San Diego Will Review Short-Term Rental Loophole
A city committee hearing on October 21 will address how property owners use evictions to bypass rental licensing rules.
Updated on Oct. 13, 2026 in Apartments
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The San Diego City Council will review proposed ordinance amendments on October 21, 2026, aimed at closing a loophole that allows property owners to secure short-term rental licenses after conducting illegal no-fault evictions. Currently, the city does not monitor whether evictions are followed by new short-term rental applications.
Why it matters
Property owners are increasingly using no-fault evictions to remove long-term tenants and convert units into more lucrative short-term rentals. This practice disrupts local housing stability and circumvents state laws that require owners to occupy units for 12 months after a move-in eviction.
Current state law requires owners to occupy a unit for 12 consecutive months following a no-fault eviction, yet enforcement remains difficult. The proposed changes follow the initial development of amendments that began in February 2026.
The players
Jennifer Campbell
San Diego City Councilmember who is sponsoring the committee hearing before her departure from office in December 2026.
Venus Molina
Local political figure who has received over $22,000 in campaign contributions from property owners and Airbnb operators.
Joe LaCava
City councilmember who has committed to pursuing the ordinance loophole if the current proposed amendments fail to move forward.
The details
Investors use no-fault eviction clauses to clear long-term tenants out of multi-family buildings. By forcing these vacancies, owners bypass traditional residential leasing to shift properties onto short-term rental platforms for higher profit margins. The city currently lacks a tracking mechanism to connect specific eviction notices to subsequent licensing applications filed by the same property owners.
Timeline
February 2026: Development of proposed amendments began.
October 21, 2026: Scheduled committee hearing for amendments.
December 2026: Jennifer Campbell leaves office due to term limits.
The Home Front
The hearing represents an effort to reconcile local short-term rental licensing with state-mandated occupancy requirements. It marks a push to strengthen oversight against the broader trend of converting long-term housing stock into vacation rentals.
If you are a renter facing a no-fault eviction, verify that your landlord adheres to the 12-month owner-occupancy requirement mandated by state law. Consult a local tenant rights organization if you suspect your unit is being vacated to facilitate a transition to short-term use.
The takeaway
Closing licensing loopholes is essential to maintaining long-term rental stability in a high-demand market like San Diego. Keep records of all eviction notices and lease terminations to ensure your housing rights are protected under existing state occupancy statutes.
What happens next
The San Diego City Council committee will deliberate on the proposed amendments during the public hearing on October 21, 2026.
Further reading
For more on the local rental market, see our Apartments section.
Source note: This article includes information reported by Inewsource.
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