Becoming an Accidental Landlord in San Diego: A First-Year Checklist

Reviewed by Brendan McKee, Managing Broker, DRE #01882732, on October 21, 2026.

If you are renting out your San Diego home because you moved or could not sell, your first year comes down to a short list: tell your lender, HOA and insurer; register for the Rental Unit Business Tax if the home is in the City of San Diego; decide which tenant protection notices go in the lease; collect a deposit within the legal cap; photograph the home at move-in; and keep records for taxes. The lease decisions matter most, because they decide how hard it will be to get the home back later.

Key takeaways

• Before you list, check your mortgage terms, give your HOA what state law requires, and switch to a landlord (dwelling) insurance policy.
• In the City of San Diego, the Rental Unit Business Tax applies to anyone renting out residential property, including one home, and the City bills back up to three years.
• The City's Tenant Protection Ordinance protects tenants from the first day of a tenancy. If you may move back, the lease wording you choose now matters.
• The deposit cap is generally one month's rent, and nearly everything collected at move-in counts toward it.
• Take move-in and move-out photos, and keep records for Schedule E and any future sale.

Before you list: lender, HOA, insurance and property tax

Ask your lender whether renting changes anything about the loan.

HOA. An association may not prohibit or unreasonably restrict renting, may not cap rentals below 25% of units, and may ban rentals of 30 days or less (Civ. Code §§ 4740, 4741). Before you rent, give the association verification of your title date and the tenant's name and contact information.

Insurance. A landlord policy, often a dwelling fire form such as DP-3, generally covers the structure, your items left for the tenant, lost rent if the home becomes uninhabitable, and some liability. It does not cover the tenant's belongings. Tell your insurer before the tenant moves in.

Property tax. Renting does not by itself trigger a Prop 13 reassessment, but it ends the homeowners' exemption, which does not extend to property rented on the January 1 lien date (R&TC § 218). The exemption is worth about $70 a year in San Diego County. It is your job to cancel it, and December 10 is the last day to do so without a penalty.

Register for the City Rental Unit Business Tax

Inside the City of San Diego, the tax "is imposed annually upon anyone who owns, operates, or manages the rental of any residential real estate." As of October 2026, the posted fee for a single-family home or condo is a $50 base fee plus $5 per unit, plus a $4 state disability-access fee, generally due March 1. Contact the Treasurer at (619) 615-1545 or rtax@sandiego.gov to open an account; see our Rental Unit Business Tax guide.

This is a City of San Diego rule only; other cities and the unincorporated County are separate jurisdictions.

Decide on the tenant protection notices before you write the lease

Which rules apply depends on where the home is:

• City of San Diego: the Tenant Protection Ordinance (SDMC §§ 98.0701 to 98.0710) requires just cause to end any tenancy of more than 30 days from day one. Fixed terms of three months or less are excluded.
• Chula Vista: its own ordinance (CVMC ch. 9.65) also applies from the start.
• Imperial Beach: its ordinance (IBMC ch. 9.90) applies after 12 months.
• Unincorporated County and other cities: state law (Civ. Code § 1946.2, AB 1482) applies after 12 months.

A single-family home or condo whose owner is not a REIT, a corporation, or an LLC with a corporate member can be exempt from the City ordinance and the state rent cap and just cause rules, but only if the tenant gets the exact statutory notices. For City tenancies begun or renewed on or after January 1, 2024, the City notice must be in the lease (SDMC § 98.0703(l)), and the state notice belongs there too (Civ. Code § 1947.12(d)(5)). Covered homes instead need the City's required tenant notice (SDMC § 98.0705).

If you might move back, note that for City leases entered on or after June 24, 2023, owner move-in works only if the tenant agrees in writing or the lease expressly allows it (SDMC § 98.0704(b)(1)(A)). A no-fault termination in the City also requires two months' rent in relocation, or three months if the tenant is 62 or older or disabled. Our Tenant Protection Ordinance guide has the details.

