What It Really Costs to Rent Out a San Diego Home

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

Renting out a San Diego home costs more than the mortgage. Expect to pay for a landlord insurance policy, property tax without the homeowners' exemption, any HOA dues, the City of San Diego Rental Unit Business Tax if the home is in the City, routine repairs, the weeks between tenants, turnover work, management if you hire it, any utilities you keep, and a reserve for big-ticket repairs. This guide gives you a worksheet to fill in with your own numbers, because no reliable public source gives a typical San Diego figure for most of these lines.

Key takeaways

• Build the budget line by line from your own bills and quotes, then compare it with a realistic rent.
• Your insurance needs to change to a landlord or dwelling policy once the home is rented.
• Renting ends the homeowners' exemption; you must tell the San Diego County Assessor.
• Homes in the City of San Diego owe the Rental Unit Business Tax every year, generally due March 1.
• Plan for vacancy and turnover even with a good tenant.
• Keep a separate reserve for roofs, water heaters and other large repairs.

The worksheet

Fill in each line monthly or annually, then total it. Leave nothing blank: a line you think is zero should be checked, not assumed.

Plug the totals into the rental cash flow calculator alongside your rent estimate from how much rent a San Diego home can get.

Property tax: what changes when you rent

Your San Diego County bill is 1% of assessed value plus voter-approved bond rates for your tax rate area, plus any fixed special assessments. By our count of the County's 2025-26 rate table, nearly all tax rate areas came to roughly 1.0% to 1.3% of assessed value. Your own bill shows your exact rate.

• Renting does not by itself trigger reassessment under Prop 13. Reassessment follows a change in ownership or new construction. If you just bought the home, expect a supplemental bill, which is not sent to your lender.
• The homeowners' exemption ends. It takes $7,000 off assessed value, about $70 a year, and does not apply to rented property (R&TC § 218). Tell the Assessor; December 10 is the last day to terminate it without penalty, and late notice can bring back taxes, interest and a penalty (R&TC §§ 531.6, 504).
• Installments. The first is due November 1 and late after December 10; the second is due February 1 and late after April 10, with a 10% penalty for late payment.

The tax guide covers California property tax on rental homes in more depth.

City of San Diego charges

Two charges apply only inside the City of San Diego:

• Rental Unit Business Tax. Imposed annually on anyone who owns, operates or manages residential rental property in the City. A single-family home or condo is $50 base plus $5 per unit, plus a $4 state disability-access fee. It is generally due March 1. Late tax draws the greater of $25 or 10%, then 1% a month, and the City bills back up to 3 years. The Rental Unit Business Tax guide has the full fee table.
• Trash fee. For properties that receive City trash service, the fee is billed on the County property tax bill. For FY2026 the 95-gallon level was $523.20 a year, and the City says FY2027 fees are unchanged. Check your eligibility by parcel number on the City's Environmental Services site.

Homes in Chula Vista, Coronado, National City, La Mesa or the unincorporated County are not subject to these City charges; check with that city for its own business license or fee rules.

Insurance and the lost homeowners policy

Homeowners forms are written for owner-occupied homes. A landlord policy (often called a dwelling fire policy, with DP-3 a common form) typically covers the structure, your items left for tenants, loss of rent if the home becomes uninhabitable, and some liability. It does not cover the tenant's belongings, which is why many California landlords require renters insurance.

If private carriers decline the home, the California FAIR Plan offers a named-peril dwelling policy for 1 to 4 unit rentals, but it has no liability coverage, so owners usually add a separate policy. Earthquake coverage is sold separately. The landlord insurance in San Diego guide covers each piece.

Maintenance, reserves and safety items

Routine maintenance and a reserve for replacements are separate lines. Base the reserve on the age and condition of the roof, water heater, heating and cooling, plumbing and appliances. Since January 1, 2026, a lease signed, renewed or amended must include a working stove and refrigerator (AB 628), so budget for both. The rental maintenance budgeting guide walks through setting a reserve.

Some costs depend on the building:

• Pre-1978 homes need the federal lead disclosure and pamphlet, and repairs that disturb paint should follow lead-safe practices.
• Buildings with three or more multifamily units (common interest developments are excluded) and wood-supported balconies or stairs more than six feet above ground need SB 721 inspections; the first deadline was January 1, 2026.
• Condos may carry HOA special assessments for common-area work.

Vacancy, turnover and management

Even good tenants move. Budget for:

• Vacancy. Weeks with no rent between tenants. Pricing to the comparables keeps this short.
• Turnover. Cleaning, paint, repairs, photos and marketing. California requires move-out and move-in photos for deposit deductions (AB 2801), and the itemized deposit statement is due within 21 days of move-out.
• Management. If you hire a manager, get every fee in writing, including leasing, renewal and maintenance charges, and compare a full-year total. No verified source publishes a typical San Diego fee, so this guide does not quote one. Our overview of San Diego property management explains what full management covers, and San Diego property management fees for what to ask.

If you live outside California and rent is paid through a manager, the manager must withhold 7% of rent for the Franchise Tax Board once payments exceed $1,500 in a calendar year (unless a waiver applies). That is a tax prepayment, not a cost, but it affects monthly cash flow.

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

Frequently asked questions

How much does it cost to rent out a house in San Diego?

There is no single figure, because mortgage, tax, insurance and HOA costs vary from home to home. Build a line-by-line budget: mortgage, property tax without the homeowners' exemption, landlord insurance, HOA dues, the City Rental Unit Business Tax and trash fee if you are in the City, maintenance, a capital reserve, vacancy, turnover and management. Then compare the total with a realistic rent.

Do I need to pay the San Diego Rental Unit Business Tax on one house?

Yes, if the home is in the City of San Diego and rented or held out for rent. For a single-family home or condo it is $50 base plus $5 per unit, plus a $4 state fee, generally due March 1. Some exemptions exist, such as an owner-occupied primary residence, and documentation is required.

Does my homeowners insurance cover a rental?

Usually not as written. Homeowners forms are designed for owner-occupied homes, and rented homes are usually insured on a landlord or dwelling form such as a DP-3. Tell your insurer before the tenant moves in and confirm the policy type, liability limit and loss-of-rent coverage.

How much should I set aside for repairs on a rental?

No verified San Diego figure exists, so base it on your home. List the age of the roof, water heater, HVAC and appliances, estimate when each will need replacing, and set aside a monthly amount to cover it, separate from routine maintenance. An older home with original systems needs a larger reserve than one with recent replacements.

Are rental expenses tax deductible?

Rental income and expenses are reported on Schedule E of your federal return, and the home is generally depreciated over 27.5 years, excluding land. California has some differences from federal rules. Keep every bill and statement and confirm the treatment with a tax professional.

Next step: put real numbers in the worksheet

The rent side of the worksheet is the hardest to guess. McKee Properties has managed San Diego rentals since 1982 and offers a free San Diego rental analysis to help you fill it in.