Photo taken by Daniel Bommarito’s “Del Mar Series”.
If you’ve ever wondered whether your home near the coast could double as a vacation rental, you’re not alone. With San Diego’s beaches, warm weather, and year-round appeal, the idea of turning your property into a short-term rental is tempting—and for some homeowners, it can be a great option. But like most things in real estate, the details matter.
In this blog, we’re breaking down the essentials of what it means to vacation rent your home in San Diego and the surrounding coastal communities. Whether you’re in Pacific Beach, La Jolla, Del Mar, Encinitas, or Solana Beach, here’s what you should know before diving in.
What Is a Vacation Rental?
A vacation rental—also known as a short-term rental or STR—is when a homeowner rents out their property (or part of it) for fewer than 30 days at a time. Platforms like Airbnb and Vrbo have made it easier than ever to list a home, but in California (and especially coastal cities), the permitting and regulation side has become much more complex.
San Diego (Including La Jolla, Pacific Beach & Mission Beach)
Short-Term Rentals in San Diego: Understanding the Tiers
If you’re thinking about vacation renting your home in San Diego—whether it’s in Pacific Beach, La Jolla, or Mission Beach—there’s a specific license you’ll need. The city breaks it down into four tiers, depending on how often you rent, whether you live there full-time, and where the property is located¹.
Tier 1 is the most flexible. It’s for part-time vacation rentals—think occasional use, like renting out your home for fewer than 20 days a year. You don’t need to live onsite, and there’s no cap on the number of permits².
Tier 2 is for home sharing. You’re renting out part of your home (say, a room or guest suite), but you live there most of the year. You can be away for up to 90 days, but the home still needs to be your primary residence. This tier also has no permit cap³.
Tier 3 covers whole-home rentals where the host doesn’t live onsite—this is what most second-home or investment property owners would apply for. To qualify, you need to rent the home for at least 90 days per year, and there’s a two-night minimum stay for guests. These licenses are capped at 1% of the total housing units in San Diego outside of Mission Beach, and as of June 6th 2025, 1,054 licenses are still available⁴.
Tier 4 is exclusive to Mission Beach, which has its own planning area and more vacation rental activity. The rules are similar to Tier 3—whole-home, 90+ rental days per year, two-night minimums—but these licenses are capped at 30% of Mission Beach’s housing units, and the permit pool is currently full with a waitlist⁵.
A few FAQs worth noting: You can only hold one license at a time, and it won’t carry over if the home sells or changes ownership⁶. ADUs aren’t eligible for short-term rental use unless they were built before 2017⁷. Licenses also can’t be transferred between properties⁷.
What About Other Coastal Cities?
While San Diego’s system is tiered and citywide, neighboring coastal towns like Del Mar, Solana Beach, and Encinitas each play by their own rulebook. These cities have their own permitting processes, caps, and enforcement strategies—so if your property isn’t within San Diego city limits, the guidelines are different. Here’s a quick breakdown by city:
Del Mar
Del Mar has long been one of the stricter coastal cities when it comes to vacation rentals—and in late 2024, the city adopted a new ordinance to formally regulate them. But for now, that ordinance is still pending final certification from the California Coastal Commission, which is expected sometime in late 2025⁸.
So what’s allowed in the meantime? Currently, short-term rentals are only permitted in designated commercial zones—like the Residential-Commercial (RC) and Visitor Commercial (VC) areas—and in specific developments that already had approvals in place, such as Wave Crest Time Shares and the Hotel Specific Plan⁹. These zones generally include parts of downtown and areas close to the beach, but STRs are not allowed in any of Del Mar’s residential neighborhoods. These rules fall under Del Mar’s certified Local Coastal Program, which guides land use and zoning in accordance with coastal protections⁹.
Once the new ordinance takes effect, STR permits will be capped at 129—equal to 5% of the city’s total housing units¹⁰. New rentals will only be allowed if the home is the owner’s primary residence for at least half the year, with a three-night minimum stay and a cap on how many STRs an individual can operate¹¹.
The updated rules aim to balance Del Mar’s popularity with the need to preserve long-term housing and community character. If you’re considering vacation renting here, keep an eye on the Coastal Commission timeline and be sure your zoning qualifies under the current guidelines.
Solana Beach
Solana Beach takes a middle-ground approach when it comes to short-term vacation rentals. They’re allowed across the city’s residential areas—but only with a permit, and only for stays of 7 to 30 consecutive days. Anything shorter than a week is not permitted¹². Short-term rentals are also not permitted in ADUs, regardless of permit status.
