October 2024
Disclaimer. This page is intended solely to assist you in understanding the regulations you may need to comply with. The information provided here is not exhaustive and may not reflect the most current legal standards. It is your responsibility to ensure compliance with applicable laws. For further guidance, please contact your local tax authorities or consult with a qualified legal or tax professional.
The City of San Diego has adopted the Short-Term Residential Occupancy Ordinance (STRO) to regulate the short-term rental industry. Please also consult the San Diego Municipal Code (SDMC) as other provisions may apply to your hosting activity. Please visit the short-term residential occupancy on the San Diego website.
Transient Occupancy Tax (TOT)
Your hosting activity may be subject to various taxes. Please note misterb&b registered with the City of San Diego to collect the Transient Occupancy Tax on your behalf. For more information, check our FAQ about US sales/occupancy tax collection by misterb&b.
You remain responsible for registering for, collecting and/or remitting any other taxes applicable to your hosting activity.
Types of STR in San Diego
The STRO Ordinance in San Diego defines 2 types of short-term rental occupancy:
- Home Share. Short-term residential occupancy in the your primary residence (or in a separate dwelling unit on the same premise) while the you are either present on-site or not.
- Whole Home. Short-term residential occupancy of the your entire dwelling unit (not being your primary residence) while the you are present on-site.
STR License
You can only operate one license. The type of license you must obtain depends on the type of STR you operate and the number of days you plan to host.
Hosting for 20 days or less per calendar year
- Tier 1 License. If you plan to operate a Home Share or a Whole Home for 20 days or less per calendar year.
Hosting for more than 20 days per calendar year
- Tier 2 License. If you plan to operate a Home Share for more than 20 days per calendar year.
- Tier 3 License. If you plan to operate a Whole Home (outside of Mission Beach) for more than 20 days per calendar year.
- Tier 4 License. If you plan to operate a Whole Home in Mission Beach for more than 20 days per calendar year.
License application process
The license application period will open on Monday, Oct. 3, 2022 for all the types of licenses. It will close on Nov. 30, 2022 for Tier 3 and Tier 4 licenses.
- Online process. The application process can be done online. The link to submit an application and pay fees will be available on the STRO Website once the application period opens. More information about the process here.
- TOT Certificate. Please note you must obtain a Transient Occupancy Registration Certificate (see online application here) before applying for a license (even though misterb&b manages the TOT on your behalf). For more information, you can visit this official page about TOT in San Diego.
You must add the license number to your misterb&b listing(s) (go to the “Local Requirements” page, via “Edit my listing”). In the absence of your registration number, misterb&b may delete your listing.
Rental Unit Business Tax and Business Tax Certificate
- Rental Unit Business Tax. City of San Diego property owners who rent their residential real estate (full place or a portion) for more than 6 day per calendar year are required to pay an annual Rental Unit Business Tax. It includes property advertised or otherwise held out for lease during the year. For more information, please visit the RUBT website or call (619) 615-1545.
- Business Tax Certificate. Business Tax requirements may also apply for individuals subleasing property. For questions, contact (619) 615-1549 or email btax@sandiego.gov.
STR conditions
- Zoning and use restrictions. The dwelling unit you use to operate short-term rentals must be maintained and used at all times for residential occupancy only.
- Presence of the Host during Guest’s stay. You cannot be present if you operate a Whole Home (defined as the exclusive use of the property by your Guests). You may be present or not when hosting Guests in your primary residence (Home Share): however you must occupy your primary residence at least 275 days per year.
- Nights minimum. If you hold a Tier 3 or 4 License, each Guest must stay for a minimum of 2 nights.
- Minimum use of license. If you hold a Tier 3 and 4 license, you must rent for a minimum of 90 days each year. To demonstrate utilization, you have to submit quarterly reports to the City Manager containing the number of days the short-term was occupied.
Maintaining compliance
The STRO Ordinance provides for different conditions and standards that your hosting activity must met.
- Nuisance. You must ensure their STROs do not create a public nuisance.
- Fire and safety. You must ensure that the STR complies with current California Fire Code Regulations.
- Local contact. You must designate a local contact who must respond within one hour of receiving the complaint.
- Good Neighbor Policy. You must give guests a Good Neighbor Policy notice, which includes the rules of coexistence and the rules of the neighborhood, such as parking, noise limits and the rules of garbage disposal and recycling.
- Exterior notice. You must post an exterior notice in a location visible to the public, that includes the TOT Certificate number, license number, contact information (of you or your local contant, and of the City Code Enforcement Division).
- Records maintenance. You must maintain some information for each rentals for the following 4 years.
Third-party rules
- Community rules. You must abide by other contracts or rules binding you, such as co-op rules, CC&Rs, HOA rules, or other rules established by tenant organizations.
- Lease contract. If you are a renter, you must get the written permission from your landlord to use the property as a STR.
Data-sharing and privacy
misterb&b is required by law to save and share some information with the city of San Diego. It includes the listing’s license number, name of the host, the listing’s address and the number of nights a Guest stayed at the unit.
By using misterb&b, you consent to the collection, retention, use and disclosure of your information to the City (in accordance with all legal obligations and processes).