Long-Term, Mid-Term or Short-Term: Choosing a Rental Type in San Diego

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

For most San Diego owners, the choice comes down to what the rules allow at your address. In the City of San Diego, a whole-home short-term rental for more than 20 days a year needs a capped license, and Mission Beach has none left; a mid-term furnished rental avoids that license but, once it runs longer than 30 days and beyond a three-month fixed term, it falls under the City's just-cause rules; and a long-term lease brings the most tenant protections but the least turnover work. Check your city, your HOA and whether the unit is an ADU before you compare income.

This is general information, not legal or tax advice. Confirm the details for your situation with a California attorney or tax professional. Rules are stated as of October 2026 and cover the City of San Diego unless another city is named.

Key takeaways

• City of San Diego short-term rentals run on four license tiers. As of October 9, 2026, Tier 3 (whole home outside Mission Beach) had 802 licenses left, and Tier 4 (Mission Beach) had none.
• Tier 3 and 4 hosts must use the license at least 90 days a year and require a two-night minimum stay; renting a whole home 21 to 89 days a year is not allowed.
• The City's Tenant Protections Ordinance covers occupancy of more than 30 days, but not a fixed-term lease of three months or less, including renewals of three months or less.
• ADUs in the City cannot be rented for under 31 consecutive days, and an HOA may ban rentals of 30 days or less.
• The security deposit cap is one month's rent whether the home is furnished or not.
• City of San Diego STRO rules do not apply elsewhere; Coronado and Imperial Beach have their own short-term rules, so check any other city directly.

The three options side by side

The rental length rule checker helps you test a planned stay length against these lines.

Short-term rentals in the City of San Diego

The Short-Term Residential Occupancy ordinance (SDMC ch. 5, art. 10, div. 1) sets four tiers:

• Tier 1: rented 20 days or less a year in total; the host need not live on site. Fees: $33 application plus $193 license.
• Tier 2: home share for more than 20 days a year while the host lives on site at least 275 days. Fees: $33 plus $284.
• Tier 3: whole home for more than 20 days a year outside Mission Beach, capped at 1% of the City's housing units. Fees: $41 plus $1,129.
• Tier 4: whole home in the Mission Beach Community Planning Area, capped at 30% of its units. Same fees as Tier 3. Applications are closed.

License counts on October 9, 2026: Tier 3 had 4,859 issued and 802 remaining; Tier 4 had 1,099 issued and 0 remaining. A host may hold only one license at a time, licenses are not transferable, and they expire two years after issuance.

Operating duties include the 90-day minimum use and quarterly reports for Tiers 3 and 4, a two-night minimum stay, a Good Neighbor notice to every guest, responding to complaints in person or by phone within one hour, an exterior sign, a Transient Occupancy Registration Certificate number on every ad, and proof of Rental Unit Business Tax payment on request. The short-term rental license guide covers applications and enforcement.

Two hard stops: the City prohibits using ADUs for short-term rentals (except companion units permitted before October 15, 2017), and a condo association may prohibit rentals of 30 days or less (Civ. Code § 4741(c)). Coronado has its own rules; see the Coronado Rental Guide. Imperial Beach defines a transient as someone staying 30 consecutive days or less and charges a 14% TOT.

Mid-term furnished rentals and the 30-day line

Mid-term rentals, often furnished stays of a month or more, sit between the two systems. The City's Tenant Protections Ordinance defines a tenancy as the right to occupy "for more than 30 days," and excludes "a lease for a fixed-term of three months or less, including any extensions or renewals of that lease for a fixed-term of three months or less" (SDMC § 98.0702).

What that means in practice:

• A fixed-term lease of three months or less is outside the ordinance's definition of tenancy, so the City's just-cause and relocation rules do not attach to it.
• A lease longer than three months, or a month-to-month arrangement that runs past 30 days, is a tenancy, and the ordinance applies from its first day unless an exemption fits. Ask counsel before you structure back-to-back short leases, and keep each stay's paperwork clean.
• State rules still apply to a mid-term tenancy: the one-month deposit cap (Civ. Code § 1950.5(c), furnished or not), habitability, entry notice and the required lease disclosures. Federal lead disclosure rules exempt leases of 100 days or less only when no renewal is possible.
• Licensing and tax. Before offering stays near the one-month mark, confirm with the City Treasurer whether STRO licensing and TOT apply to your planned stay length.

