ESCONDIDO — The Escondido City Council has approved a series of amendments to its new short-term rental pilot program, clarifying that only property owners, not tenants, may operate short-term rentals within city limits.
The three-year pilot program, which launches July 1, requires short-term rental operators to obtain a business license, a short-term rental permit and a transient occupancy tax registration certificate.
Rentals will also be subject to safety inspections and regulations, including limits on guest occupancy, proximity to schools, and neighborhood parking restrictions.
The program restricts rentals to single-family homes, duplexes, townhomes and some multifamily units, though only 2% of the city’s total housing stock — roughly 942 homes — will be eligible for short-term rental use. Properties such as accessory dwelling units, income-restricted housing, trailers, sheds, garages, vehicles and lots created under Senate Bill 9 are excluded.
Rentals are also prohibited within 500 feet of schools.
Under the new rules, hosts are required to pay a 10% transient occupancy tax, a $250 annual registration fee, and a $231 inspection fee. Violations will result in escalating fines — $1,000 for a first offense, $3,000 for a second and $5,000 for a third within 12 months.
Three violations in a year will result in permit revocation.
A majority of the council passed the original ordinance in December. On June 11, the council unanimously adopted amendments clarifying that renters are ineligible to apply as hosts.
“We wanted to make it clear that renters are ineligible applicants,” City Attorney Mike McGuinness said. “As we looked into tenant-landlord ability to sublet, we believe this is an appropriate and reasonable limitation on the pool of applicants.”
Additional changes include removing court convictions as a prerequisite for city-imposed fines. The revised ordinance authorizes the city to issue administrative fines directly, which McGuinness said would improve enforcement.
“The way it was originally written required conviction of an infraction before the city could secure administrative fines – this removes the conviction and goes right to fines,” McGuinness said. He noted the violations remain misdemeanors and are still prosecutable, adding that the change “untethers” the fines from the criminal process.
The updated ordinance also includes new language allowing hosts to appeal permit suspensions — a provision intended to address due process concerns, McGuinness said.
The core ordinance remains scheduled to take effect July 1. The newly adopted amendments require a second reading by the council on June 25 and would take effect 30 days later, on July 25.
“I don’t see any impediment with going forward with the ordinance as is,” McGuinness said.
Deputy Mayor Consuelo Martinez, the lone dissenting vote when the original ordinance was approved in December, said she supports the latest amendments.
“I don’t support the overall ordinance, but I support these amendments,” Martinez said.
Councilmember Joe Garcia described a recent conversation with short-term rental owners who said they planned to sell their properties in light of the new restrictions.
“I find it interesting that the moment the city begins to take measures to ensure that there are rules as to how we are to deal with each other, at least this one owner clearly told me it’s time to sell and move on and invest in somewhere else where there are no rules,” Garcia said.
