San Diego's short-term rental market has undergone a major change since the implementation of a new ordinance on May 1st. This ordinance, spearheaded by City Councilwoman Jennifer Campbell, aims to address the city's housing shortage by regulating short-term rentals. The ordinance establishes a tiered licensing system. Tiers one and two are perfect for homeowners who want to rent out a portion of their primary residence as a short-term rental.
However, things get a bit more complex for investment properties. If you own a property that isn't your primary residence and want to leverage short-term rentals, tiers three and four apply. These tiers pose a bigger challenge. The city restricts the number of licenses available, and if applications surpass the limit, a lottery system determines who gets them. Additionally, property owners are limited to holding only one tier three or four licenses. Regardless of the tier, all short-term rental operators within San Diego city limits must obtain a Short-Term Residential Occupancy (STRO) license to ensure compliance. On top of that, a Transient Occupancy Tax Certificate is required to collect tourist taxes from guests, a standard practice for short-term rentals in most locations.
San Diego's recent ordinance on short-term rentals has Real Estate Investors, Airbnb Investors, and STR Investors wondering how to navigate the new regulations. But there's good news! Parkside Asset Management has partnered with Airbnb's Friendly Apartments Program, offering a solution that simplifies compliance and unlocks the full potential of your San Diego short-term rental property (or multifamily property).
Solution: Partnering with Airbnb's Friendly Apartments Program
Airbnb's Friendly Apartments Program is a collaboration between Airbnb and apartment
buildings across the United States. The program streamlines short-term rentals for residents by:
●Compliance Made Easy: Finding an apartment building within the program means it's already on board with short-term rentals. This eliminates the guesswork of whether your property complies with building rules or local ordinances.
●Clear Guidelines: Airbnb-friendly buildings establish clear house rules for short-term rentals. This includes things like quiet hours, pet policies, and occupancy limits. Having these guidelines upfront ensures you're operating within the legal boundaries set by the city and the building management.
●Streamlined Process: The program simplifies the process for residents by offering a central location to find approved buildings. No more sifting through individual listings or contacting multiple management companies to find out their short-term rental policies.
What This Means for San Diego Property Owners and Investors: Increased Income and Reduced Headaches
San Diego's new short-term rental regulations might seem like an obstacle, but with Parkside Asset Management and the Airbnb Friendly Apartments Program, it can be an opportunity! Here's how you benefit:
Reduced Vacancies
The program connects you with potential renters who specifically seek short-term rental opportunities. This can significantly reduce vacancy periods, ensuring a steady stream of income from your property.
Increased Revenue Share
By partnering with Airbnb, you gain access to a wider audience of potential guests looking for short-term stays in San Diego. This increased exposure can lead to more bookings and potentially higher rental income. This can significantly impact your Net Operating Income (NOI), a key metric for Real Estate Investors.
Higher Net Operating Income (NOI)
Simply put, NOI reflects the profitability of your property after operating expenses are deducted from rental income. By reducing vacancies and potentially increasing rental income through Airbnb, the program can lead to a higher NOI for your San Diego short-term rental property.
Net Operating Income Explained:
Let’s consider for a moment that your property generates $10,000 per month in rent. However, you have expenses like property taxes, maintenance, and utilities that total $3,000 per month. Your NOI would be $7,000 ($10,000 rental income - $3,000 expenses). The higher your NOI, the more profitable your property is. We've built a simple calculator that helps you determine your NOI easily; take a crack at it: Net Operating Income Calculator
By making it easier to find qualified tenants and potentially increasing rental income, the Airbnb Friendly Apartments Program can contribute to a healthier NOI for your San Diego short-term rental investment. As your Property Manager, Parkside Asset Management can handle the complexities of navigating the new regulations and maximizing your return on investment through Airbnb.
Partnership Launch Details
We're strategically starting strong with two exceptional properties, totaling 22 units. This initial launch signifies our unwavering commitment to growth. We plan to strategically expand the program to encompass a wider range of San Diego residential rental properties in the future.
Our first partner property is none other than the iconic The Carl: a vibrant portfolio of residential
communities in the heart of San Diego, synonymous with luxurious living. The Carl boasts exquisite apartments, ranging from 1 to 4 bedrooms. Each thoughtfully designed space is enhanced with the latest smart home technology for an unparalleled living experience.
Tenants have the convenience of Amazon lockers right at their doorstep, the joy of indulging in a self-serve coffee/tea bar whenever they please, and the breathtaking views of Mission Bay and Sea World’s fireworks show from the rooftop deck.
Wrapping Up San Diego's short-term rental landscape is evolving, but there's no need to navigate it alone. Parkside Asset Management and Airbnb's Friendly Apartments Program are here to simplify compliance, maximize your income, and make sure that your San Diego investment property thrives.
Take action today! Visit Parkside Asset Management to schedule a consultation and learn
more about the exciting partnership with Airbnb. Let's turn your San Diego rental into a success story together!