To operate legally, you’ll need to apply for a Short-Term Vacation Rental (STVR) permit through the city and register to pay Transient Occupancy Tax (TOT), which is required for any rental in Solana Beach that qualifies as a hotel stay—whether it’s a traditional inn or a beachside bungalow listed on Airbnb¹³.
The city also requires each rental to have clear signage posted both on the property and inside the home, listing contact details and rental rules for guests¹². These rules are meant to help avoid common issues around noise, parking, and trash—ensuring your guests feel welcomed while your neighbors stay happy.
If you’re considering a vacation rental in Solana Beach, the process is relatively straightforward. Just make sure you stay within the permitted rental window, post the necessary signage, and stay current with your TOT payments.
Encinitas
If you’re thinking of turning your place into a vacation rental here, it’s absolutely possible—it just takes a little upfront legwork. Multi-family units and ADUs are not eligible unless grandfathered in under earlier approvals¹⁴.
The application process includes submitting several required documents: proof of ownership, a site plan showing parking and property layout, a floor plan with safety equipment marked (like fire extinguishers and alarms), liability insurance coverage of at least $1 million, and rental and advertisement details¹³. You’ll apply online through the city’s Customer Self Service (CSS) portal. Once submitted, your application is reviewed by multiple departments, and then you’ll schedule an in-person inspection with Code Enforcement. That inspection is fairly thorough—they’ll check for working alarms, fire extinguishers, proper bedroom sizes, parking access, and that everything matches city records¹³.
You’ll also need to apply for a business license through the same portal, and your short-term rental permit must be renewed annually—which means resubmitting documents, passing another inspection, and completing another round of neighborhood notifications¹³. The short-term rental permit document is required to be displayed on both the interior and exterior of the rental unit¹³.
In all, Encinitas has a thorough but manageable process—it’s just about being prepared and staying on top of your annual renewals.
Why All the Regulations?
As the popularity of vacation rentals grew, so did the pushback from some neighbors and communities. On one hand, vacation rentals can provide income, flexibility, and housing for travelers. On the other, some residents worry about noise, parking, and the shift away from long-term residential use. Many cities have responded with stricter guidelines to balance both sides of the conversation—and to make sure rentals are being operated responsibly.
Final Thoughts
If you’re thinking about vacation renting your home, the opportunity is definitely there—it just depends on your location, your property type, and your willingness to follow the process. While the rules vary from city to city, the goal is the same: to create a fair and thoughtful balance between homeowners, guests, and neighbors. Whether you’re exploring it for added income, more flexibility, or as a step toward your next chapter, understanding the requirements is the best place to start. As always, we’re here to help guide you—whether you’re exploring vacation rentals and need a local property management connection or planning your next move.
Disclaimer:
This blog is intended to provide a general overview of short-term vacation rental regulations based on publicly available information from city websites and government resources as of June 2025. It is not legal advice. Rules and requirements are subject to change, and details may vary based on your specific property, location, or updates from the city. We encourage all homeowners to consult their city’s official website or contact local officials directly for the most accurate, up-to-date information. We’re simply here to share what we’ve learned and help guide your research as you explore your options.
Sources:
- City of San Diego STRO Ordinance Overview – sandiego.gov/stro
- Ibid., Tier 1 Requirements
- Ibid., Tier 2 Requirements
- Ibid., Tier 3 Stats as of June 2025
- Ibid., Tier 4 License Cap and Availability
- Ibid., General STRO Rules and Licensing Terms
- Ibid., License Rules.
- City of Del Mar. Council adopts short term rental ordinance. https://www.delmar.ca.us/CivicAlerts.aspx?AID=999
- City of Del Mar. Existing Regulations for Short Term Rentals (STRs). https://www.delmar.ca.us/DocumentCenter/View/10052/STR-FAQs-October-2023
- KPBS. Del Mar City Council passes regulations to cap short-term rentals at 129 units. https://www.kpbs.org/news/politics/2024/09/13/del-mar-city-council-passes-regulations-to-cap-short-term-rentals-at-129-units
- Ibid.
- City of Solana Beach. STVR Regulations. https://www.cityofsolanabeach.org/en/government/community-development/code-compliance/short-term-vacation-rentals.aspx
- 13. City of Solana Beach. Transient Occupancy Tax (TOT). https://www.cityofsolanabeach.org/en/government/finance/short-term-vacation-rentals-transient-occupancy-tax.aspx
- City of Encinitas. STVR Regulations Packet (Updated July 2023). https://encinitasca.gov/Portals/0/STVR%20Regulations%20Packet-updated%207-05-23.pdf
- Ibid.