San Diego’s Proposed Vacation Rental Changes
What Owners Should Know
Greg Ross
CEO / Owner - Nancy's Vacation Rentals
Less reporting, new documentation, and a longer coastal timeline are among the changes in the October 2026 draft.
Updated October 22, 2026. This article examines the draft attached to the October 21 committee hearing. It does not establish the committee’s final amended language or an effective date.
Imagine you own a vacation condo in Pacific Beach. You enjoy a few weeks there yourself, welcome paying guests throughout the year, and keep an eye on the City’s licensing requirements.
Then you hear that San Diego is changing its vacation rental ordinance.
Does that mean fewer licenses? Longer minimum stays? Another round of reporting?
The October 2026 proposal offers a more specific—and more mixed—picture. The draft would remove a rental-use requirement and quarterly reporting for whole-home operators, add documentation and enforcement provisions, and extend parts of the coastal regulatory framework through January 1, 2038.
At Nancy’s Vacation Rentals, more than 25 years of managing San Diego vacation homes have taught us to read past the headline. For owners, what matters is the actual language, which properties it affects, and when it becomes enforceable.
Here is what stands out in the draft.
First, Proposed Changes Are Not Current Rules
The City scheduled amendments to its Short-Term Residential Occupancy ordinance, commonly called STRO, as Item 6 at the October 21, 2026, Community and Neighborhood Services Committee meeting.
The attached documents provide a useful look at the proposal. They should not be treated as proof that every provision has completed the approval process or taken effect.
For now, owners should continue following their existing license requirements. That includes continuing required reporting rather than stopping because a draft proposes eliminating it.
Whole-Home Owners Could See Less Reporting
One of the most practical changes appears in Section 510.0107(c).
The marked-up ordinance strikes the requirement for Tier 3 and Tier 4 hosts to use their licenses at least 90 days each year. It also strikes the requirement to submit quarterly utilization reports showing rental days.
For an owner who balances guest reservations with personal visits, maintenance projects, and family use, removing that annual minimum could provide more flexibility. Eliminating quarterly reports could also reduce administrative work.
But there is a distinction worth keeping: less reporting would not mean fewer responsibilities across the board. The draft retains a licensing framework and includes provisions addressing legal dwelling use and nuisance conditions.
Owner takeaway: Watch this provision closely, but keep meeting the existing utilization and reporting requirements until an approved change becomes effective.
The Coastal Timeline Would Extend to 2038
For owners in coastal neighborhoods, another substantial proposal concerns the ordinance’s sunset clause.
The draft changes the expiration date for specified provisions of the certified Local Coastal Program from January 1, 2030, to January 1, 2038.
That would extend the coastal regulatory framework. It would not give an individual property an eight-year license extension or guarantee its eligibility through 2038.
The draft expressly states that the sunset amendment requires California Coastal Commission certification before it applies in the Coastal Overlay Zone. It includes similar certification language for certain other coastal provisions.
Owner takeaway: This matters for long-term planning, but it should not be represented as guaranteed rental rights or an automatic license renewal.
Applications Would Require More Property Documentation
The proposal would require applicants to provide a County Assessor residential building record demonstrating that the property complies with the Land Development Code for use as a dwelling unit.
It also explicitly prohibits short-term residential occupancy in a structure or premises that is not a dwelling unit and adds legal dwelling compliance to operating requirements.
For an owner evaluating a converted garage, detached structure, or property with unclear records, this deserves attention before investing in furnishings or projecting rental income.
The requested Assessor record should not be mistaken for a blanket approval of every conversion or improvement. Any uncertainty about permitted residential use needs to be resolved with the appropriate City department.
Owner takeaway: Make sure the proposed rental unit and its property records tell the same story.
Tenant-Protection Violations Would Affect Licensing
The draft would prohibit issuing an STRO license for a dwelling unit that violates the City’s Tenant Protections Ordinance.
That provision is particularly relevant when a property has been occupied by long-term tenants before a proposed conversion to vacation rental use.
For buyers and owners, the practical issue goes beyond whether the property appears suitable for visitors. Its tenancy history and compliance with applicable tenant protections can matter, too.
The draft restriction does not, by itself, explain how every violation would be identified or resolved. Those implementation questions deserve attention as the proposal moves forward.
Owner takeaway: Do not assume obtaining a vacation rental license can cure problems with an earlier tenancy or eviction.
Home Sharing Would Get More Specific Language
The draft explicitly allows Tier 2 home sharing in the host’s primary residence or a separate dwelling unit on the same premises.
It retains the Tier 2 requirement that the host occupy the primary residence for at least 275 days in the applicable calendar year, with a proportional standard for a shorter period of ownership or tenancy.
It also requires a host whose primary residence changes to notify the City within 10 calendar days to cancel the Tier 2 license.
There is a discrepancy in the packet worth flagging: the staff report describes a six-month primary residence definition, while the marked-up ordinance deletes that phrase and replaces it with “occupies.” Owners should rely on the final adopted language and City guidance when assessing eligibility.
Owner takeaway: The reference to a separate dwelling does not establish that every backyard unit qualifies. Other property-use restrictions still need to be checked.
Local Contact Changes Would Need Faster Updates
The draft requires hosts to update the required exterior notice and notify the City within 24 hours when designated local contact information or a telephone number changes.
It also adds a restriction against more than one short-term residential occupancy at a time in a whole home, explicitly requires hosts to be at least 18, and bars processing an application for a host who submitted false information to secure a license during the preceding 12 months.
For a professionally managed property, the contact provision is a reminder that assigning responsibility is only the first step. The City’s records and the property’s posted information also need to stay current.
What About Rental Caps and Minimum Stays?
The attached draft does not propose changing the Tier 3 and Tier 4 provisions containing the existing whole-home rental caps and minimum stays. It also does not establish a new one-license-per-property-owner restriction.
That observation applies to the published draft. It should not be read as confirmation that no additional proposals were discussed at the hearing or could be introduced later.
What Owners Can Do Now
There is useful preparation owners can do without guessing at an effective date:
- Keep existing licenses, required reports, and tax accounts current.
- Review property records for questions about legal dwelling use.
- Check that posted local contact details match City records.
- Review tenancy history before planning a conversion to vacation rental use.
- Verify final adoption, effective dates, and any required coastal certification before changing operating practices.
For a Pacific Beach condo, a Mission Beach vacation home, or another San Diego rental, the right next step depends on the property’s license tier and circumstances.
At Nancy’s Vacation Rentals, we help owners connect those details with the everyday work of running a well-managed vacation home. If you are evaluating a rental property or reviewing your current management, contact our team to discuss how your property fits into San Diego’s vacation rental landscape.
This article provides general information based on the October 2026 proposal. Requirements and draft language may change. Property-specific legal or land-use questions should be confirmed with the City or a qualified professional.
