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San Diego Short Term Vacation Rentals

San Diego Short Term Vacation Rentals Update May 2022

San Diego City Council has approved the California Coastal Commission (CCC) recommendations to the STVR ordinance. This approval takes San Diego another step closer to regulating short term vacation rentals in San Diego. Although no specific date has been announced as to when homeowners can apply for a license, the SD City plan (as verbally stated in the meeting on May 17, 2022) is to start the application process in Fall 2022, licenses issued by the end of 2022, and implementation/enforcement beginning in Spring 2023. Go to SD City website for more information. https://www.sandiego.gov/treasurer/short-term-residential-occupancy

If you are not familiar with the current STVR Ordinance or the new recommendations, we suggest looking on the San Diego City website and signing up for notifications. If you currently own a vacation home in San Diego, this ordinance and knowing the process to obtain a license is going to be important for you. Don’t wait until the last minute to get everything together. If you are listing your home through a platform, they will also be following the new ordinance and require a license to list a home. https://docs.sandiego.gov/municode/MuniCodeChapter05/Ch05Art10Division02.pdf

What happens if you don’t get a license to operate a STVR in San Diego? Longer term rentals are an option, or taking advantage of this sellers’ market and using a 1031 Exchange to purchase another investment property in an area that is not requiring a license are options. Mission Beach will have a separate lottery that will also be following the ordinance, but in for Tier 4 https://docs.sandiego.gov/municode/MuniCodeChapter05/Ch05Art10Division01.pdf

If you have questions on the San Diego real estate market, we are here to chat.

Drew & Christy Littlemore are realtors with BHHS in La Jolla on Maxine & Marti’s Team, one of the top teams in San Diego. They represent buyers and sellers throughout San Diego County. Drew Littlemore is a La Jolla native as well as co-founder & owner of Headhunter Suncare, one of the leading sunscreen brands for surfers. Christy Littlemore has lived and worked in La Jolla for over 20 years, selling real estate since 2012. Prior to real estate she taught elementary and middle school in the San Diego Unified School District.

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Drew & Christy Littlemore

7910 Girard Ave Ste 9

La Jolla, Ca 92037

858-220-3004

Drew@gellens.com

858-220-3003

christy@gellens.com

San Diego Short Term Vacation Rental Update

Opponents and supporters of vacation rentals voice their concerns at a San Diego City Council meeting. / Photo by Adriana Heldiz

The San Diego City Council Moving Closer to Regulating Short Term Vacation Rentals

The San Diego City Council has approved fees to be charged to those seeking a license to operate short-term vacation rentals.

Licenses for homes rented more than 20 days will cost $1,000 a year. Licenses for rentals where the owner lives onsite will cost $225. Licenses for homes rented fewer than 20 days per year will cost $100.  Licenses for rentals where the owner lives onsite will cost $225.  Revenues from the fees will go toward staffing, software, and enforcement.

A lottery system is being crafted by city staff that will distribute the licenses that fall under the cap system. The city will limit licenses to about 1% of the city’s total housing stock. (Excluding Mission Beach, which will have it’s own cap at 30% of the neighborhood housing stock)

San Diego City staff estimated there would be 1,081 licenses available in Mission Beach and 5,416 licenses in the rest of the city.

Whether the City Council’s decision to agree to the regulations, on the condition that good hosts be given priority in obtaining licenses, is needing approval by the California Coastal Commission

If the CCC approves the lottery system presented then homeowners looking the operate a vacation rental for more than 20 days will be able to apply for a license between March 1, 2022-April 15, 2022.  The new regulations are expected to be enforced starting July 2022.  However many residents have requested that the enforcements begin after San Diego’s tourism season.

SanDiegoCitySTVR

Frequently Asked Questions

San Diego Short Term Vacation Rental Update

San Diego City Short Term Vacation Rental Update

City Council approved regulations governing short-term residential occupancy (STRO) on February 23, 2021 and at a second reading on April 6, 2021.  The Mayor signed the ordinance on April 14, 2021 and the 30-day referendum period began.

