My Airbnb just got banned! What do I do now?


The council voted on Monday to block investment property from being used as short term rentals in the city of San Diego. So what does this mean? The enforcement is said to begin July 2019 which does give you some time to make some moves but what is the right move?

There are 2 main categories of STR in San Diego, you have homes in coastal communities like Mission Beach which have an abundance of vacation homes that have been operating since long before Airbnb. The other type of home is in a community like North Park which is predominantly owner occupied with a sprinkling of revenue generating STRs. You should know how these differ and how you will be affected.

What does the ruling mean for my home?

For the investment homes in OB, MB, PB etc, some big decisions are coming for property owners as we await the courts to resolve the ruling. Here are some swirling questions I have heard in the last 2 days.


Will my home value drop?

Can I get around the law?

Can I switch to long term tenants?

If I sell, do I do it now or wait?

Are there opportunities to invest?

What is considered owner occupied?

How do I supplement lost income?


As the current ruling stands, vacation home owners are at a disadvantage, period. But we need to make moves and plan for the future.

As many of you know I have been involved in the STR market for a while with the It’s Borrowed service for Hosts renting bonus amenities to guests and as a Realtor catering to the STR market in San Diego. I am indeed biased towards the freedom we should have to do as we wish with our property. I am including some thoughts on the subject, this is not legal or tax advice.


  • Sell now and go find an investment more suitable. This is the most conservative approach and if it fits your risk tolerance, do it. There are a multitude of other ways to invest. I won’t print my secret spots but I am here to help if you want to entertain this route.


  • Ride it out. I would say there is a decent chance that the ruling is overturned or amended to support coastal communities. When does this happen? Does it take 5 years in court? What do you do until then? What if it never happens? Regardless of the outcome, it makes sense to know the value of your home and watch it like a hawk every week to see the trend. Also, know what your home will rent for long term. Questions? This is a hot topic right now so book time with me so we can make a plan.


  • I can’t recommend going underground and risking the fines, but some of you will do it. If you have an angry neighbor out to get you, you will get nailed and it won’t be cheap.


  • Move into the vacation home. Don’t overlook this solution. If your primary home is in an area that does allow STR, consider moving into your vacation rental and renting out your current primary. You can still pull in STR money from your vacation home as long as you are “On-scene”. This might be a good solution to buy some time while the courts iron out the resolution.


  • For those of you that can make it work with a home that does meet the ruling guidelines, consider using It’s Borrowed to supplement your income. Hosts can earn an extra $30-$100 per day supplying bonus amenities.


To stay up to date on this whole situation. Follow our blog or give me a call/email.


Mike Jacobsen



Realtor at Berkshire Hathaway Home Services California

Founder of It’s Borrowed

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