Short Term Rental data by season in San Diego, CA?

5 Replies

Hello!

We all know SD is a great spot to host short term renters during the spring and summer months, but does anyone have any idea how Airbnb's due in the Fall/Winter? I am considering signing a master lease on a studio downtown solely to rent out on air bnb and am curious to know if anyone has experience renting out on Airbnb during the "off season" in San Diego. 

Would love to chat!

Sam

As everything in real estate is very market specific I can't directly answer your question. If I were you I'd go on airbnb and study folks in your market. But I think you wont find many folks. From what I understand San Diego is one of the toughest on cracking down. I'd do a Google News of "San Diego Airbnb" should change your mind real quick. I just did and the headlines alone were enough to tell me it's not a good idea. 

The lease and Airbnb tactic is something I frown upon. Just stay at your job until you've got a down payment. If you REALLY want to STR (which by the way IS a JOB) You can get in to a property for 10% down if its more than 60 miles from your primary and you finance it as a "second home" but you must have the "intention" of staying in it often. Talk to your lender about this as you will have to sign a second home rider.


Good Luck! 

We have an STR duplex in Mission Beach that uses a PM. I am not sure how MB would compare to downtown. Our PM varies the prices based on desirability. July is the best month. July 4th weekend, one unit gets ~$450/night (so ~$900/night for the duplex), weekdays in July average a little over $300/night. July rent in 2018 exceed $10k/unit.

The winter rent, due to the various holidays and the harsh weather in other parts of the country, does OK.  Not like summer but pretty close to Spring.  Our lowest rent month is Oct.  Weekends in Oct are close to $150/night and weekdays close to $120/night per unit.  So I would estimate Oct is about 1/3 the rent of July (so ~$3.5K/unit).

Rents in December for the first half of the month are about the same as Oct but the rents ramp up the second half with the pinnacle being just before Christmas to New Years.  Late December rents are ~$250/night (weekend and weekday are virtually the same with New Years Eve being highest).

The prices our PM sets results in very few vacancies.  I actually would not mind a few more vacancies so that we could enjoy the units ourselves on occasion.

So for our MB STR Oct is ~1/3 rent of July. I would suspect in downtown you would not see quite as much rent variation for the seasons as Mission Beach but I do suspect that the winter holidays would make the winter rent better than fall and probably close to spring.

Good luck

@Sam Crochet are you aware of the STR permitting turmoil that is happening across San Diego right now right? They are essentially banned starting next July unless it's your primary residence. I wouldn't sign anything until you know what's going on with that current situation first. Just a heads up.

http://www.sandiegouniontribune.com/business/touri...

Originally posted by @Jon Crosby :

@Sam Crochet are you aware of the STR permitting turmoil that is happening across San Diego right now right? They are essentially banned starting next July unless it's your primary residence. I wouldn't sign anything until you know what's going on with that current situation first. Just a heads up.

http://www.sandiegouniontribune.com/business/touri...

 I know several people with STRs. None seem worried. There are several loopholes. They might be being foolish but all are still looking to buy.

Thank you for the input thus far. I am certainly aware of the debate. Importantly, even if the rule does come into effect, it won't be until July 2019. There is some risk I suppose of a 12 month master lease starting now, but in reality this issue will probably be litigated and I think SD City Counsel overstepped their boundaries to the point too many people are countering the new measure. Also, if Airbnb gets 35,000 signatures none of this will happen.

Sam