California Coastal Commission approves new short-term rental rules in Del Mar and Encinitas, while Pacifica waits

 Short-term rental (STR) operators in Del Mar and Encinitas, California, will need to comply with new local regulations after the California Coastal Commission approved updated ordinances for both cities. 

For Del Mar, the new ordinance is a long time coming. The city originally banned new STRs in 2016, then adopted a strict law in 2017, which the commission rejected. The city finally approved the latest law in 2024.

Under the ordinance, STRs are only allowed in primary residences where the owner lives at least half the year. STR operators are required to register with the city for a two-year permit, with fees of $815 for the first permit and $598 for renewals. Existing STRs can continue operating without complying with the new regulations until their permit expires, is not renewed, or the property is sold. The Del Mar City Council has set a window of March 2 to May 1, 2026, for STR permitting.

The city also adopted a citywide cap of 129 STR permits. Because 150 existing rentals have registered, the city won’t issue any new permits until the total number of active rentals drops below the cap

STRs are allowed in apartment buildings only in the commercial zone, while condominium buildings can host STRs in both residential and commercial zones. STRs can only make up 10% of the total number of units in condominium buildings. All short-term rentals must require a minimum three-night stay.

Encinitas also received approval for updated STR regulations. Operators were already required to obtain a permit, with STRs limited to single-family homes and duplexes. 

The new ordinance also caps non-hosted STRs at 2.5% of total residential units, for a total of 654 citywide. Separately, the city caps non-hosted STRs in the Coastal Zone west of Interstate 5 at 4% of the city’s total residential units, which equals 376 STRs.

The cap excludes units in the private Seabluffe residential community in northwest Encinitas, where 57 of the 255 units are operated as STRs. Non-hosted STRs must also comply with a 200-foot distance requirement from other non-hosted rentals and guest stays must be a minimum of two nights. 

Hosted rentals aren’t subject to the caps or minimum-night requirement. Existing rentals that don’t meet the new criteria may continue operating as legal nonconforming units, but new STRs must follow the updated rules.

Meanwhile, Pacifica is still waiting for the California Coastal Commission to approve the city’s new ordinance after the commission postponed a hearing set for February 4, 2026. The law, passed in July 2025, is already in effect in the non-coastal zone but needs commission approval to apply it to the Coastal Zone. Another hearing is expected in April.

The regulations require operators to obtain a permit for a $1,700 fee, get a business license, provide proof of insurance, limit stays to 60 days a year for non-hosted units, mandate on-site noise monitoring, and require STR owners to be a “natural person” rather than a business. STR operators must also designate a contact who can respond within 30 minutes to urgent issues, 24 hours a day, seven days a week. 

Properties are required to undergo a safety inspection and have one designated parking spot per each bedroom available for rent. Guests must observe quiet hours between 10:00 p.m. and 7:00 a.m.

In addition to local operational rules, STR owners in Del Mar, Encinitas, and Pacifica are responsible for collecting and remitting local transient occupancy tax (TOT). While STR marketplaces Airbnb and Vrbo collect lodging taxes on behalf of hosts in Pacifica, they don’t do so in Del Mar or Encinitas.

As cities continue refining STR regulations, staying compliant with lodging tax rules becomes more of a challenge. Avalara MyLodgeTax can help STR operators automate and simplify city and state lodging tax compliance, from registration to tax return filing.For more on lodging taxes in California, see our state vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.