The Short-Term Residential Occupancy license, known as STRO, is San Diego’s mandatory permit for anyone renting a dwelling to guests for less than a month at a time. The city sorts hosts into four tiers based on whether the property is your primary residence, how many days a year you rent it, and whether it sits in Mission Beach. Fees run from $226 for occasional hosts up to $1,170 for full-time whole-home rentals, and you apply online after first registering for the city’s Transient Occupancy Tax.
Which Tier You Need
San Diego Municipal Code Chapter 5, Article 10, Division 1 creates four license categories. The right one for you depends on three questions: do you live at the property, how many days per year will you rent it, and is it in Mission Beach?
- Tier 1 covers home-share or whole-home rentals of your primary residence for 20 days or less per calendar year. You don’t need to be on-site during the rental.
- Tier 2 covers home sharing in your primary residence for more than 20 days per year while you live on-site. If you occupy the home at least 275 days a year, Tier 2 also allows up to 90 days of whole-home rental when you’re away.
- Tier 3 is for whole-home rentals outside Mission Beach where the host does not live on-site at least 275 days per year. Citywide, Tier 3 licenses are capped at 1 percent of San Diego’s housing units.
- Tier 4 is for whole-home rentals inside Mission Beach, capped at 30 percent of that neighborhood’s housing units.
Each host may hold only one STRO license and may not operate more than one rental unit anywhere in the city at the same time.1City of San Diego. San Diego Municipal Code Chapter 5, Article 10, Division 1 – Short-Term Residential Occupancy
Caps, Waitlists, and Lotteries
Tier 1 and Tier 2 applications are open on a rolling basis because they involve primary residences and carry no citywide cap. Tier 3 applications are also currently open. Tier 4 uses a waitlist and lottery when demand exceeds the Mission Beach cap. The most recent Tier 4 application window closed in August 2025, after which the city ran a random lottery to set waitlist positions. Once that waitlist clears, the city will reopen Tier 4 and post the window on the STRO webpage.2City of San Diego. Short-Term Residential Occupancy
Tier 3 and Tier 4 licenses are non-transferable. They belong to the host who applied, not the property, so selling the home does not pass the license to the buyer.
If you win a Tier 3 or Tier 4 license, you have to use it. The city requires at least 90 rental days per year and quarterly utilization reports. Fall short and the license can be revoked, which in a capped market means going back through the lottery or waitlist from scratch.2City of San Diego. Short-Term Residential Occupancy Whole-home rentals under Tier 3 and Tier 4 also carry a two-night minimum stay; one-night bookings are not permitted outside of Tier 1’s 20-day allowance.
What to Gather Before You Apply
Collect everything before you open the application portal. A missing piece will stall the process, and without an active Transient Occupancy Tax certificate the system won’t let you move forward at all.
Transient Occupancy Tax Certificate
Every STRO applicant must first hold an active TOT certificate. You can apply online through the city’s Transient Occupancy Registration System or email a completed application to the Office of the City Treasurer. The STRO portal asks for your TOT certificate number to link the two accounts.2City of San Diego. Short-Term Residential Occupancy
Proof of Primary Residency
Tier 1 and Tier 2 applicants have to prove they actually live at the property. Acceptable documents include a current California driver’s license or government-issued ID showing the property address, or recent utility bills (water, gas, electric) from the last 60 days. Tier 2 specifically requires you to occupy the home at least 275 days per year.3City of San Diego. Short-Term Residential Occupancy Host Operating Requirements Checklist
Local Contact Person
You have to designate a local contact who can respond to complaints in person or by phone within one hour, day or night. It can be you or someone you hire, but the person needs to be close enough to the property to resolve problems quickly. Have their name and phone number ready.4City of San Diego. Good Neighbor Guidelines
How to Apply and What It Costs
San Diego runs STRO licensing through its Accela online portal. After creating an account, you enter your TOT certificate number, fill in property details, select your tier, and pay fees electronically. Approved hosts receive a digital license with a unique identification number that has to appear on every listing.2City of San Diego. Short-Term Residential Occupancy
As of March 2025, combined application and license fees are:
- Tier 1: $33 application + $193 license = $226
- Tier 2: $33 application + $284 license = $317
- Tier 3: $41 application + $1,129 license = $1,170
- Tier 4: $41 application + $1,129 license = $1,170
All fees are non-refundable.2City of San Diego. Short-Term Residential Occupancy
Renewal
STRO licenses expire two years from the date of issuance, and the city emails a renewal notice 60 days before expiration. Renewal fees match the initial fees, so Tier 3 and Tier 4 hosts should plan on about $1,170 every two years. Missing the renewal window means losing the license, which stings most for Tier 3 and Tier 4 holders who went through a lottery to get it.2City of San Diego. Short-Term Residential Occupancy
Operating Rules Once Licensed
Licensed hosts have to follow the operational standards in SDMC Section 510.0107 and the city’s Good Neighbor Guidelines. The city enforces them through complaints, citations, and fines.
