Are MF also under the short term rental control risk in SD?

Question

Last year a short term rental law that limits short term rents in residentials in San Diego was passed then rescinded.

I was wondering if that legislation is enacted in the future, will that concern MF (>= 4 units) also. I have been thinking on buying a first MF here in San Diego and rent it short term as a way to quickly grow my portfolio with the potential higher cash flow. Any advices will be very welcomed.

Dan H. · Answer

@Michael Ndjondo makadi

Previous to this year, the state rules only mandated ADUs be allowed on SFR.  That is no longer the case.  The existing ADU bills allow ADU on MF.

I suggest you read all 6 of the CA ADU bills.  There will be some things that are not easy to understand (Such as what qualifies as an agency.  Is a utility company an agency?).

You can request help on interpreting any of the rules on BP, but for the definitive answer, email ADU@ the HCD domain (BP does not permit email addresses).

Good luck

edit: sorry, I somehow posted on wrong subject.  Too many windows open.

Donald E Appleberry · Answer

@Michael Ndjondo makadi

Hey man,

There a lot of back and forth in the city politics about this right now. A lot of the candidates are using AirBnb/short term rentals as a big point in their running platform. So it’s hard to say for sure. However, I know a few investors with >4 unit buildings who do short term rentals with them. I think the big pushback is for condos and SFR in beach areas like PB. If you’re outside downtown or not directly in the center point of busy areas you’re USUALLY good.

I have one guy I work with that bought a multi million SFR on a golf course that found out after close his building was the only one not allowed to Airbnb. (I wasn’t his agent btw) haha. SD has a lot on paper but what they actually enforce or abide by seems to be hit or miss.

All the best,

Donald Appleberry

Michael Ndjondo makadi · Answer

@Dan Heuschele

I’m not sure how the ADU rules will relate to legislation on  short term rentals for MF.

Michael Ndjondo makadi · Answer

@Donald E Appleberry

Thanks for your reply. It’s hard to know what the politicians will do. Hence, I’m trying to gage the risk.

I can feel for the guy though.