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ADUs rented out as short-term rentals

Complaints rolling in over homeowners using San Diego's ADU laws to make profits by renting them as short-term rentals.

SAN DIEGO — The city of San Diego considers accessory dwelling units (ADUs) an integral part of its plan to boost an inadequate and overly pricey housing supply.

To do so, San Diego Mayor Todd Gloria has expedited the permitting process, allowed for the placement of more ADUs on a single parcel, shrank encroachments near adjacent property owners, abolished parking requirements, and allowed homeowners to build bigger companion units.

"When I look at this program, what I see is a tangible solution that is actually building results, now," said Mayor Gloria in a YouTube video about the city's Affordable ADU Prorgam.

One prohibition that the Mayor is standing by is making it illegal for homeowners to turn their ADUs into short-term rentals.

That ban, however, has proved difficult to stop.

More and more homeowners are building ADUs through the city's ADU Bonus Program but instead of adding to the housing supply, homeowners are listing them as short-term rentals on websites such as Airbnb, VRBO, and other popular rent-share sites. 

Since January 2023, the city's Code Enforcement Department and Get it Done App have received over 90 complaints about homeowners renting out ADUs as short-term rentals, according to public records obtained by CBS 8.

According to searches on the home-sharing website, Airbnb, hosts describe the small rentals as a "remodeled studio" that is "attached to the main house" or in one Clairemont rental, "a studio based on a conversion of this home's garage."

Click on any of the circles to see the details about the specific complaint submitted to the city:

Even if all homeowners abide by the Mayor's ADU program, it still is a long way from putting a dent in the housing supply, said Nathan Moeder with London Moeder Advisors. 

“It's just a small Band-Aid approach where we're adding little tiny increments of housing - but this isn't a long-term solution,” Moeder told CBS 8. 

Moeder, a real estate economics expert, said ADUs are generally one-bedroom or studio units. 

And while Moeder says any new housing is a step in the right direction, ADUs will likely not be the solution San Diego is looking for to solve its housing crisis.  

“You're still talking $2,000 plus for an ADU unit,” he said.  

He added that ADUs are a needed product but for a very tiny, targeted audience. 

And while more homeowners will look to build ADUs as a way to maximize their property value, the city will likely spend more time on enforcement. 

In a statement, a spokesperson for the city confirmed that the city "prohibits the use of ADUs for short-term rentals," while adding that "renting an ADU as a short-term rental will result in a code violation. Only permitted ADUs built before the September 2017 prohibition may be operated as a short-term rental  But it will still need to be properly licensed."

The spokesperson told CBS 8 that the city created a new licensing process for short-term rentals as well as an online reporting process for residents to submit complaints.

"If someone suspects someone is operating an ADU as a STRO, they should report the potential violation through the City’s Get It Done app."

As for fines, the spokesperson said that Using a dwelling unit as a short-term rental without a license could result in a "verbal warning, written warning, Administrative Citation or the issuance of a Notice of Violation with penalties up to $1,000 per day."

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