San Diego will reopen applications Tuesday for vacation home rental licenses in Mission Beach for the first time in two-and-a-half years.
Starting at 10 a.m., prospective hosts can apply for Tier 4 licenses, which apply specifically to whole home short-term residential occupancies within the Mission Beach Community Planning Area operating more than 20 days per year.
The applications first opened in October 2022 and fully reached capacity by November that year.
“As a result of this ordinance, we have seen more housing return to the market for San Diego residents, while also providing options for visitors who want to stay in one of San Diego’s many vibrant and diverse neighborhoods,” said San Diego City Council member Jennifer Campbell, who represents District 2, including Mission Beach.
“Especially in popular areas like Mission Beach, these regulations have protected the neighborhood quality of life, and I am grateful to all the hosts who have adapted to follow this new model for their rentals.
“I am committed to continuing to foster a positive and respectful relationship between San Diego residents and visitors as we enter this next phase of licensing,” she added.
The ordinance mandating the short-term residential occupancy license was passed in 2021 and subsequently approved by the California Coastal Commission. Its guidelines include a cap on the number of licenses granted for whole-home rentals operating more than 20 days per year.
It also caps short-term vacation rentals at 1% of the city’s housing supply and prioritizes “good actors” in a lottery to determine who gets to offer properties for whole-home vacation rentals.
Since the applications closed in 2022, city staff have maintained a wait list of initial applicants. Before beginning the process to apply, hosts must possess an active Transient Occupancy Tax certificate and ensure all Rental Unit Business Taxes are in active paid status, according to a city document.
According to the city, submission of Tier 4 applications will be limited to a 45-day period, concluding on Aug. 15. Once the application period ends, city staff will conduct a random lottery to determine processing order and potential wait list position.
Existing license holders of Tiers 1-3 are able to apply to be added to the Tier 4 applicant list. If approved for a Tier 4 license, they will have to cancel their existing lower-tier license.
Details and a description of the four license types are available here.
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