San Diego is among California’s promising short-term rental (STR) markets, driven by a mix of high-quality supply in a high-demand location and a diverse customer base, ranging from corporate professionals and military personnel to seasonal consumers seeking extended and long-term stays.
The steadiest interest is in the more populated areas, including San Francisco and Los Angeles – the usual suspects, according to Marcus Higgins, president and chief operating officer at Landing.
“More broadly, California has been a complex market for short-term rentals due to varying local and state regulations," he told GlobeSt.
Dana Point’s Dillon Deffense, president of Book & Ladder, operates a pair of STR communities: One in Berkeley and the other in San Diego.
“These two markets have specific submarkets that are friendly to STRs and mid-term rentals regulations,” Deffense said.
“We have seen increased demand and are ramping up for continued growth driven by international students, traveling nurses, and San Francisco tech company nomads seeking to live in a market for less than a full conventional lease term.”
About 80% of operators report receiving requests for leases of nine months or less, signaling strong demand from diverse renter groups, according to a new report from Landing.
These terms cater to remote workers, corporate relocations, seasonal residents, home renovators and groups generally interested in lease flexibility.
Deffense said that to manage regulatory risk in rent-controlled and increasingly regulated markets, one key is partnering with mid-term and short-term housing operators, such as Landing, which responds quickly to changes in state and local regulations, helping to generate stronger NOI performance in California and other regulated markets.
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