Mid-term rentals also take more setup: furniture, an inventory list, utilities and internet in your name, and a plan for cleaning between stays. Move-in and move-out photos are required for deposit claims under Civ. Code § 1950.5(g). The fixed-term lease vs. month-to-month guide explains the lease structures.

Long-term leases: fewer moving parts, more protections

A standard 12-month lease or month-to-month tenancy needs no special license beyond the Rental Unit Business Tax. In exchange, tenants get the most protection:

• City of San Diego: just cause from the start of the tenancy, with two months' rent in relocation (three for tenants 62+ or disabled) on no-fault terminations. A single-family home or condo can be exempt with the City's exact notice in the lease. See the Tenant Protections Ordinance guide.
• Statewide: the AB 1482 cap limits increases to 8.2% in San Diego County from August 1, 2026 through July 31, 2027, unless exempt. Rent-increase notice is 30 days for 10% or less and 90 days above that (Civ. Code § 827).
• Emergency limit: as of October 2026, San Diego County is under a state of emergency for Tropical Storm Rachel, so Penal Code § 396 generally bars advertising, offering or charging rent more than 10% above the pre-emergency amount, including at turnover, stated through November 14, 2026; check whether it has been extended. Through December 31, 2026, that rule covers leases with an initial term of one year or less; from January 1, 2027 it covers rental housing regardless of lease term (SB 1365).

The trade is lower turnover. A long-term tenant means fewer vacancies, fewer cleanings and fewer listings each year.

How to choose

Work through these questions in order:

1. Is short-term even allowed? If the unit is an ADU, it is in Mission Beach, your HOA bans stays of 30 days or less, or a Tier 3 license is not available to you, short-term is off the table.
2. Will you use the home yourself? If you return for part of the year, a fixed lease of three months or less between your own stays is outside the City ordinance's tenancy definition, but confirm the structure with counsel. Keep in mind that an owner move-in termination under the City ordinance requires a lease clause or the tenant's written agreement.
3. How much time can you give it? Short-term hosting means guest messages, cleanings and a one-hour complaint response. Long-term leasing means fewer, larger tasks.
4. How do taxes change? Short-term rentals can be treated differently for income tax purposes; ask a tax professional before you switch.
5. What does the market pay for each? Furnished and unfurnished rents differ, and the starting rent on a long-term lease matters because later increases are capped. See how much rent a San Diego home can get, and for homes near the water, managing a coastal or luxury rental. Our San Diego property management page explains what long-term management covers.

Frequently asked questions

Can I still get a short-term rental license in San Diego?

In the City of San Diego, Tier 1, 2 and 3 applications were open as of October 9, 2026, with 802 Tier 3 whole-home licenses remaining. Tier 4 in Mission Beach was closed with no licenses remaining. A host may hold only one license, and licenses are not transferable.

Does the San Diego Tenant Protection Ordinance apply to a furnished three-month rental?

A fixed-term lease of three months or less, including extensions or renewals of three months or less, is excluded from the ordinance's definition of tenancy (SDMC § 98.0702). A lease longer than that, or a month-to-month stay beyond 30 days, is covered from its first day unless an exemption applies. Confirm your lease structure with counsel.

Can I rent my San Diego home for 30 days at a time?

Possibly, depending on the unit and the stay. ADUs in the City must be rented for at least 31 consecutive days, and an HOA may ban rentals of 30 days or less. For a house, confirm with the City Treasurer whether STRO licensing and Transient Occupancy Tax apply to your planned stay length before you list.

What is the transient occupancy tax for short-term rentals in San Diego?

Since May 1, 2025, Measure C divides the City of San Diego into three TOT zones at 11.75%, 12.75% and 13.75%. Hosts need a Transient Occupancy Registration Certificate, file monthly returns due by the last day of the following month, and must show the certificate number on every ad.

How much deposit can I charge for a furnished rental in San Diego?

Under Civil Code § 1950.5(c), generally one month's rent, whether or not the home is furnished. A natural-person owner, or an LLC of natural persons, with no more than two rental properties and four units in total may charge up to two months, except to a service member tenant.

Next step: compare the numbers for your home

Once you know which rental types are allowed at your address, the next question is what each would earn. McKee Properties has managed San Diego rentals since 1982 and offers a free San Diego rental analysis with no obligation.