Renting Out an ADU in San Diego

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

In the City of San Diego, you can rent out an accessory dwelling unit (ADU) as a regular long-term rental, but not as a short-term rental: the Municipal Code says an ADU may not be rented for less than 31 consecutive days, and the City prohibits using ADUs for short-term rentals. You do not have to live on the property to rent an ADU, though a junior ADU (JADU) has an owner-occupancy rule. Once rented, the ADU is a rental unit like any other, so the City's Tenant Protections Ordinance, state rent and eviction rules, and the City's Rental Unit Business Tax can all apply.

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 or the County is named.

Key takeaways

• City of San Diego: "An ADU shall not be used for a rental term of less than 31 consecutive days" (SDMC § 141.0302(b)(8)). ADUs cannot be short-term rentals, with a narrow exception for companion units permitted before October 15, 2017.
• The JADU minimum term is unclear: the City's code and its own bulletin say different things, so confirm with the City before you set a JADU lease term.
• You do not have to live on site to rent an ADU. For a JADU, the owner must live in the main home or the JADU.
• Since August 22, 2025, City ADUs outside the Coastal Overlay Zone may be converted to condominiums and sold separately; JADUs may not.
• If you live in the main house and rent no more than two ADUs or JADUs, you may be exempt from just-cause rules under both City and state law. If you don't live there, assume tenant protections apply unless another exemption fits.

Rental term and short-term rental rules

The City's ADU regulations sit in SDMC § 141.0302 (the September 2026 edition was current when this guide was written). Two rules matter most for renting:

1. 31-day minimum for ADUs. An ADU may not be rented for less than 31 consecutive days (§ 141.0302(b)(8)).
2. No short-term rentals. The City's short-term rental page says "The San Diego Municipal Code prohibits using ADUs for short-term rental and will result in a Code violation." The only exception is a companion unit permitted before the October 15, 2017 prohibition.

So a City ADU works as a rental of at least 31 days, not a nightly or weekly one. To compare options, see long-term, mid-term or short-term rental in San Diego and the short-term rental license guide. The rental length rule checker helps you test a planned term.

JADUs are different, and unsettled. The current code says JADUs are not subject to rental term limitations, while the City's Information Bulletin 400 (January 2026) says JADUs must be rented for longer than 30 days and may not be used for short-term rentals. Because the City's own sources conflict, ask Development Services in writing before you set a short JADU term.

If the property is in an HOA, the association may separately prohibit rentals of 30 days or less, and it may not prohibit or unreasonably restrict renting an ADU (Civ. Code § 4741).

Do you have to live on the property?

• ADU: No. "The record owner is not required to live on the same premises of an ADU" (§ 141.0302(b)(11)). You can rent both the main house and the ADU.
• JADU: Yes, with limited exceptions. The record owner of the main home must live in the main home or the JADU (§ 141.0302(c)(1)(E)). Before the building permit, the owner records an agreement to live on the premises and not to sell the JADU separately. Government agencies, land trusts and qualified housing organizations are exempt.

Can you sell the ADU separately?

Under O-21989 (adopted July 23, 2025, effective August 22, 2025), the City now allows new or existing ADUs to be converted into condominiums and sold separately from the main home (§ 141.0302(f)). Key limits:

• The condominium must be created under the Davis-Stirling Act and the Subdivision Map Act.
• For the first 30 days of listing, the ADU must be offered on at least two public real estate websites to buyers who plan to live in it.
• ADUs financed by the San Diego Housing Commission, or rent-restricted affordable ADUs, may not be split off during the restriction term.
• A JADU may not be sold separately.
• Coastal Zone: these changes do not apply in the Coastal Overlay Zone until the California Coastal Commission certifies them. As of October 2026, the City listed that approval as anticipated in 2026.

Tenant protections that can apply to an ADU

A rented ADU is covered by the same laws as any other rental, unless an exemption fits.

If you live in the main house

Both the City's Tenant Protections Ordinance and state law exempt a single-family home that is the owner's principal residence when the owner rents no more than two bedrooms, two ADUs or two JADUs (SDMC § 98.0703(i); Civ. Code § 1946.2(e)(5)). The state's owner-occupied duplex exemption does not cover a property where either unit is an ADU or JADU.

If you don't live there

In the City of San Diego, the Tenant Protections Ordinance requires just cause to end a tenancy from the first day of a tenancy longer than 30 days. Statewide, AB 1482 adds just cause after 12 months and caps rent increases. Two exemptions are worth asking a lawyer about:

• Newer construction. Both laws exempt housing issued a certificate of occupancy within the previous 15 years (SDMC § 98.0703(k); Civ. Code §§ 1946.2(e)(7), 1947.12(d)(4)). Confirm how this applies to your unit and its permit history.
• Single-family and condo exemption. This covers a unit that can be sold separately from any other dwelling, with the required notices in the lease. A house and ADU on one lot that cannot be sold separately may not fit; an ADU converted to a condo may. Get advice before you rely on the notice.

If no exemption applies, the AB 1482 cap limits increases in San Diego County to 8.2% for increases from August 1, 2026 through July 31, 2027. As of October 2026, San Diego County is also 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. That is stated through November 14, 2026; check whether it has been extended. The just-cause eviction page explains the state rule.

Chula Vista and Imperial Beach have their own tenant protection ordinances; the City of San Diego ADU rules above do not apply there, so check that city's code.

Costs and paperwork for a rented ADU

• Rental Unit Business Tax (City of San Diego). Anyone renting residential property owes it, generally by March 1. The current schedule is a $50 base fee per parcel plus a per-unit fee, plus a $4 state fee. The Treasurer's pages do not say whether an ADU counts as a separate unit, so confirm with rtax@sandiego.gov. See the Rental Unit Business Tax guide.
• Shared utility meters. If the ADU shares a gas or electric meter with the main home and service runs outside the tenant's unit, Civ. Code § 1940.9 requires disclosure before the tenancy and a written agreement on payment. The utilities clause guide covers the lease wording.

The cost of renting out a San Diego home guide lists the other costs, from insurance to vacancy. For help with leasing and day-to-day management, see our San Diego property management page.

Frequently asked questions

Can I Airbnb my ADU in San Diego?

Not in the City of San Diego. The Municipal Code says an ADU may not be rented for less than 31 consecutive days, and the City prohibits using ADUs for short-term rentals, except companion units permitted before October 15, 2017. Other cities in the county set their own rules, so check with your city if the ADU is outside the City of San Diego.

Do I have to live on the property to rent out my ADU?

No, not for an ADU in the City of San Diego: the code says the record owner is not required to live on the same premises. A junior ADU is different. The owner of the main home must live in the main home or the JADU, and records an agreement saying so before the building permit is issued.

Does the San Diego Tenant Protection Ordinance cover ADU tenants?

It can. A rented ADU is a residential rental, so the ordinance applies from the start of a tenancy unless an exemption fits. One common exemption is an owner who lives in the main home and rents no more than two ADUs or JADUs. Newer construction and separately sellable units have their own exemptions, which are worth confirming with a lawyer.

What is the minimum lease term for a JADU in San Diego?

The City's sources disagree. The current Municipal Code says JADUs are not subject to rental term limitations, while Information Bulletin 400 says they must be rented for more than 30 days and may not be short-term rentals. Until the City resolves this, ask Development Services in writing before you set a JADU lease term.

Next step: price your ADU

An ADU's rent depends on its size, layout, parking and how it shares the lot with the main house. McKee Properties has managed San Diego rentals since 1982 and offers a free San Diego rental analysis with no obligation.