Rental licence requirements in San Diego, CA

Requirements taken from official city sources, quoted and dated.

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Who must register

Everyone who rents out residential property in the city, including owners of a single property. Verbatim from the official page: "The tax is imposed annually upon anyone who owns, operates, or manages the rental of any residential real estate." Coverage, verbatim: "single family residences, multiple family residences, mobile homes, mobile home parks, trailers, trailer parks, apartments, bungalows, hotels and motels". Exception under SDMC §31.0305(g): an owner who lives in a single-family home and shares expenses with co-occupants, or who rents to a close relative below the cost of maintaining the property.

Fee

Under SDMC §31.0305(b), verbatim: $50 per property plus $5 per unit per year for 1-10 dwelling units; $57 per property plus $9 per unit per year for 11-100 units; $150 per property plus $8 per unit for more than 100 units. Separately, §31.0305(c) for motels/hotels: $50 per property plus $5 per unit per year up to 250 units, and $57 per property plus $9 per unit above 250.

Renewal

Annually. Verbatim from the Treasurer's site: "The due date for the tax is generally March 1st of each year." For new owners — 30 days from the date the bill is mailed; the tax is not prorated by month.

Penalty for operating unlicensed

SDMC §31.0131, verbatim: "Any person who fails to make a payment before the fifteenth (15th) calendar day following the due date will be assessed a late penalty of twenty-five dollars ($25) or ten percent (10%) of the total business tax due, whichever is greater. In addition, beginning one calendar month from the due date, a penalty charge of one percent (1%) per month, or any part of a month, will be added to any past due taxes and penalties." From the same section: "Operating a business without a current certificate of payment shall be grounds for the filing of a complaint against the person or persons responsible for paying the taxes under the provisions of this Article."

What the ordinance says

"Every person conducting, operating, managing or renting any residential real estate, including an apartment house, flat dwelling, single or multiple family dwelling, duplex, or any other dwelling, except a motel or hotel which shall be subject to Section 31.0305(c), shall pay a business tax of fifty dollars ($50) per property plus five dollars ($5) per unit annually on all residential real estate containing at least one dwelling unit but no more than ten dwelling units, fifty–seven dollars ($57) per property plus nine dollars ($9) per unit annually on all residential real estate containing at least eleven dwelling units but no more than one hundred dwelling units, and one hundred fifty dollars ($150) per property plus eight dollars ($8) per unit on all residential real estate containing more than one hundred dwelling units." — SDMC §31.0305(b) — San Diego Municipal Code §31.0305 (Business Tax — Apartment Houses, Flat Dwellings, Motels, Hotels, Rental Units); penalties — §31.0131; general provision — §31.0301

Source: https://www.sandiego.gov/treasurer/taxesfees/btax/rtaxinfo · checked 2026-08-14