Listing and Signage
Your STRO license number must appear on every online advertisement and platform listing. You also need a physical notice on the exterior of the property, visible from the sidewalk or public right-of-way, that includes the license number, your TOT certificate number, and contact information for the host or local contact along with the city’s Code Enforcement Division. The notice must be 8.5 by 11 inches with black, bold, all-capital lettering.4City of San Diego. Good Neighbor Guidelines
Guest Notification
Every guest must receive a copy of the Good Neighbor Guidelines at check-in. The notice has to inform them that the rental is in a residential neighborhood, outline parking rules, state the maximum occupancy, remind them to follow fire codes, and warn that if police are called the guest may be responsible for the city’s response costs.4City of San Diego. Good Neighbor Guidelines
Noise, Trash, and Parking
Guests are expected to keep noise at levels mindful of neighbors. Trash containers stay off the street except on collection days. Guest vehicles should be parked in garages, carports, or driveways rather than blocking neighbors’ access. Oversized vehicles (over 27 feet long and 7 feet tall) face additional restrictions.4City of San Diego. Good Neighbor Guidelines
Complaint Response
The local contact has to respond to any complaint in person or by phone within one hour and take action to resolve it. Failing to handle a problem like excessive noise or illegal parking within that window can bring administrative citations with fines up to $1,000, and both the host and the guest can be cited individually.1City of San Diego. San Diego Municipal Code Chapter 5, Article 10, Division 1 – Short-Term Residential Occupancy
Transient Occupancy Tax Collection
On top of license fees, hosts collect the Transient Occupancy Tax from guests and remit it to the city. San Diego uses a zone-based rate structure. As of May 2025, the rates are 11.75 percent in Tax Zone 1, 12.75 percent in Tax Zone 2, and 13.75 percent in Tax Zone 3. The city’s interactive tax zone map shows which zone covers your property.5City of San Diego. Transient Occupancy Tax (TOT)/Tourism Marketing District (TMD) Some booking platforms collect and remit the TOT for you, but confirm this directly with your platform. If it doesn’t, you are personally responsible for collecting the tax and filing with the Office of the City Treasurer. Falling behind on TOT puts your STRO license at risk, since the ordinance requires your tax account to stay in good standing.
Penalties for Operating Without a License
Running a short-term rental in San Diego without an STRO license has been a violation since May 1, 2023. The city can issue a Notice of Violation with financial penalties, and unlicensed operation can disqualify you from getting a license later. For licensed hosts, noncompliance with any STRO requirement can bring civil penalties and revocation.2City of San Diego. Short-Term Residential Occupancy The most common paths to revocation are missing the 90-day annual utilization minimum for Tier 3 and Tier 4, skipping the quarterly utilization reports, and repeated complaints with no corrective action.
Two Things the City Doesn’t Check
Two issues sit outside the STRO application and catch hosts off guard more than anything in the city process itself.
Homeowners insurance. Standard homeowners policies are written for owner-occupied properties and routinely exclude claims arising from short-term rental activity. Damage caused by a guest, injuries during a stay, and lost income if the property becomes uninhabitable may all fall outside your coverage. Before you list, contact your insurer and either add a short-term rental endorsement or move to a policy built for rental activity. Platform host protection programs are not a substitute and often have significant gaps.
HOA and CC&R restrictions. A city-issued STRO license does not override your homeowners association’s rules. If your CC&Rs prohibit or limit short-term rentals, those private restrictions still apply. Some associations ban short-term rentals outright; others cap annual rental days or require board approval. Check your governing documents before you apply, especially at Tier 3 or Tier 4 price points.