San Diego, California Short-Term Rental Regulation: A Guide For Airbnb Hosts

San Diego's short-term rental landscape underwent a dramatic transformation in 2023. The city implemented comprehensive regulations that fundamentally changed how Airbnb and VRBO properties operate. These rules aren't just bureaucratic red tape. They're reshaping the entire vacation rental market.

Starting a Short-Term Rental Business in San Diego, California

Getting into the short-term rental game in San Diego requires navigating a complex licensing system. The city created four distinct tiers of permits, each with specific requirements and limitations.

Tier 1 covers properties rented for less than 20 days annually. This tier offers the most flexibility, you don't need to live on the property, and the barriers to entry remain relatively low.

Tier 2 focuses on home-sharing arrangements. Here's the catch: you must occupy the property as your primary residence for at least 275 days per year. This tier targets homeowners who want to rent out spare rooms or portions of their homes while maintaining their primary residence.

Tier 3 represents the most competitive category, whole-home rentals outside Mission Beach that operate more than 20 days annually. The city caps these permits at just 1% of San Diego's total housing units. Guests must stay a minimum of two nights, and if applications exceed the cap, a lottery system determines who receives permits.

Tier 4 exclusively covers Mission Beach properties, where permits cannot exceed 30% of the area's total housing units. This special designation reflects Mission Beach's historical role as a vacation rental destination. As of 2025, there are 55 waitlisted applicants for this tier and 0 remaining licenses available, according to the official STRO website of San Diego.

The application process demands careful preparation. You'll need an active Transient Occupancy Tax (TOT) Certificate before applying. Without it, your application won't be accepted. License fees vary dramatically by tier, ranging from $100 for Tier 1 to $1,000 for Tier 3 and 4 properties.

ADU restrictions present another hurdle. Accessory Dwelling Units built after January 1, 2020, cannot be used for short-term rentals. This rule aims to preserve affordable housing options for long-term residents.

The lottery system also adds uncertainty to the process. When Tier 3 applications exceed the cap, random selection determines permit recipients. The city prioritizes hosts with clean compliance records and those who haven't tolerated disruptive guests or violated city laws.

Operational requirements extend beyond licensing. Hosts must maintain properties for residential use only, comply with all TOT requirements, and obtain Rental Unit Business Tax certificates for rentals exceeding six days. Tier 3 and 4 licenses require minimum usage of 90 days annually.

Starting a short-term rental business in San Diego demands patience, preparation, and deep understanding of local rules. The days of casual Airbnb hosting are over, today's market rewards professional operators who prioritize compliance and community relations.

Short-Term Rental Licensing Requirement in San Diego, California

San Diego's Short-Term Residential Occupancy (STRO) licensing system operates under strict guidelines that every host must follow. The city has established a comprehensive framework that requires specific documentation, fees, and compliance measures before any property can legally operate as a short-term rental.

Mandatory Prerequisites Before Application

Before submitting any STRO license application, hosts must secure two essential certificates. First, you need an active Transient Occupancy Tax (TOT) Certificate, which enables you to collect tourist taxes from guests. Second, your Rental Unit Business Tax account must show "paid status. Any outstanding business taxes will prevent your application from moving forward.

Four-Tier Licensing Structure

The city categorizes all short-term rentals into four distinct tiers, each with specific operational parameters:

Tier 1 covers properties rented 20 days or fewer annually. This tier offers unlimited licenses and doesn't require the host to live on-site during guest stays. The application fee costs $33, with an additional $193 license fee.

Tier 2 focuses on home-sharing arrangements where hosts rent rooms while maintaining primary residence. You must occupy the property at least 275 days yearly. Like Tier 1, unlimited licenses are available, with identical fees of $33 for application and $284 for licensing.

Tier 3 represents whole-home rentals outside Mission Beach, operating more than 20 days annually. The city caps these licenses at 1% of San Diego's total housing units. There are currently 5,551 total licenses, with 1,090 still available. Guests must stay minimum two nights. Application costs $41, with a substantial $1,129 license fee.

