On Wednesday, March 9, the California Coastal Commission voted to approve San Diego’s short-term rental ordinance. The ordinance is set to go into effect in the fall.
The new ordinance will include capping whole home rentals at one percent of the City’s more than 540,000 housing units which would be around 5,400. Mission Beach will be capped at 30% or around 1,100 dwelling units.
The City will have 6,500 available licenses, a reduction of 48% compared to the current estimate of 12,300 vacation rentals, according to the Coastal Commission.
The new regulations will also allow for only one license for individuals renting their entire residence for more than 20 days per year. An unlimited number of licenses will be allowed for vacation rentals of less than 20 days a year or for home-sharing in which a host rents out a room or two.
A lottery system will be used to allocate two-year licenses, with priority given to good actors.
A Message from SDSTRA
SDSTRA is very concerned with the drastic effect this will have on San Diego’s Short Term Rental space and will be watching the implementation of the lottery process and ordinance closely. We will consider all options on how to proceed and protect San Diego’s Short Term Rental community and treasured visitors. We have submitted a list of questions to the City that we believe must be clarified before the lottery goes into effect.
We will continue to provide updates as more information is available.