What is the San Diego STR Ordinance?
The San Diego Short-Term Residential Occupancy (STRO) Ordinance is the local law regulating properties rented for fewer than 30 consecutive days. The ordinance aims to balance the benefits of tourism with community concerns about housing and neighborhood character.
It created a mandatory licensing system with four distinct tiers, differentiating between hosted stays (home-sharing) and whole-home rentals. A key provision is a city-wide cap on the number of licenses available for whole-home rentals that operate more than 20 days per year.
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How it works
To operate a short-term rental legally in San Diego, a host must apply for and obtain a STRO license. The city offers four license tiers based on whether the host resides on-site and the frequency of rental activity.
Tier 3 and 4 licenses, which permit whole-home rentals for more than 20 days a year, are capped at 1% of the city’s housing stock and are allocated via a lottery system when demand exceeds supply. Once a license is secured, the license number must be displayed on all advertisements and listings.
Tools like a Lodgify website builder can help ensure compliance by providing fields to display this required information. The ordinance also requires hosts to designate a local contact who can respond to any neighborhood disturbances within one hour.
Why it matters
This ordinance is critical for any host operating or planning to operate in San Diego. Compliance is mandatory, and significant penalties are imposed for unlicensed operations.
The cap on whole-home licenses creates a competitive and lottery-based environment for many investors and property managers. For the community, the ordinance provides a framework for managing the impact of STRs, preserving housing stock, and ensuring visitor accountability.
Examples
- A homeowner who wants to rent out a spare bedroom while they are present must obtain a Tier 1 (for up to one room) or Tier 2 (for two or more rooms) license, which is not subject to a cap.
- An investor owns a condo they wish to rent out year-round as a vacation rental. They must apply for a Tier 3 license and successfully secure one through the city's lottery to operate legally.
- A property manager running several San Diego units must ensure that each property's unique STRO license number is prominently displayed on its Airbnb, Vrbo, and direct booking website listings.
- During a city audit, an unlicensed host is discovered and issued a fine for thousands of dollars per day of illegal operation, along with an order to cease all rental activity immediately.
Frequently asked questions
What are the different license tiers in the San Diego STRO Ordinance?+
Is there a cap on the number of STR licenses in San Diego?+
Do I need a local contact for my San Diego vacation rental?+
What happens if I don't get a license through the San Diego STR lottery?+
Related terms
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