Tier 4 exclusively serves Mission Beach properties, capped at 30% of that area's housing units. Currently, all 1,097 licenses have been issued, with 55 applicants on the waitlist. Fees match Tier 3 at $41 for application and $1,129 for licensing.

Application Submission Process

All applications must be submitted through the city's online portal at sandiego.gov. The application period remains open indefinitely for Tiers 1, 2, and 3, while Tier 4 applications are currently closed due to reaching capacity limits.

During application, you'll provide detailed property information including address, bedroom count, estimated rental days, and booking platform details. The city requires accurate information. If proven, providing false details results in immediate license revocation.

Required Documentation and Information

Hosts must prepare comprehensive property details before starting their application. This includes exact property address verification using the City Council District Map to confirm the property falls within San Diego's jurisdiction. You'll need bedroom and bathroom counts, maximum occupancy numbers, and detailed contact information for both the host and a local representative.

Payment Structure and Processing

All fees are non-refundable once submitted, regardless of application approval. The city accepts corporate checks, ACH payments (with $1.50 flat fee), and credit/debit cards (with 2.95% processing fee). Payment appears on statements as "CSD DSD ONLN PMT 13881."

License Duration and Renewal

STRO licenses expire exactly two years from issuance date. Renewal applications follow the same fee structure as initial applications. Hosts with pending enforcement actions cannot renew until violations are resolved and licenses remain available in their tier.

Operational Restrictions and Requirements

Licensed hosts must maintain properties exclusively for residential use. Tier 3 and 4 operators must utilize their licenses for at least 90 days annually—failure to meet this minimum results in license revocation. Properties built as Accessory Dwelling Units after January 1, 2020, cannot obtain STRO licenses.

Host Limitations

Each individual or entity can hold only one STRO license at any time. Licenses cannot be transferred between owners or properties. This restriction prevents speculation and ensures licenses serve actual property owners rather than investment groups.

Processing Timeline

The city processes applications on a rolling basis for Tiers 1 and 2, typically taking 4-6 weeks for complete applications. Tier 3 applications undergo additional review due to the cap limitations. When Tier 3 applications exceed available licenses, the city conducts a lottery system to determine recipients, with results announced within 45 days of the application deadline.

Enforcement and Penalties

Operating without a valid STRO license constitutes a municipal code violation with serious financial consequences. Initial fines start at $1,000 per violation, with penalties escalating for repeat offenses. The city's Building and Land Use Enforcement (BLUE) team actively monitors platforms like Airbnb and VRBO for unlicensed properties.

Since enforcement began in May 2023, the city has issued tens of thousands of dollars in fines and maintains over 550 active violation cases. Properties found operating without licenses face immediate cease-and-desist orders, and hosts may be permanently barred from obtaining future licenses.

Contact and Support

For licensing questions, hosts contact STRO Administration at 619-615-6120 or stro@sandiego.gov. Enforcement-related inquiries go to the BLUE team at 619-533-6489 or dsdstrocomplaint@sandiego.gov. The city provides comprehensive application guides, video tutorials, and FAQ documents to assist hosts through the process.

The licensing system reflects San Diego's commitment to balancing tourism revenue with neighborhood preservation. Success requires careful preparation, complete documentation, and ongoing compliance with all operational requirements.

Required Documents for San Diego, California Short-Term Rentals

San Diego's STRO licensing system demands specific documentation before any property can legally operate as a short-term rental. Each document serves a distinct purpose in the city's regulatory framework, ensuring hosts meet tax obligations and operational standards.

Transient Occupancy Tax (TOT) Certificate

This certificate represents the most critical document for any short-term rental operation. The TOT certificate enables hosts to collect tourist taxes from guests staying less than one month. Without this certificate, your STRO license application cannot proceed, it's an absolute prerequisite that must be obtained first.

The certificate ensures compliance with San Diego Municipal Code Chapter 3, Article 5, Division 1. Hosts must maintain current compliance with all TOT requirements, meaning no outstanding back taxes or violations. The city's Treasury Department administers TOT certificates, and you can contact them at 619-615-1530 or sdtot@sandiego.gov for assistance.

Rental Unit Business Tax Certificate

Property owners who rent their units for more than six days annually must obtain this certificate. The Rental Unit Business Tax applies to the property itself, not the host, and must show "paid status" before any STRO application can move forward.

