San Diego Residents Continue to Debate Short-Term Rental Regulations 

The number of short-term rentals in San Diego County neighborhoods have increased due to the popularity of platforms such as Airbnb, VRBO, and HomeAway. The ongoing debate over vacation rental regulations is still dividing neighbors and city leaders.

An assembly bill, authored by North County Assemblywoman Tasha Boerner Horvath, D-Encinitas, proposes that each short-term rental in San Diego’s coastal communities could only list a residential property for a maximum of 30 days per rental unit, unless a primary resident lives onsite full-time. 

The regulations are intended to put a stop to out-of-town investors using the short-term rental industry to make a profit in San Diego, which has grown with the popularity vacation rental websites. 

The state bill was introduced earlier this year in February. After various amendments, it passed Assembly and was recently referred to the Senate Governance and Finance Committee for review.

Short-Term Rental Support

Support for short-term rentals in San Diego county varies by neighborhood.

Some residents in Mission Beach feel that the town would be significantly changed without vacation rentals. 

Matt Gardner,  president of the Mission Beach Town Council and owner of a rental business that caters to visitors, does not want to see a more restrictive policy. 

“My business is very much driven by the short-term rental industry in Mission Beach,” Gardner said. “Mission beach has a 100-year history of short term rentals, and my business provides products to the people who stay in them. 

Gardner said that he wants there to be an annual permit fee, a ‘good neighbor’ policy, and enforcement personnel for all vacation rentals.

 “I think both sides can get very much what they want with the right kind of regulations.”

 Local Efforts to Restrict Rentals

The San Diego City Council recently voted to rescind short-term rental regulations proposed by Mayor Kevin Faulconer, which would have required residents to obtain a license to operate a short-term rental for their primary residence, and one additional license for a dwelling unit on the same parcel as the host’s primary residence. 

The now-rescinded regulations required operators to register with the city, secure a Transient Occupancy Tax certificate, obtain a Neighborhood Use Permit for dwellings with four or more bedrooms, and comply with a Good Neighbor policy, including posting local contact information on the property being rented. Anyone who operated a short-term rental would have been required to pay local tourism taxes and charge a nightly fee of $2.76 that would go towards affordable housing, under the proposal. 

According to existing zoning laws in the city of San Diego, the conversion of residential units into short-term rentals for tourists and visitors is prohibited. Since short-term vacation rental is not a listed use in the San Diego Municipal Code, it is not technically permitted. 

Some San Diego residents want to know why the current laws are not being enforced. 

John Thickstun, a spokesperson for Save San Diego Neighborhoods, which is fighting short-term rentals, continues to push for better enforcement, “San Diego is the fourth largest profit center for Airbnb in the country because our city doesn’t enforce its municipal code,” Thickstun said. “Our elected officials now clearly understand short-term rentals operate illegally in San Diego.”

Save San Diego Neighborhood is a group of nearly 3,500 activists who are fighting the conversion of residential housing units into short-term rentals. The group is calling for better enforcement of existing laws, and aims to protect all of San Diego County, not just the coastal communities.

Thickstun argues that the only way to deal with short term rentals is to prohibit them because regulating them in numbers of days or length of stay would require too many administrative services by local governments. 

Enforcement efforts would take a department dedicated to permitting, policing, and managing paperwork, according to Thinkstun. He said it becomes economically prohibitive to regulate vacation rentals with new ordinances.

According to the 2017 City of San Diego’s Short-Term Rental Market Overview, 

The cities with the most active listings that fit the short-term rental description were Mission Beach, Pacific Beach, Downtown, and then La Jolla. 

The bulk of the rentals are in Mission Beach, Pacific Beach and Downtown. This is the primary reason that the state bill focuses on the coastal communities.

Clairemont resident Susan Hopkins, who is also a member of Save San Diego Neighborhoods, said the assembly bill needs to go further than just the coastal regions.

“People think that short term rentals are only a problem for the people in Mission Beach, and Pacific Beach,” Hopkins said. “But I live in Clairemont and I have one across the street from me. Short-term rentals are all over the county, and if they restrict them at the coast, my concern is it will put pressure on the other regions inland.”

Some investment companies have purchased entire apartment buildings to lease out as short-term rentals. Sonder is one company that turns apartments into vacation rentals for tourists that want a more private, comfortable experience than a standard hotel.

 “Companies like Sonder are taking whole apartment buildings zoned for residents, and converting them into Airbnb’s,” said Hopkins. “We are in the middle of a housing crisis. We have rent going up like crazy, and people getting evicted — all so people can cash in on this tourism opportunity.”

Sonder has 8,500 units leased today with 3,000 ready for guests, according to an interview with the owner of Sonder.

Property owners fight for vacation rentals in the coastal communities

In San Diego County’s coastal cities, there are approximately 14,000 housing units actively listed as short-term rentals on Airbnb, Home Away and VRBO hosting platforms, according to the home sharing data analytics firm Airdna.  

Bill Luther, a 45-year resident of Mission Beach and owner of a vacation rental company, said vacation rentals don’t belong in all parts of the county but should be allowed in areas that attract tourists. 

“There are a number of areas that work well with short term rentals, like Mission Beach,” said Luther. “They don’t belong in a single-family neighborhood like Mira Mesa or Scripps Ranch. But there are areas that are compatible, like areas close to the Zoo or Gaslamp District, where it’s logical that tourists and visitors will be there.” 

Blaine Smith, Founder of 710 Vacation Rentals, created an organization called “Save Mission Beach,” which consists of residents, property owners, and businesses dedicated to saving and preserving the 100-year history of second-home vacation rentals in Mission Beach. 

Save Mission Beach focuses their efforts primarily on short-term rentals along the Mission Beach Peninsula, according to their website. 

Smith said that the state bill is confusing and does not address real issues, such as enforcement. He said the restrictions proposed on coastal vacation rentals will hurt San Diego property owners. 

“Our town would be devastated as short-term rentals have been a vital part of our community since it was established,” Smith said. “The impact on the local real estate market could be very negative as many of the homes are afforded by the income of these rentals and many people would be forced to sell.”