Multiple illegal short-term rentals in San Diego shut down by city
A half-dozen illegal short-term rentals in San Diego’s mid-city neighborhoods have been shut down following a settlement between the city and the operators, who were accused last year of multiple building violations and failure to secure required licenses.
Under the agreement, which was triggered by a lawsuit filed last November by City Attorney Heather Ferbert, the operators of the six properties have been ordered to cease renting them out on a short-term basis and to remove the listings from all vacation rental platforms, including Airbnb. Further, they are barred from operating any short-term rentals and cannot apply for licenses until after Jan. 1, 2028.
According to Ferbert’s office, the unlicensed rentals, which were spread across such neighborhoods as North Park, Normal Heights, City Heights and Barrio Logan, had been in operation since at least June 2023. The settlement comes three years after new licensing regulations for rentals less than 30 days went into effect in the city of San Diego.
The court stipulation, in which the operators admitted to no wrongdoing, came about after all parties agreed they did not want to incur the expense of further litigation. The defendants, which include two corporations helmed by two individuals, were assessed $1,150,000 in civil penalties, although those are suspended as long as the operators comply with the judgment. Should they fail to do so, the penalties would immediately go into effect, the settlement states.
The operators are still required to pay $100,000 in civil penalties, pus $6,079.88 in investigative costs. Ferbert’s office noted that one of the beneficial outcomes of the settlement is the return of six properties to the long-term housing market.
“This is exactly the kind of outcome San Diegans deserve,” Ferbert said in a statment. “We identified unlawful operators, we built the case, and we shut them down with up to $1.25 million in penalties to make clear that ignoring the rules comes at a real cost. I am proud of our Housing Protection Unit for prosecuting this case and grateful to BLUE’s ( Building and Land Use Enforcement) investigators for building it from the ground up. This is what accountability looks like.”
While the major issue with the rentals is that they were operating without required two-year licenses, which cost $1,129 for whole-home rentals, operators of one of the properties had converted a detached garage into rental lodging with no permits and no building inspections, the city attorney’s office said.
Early on, city officials advised Airbnb that the unlicensed properties needed to be removed from its platform, which it did, city spokeperson Richard Berg said Wednesday. But later on, they would reappear, and Airbnb would be informed that once again, the listings would have to be removed. The city’s probe was prompted by a complaint received by the Building and Land Use Enforcement Division in June of 2023.
San Diego Councilmember Sean Elo-Rivera, who earlier this year had unsuccessfully tried to place a measure on the ballot to heavily tax vacation rentals, lauded Ferbert’s office for resolving concerns surrounding the problematic rentals.
“San Diegans deserve safe, stable neighborhoods and housing that serves people who live and work here, not unlawful operators who ignore basic rules while neighbors deal with the consequences,” Elo-Rivera said. “I am grateful to the City Attorney’s Office for taking action to protect residents in Normal Heights, Hillcrest and across our city. Enforcing our short-term rental and building safety laws is about accountability, housing stability, and making sure every neighborhood is treated with the respect it deserves.”
Apart from the legal action taken by Ferbert’s office, city staff continues to pursue enforcement of short-term regulations. More than 16,500 listings have been removed since enforcement began, Berg said.
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This story was originally published June 10, 2026 at 3:57 PM.