This tax differs from the Business Tax Certificate required for non-owner hosts. The Rental Unit Business Tax Administration handles these certificates and can be reached at 619-615-1545 or rtax@sandiego.gov. The certificate ensures the city captures revenue from properties operating as commercial ventures rather than occasional personal use.

Business Tax Certificate (Non-Owner Hosts Only)

Hosts who don't own their rental property must secure a separate Business Tax Certificate in their name. This requirement applies to lessees operating short-term rentals under lease agreements that permit subleasing for periods less than one month.

The certificate must be obtained for the specific address where the STRO license applies. Non-owner hosts pay annual Business Tax in addition to the property owner's Rental Unit Business Tax obligation. The Business Tax Compliance office at 619-615-1539 or compliance@sandiego.gov provides guidance on obtaining these certificates.

Property Ownership Documentation

Hosts must provide proof of legal right to occupy and rent the dwelling unit. For property owners, this typically includes property deeds, title documents, or other official records establishing ownership. The documentation must clearly show the host's legal authority to operate a short-term rental at the specific address.

For non-owner hosts, lease agreements become essential documentation. The lease must explicitly permit subleasing for periods less than one month. Without clear lease language allowing short-term rentals, tenant hosts cannot qualify for STRO licenses.

Government-Issued Identification

The city requires valid government-issued photo identification to verify host identity. Acceptable forms include driver's licenses, state identification cards, or passports. This documentation ensures accountability and prevents fraudulent applications.

The identification must match the name on all other required documents and certificates. Any discrepancies between identification and other paperwork can delay or prevent license approval.

Primary Residence Documentation (Tier 2 Only)

Tier 2 home-sharing licenses require hosts to occupy the property as their primary residence for at least 275 days annually. Acceptable proof includes driver's licenses showing the property address, voter registration cards, utility bills, insurance documents, or tax records.

The documentation must demonstrate genuine primary residence rather than convenience addresses. The city scrutinizes these documents carefully since Tier 2 licenses offer more operational flexibility than other categories.

Site Plans and Property Information

Applications require detailed property information including accurate bedroom and bathroom counts, maximum occupancy numbers, and property layout details. While formal architectural drawings aren't mandatory, hosts must provide accurate square footage and room configurations.

The information must match actual property conditions since the city may conduct inspections. Misrepresenting property details constitutes grounds for license revocation and potential penalties.

Proof of Insurance Coverage

While not explicitly required by San Diego's ordinance, liability insurance covering short-term rental operations provides essential protection. Many hosting platforms require proof of adequate insurance coverage before listing properties.

Insurance documentation should specifically cover short-term rental activities rather than standard homeowner's policies. Some insurers exclude short-term rental coverage, making specialized policies necessary for proper protection.

Federal Employer Identification Number (EIN)

Hosts operating as business entities rather than individuals need Federal EIN documentation. This applies to LLCs, corporations, or partnerships holding STRO licenses. The EIN serves as the business tax identification number for federal reporting purposes.

Individual hosts using Social Security Numbers for tax reporting don't need separate EINs unless they choose to operate as formal business entities.

Payment Documentation

All STRO applications require payment of non-refundable fees ranging from $226 for Tier 1 licenses to $1,170 for Tier 3 and 4 licenses. The city accepts corporate checks, ACH payments with $1.50 fees, or credit/debit cards with 2.95% processing charges.

Payment confirmation becomes part of the application record. Failed payments or insufficient funds result in application rejection without refund opportunities.

Clean Compliance Record

While not a physical document, hosts must demonstrate clean compliance histories without pending enforcement actions. Properties with outstanding municipal code violations cannot obtain STRO licenses until all issues are resolved.

The city's Building and Land Use Enforcement team maintains violation records. Hosts should verify their properties have no pending enforcement actions before applying for licenses.

These documentation requirements reflect San Diego's comprehensive approach to short-term rental regulation. Success depends on gathering complete, accurate paperwork before starting the application process. Missing or incorrect documents cause delays and potential application rejections, making thorough preparation essential for aspiring hosts.

