San Diego STR Investment Areas

[Punarvashu Tyagi]

Hi friends,

I am looking for your advice regarding existing/upcoming areas in San Diego for STR investment. It would be great if you may also share any known restrictions for STRs in San Diego area.

Thanks

Vasu

[Dan H.]

San Diego recently passed a quota on STRs. The quota is basically at 1%, but it has some caveats. In Mission Beach they plan a higher quota. They also plan to in some way give a precedence to "good actors" meaning the current STR owners that have been doing the things they are expected to do (minimize neighbor complaints, pay fees/taxes, etc.). This implies that it is going to be very difficult to create a new non-owner occupied STR in the city of San Diego. For example, if the area is capped at 1% (I believe all areas except Mission Beach), but there is already 0.75% "good" STR owners, then the STR lottery will be for 0.25%. I think in some areas there will be no STRs available for lottery after accommodating the "good" STR owners.

Del Mar passed very stringent non-STR regulations but the coastal commission required that they be eased slightly.

In general, San Diego climate is anti- STR and to plan for STRs is a higher risk plan. I would make sure you have a plan B for if (when?) the STRs are no longer permitted.

Good luck