Buy a Vacation Rental in San Diego

Want to Buy a Rental or Vacation Home in San Diego?

Should you Buy a Vacation Rental in San Diego?

Hey there! I’m Mike Frey, a Realtor in San Diego, and I think you should Buy a San Diego Vacation Rental. Renting it out could be a smart move for many reasons I have listed below.

High Demand for Rentals

San Diego is a hotspot for people wanting to live and vacation here. The sunny weather, stunning beaches, and vibrant culture make it a prime destination. This constant influx of people ensures there’s always a high demand for rental properties, whether it’s long-term tenants or short-term vacationers.

Attractive Rental Income

Rental rates in San Diego are some of the highest in the country. This means you can potentially earn a solid income from renting out your property. It’s a great way to cover mortgage payments, property taxes, and even make a profit.

Property Appreciation

San Diego’s real estate market has a strong track record of property value appreciation. By investing in a property now, you’re likely to see its value increase over time, which boosts your equity and overall net worth.

Tax Benefits

Owning a rental property comes with several tax perks. You can deduct mortgage interest, property taxes, maintenance costs, and even depreciation. These tax benefits can significantly enhance your investment returns.

Economic Stability

San Diego boasts a diverse and stable economy, with strong sectors in biotech, healthcare, tourism, and the military. This economic strength supports a thriving rental market, providing a reliable stream of potential renters.

Vacation Rental Potential

If you’re interested in short-term rentals, San Diego is an ideal spot. Tourists flock here year-round, so your vacation property can generate substantial rental income during peak seasons. Plus, you get the added benefit of having a personal getaway spot whenever you want to use it.

Professional Management Options

There are numerous property management companies in San Diego that can handle everything from tenant screening to maintenance, making it easier for you to manage your investment without being hands-on daily.

Quality of Life

San Diego is known for its high quality of life. The appealing lifestyle attracts a wide range of renters, ensuring that your property remains in demand. Whether it’s professionals, families, or retirees, there’s always someone looking to rent in this beautiful city.

Investing in a rental property in San Diego not only offers the potential for significant financial gains but also provides the peace of mind that comes with owning property in one of the most desirable locations in the country. If you’re ready to explore your options, I’m here to help you find the perfect investment. Let’s make it happen!

These are just some of the reasons I think you should Buy a Vacation Rental in San Diego. Just call me, and I can help you navigate the processes.

Vacation Homes: To Buy with the intention to Rent

As a Realtor in San Diego, my responsibility is to assist and advise you during the home search process. I’ve created this page because many people ask me about Short-Term Residential Rentals near the beach. The concept is amazing: buy your vacation home and rent it out when you’re not living there. I think this is a fantastic idea.

There are a few steps you will need to take on your own (as a Residential Realtor, I am not licensed to deliver legal advice). Here are some steps to follow:

Hire a Realtor who is a Buyer’s Representative. Sign a Buyer’s Representative and Broker’s Compensation Agreement, affectionately called a “BRBC.” There is no charge to work with a Buyer’s Representative until you purchase a property.
Contact a property manager who specializes in short-term rentals in the area where you want to buy a vacation property. (Many companies in San Diego do this.)
Contact a local real estate attorney and develop a relationship with them for help navigating the San Diego license processes.
Find a property you like, and confirm with your lawyer and property manager that the property meets your desired plan.
Get the Green Light? Work with your Me agent to write a Residential Purchase Agreement (RPA) and submit an offer to buy.

Remember, while Mission Beach has sold out of permits, there’s still a chance for you! You can secure a spot on the waitlist after purchasing your property. Although it’s not a guarantee, I’m optimistic that with some effort, you could secure a permit.

Quick Contact: [email protected] or call 858-330-1242 (Feel free to call me. Let’s talk about real estate.)

Rule you need to understand. "STRO" Program 2024

While Mission Beach Tier 4 has sold out of permits, there’s still a chance for you! You can secure a spot on the waitlist after purchasing your property. I’m optimistic that with some effort, you could secure a permit; there is a waitlist. But the wait could be over 7 years. You will need to do your own research. Contact the City of San Diego for details. (STRO City Link)

Quick Notes:

STRO = Rentals less than 31 Days

Tier 4 Mission Beach Exclusively. More than 90 Days Per Year. (Sold Out)

Tier 3 Vacation Rentals Excluding Mission Beach. More than 90 Days Per Year. Outside Mission Beach. (YES, Some Available)

Tier 2 Hosts live on the property, renting over 20 days per year.

Tier 1 Renting aggregate of less than 20 Days per year.

Rentals over 31 days are NOT STRO. So, these rules don’t apply.

Strategies to work with the STRO program

As of August 2024, the STRO Program permits are available for all San Diego neighborhoods except Mission Beach. But don’t worry, there are still great opportunities for vacation rentals.

For example, in a four-bedroom house, you could rent one room to a sponsor (someone with a year-long lease). This sponsor can then act as a property manager, handling the responsibilities of short-term rentals for the other rooms.

This setup allows you to tap into the vacation rental market while ensuring your property is well-managed and compliant with local regulations. If you’re interested in exploring this option, I’m here to help guide you through the process. Let’s make your investment work for you!

Houses for Sale in Pacific Beach & Mission Beach. Click the Links to see the Listings. Call me if you want to view anything. Make sure to sign up/Sign in.

For Other Areas outside MB & PB

(Coronado & Imperial Beach is not part of the City of San Diego STRO program)

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