San Diego, California Short-Term Rental Taxes

San Diego's short-term rental operators face multiple tax obligations that significantly impact their bottom line. Understanding these various tax requirements helps hosts properly budget for their obligations and maximize their deductions.

Transient Occupancy Tax (TOT)

The Transient Occupancy Tax represents the most significant tax burden for San Diego short-term rental operators. As of May 1, 2025, San Diego implemented a tiered TOT system based on proximity to the San Diego Convention Center. Properties now pay different rates depending on their location within three designated tax zones.

Tax Zone 1 properties pay 11.75% of the rental amount. Tax Zone 2 properties face a 12.75% rate, while Tax Zone 3 properties—those closest to the Convention Center—pay the highest rate at 13.75%. Prior to May 1, 2025, all properties paid a uniform 10.5% rate.

The TOT applies to all rentals lasting less than one month and must be collected from guests at the time of payment. Hosts hold this tax in trust and remit it monthly to the City Treasurer. Major platforms like Airbnb and VRBO collect TOT automatically for their San Diego listings, simplifying compliance for many hosts.

Tourism Marketing District (TMD) Assessment

Large lodging businesses with 70 or more rooms face an additional 2% TMD assessment. This tax funds tourism promotion and events throughout San Diego. While most short-term rental properties don't meet the 70-room threshold, larger vacation rental management companies operating multiple properties might qualify.

Operators can choose to pass the TMD assessment to guests or absorb it as a business expense. The assessment calculates as a percentage of the rental amount, similar to TOT calculations.

Rental Unit Business Tax

Property owners renting their units for more than six days annually must pay the Rental Unit Business Tax. This tax applies to the property itself rather than the host's business operations. The tax ensures the city captures revenue from properties operating commercially rather than for occasional personal use.

The Rental Unit Business Tax must show "paid status" before hosts can obtain STRO licenses. Outstanding business tax obligations prevent license approval and renewal. The tax amount varies based on property type and rental activity levels.

Federal Income Tax

Short-term rental income constitutes taxable income subject to federal tax rates. Hosts report rental income on either Schedule E or Schedule C, depending on the level of services provided to guests. Properties offering minimal services typically use Schedule E, while those providing substantial services like concierge assistance, cleaning during stays, or meal service use Schedule C.

Schedule C income subjects hosts to self-employment tax, adding approximately 15.3% to their tax burden. Schedule E income avoids self-employment tax but still faces regular income tax rates based on the host's total income level.

State Income Tax

California imposes state income tax on short-term rental income at rates ranging from 1% to 13.3%, depending on total income levels. California's progressive tax structure means higher-earning hosts face significantly higher state tax rates.

Short-term rental income adds to the host's total California taxable income, potentially pushing them into higher tax brackets. California doesn't offer special treatment for rental income—it's taxed as ordinary income.

The 14-Day Rule Exception

The federal "14-Day Rule" provides significant tax relief for occasional hosts. Properties rented for 14 days or fewer annually generate completely tax-free income, provided the owner uses the property personally for at least 14 days or 10% of rental days, whichever is greater.

This rule particularly benefits hosts who rent during special events like Comic-Con or major sporting events. A property rented for $500 per night during a 10-day event generates $5,000 in completely tax-free income under this provision.

Tax Deductions and Write-Offs

Short-term rental operators can deduct numerous expenses to reduce their taxable income. Major deductible categories include mortgage interest, property taxes, repairs and maintenance, utilities, cleaning services, insurance premiums, and platform fees.

Mortgage interest and property taxes represent substantial deductions for most hosts. The deductible amount depends on the percentage of property use for rental purposes versus personal use. Hosts using their property 50% for rentals can deduct 50% of mortgage interest and property taxes.

Repairs and maintenance costs are fully deductible when necessary to maintain the rental property. This includes fixing broken appliances, plumbing repairs, painting, and general upkeep. Capital improvements that add value or extend property life must be depreciated over time rather than deducted immediately.

Utilities including electricity, water, gas, internet, and cable are deductible for the portion used by guests. Hosts who use properties personally must calculate the rental percentage to determine deductible amounts.

