process adds an extra layer of protection for your property and helps maintain a positive rental experience.
Staying Ahead of Future Changes
With ongoing updates to California’s housing and rental laws, property owners should monitor local council meetings and legislative announcements. Reviewing updates on rental law changes in California can help owners anticipate new compliance requirements before they take effect.
Working with a knowledgeable property management company can make all the difference. Experts familiar with city and state regulations can handle renewals, documentation, and guest communications to keep your rental fully compliant.
FAQs
1. Do I need a license for every rental property I own in San Diego?
Yes. Each property requires its own STRO license, even if owned by the same individual or entity.
2. How long does the licensing process take?
Processing times vary, but owners should allow several weeks for review and approval, especially during peak renewal periods.
3. Can I rent out my property if I live there part-time?
Yes, part-time owner-occupied rentals are permitted under specific license tiers, depending on how often you host guests.
4. What happens if I operate without a permit?
Unlicensed operators may face substantial fines and could lose the ability to apply for a license in the future.
Partner with Penny Realty to Keep Your Short-Term Rental Compliant
Managing a short-term rental in San Diego requires more than great hospitality; it takes careful attention to ever-changing city rules. Penny Realty offers local expertise and full-service management to help you stay compliant, maximize earnings, and maintain peace of mind as the 2026 ordinances take effect.
For more blogs like this, check out our resources:
