The Coast News Group
An aerial view of an Escondido neighborhood. Courtesy photo/Unwind
An aerial view of an Escondido neighborhood. Courtesy photo/Unwind
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Escondido launches pilot program to regulate short-term rentals

ESCONDIDO — The Escondido City Council has approved a three-year pilot program to regulate short-term vacation rentals, marking the city’s first effort to impose rules on the estimated 181 rentals operating without oversight.

The program, set to begin July 1, 2025, aims to address safety concerns, neighborhood impacts and revenue generation for the city.

Escondido’s city code is silent on short-term rentals, and this lack of regulation has prompted residents to complain about nuisance properties and concerns about unregulated operations.

The council voted 4-1 in favor of the pilot program, requiring short-term rental hosts to obtain business licenses, short-term rental permits and transient occupancy tax (TOT) registration certificates.

Rentals will also be subject to safety inspections and regulations, including limits on the number of guests, proximity to schools and neighborhood parking use.

“There could be unsafe or illegal operations occurring,” said Jennifer Schoeneck, the city’s economic development director. “We currently do not have a mechanism through code compliance or through the police department to track the complaints against short-term rentals.”

The new program limits short-term rentals to single-family homes, duplexes, townhomes, and certain multifamily properties. Multifamily units will face strict caps, and only 2% of the city’s housing stock — approximately 942 homes — will be allowed to operate as short-term rentals.

Rentals in accessory dwelling units, income-restricted housing, vehicles, sheds, trailers, garages and properties created through Senate Bill 9 applications are prohibited. Rentals may not be within 500 feet of a school.

Hosts will need a business license, a short-term rental permit, and a TOT registration certificate. They must also pay a 10% TOT, a $250 annual fee, and a $231 inspection fee. Violations of the regulations could result in gradually higher fines for the first three infractions ($1,000, $3,000 and $5,000, respectively) within 12 months; three violations within a year will also lead to permit revocation.

“For me, banning short-term rentals was never on the table,” said Mayor Dane White. “At the same time, you can’t have the wild, wild west, and in order to do business in the city you need to have a license and associated permits.”

The program prohibits events like weddings and limits occupancy to two guests per bedroom plus two additional guests. Properties must also comply with parking restrictions and maintain clear noise, trash, and safety rules.

Short-term rental operators voiced concerns about the new rules, particularly the 500-foot ban near schools. Mo Rashid, who operates rentals in the region, said the restriction unfairly penalizes responsible hosts.

“By targeting one or two homes saying that those are party homes, you’re impacting 24 other families,” Rashid said, suggesting the city adopt a 300-foot ban similar to RV parks and hotels.

Resident Mary Smith said a nearby short-term rental had disturbed the tranquility of her quiet neighborhood. She expressed concern that the property overlooks a playground, raising worries among some parents about who might be staying so close to children.

Smith also pointed out that, unlike hotels and RV parks with onsite management, short-term rentals are often “unregulated” and typically allow guests to check in without a host present.

“I urge you to prioritize the needs of Escondido residents,” Smith said. “If you go forward with it, manage these effectively and keep the 500 feet (school) ban.”

Councilmember Consuelo Martinez cast the sole dissenting vote, opposing additional short-term rentals beyond the estimated 181 currently operating in the city.

Martinez advocated for an outright ban to address the region’s housing shortage.

“If we were to ban them, we’d have over 100 vacancies that would happen practically overnight,” Martinez said. “Imagine that many people could find a place to live.”

Escondido joins other North County cities like Carlsbad and Oceanside in regulating short-term rentals. San Marcos bans them outright, while Vista and Poway lack formal regulations. The council will evaluate the program as applications increase, with a cap of 250 permits initially allowed before further council review.

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