Cleaning and laundry services between guest stays are fully deductible business expenses. This includes professional cleaning services, laundry costs for linens and towels, and cleaning supplies purchased for guest turnovers.

Insurance premiums for both homeowner's and specialized short-term rental coverage are deductible. Many standard homeowner's policies exclude short-term rental coverage, making specialized policies necessary for proper protection.

Platform fees charged by Airbnb, VRBO, and other booking sites are fully deductible as business expenses. These fees often represent 3-5% of gross rental income and can add up to substantial deductions.

Supplies and amenities provided to guests, including toiletries, linens, kitchenware, and welcome gifts, are deductible. Hosts should maintain receipts for all guest-related purchases to support these deductions.

Depreciation allows hosts to deduct the declining value of their property and furnishings over time. Residential rental properties depreciate over 27.5 years, while furniture and appliances typically depreciate over 5-7 years. Depreciation provides substantial tax benefits but must be "recaptured" when the property is sold.

Professional services including accountants, tax preparers, attorneys, and property managers are deductible. Many hosts rely on professionals to navigate complex tax requirements, making these fees legitimate business expenses.

Home office deductions apply when hosts use part of their residence exclusively for managing their rental business. This includes space used for storing supplies, maintaining records, or conducting rental-related activities.

Proper expense tracking is essential for maximizing deductions. Hosts should maintain detailed records, receipts, and documentation for all business-related expenses. Many successful operators use accounting software or hire professionals to ensure they capture all eligible deductions while maintaining compliance with tax regulations.

California Wide Short-Term Rental Rules

California's statewide regulations create a foundation that affects all short-term rental operators, including those in San Diego. These state-level requirements work alongside local ordinances to establish comprehensive oversight of the vacation rental industry.

Accessory Dwelling Unit (ADU) Restrictions

California's most significant statewide short-term rental restriction involves Accessory Dwelling Units. State law explicitly prohibits municipalities from allowing ADUs to be rented for less than 30 days as short-term rentals. This restriction stems from multiple legislative acts including AB 881, SB 13, and AB 68, which aimed to preserve ADUs for long-term affordable housing rather than tourist accommodations.

The ADU restriction applies to any secondary unit attached to or located on the same property as a single-family home. This includes in-law apartments, converted garages, basement units, and attic conversions. Properties built as ADUs after January 1, 2020, face particularly strict enforcement of this rule in San Diego and throughout California.

Occupancy and Safety Standards

California establishes baseline safety requirements that apply to all short-term rentals statewide. Properties must comply with local building codes, fire safety regulations, and accessibility standards. The state requires clear emergency information display and mandates compliance with existing residential safety ordinances.

Occupancy limitations follow state guidelines that typically allow two adults per bedroom with maximum totals of 10 adults per unit. These standards provide consistency across California municipalities while allowing local governments to implement stricter limitations based on community needs.

Tax Collection and Reporting Requirements

California requires all short-term rental operators to collect and remit applicable state and local taxes. The state mandates proper business registration for hosts operating commercial rental activities and requires compliance with income tax reporting obligations.

Operators must maintain detailed records of rental income, guest stays, and business expenses for state tax purposes. California's progressive income tax structure means short-term rental income can significantly impact hosts' overall tax obligations, particularly for high-earning operators.

Corporate Ownership Restrictions

Recent legislative changes limit corporate ownership of residential properties used for short-term rentals. These restrictions aim to preserve housing stock for individual homeowners rather than large investment entities. The laws create additional compliance requirements for corporate-owned vacation rental properties.

Environmental and Zoning Compliance

California's environmental regulations apply to short-term rental properties, particularly those in coastal zones or environmentally sensitive areas. Operators must comply with California Environmental Quality Act (CEQA) requirements when applicable and adhere to local zoning restrictions.

Future Regulatory Trends

California continues evolving its short-term rental regulatory framework. Pending legislation addresses housing affordability concerns, neighborhood preservation, and tourism industry balance. The state increasingly views vacation rentals as commercial enterprises requiring comprehensive oversight rather than casual home-sharing activities.