Build the lease and its disclosures

Common required notices:

• Lead-based paint disclosure and pamphlet for homes built before 1978.
• The Megan's Law notice (Civ. Code § 2079.10a) and the flood hazard disclosure (Gov. Code § 8589.45).
• The bed bug notice (Civ. Code § 1954.603) and the state mold booklet (H&S § 26148).
• Names and addresses of the manager and the person authorized to receive notices, plus where and how rent is paid (Civ. Code § 1962).

Leases signed, renewed or amended on or after January 1, 2026 also require a working stove and refrigerator (Civ. Code § 1941.1). The full list is on our required lease disclosures page.

Move-in: rent, deposit and photos

Rent. You may set the starting rent on a new tenancy, but later increases on a covered home are capped at 8.2% for increases effective August 1, 2026 to July 31, 2027 in San Diego County. Also, as of October 2026 the county is under a state of emergency after Tropical Storm Rachel, so Penal Code § 396 generally bars rent advertised, offered or charged more than 10% above the pre-emergency amount, including at turnover, stated to run through November 14, 2026. Check whether it has been extended.

Deposit. The cap is one month's rent for deposits collected on or after July 1, 2024 (Civ. Code § 1950.5, AB 12). A natural person (or an LLC whose members are all natural persons) owning no more than two rental properties with four units in total may collect up to two months, but not from a service member. Pet and cleaning deposits count. See security deposits.

Photos. For tenancies beginning on or after July 1, 2025, photograph the home at the start of the tenancy. At move-out, photograph before and after repairs or cleaning, and send the itemized statement within 21 days (AB 2801).

Screening. Use written criteria applied to every applicant. California protects source of income, including vouchers (Gov. Code § 12955(p)), and military or veteran status.

Through the year and at tax time

Rental income and expenses go on Schedule E. The building, not the land, is depreciated over 27.5 years, starting from the lesser of your adjusted basis or fair market value on the conversion date (IRS Pub 527). California treats all rental activities as passive, so state and federal results can differ.

If you may sell, track your dates. The home sale exclusion generally requires owning and living in the home two of the five years before the sale, and depreciation is not excludable (IRC § 121). Use our home sale exclusion timeline, and if you are still deciding, read should you rent out or sell your San Diego home.

This is general information, not legal or tax advice. Confirm the details for your situation with a California attorney or tax professional.

For the rules by jurisdiction on one page, see San Diego landlord rules at a glance, and for what hiring help involves, see what a San Diego property manager does. More guides are on our San Diego property management page.

Frequently asked questions

Do I need a business license to rent out my house in San Diego?

If the house is in the City of San Diego, you owe the annual Rental Unit Business Tax, which covers anyone who owns, operates or manages a residential rental, including a single home or condo. As of October 2026 the posted fee is $50 plus $5 per unit, plus a $4 state fee, generally due March 1. Other cities in the county set their own rules.

Can I move back into my San Diego home after renting it out?

Possibly, if the lease plans for it. In the City of San Diego, for leases entered on or after June 24, 2023, owner move-in is allowed only if the tenant agrees in writing or the lease expressly allows it, and the owner or relative must live there at least 12 continuous months. Unless the home is exempt, the tenant also receives two or three months' rent in relocation.

Do I lose my homeowners' exemption if I rent out my house?

Yes. The exemption does not extend to property rented on the January 1 lien date (R&TC § 218). It is worth about $70 a year in San Diego County, and you must cancel it yourself, by December 10 to avoid a penalty.

How much security deposit can I charge in San Diego?

Generally one month's rent, in addition to first month's rent, for deposits collected on or after July 1, 2024. A natural person owner with no more than two rental properties and four units in total may collect up to two months, except from a service member.

Next step: price the home before you commit

Before you sign a lease, get a realistic rent figure. Our guide to a free San Diego rental analysis explains what goes into one. McKee Properties has managed San Diego rentals since 1982 and offers the analysis with no obligation.