San Diego's Airbnb eviction loophole: what landlords and renters should know

by Mance Rieder

San Diego's Airbnb eviction loophole: what landlords and renters should know

Quick answer: Can a San Diego landlord evict tenants and turn the unit into a short-term rental?

As of Oct. 13, 2026, San Diego's short-term rental rules don't block a license after an improper no-fault eviction, inewsource reported. A fix was set for a council committee on Oct. 21. State and city eviction rules still apply, and only 802 whole-home licenses were left as of Oct. 9, 2026.

Key takeaways

San Diego hasn't closed the gap between its eviction rules and its short-term rental licenses.
No-fault evictions still have strict state and city requirements, including relocation pay.
Whole-home short-term rental licenses are capped, so don't buy a rental counting on one.

If you own a rental in San Diego, or you're thinking about buying one to run as an Airbnb, this week's city hall story affects you. And if you rent, it's worth knowing what your landlord can and can't do.

What is the San Diego short-term rental eviction loophole?

Under the city's current rules, an owner can get a short-term rental license even after carrying out an illegal eviction, according to an Oct. 13, 2026 inewsource investigation. The reporting found investors buying apartment buildings, clearing out long-term tenants through buyouts or no-fault evictions, and listing the units on platforms like Airbnb.

The loophole was first reported in February. Councilmember Jennifer Campbell's office told colleagues she planned to bring amendments to a council committee on Oct. 21, KPBS reported on Oct. 14, 2026. Campbell is term-limited and leaves office in less than two months. Council President Joe LaCava has said he'll renew his own effort if her proposal falls short.

The city also can't currently tell whether any recent evictions in San Diego led to new short-term rental licenses, per the same reporting.

What are the rules for a no-fault eviction in San Diego?

The loophole doesn't make a no-fault eviction easy. State law still sets the bar, and the California Attorney General's Tenant Protection Act guide spells it out:

Owner or relative move-in: the owner or a qualifying relative has to move in within 90 days and live there as a primary residence for at least a year. If that doesn't happen, the unit has to be offered back to the tenant at the prior rent.
Substantial remodel: the work has to need permits, keep the tenant out for at least 30 straight days, and the notice has to include a description of the work and copies of the permits.

The city of San Diego goes further. Under its Residential Tenant Protections Ordinance, in effect since June 24, 2023, tenants in a no-fault eviction are owed at least two months' rent in relocation help, and the protections start on day one of a tenancy.

So if you're a landlord, a shortcut here can cost you real money. If you're a renter, you have the right to see the paperwork.

Can you still get a whole-home short-term rental license?

It's tight. The city's short-term rental page, updated Oct. 9, 2026, shows:

Tier 3 (whole home, outside Mission Beach): 4,859 licenses issued and 802 remaining under a cap of 1% of the city's housing units.
Tier 4 (Mission Beach whole home): 1,099 issued and 0 remaining, with a waitlist.
Other rules: one license per host, licenses don't transfer with a sale, and ADUs generally can't be used as short-term rentals.

That last point matters if you were weighing a backyard unit. Our breakdown of ADU rules, costs, and returns covers what an ADU can do for you as a long-term rental instead.

If you're buying a rental, run the numbers as a long-term rental first. Our look at whether a San Diego rental condo pays for itself walks through that math. Any short-term income is a bonus, and the rules may change again soon.

What this means for you

If you own a rental now: follow the state and city notice rules to the letter, and budget for relocation pay if you ever need a no-fault move-out. Expect the city to tighten the link between evictions and short-term rental licenses.
If you're thinking of selling a rental: it helps to know where demand stands. Pending sales have cooled this fall, as we covered in our post on whether San Diego is a buyer's market now.
If you rent: read any no-fault notice closely, ask for the permits or proof it describes, and know that relocation pay is required.

Bottom line

San Diego's short-term rental rules and its eviction rules still don't talk to each other, and the fix is running out of time with Campbell's term. For owners, the better plan is a long-term rental that works on its own numbers, with no shortcuts on tenant notices.

Want to know what this means for your rental or your next move? Call or text me at (858) 295-0556, or book a quick call at https://calendly.com/mance-riederhomes/strategycall. If you're weighing a sale, start with a free home value estimate.

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Mance Rieder | Broker Associate, DRE #02050930 | Rieder Homes Group | REAL Broker, LLC