Old Town, San Diego STR Permits & Licensing

Overview

Old Town, San Diego is one of the most tightly regulated short-term rental markets in California. The city operates a strict permit cap system — approximately 5,400–5,551 Short-Term Residential Occupancy (STRO) licenses are allowed citywide, and as of 2025, roughly 956 remain available. When that number hits zero, the city stops issuing new permits and places applicants on a waitlist.

If you own property in Old Town, San Diego and want to rent it for fewer than 30 consecutive days, you are legally required to hold two permits before listing on any platform — an active City Business Tax Certificate and a Short-Term Residential Occupancy (STRO) license from the Office of the City Treasurer. Operating without both is a violation that can result in fines and permanent permit denial.

This guide covers everything a Old Town, San Diego property owner needs to know about the permit process — from initial application through annual renewal, compliance obligations, and what happens when rules are violated.

Who Needs a Permit

Any Old Town, San Diego property rented to guests for fewer than 30 consecutive days requires a Short-Term Residential Occupancy (STRO) license. This applies regardless of the platform — Airbnb, VRBO, direct booking, or any other channel. Casual or occasional rentals are not exempt.

Properties that require a permit

• Single-family homes rented for any period under 30 days
• Condos, townhomes, and multi-family units in eligible zones
• Accessory dwelling units (ADUs / guesthouses) rented separately from the primary home
• Properties listed on any short-term rental platform

The permit cap — what it means for new applicants

San Diego enforces a hard cap of approximately 5,400–5,551 active STRO licenses citywide across multiple tiers and zones. As of 2025, roughly 956 remain available. Once the cap is reached, the city stops accepting new applications and places future applicants on a waitlist. There is no defined timeline for cap resets.

If you are considering purchasing a Old Town, San Diego property for short-term rental purposes, verify permit availability before closing. Buying a property without an available permit — or assuming a permit transfers with the property — is a costly mistake.

Application Process

Getting a San Diego STRO license requires two separate applications. Both must be active and approved before you list your property on any platform.

Contact information

For official permit information, visit the City of San Diego — Office of the City Treasurer .

Fees & Costs

The direct permit costs in Old Town, San Diego are relatively modest — the larger ongoing obligation is the Transient Occupancy Tax, which must be collected from guests and remitted to the city monthly.

Understanding the Transient Occupancy Tax (TOT)

The zoned Transient Occupancy Tax (11.75%, 12.75%, or 13.75% depending on your property's zone) is the most significant ongoing financial obligation for Old Town, San Diego STR operators. It applies to gross rental income — the total amount collected from guests before any platform fees or expenses are deducted.

TOT must be collected from guests on every booking and remitted to the city monthly. Collectively, San Diego STR guests pay millions in TOT annually — a significant revenue source for the city.

Total annual cost estimate

For a typical Old Town, San Diego STR generating $100,000 in annual gross revenue, the all-in annual permit and tax costs look approximately like this:

Annual Renewal

San Diego STRO licenses must be renewed annually. Missing the renewal window means your permit lapses — and given the citywide cap, a lapsed permit may not be reissued if permits have run out.

How renewal works

• Renewal forms are mailed by the city in late September each year to the address on file. They are not available for download online.
• The renewal fee depends on your tier: Tier 1 is $193, Tier 2 is $284, and Tier 3/4 is $1,129. Payment must accompany the completed form.
• Keep your address current. If the city's mailing address on file is outdated, you will not receive your renewal form — and not receiving it is not an accepted excuse for lapsed compliance.
• Submit promptly. Processing takes time, and there is no formal grace period. Delay puts your permit at risk.

What to check at renewal

Annual renewal is also the right moment to audit your compliance across the board. Before submitting your renewal, confirm:

• Permit number is displayed on all active listings
• Permit number is posted inside the property
• 24/7 local contact in your Nuisance Response Plan is still reachable
• TOT has been collected and filed monthly as required
• No outstanding city notices or enforcement actions
• Business License is also current

Violations & Penalties

Old Town, San Diego Code Enforcement actively monitors short-term rental compliance. Complaints from neighbors, missing permit numbers on listings, and failure to respond to guest complaints can all trigger enforcement action. Given the permit cap, a revoked permit is effectively permanent — getting a new one requires joining a waitlist with no defined timeline.

Common violations

Enforcement process

Old Town, San Diego Code Enforcement operates a complaint-driven system, but also conducts proactive checks on active listings. If a complaint is filed — from a neighbor, a guest, or a platform — Code Enforcement can issue a Notice of Violation. First violations typically result in a warning and mandatory correction period. Repeat or serious violations can escalate to fines of $250–$1,000 per occurrence and, in the most severe cases, permit revocation.

The 2026 beach rules

In February 2026, Old Town, San Diego adopted updated beach rules partly driven by concerns around STR party activity on holiday weekends. These rules limit shade structures (canopies, tents) on public beaches to 6×6 feet and ban the chaining of EZ-Up canopies. While these are beach rules rather than permit conditions, Code Enforcement views repeat nuisance incidents at STR properties as grounds for permit review.

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