Introduction

The rental landscape in San Diego is changing — and fast. On April 25, 2023, the City Council approved sweeping renter-protection legislation aimed at strengthening safeguards for tenants. If you own or manage property in San Diego, it’s crucial to understand how these new laws affect your responsibilities, your risks, and your bottom line.

What changed?

Here are the major take-aways for property owners in the City of San Diego:

The law applies from day one of the tenancy — unlike prior state law where some protections only kicked in after longer occupancy.
For “no-fault” evictions (i.e., the tenant is not at fault but must be moved), the required relocation payment now is two months’ rent for most tenants — and three months’ rent for seniors (62 +) or persons with disabilities.
The relocation payment must be provided to the tenant within 15 days of the eviction notice.
Landlords must now give tenants proper notice of fixable lease violations (for example, unauthorized pets, property damage, rent non-payment) and provide an opportunity to “cure” the violation before filing for eviction.
The law only applies within the City of San Diego, not the county at large.

Why was this legislation introduced?

These changes were primarily driven by a concern that the previous renter-protection framework was too weak. Some landlords were issuing no-fault evictions and then re-renting at much higher rates after minimal renovations, effectively pushing out tenants. The city moved to raise the bar for protections and discourage such practices.

What this means for landlords

Owning rental property in San Diego under the new regime demands greater preparation and cost-awareness. Here are some of the implications:

Calculate your risk. If you must carry out a no-fault eviction, the relocation payment (2-3 months of rent) must be budgeted in.
Lease agreements and notices must reflect the new rules (e.g., violation-cure opportunities).
Your screening and tenant-relationship practices may require review — stronger protections tend to shift more burden onto landlords to document compliance.
Model your investment returns differently: the added mobility costs and risk of longer tenancy may impact your net yield. Indeed, some landlords have stated the new law may lead them to reconsider whether to continue renting.

Challenges and downsides

While the tenant protections aim to bring more stability, there are trade-offs:

Increased cost for landlords when eviction is necessary.
Potential reluctance of investors to own or manage rental units in the City of San Diego due to higher compliance burdens.
Some landlords worry the cost and regulatory complexity will lead to less rental supply, and possibly less incentive to upgrade units.

Key action items for you now

Review your lease templates and eviction-notice policies to ensure they meet the new legal standard.
Update your budgeting models to include possible relocation payments for no-fault terminations.
Maintain detailed records of tenant communications, notices of violation, and cure-offer timelines.
Stay informed about local developments—while this law is for the City of San Diego, county and state laws may also evolve.

Conclusion

These new tenant‐protection laws mark a turning point for landlords in San Diego. By understanding the changes and preparing early, you can stay ahead of the curve and manage your portfolio with confidence. While the regulatory burden is higher, those who adapt will be better positioned to navigate the evolving landscape.