These statewide regulations create the foundation upon which local ordinances like San Diego's operate. Understanding both state and local requirements ensures hosts maintain full compliance while operating successful vacation rental businesses. The regulatory environment continues becoming more complex, requiring professional guidance for many operators to navigate successfully.

California's approach balances tourism economic benefits with housing preservation and community protection. This comprehensive regulatory framework reflects the state's commitment to managing short-term rentals as a legitimate but carefully controlled industry segment.

Does San Diego, California Strictly Enforce STR Rules?

San Diego has transformed from an Airbnb-friendly city into one of California's strictest enforcement jurisdictions. The city's approach represents a dramatic shift that caught many hosts off guard when regulations took full effect in May 2023.

San Diego's enforcement efforts go far beyond empty threats. The city removed thousands of illegal Airbnb listings immediately when new regulations launched. Building and Land Use Enforcement (BLUE) teams actively monitor platforms like Airbnb and VRBO, cross-referencing listings against licensed properties. This systematic approach ensures comprehensive coverage rather than complaint-driven responses.

The financial penalties reflect serious enforcement commitment. Fines start at $1,000 for first violations, with escalating amounts for repeat offenses. The city has issued tens of thousands of dollars in fines since enforcement began, demonstrating consistent follow-through on violations. Over 550 active violation cases remain open, showing sustained enforcement pressure rather than initial crackdowns that fade over time.

Compared to other major California markets, San Diego ranks among the most restrictive. While cities like Los Angeles and San Francisco have regulations, San Diego's cap system and lottery process create unique barriers. The 1% housing stock limitation for whole-home rentals represents one of the tightest restrictions in the state.

Today's San Diego STR market rewards only the most compliant, professional operators. Casual hosting has become nearly impossible given the licensing requirements, fees, and ongoing compliance obligations. The city's enforcement creates real consequences for violations, making non-compliance a risky proposition.

Property management companies have emerged as essential partners for many hosts, handling compliance requirements and serving as required local contacts. This professionalization reflects the market's evolution from casual home-sharing to regulated commercial activity.

San Diego strictly enforces its STR rules with consistent, systematic oversight that makes non-compliance genuinely risky. The city is definitively not Airbnb-friendly compared to other major markets. While some hosts continue operating despite the rules, they face real financial and legal consequences when caught.

For prospective hosts, San Diego demands serious commitment and substantial resources. The days of easy Airbnb profits are over, replaced by a highly regulated market that favors experienced, well-capitalized operators over individual homeowners seeking supplemental income.

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

Starting a short-term rental business in San Diego requires careful planning and strict adherence to the city's comprehensive regulatory framework. Success depends on methodical preparation and understanding each step's requirements before moving forward.

1. Verify Property Eligibility and Choose Your License Tier

Before investing time and money, confirm your property qualifies for short-term rental use. Properties built as Accessory Dwelling Units after January 1, 2020, cannot obtain STRO licenses under any circumstances. Review the four license tiers carefully to determine which category fits your rental plans.

Tier 1 works for properties rented 20 days or fewer annually, offering unlimited licenses without residency requirements. Tier 2 requires you to live at the property as your primary residence for at least 275 days yearly. Tier 3 covers whole-home rentals outside Mission Beach operating more than 20 days annually, but only 1,300 licenses remain available under the city's cap. Tier 4 exclusively serves Mission Beach properties, though all licenses are currently issued with 55 applicants on the waitlist.

Tip: Calculate your expected rental days carefully. Underestimating could force you into a higher tier with stricter requirements and higher fees. Consider seasonal demand patterns and local events when projecting usage.

2. Obtain Your Transient Occupancy Tax (TOT) Certificate

The TOT certificate represents an absolute prerequisite—you cannot proceed without it. This certificate enables you to collect tourist taxes from guests staying less than one month. Contact the Treasury Department at 619-615-1530 or sdtot@sandiego.gov to begin the application process.

The TOT rates changed significantly in May 2025, creating three tax zones based on proximity to the San Diego Convention Center. Zone 1 properties pay 11.75%, Zone 2 properties pay 12.75%, and Zone 3 properties closest to the Convention Center pay 13.75%. Major platforms like Airbnb and VRBO collect TOT automatically for San Diego listings, simplifying compliance for most hosts.

