San Diego City Council Prohibits Short-Term Rentals in Second Homes and ADUs

A new law in San Diego would only allow the rental of primary residences, making it illegal to rent out second homes. "The council vote was 6 to 3, with council members Scott Sherman, David Alvarez and Chris Cate dissenting," Lori Weisberg and Rob Nikolewski report for the San Diego Union Tribune. The legislation would also give rental properties a $949 annual licensing fee which may be the highest in the United States. The move also makes it illegal to rent ADUs, but the council is said to be considering revisiting that issue.

Airbnb and other short-term rental companies have long been a hot issue in the city; opponents to short-term rentals argue that the popularity of the services is making housing unaffordable in the city. Those in favor of short-term rentals counter that tourism is a driving force in the city and short-term rentals help attract tourists with money into the city. "In taking the action it did on Monday, the council is following the lead of other big cities, like San Francisco, New York and Paris, which, too, have limited short-term rentals to residents’ primary homes," Weisberg and Nikolewski report.