Imagine you buy or rent a home or apartment in a quiet neighborhood only
to be kept up every night by loud house parties. In San Diego, this is
a reality for many residents due to the increasing popularity of short-term
vacation rentals from sites like VRBO.
Fortunately, a new law, called
the Short-Term Residential Occupancy (STRO) ordinance, seeks to reign in the largely unregulated industry. As
10 News explains:
“The question of how the city would handle short-term rentals amid low housing
supply and quality of life concerns for residents has been an issue for
years… this law puts that question to rest.”
As of April 14, San Diego was home to more than 14,700 short-term rentals,
including 1,667 in Mission Beach. The new ordinance will reduce this number
to about 5,400 – or 1% of the city’s housing stock. Property
owners must enter a lottery for the right to rent their homes to tourists
and appoint a local contact to respond to disturbances at the property
within one hour or less, among other rules and restrictions.
The law will not affect home-sharing for families who share their vacation
homes via rental fees, and part-time rental operators will receive discounts
for hosting guests during high visitor events. “Good actors”
who have never allowed large parties or gathering at their rental properties
will be prioritized in the lottery, and short-term rental owners will
only be granted one license per person.
Additionally, the ordinance comes with a detailed “Good Neighbor
Policy,” which includes rules for enforcement, fines for violations,
and a standard for license revocations. Property owners can no longer
rent out a string of hotel-like homes and apartments, nor shirk liability
when guests throw house parties or otherwise disturb residential neighborhoods.
Officials hope the new law will “end the uncontrolled growth of short-term rentals, return homes back to
San Diego's housing market and bring peace and tranquility back to
For Property Owners
If you use VRBO to subsidize your vacation home or make extra money, this
news may be disappointing for you. Still, you should enter the lottery,
especially if you have always been a “good actor” when it
comes to your short-term vacation rental. You should also keep in mind
that the new law will not go into effect on July 1, 2022, so you have
plenty of time to secure a license or explore other options for your properties.
If you’d like to convert your property into a long-term rental, our real estate attorneys
may be able to help.
For Short-Term Tenants
When STRO goes into effect in 2022, expect fewer options when it comes
to short-term vacation rentals and stricter rules for the rentals you
do find. Keep in mind that both hosts and guests could be fined
up to $1,000 for violating rental rules, and the majority of properties will have a
2-night minimum stay.
Staying Up to Date with Real Estate Law
Allen, Semelsberger & Kaelin LLP, we stay up to date with local, statewide, and national real estate laws.
We help landlords, tenants, businesses, and municipalities navigate complex
issues within the real estate market and resolve problems and disputes
when they arise.
From short-term vacation rentals to
mobile homes, we understand the types of properties California has to offer, and we
are more than ready to handle your case and help you make the most of
Call us at (888) 998-2031 or send us a message online
to tell us what you’re dealing with today.