Airbnb in San Diego?

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Hello! I'm looking to do rental arbitrage in Downtown San Diego area. The first thing I want to ask to someone who is also doing rental arbitrage is...what do you say when you mention you'd like to sublet/host the property on Airbnb/VRBO? Do you provide any incentives? My second question to any San Diego Airbnb host is...what do I need to obtain to do this the right way? I see that there are some various taxes and a business tax certificate, but am I missing something else? I'd like to ensure that I get all my ducks in a row so that I don't run into any issues. Thanks all for your help!

Originally posted by @Julie Vu :

Hello! I'm looking to do rental arbitrage in Downtown San Diego area. The first thing I want to ask to someone who is also doing rental arbitrage is...what do you say when you mention you'd like to sublet/host the property on Airbnb/VRBO? Do you provide any incentives? My second question to any San Diego Airbnb host is...what do I need to obtain to do this the right way? I see that there are some various taxes and a business tax certificate, but am I missing something else? I'd like to ensure that I get all my ducks in a row so that I don't run into any issues. Thanks all for your help!

San Diego city counsel recently passed STR restrictive regulation that limits STRs to 1% of the units (excluding Mission Beach) and gives precedence to existing STR good actors (those paying their fees with few noise complaints, etc). You can do an internet search to see various coverage of this recent regulation.

What this means to you is even if you find a LL willing to let you do a rental arbitrage, you will have to get very lucky to win the STR lottery. I suspect some areas will have 0 available STRs after providing the existing good actors their STR permits. The areas that have some STR permits to provide via the lottery will have many people trying to win that lottery. I have a quad LTR that I will be applying for one STR unit (we also have 2 STRs in Mission Beach).

Let's say you get lucky and win the lottery. I believe the lottery is associated with the property and not the person that applied for the lottery. At the end of your initial lease, the owner can terminate your lease and have an STR.

As for an owner allowing rent arbitrage, I do not understand why any owner would want this.  If they wanted an STR they can hire a professional, insured PM to manage the STR rather than relying on an uninsured amateur to manage the STR  

By the way, the STR restriction/lottery only applies to the city of San Diego. However, there is some anti STR sentiment in much of the county. This implies STR restrictions could be imminent in many/most San Diego markets.

Good luck