Tip: Apply for your TOT certificate immediately after deciding to pursue short-term rentals. Processing times can vary, and delays here will prevent your STRO license application from moving forward.

3. Secure Your Rental Unit Business Tax Account

Properties rented for more than six days annually require a Rental Unit Business Tax account showing "paid status" before STRO license approval. Contact Rental Unit Business Tax Administration at 619-615-1545 or rtax@sandiego.gov to establish your account.

This tax applies to the property itself rather than your business operations. Outstanding business tax obligations will prevent license approval and renewal, making current compliance essential for ongoing operations.

Tip: Set up automatic payments for business taxes to avoid compliance issues. Even small outstanding balances can delay or prevent license approval.

4. Gather Required Documentation

Compile comprehensive documentation before starting your STRO application. You'll need government-issued photo identification, property ownership documentation, and proof of legal right to operate short-term rentals at the specific address.

For Tier 2 home-sharing licenses, prepare primary residence documentation including driver's licenses showing the property address, voter registration cards, utility bills, or tax records demonstrating genuine primary residence rather than convenience addresses.

Tip: Organize all documents digitally before starting your application. Having everything readily available prevents delays and reduces application errors that could result in rejection.

5. Submit Your STRO License Application

Applications must be submitted through the city's online portal at sandiego.gov. The application period remains open for Tiers 1, 2, and 3, while Tier 4 applications are currently closed due to reaching capacity limits.

Provide accurate property information including exact address verification using the City Council District Map, bedroom and bathroom counts, maximum occupancy numbers, and detailed contact information for both the host and a local representative.

Tip: Double-check all information before submission. Providing false details results in immediate license revocation and potential permanent disqualification from obtaining future licenses.

6. Pay Required Fees

STRO license fees increased in March 2025 and vary dramatically by tier. Tier 1 costs $226 total ($33 application + $193 license), Tier 2 costs $317 total ($33 application + $284 license), while Tier 3 and 4 cost $1,170 total ($41 application + $1,129 license).

All fees are non-refundable regardless of application approval. The city accepts corporate checks, ACH payments with $1.50 fees, or credit/debit cards with 2.95% processing charges.

Tip: Budget for the full fee amount upfront. Failed payments or insufficient funds result in application rejection without refund opportunities.

7. Navigate the Lottery System (Tier 3 Only)

When Tier 3 applications exceed available licenses, the city conducts a lottery system to determine permit recipients. The city prioritizes hosts with clean compliance records—those who haven't tolerated disruptive guests or violated city laws.

Results are announced within 45 days of application deadlines. Unsuccessful applicants can reapply during future application periods if licenses become available through non-renewals or revocations.

Tip: Maintain impeccable compliance records if you plan to apply for Tier 3 licenses. Any violations or enforcement actions significantly reduce your lottery chances.

8. Establish Operational Systems

Successful short-term rental operations require robust systems for guest management, property maintenance, and regulatory compliance. Establish procedures for guest screening, check-in/check-out processes, cleaning between stays, and emergency response protocols.

Consider hiring property management companies to handle day-to-day operations and serve as required local contacts for guest issues. Professional management becomes essential for hosts who don't live near their rental properties.

Tip: Invest in professional-grade systems from the start. Quality management software, smart locks, and reliable cleaning services prevent problems that could jeopardize your license.

9. Maintain Ongoing Compliance

STRO licenses expire exactly two years from issuance and require renewal following the same fee structure as initial applications. Tier 3 and 4 operators must utilize their licenses for at least 90 days annually—failure to meet this minimum results in license revocation.

Stay current with all tax obligations including TOT collection and remittance, business tax payments, and income tax reporting. The city monitors compliance continuously and can revoke licenses for violations.

Tip: Create calendar reminders for all renewal deadlines and compliance requirements. Missing deadlines can result in license expiration and force you to restart the entire application process.

10. Build Professional Networks

Connect with other licensed hosts, property management companies, and industry professionals to stay informed about regulatory changes and best practices. Join local host communities or industry associations for ongoing support and resources.

Establish relationships with reliable service providers including cleaning services, maintenance contractors, and legal professionals who understand San Diego's STR regulations.

