Comprehensive Guide to Operating an Airbnb or Short-Term Rental in Encinitas, California.
Introduction
This report outlines the necessary permits and regulations for converting a single-family home into a short-term rental (STR) in Encinitas, California. The information is synthesized from various sources, focusing on the most recent regulations and requirements.
Short-Term Rental Permit
To operate a short-term rental in Encinitas, you must obtain a short-term rental permit from the city. This permit is mandatory for anyone wishing to rent, offer, or advertise a property as a short-term rental (1). The application for this permit must be submitted annually for each rental unit (2)(3). The permit is valid for one year and is non-transferable (4). A $425 non-refundable permit and renewal fee is required for the City to operate the short-term rental program.
As part of obtaining a permit, the property must be inspected. This inspection will be conducted by the City prior to the short-term rental permit being approved or renewed. The City staff person will need access to the unit's interior to conduct the inspection and to verify compliance with EMC Chapter 9.38. In addition, during the inspection, the City staff person will verify the accuracy of the information provided during the application process. Inspections may also be conducted in the event that a complaint is received regarding the operation of the short-term rental unit. Examples of some things the City staff person will be looking for the following during the inspection: smoke detectors, carbon monoxide detectors, fire extinguishers, excessive occupancy, parking spaces, etc.
Zoning and Property Type
Short-term rentals are permitted in all residential zones, including planned residential districts (PRDs) (5). However, they are only allowed in single-family or duplex units, and these properties must be privately owned (6). A short-term rental may be allowed in other non-residential zones subject to the provisions of that zone. For example: in commercial mixed-use zones on Coast Highway 101 for the Downtown Specific Plan, hotel/motels (or transient habitation) are allowed subject to a use permit. Since a short-term rental is a transient use by definition (rented 30 days or less), a short-term rental in this zone is subject to the approval of a use permit.
Liability and Compliance
Owners are required to have short-term rental liability coverage of at least $1 million (7). They must also ensure the rental does not become a public nuisance by preventing unruly gatherings and excessive noise (8). In case of complaints, owners or their agents must respond within one hour to address any issues (9)(7).
Occupancy and Vehicle Limits
The number of occupants in a short-term rental is limited to two persons per bedroom plus one additional person per dwelling unit (10). The number of vehicles allowed is also restricted to the number specified in the permit (11).
Transient Occupancy Tax (TOT)
Operators of short-term rentals are responsible for complying with the Transient Occupancy Tax (TOT) regulations. This 10% tax has been in place since 2009, and while platforms like Airbnb and Vrbo collect taxes in other cities, they do not do so in Encinitas (12)(13). Hosts must ensure that these taxes are collected and remitted to the city (14).
Minimum Stay Requirements
For non-hosted short-term rental units, there is a minimum stay requirement of three consecutive nights (15)(16).
Permit Limitations and Violations
The city has limited the number of short-term rental permits for non-hosted properties to no more than 2.5% of the total housing units in Encinitas (17). Violations of the short-term rental regulations, such as operating without a permit, can result in fines and other penalties (18)(19).
Conclusion
To convert a single-family home into a short-term rental in Encinitas, you must secure a short-term rental permit, comply with zoning and occupancy regulations, maintain liability insurance, and adhere to tax obligations. Understanding and following these requirements will help ensure legal and successful operation of your short-term rental property.
For further information or assistance, you can visit the City of Encinitas STR Information Portal. You can also contact the City of Encinitas Development Services Department at permits@encinitasca.gov or +1 (760) 633-2708. You can also download a helpful Short-Term Rental FAQ.
Disclaimer: Please note that this is not legal advice. We have compiled a summary from multiple sources to simplify and summarize how to comply with local ordinances, and state and federal laws. Please consult legal council or contact the municipality, as outlined above.
