Many out-of-town Investors and foreign investors are purchasing properties in San Diego as a 2nd home – Vacation home. One of big reasons is that you can rent out the property as a short-term vacation rental. Thanks to on-line rental platforms like Airbnb, short-term rental business is getting easier than ever. San Diego consistently ranks among the top destinations for family vacations. Now even local investors are buying properties as Short-term Vacation Rentals. With over 12,000 short-term vacation rentals in the area, San Diego is rapidly becoming the fastest growing market in the country.

According to Pillow, a Short-term Vacation Rental Investor could be earning thousands more from your rental property. And our clients agree, they are looking for Vacation Rental Income Property especially in Pacific Beach, Crown Point Area, Ocean Beach.

What You Should Know Before Buying a Vacation Rental in San Diego


However short-term rentals have been seen as a direct threat to local communities. Many San Diego residents are upset with vacation rental guests disrupt their quiet residential neighborhoods, increase traffic, noise and trash. We think that affordable rental properties are being taken off the long term markets, squeezing an already tight rental scene.

Cities and communities in San Diego County have passed or will attempt to enforce restrictions on short-term rentals, and if you are a Short-term Vacation Rental Investor, you have to pay attention to what is happening with these rules.

What You Should Know Before Buying a Vacation Rental in San Diego

In April, a Pacific Beach planning group voted to prohibit vacation rentals in single-family residential areas that are for less than 30 days.

In September the San Diego Community Planners Committee voted 24 to 3 to reject City Council-member Lori Zapf’s proposal to allow short term vacation rentals to operate in San Diego residential zones with restrictions and Council-member Chris Cates’ proposal to allow STVR in residential zones, outright.

Solana Beach, in 2003, adopted an ordinance that prohibits rentals of less than 7 days in residential zones, requires owners to get a permit for a one-time fee of $110 with a small yearly renewal fee, and requires the exterior posting of contact information in public view, to provide adjacent property owners with the 24-hour, seven-day phone number and a response within 24 hours to any complaints. Find Out More

Encinitas, like Solana Beach, adopted its ordinance early on, and passed it in 2005. It requires a permit with an annual fee of $150, it limits the number of occupants in rentals to 2 people per bedroom, plus one additional person per home, and it requires property owners to post their contact information on the outside of building and to respond within 24 hours if problems are reported. A condominium project or an apartment building of 3 or more units in a residential zone is not allowed as a short-term rental. (Note: some condominium projects and multi-family projects are located in non-residential zones and can be used as a transient habitation use/short-term rental, as allowed by the zone.)

Oceanside owners are required to have a business license and to pay Oceanside’s 10 percent hotel room tax and a 1.5 percent fee to the tourism marketing district. Any stay over 30 days is not considered a vacation rental and does not pay the room tax or marketing district fee. Find Out More

Carlsbad‘s new rules for short-term vacation rentals went into effect June 4, 2015, banning them except in the “coastal zone.” Find Out More

Del Mar officials say the city’s existing regulations are outdated and need to be clarified. The city’s zoning code doesn’t name vacation rentals as an allowed use, so they’re technically prohibited. But another section of the code allows residents to rent rooms in their homes for undefined periods of time.

If you are considering to buy Vacation Homes or Short-term Vacation Rentals, research the current local city’s regulations and contact us. We can help you find the right property.