The regulations require a license to operate a STRO unit, establish limits on the number of licenses a host may obtain, create reasonable caps on the total number of whole home STRO units, and create a licensing process in order to track, manage and enforce all aspects of the STRO.  Licenses will be required to operate a STRO in the City of San Diego beginning July 1, 2022.

A host may obtain a maximum of one license at a time in one of the following four (4) STRO license tiers:

Tier 1
Part-Time
Tier 2
Home Sharing
Tier 3
Whole Home
(excluding Mission Beach)
Tier 4
Mission Beach Whole Home
Rented for an aggregate of 20 days or less per year

The owner or permanent resident does not need to reside onsite during the STRO

Renting a room or rooms in the home for more than 20 days per year so long as the owner or permanent resident resides onsite

The owner or permanent resident may be absent from the permanent residence during the STRO for up to 90 days per calendar year

Home sharing includes duplex properties and eligible accessory dwelling units and granny flats when the host resides onsite

Rentals for more than 20 days per year where the owner or permanent resident does not reside onsite
The number of licenses issued will not exceed 1% of San Diego’s total housing units outside the Mission Beach Community Planning Area*

Guest two-night minimum stay required

The number of licenses issued will not exceed 30% of the Mission Beach Community Planning Area*

Guest two-night minimum stay required

*Based on the most recent Demographic and Socioeconomic Housing estimates issued by the San Diego Association of Governments (SANDAG) rounded up to the nearest whole number

On August 16, 2021 the City of San Diego put out a Frequently Asked Questions page on their website. The two question we are asked the most are: How will the lottery work and when do I need to apply for a license (permit). Below is the city’s answer on their form:

How will the lottery process work? While the lottery process has not yet been finalized, the lottery concept requires a complete application to be submitted to qualify for the license lottery and there must be no ongoing Code Enforcement cases at the property. In compliance with the ordinance, the Office of the City Treasurer will be promulgating administrative guidelines and regulations to implement and enforce the ordinance. Guidelines regarding the administration of the lottery process will be presented as an informational item at a public hearing to City Council no later than October 15, 2021.

When can I apply for a STRO license? The application period is expected to begin in the Spring of 2022, and licenses will be issued in advance of the July 1st implementation date. The Office of the City Treasurer’s STRO webpage will be updated as soon as additional information is available. It is recommended you sign up to be notified of STRO updates. You can sign up by entering your email address on the STRO webpage.

The City of San Diego is allowing participation in a survey

Participate in a preliminary registration survey. Participation in this survey does not guarantee a license but will provide the STRO Program with information to assist in the development of administrative rules to implement and administer license registration and the lottery process and will ensure potential hosts receive timely notification of updates.

This update is provided by the City of San Diego at Sandiego.gov

Short Term Vacation Rental Update

      Short Term Vacation Rentals are again on the table for San Diego this month. Currently a new proposal to regulate STVR’s has surfaced with a brokered deal led by SD City Councilperson Jennifer Campbell. This regulation appears to have a cap in the number of permits per year for “whole home STR’s” but not on residents “home sharing”. See news release .
San Diego is also electing a new mayor come this November. Both Barbara Bry and Todd Gloria, who are running against each other, have both expressed the best way to address the STVR’s in San Diego is by enforcing the current laws. “In 2017, City Attorney, Mara Elliott, issued a memo stating that such rentals are not permitted in any zone in the city, but the city generally has not enforced the opinion and has found cracking down on code violations difficult.” SD Union Tribune. Should the new mayor move forward on enforcing the current code violations, we could see STVR’s change significantly in San Diego if not go away completely.  Visit Todd Gloria’s site     Visit Barbara Bry’s Site
If you are a STVR homeowner, we would love to talk with you and help you come up with the best plan for you and your family for next year.
Contact Us Today
858-220-3004  858-220-3003
Drew & Christy Littlemore
www.littlemoregroup.com