Tip: Attend city council meetings and public hearings related to short-term rental regulations. Staying engaged with policy discussions helps you anticipate changes and adapt your business accordingly.

Starting a short-term rental business in San Diego requires significant investment, careful planning, and ongoing professional management. The regulatory environment favors experienced, well-capitalized operators over casual hosts seeking supplemental income. Success depends on treating your rental as a legitimate business with comprehensive compliance systems rather than a casual side venture.

Who to Contact in San Diego, California about Short-Term Rental Regulations and Zoning?

Navigating San Diego's complex short-term rental regulations requires connecting with the right city departments and community resources. The city has established specific contact points for different aspects of STR compliance, while local host communities provide valuable peer support and insights.

STRO Administration

For general licensing questions and STRO ordinance information, contact the STRO Administration team directly. This department handles all aspects of the licensing process, application reviews, and general compliance guidance.

• Phone: 619-615-6120
• Email: stro@sandiego.gov

The STRO Administration team provides comprehensive support for hosts navigating the licensing process, tier determinations, and ongoing compliance requirements. They're your first stop for most licensing-related questions.

Transient Occupancy Tax (TOT) Administration

The TOT Administration desk manages all tourist tax requirements, which represent a prerequisite for STRO licensing. This team handles TOT certificate applications, compliance monitoring, and tax collection procedures.

• Phone: 619-615-1530
• Email: sdtot@sandiego.gov

Contact this department immediately when starting your short-term rental journey, as you cannot proceed with STRO licensing without an active TOT certificate.

Rental Unit Business Tax Department

Properties rented for more than six days annually require Rental Unit Business Tax compliance. This department ensures your account shows "paid status" before STRO license approval.

1. Phone: 619-615-1545
2. Email: rtax@sandiego.gov

Establish contact early in your planning process to avoid delays in your STRO application due to outstanding business tax obligations.

Building and Land Use Enforcement (BLUE) Team

For enforcement-related questions, violations, or compliance concerns, the BLUE team handles all STRO enforcement activities. They investigate violations, issue fines, and monitor platform compliance.

1. Phone: 619-533-6489
2. Email: dsdstrocomplaint@sandiego.gov

The BLUE team employs five dedicated enforcement officers who actively monitor short-term rental compliance throughout San Diego. They respond to neighbor complaints and conduct proactive enforcement activities.

Development Services Department

For zoning questions, land use regulations, and property-specific compliance issues, the Development Services Department provides guidance on how STR regulations interact with existing zoning codes.

1. Phone: 619-446-5000
2. Email: DSDInfo@sandiego.gov

This department helps clarify whether specific properties qualify for short-term rental use and addresses zoning-related compliance questions.

Business Tax Compliance Office

Non-owner hosts operating under lease agreements need Business Tax Certificates in addition to property-level taxes. This office handles individual business tax requirements.

1. Phone: 619-615-1539
2. Email: compliance@sandiego.gov

Contact this office if you're leasing a property and operating short-term rentals under a subletting arrangement that permits vacation rentals.

San Diego Short-Term Rental Alliance (SDSTRA)

The San Diego Short-Term Rental Alliance represents the most comprehensive local host community resource. Formed through the merger of Share San Diego and the Short-Term Rental Alliance of San Diego, SDSTRA provides education, networking, and advocacy for responsible hosts.

The organization offers member-only networking events, both virtual and in-person, covering topics like city hall updates, industry news, and hosting best practices. Members receive detailed newsletters with local updates, including recent information about licensing fee changes and new trash pickup fees.

SDSTRA maintains a curated directory of local service providers specifically serving short-term rentals, plus exclusive member perks from featured vendors. The organization provides the most current information about regulatory changes and their practical implications for hosts.

The regulatory environment continues evolving, making ongoing education and community engagement essential for long-term success. Hosts who actively participate in local communities and maintain professional relationships navigate compliance challenges more effectively than those operating in isolation.

Building these connections before problems arise creates valuable support networks for addressing challenges and staying current with regulatory changes. San Diego's strict enforcement environment rewards hosts who prioritize compliance and community engagement over those who attempt to operate independently.