Starting Tuesday, July 1, at 10 a.m., hosts can apply for a Tier 4 short-term residential occupancy (STRO) license, a requirement to operate a dwelling unit in the city as a short-term rental property. Tier 4 licenses apply specifically to whole home STROs within the Mission Beach Community Planning Area operating more than 20 days per year.  

Previously opened in October 2022, Tier 4 STRO license applications quickly reached capacity and have remained closed since Nov. 30, 2022. In the interim, City staff has processed an ongoing waitlist from the original application period in accordance with the STRO Ordinance.  

The STRO Ordinance, approved by the San Diego City Council and California Coastal Commission, provides guidelines for short-term rentals of less than one month. It aims to ensure short-term rentals are regulated and operated lawfully, and to support hosts and visitors while also preserving the quality of neighborhoods.  

“For the first time since the short-term vacation rental ordinance passed in 2022, the City will be accepting applications for Tier 4 whole-home vacation rentals in Mission Beach. As a result of this ordinance, we have seen more housing return to the market for San Diego residents, while also providing options for visitors who want to stay in one of San Diego’s many vibrant and diverse neighborhoods,” said Councilmember Jennifer Campbell, who represents District 2. “Especially in popular areas like Mission Beach, these regulations have protected the neighborhood quality of life, and I am grateful to all the hosts who have adapted to follow this new model for their rentals. I am committed to continuing to foster a positive and respectful relationship between San Diego residents and visitors as we enter this next phase of licensing.” 

Before beginning the application process, hosts must possess an active Transient Occupancy Tax (TOT) certificate and ensure all Rental Unit Business Taxes are in active paid status.  

Submittal of Tier 4 applications will be limited to a 45-day period, concluding on August 15, 2025. Once the application period ends, the City will conduct a random lottery to determine processing order and potential waitlist position.  This procedure is in accordance with the City’s Municipal Code, section 510.0106(c).  

Existing license holders are able to apply to be added to the Tier 4 applicant list. If approved for a Tier 4 license, they will then have to cancel their existing lower-tier license. 

The application period for the remaining license types is unaffected by the reopening of Tier 4 licenses and will remain open.  Details and a description of the four license types are available at sandiego.gov/stro.