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Vulnerable Airbnb Hosts Left Devastated Following New Short-term Rental Laws

short-term rental

Short-term rental possibilities

Airbnbs are now limited

Airbnbs are now limited

Short-term rental laws are strict

Short-term rental laws are strict

Cities across the country completed changed how Airbnb hosts can operate their businesses through strict short-term rental regulations.

Trying to rent properties out on Airbnb is much harder than it used to be. City regulations across the country have made vacation rental ownership nearly unattainable”
— Dan Relcher
SAN DIEGO, CA, USA, April 14, 2023/ -- The short-term rental game just got much harder. Across the board, Airbnb hosts have been hit hard with strict short-term rental laws that have devastated their businesses. Many cities, especially in expensive real estate markets like California, are forcing Airbnb hosts to apply for a license via a capped lottery system. For example, the new short-term rental laws in San Diego limit the number of licenses available throughout the city to 1% of the housing stock. Unless the property is located in Mission Beach, which is an exception granted by the city of San Diego, landlords have to fight tooth and nail to get the proper license.

Other cities now require Airbnb hosts to be a resident of the city itself to continue renting out properties to short-term guests and tenants. The short-term rental ordinance for Airbnb hosts in Chula Vista, CA enacted this rule in 2020. Any landlords that owned vacation rentals in this city but weren’t residents of Chula Vista had to close up shop. To continue rubbing salt in the wound, there’s also a limit of two licenses total per resident in this town. Being an Airbnb host in Southern California is an uphill battle.

Airbnb hosts are being forced to get creative if they are to continue their short-term rental businesses. Building an accessory dwelling unit (ADU) used to be a good workaround for maximizing short-term rental income as a landlord. However, many cities now outlaw renting ADUs if they were built prior to a certain date.

Hopeful Airbnb hosts are having their dreams crushed when trying to enter the short-term rental game. Landlords can no longer buy a large property, build an ADU in the backyard, and rent it out on Airbnb or VRBO in many cities across the country.

To counter this, Airbnb hosts are getting creative and renting out rooms within their primary residence to short-term guests. Many cities appear to be more lenient for rental instances like this. Homeowners are getting more comfortable with the idea of living with tenants and guests. Life continues to get more expensive and inflation is devaluing the strength of the US dollar. Property owners are looking for every way possible to maximize the income they can generate through their houses.

Other hopeful vacation rental hosts are moving and turning their primary residence into a full rental property. Typically, homeowners can Airbnb a property even with a mortgage tied to the house with permission from the company holding their loan. Of course, consulting with the mortgage company first regarding any Airbnb plan is a good idea.

There are cheaper areas that homeowners are moving to in order to free up their primary residences for rent. However, the strongholds that cities are placing on short-term rentals via strict regulations are bottlenecking the industry. Countless Airbnb hosts are left stranded holding the bag when the rug gets pulled out from under them. Times are changing, which has forced Airbnb hosts to adjust their business models in order to continue operating.

Alexander Capozzolo
SD House Guys
+1 858-585-4160
email us here

Airbnb Hosting in San Diego just got HARD! Short-term Rental Laws *2023 UPDATE*