October 16, 2025
Thinking about hosting an Airbnb near San Elijo Town Center or buying a place with rental potential? You are not alone. Short-term rental rules in San Marcos can feel confusing because city zoning, the San Elijo Hills Specific Plan, and your HOA all play a part. This guide breaks down what is allowed, what to check, and how to stay compliant before you list or buy. Let’s dive in.
City policy is clear: short-term rentals are not permitted in residential zones unless a Specific Plan allows them. The City’s Transient Occupancy Tax guidance explains this and notes that transient stays of 30 days or less are subject to a 10 percent TOT when lodging is allowed. In some zones, lodging types such as a bed and breakfast may require a Conditional Use Permit.
If your property qualifies for transient use, you must register and remit TOT and follow business license rules. When in doubt, confirm your parcel’s status with the City of San Marcos Planning Division.
San Elijo Hills is a designated Specific Plan area within San Marcos. That means the San Elijo Hills Specific Plan governs what uses are allowed on Town Center parcels, including whether any lodging or transient occupancy is permitted. You can review the city’s list of Specific Plans to understand how these tailored rules work.
Town Center parcels are often commercial or mixed-use and may treat lodging differently from nearby single-family streets. Even then, the form of lodging matters. A hotel, an owner-occupied bed and breakfast, and a whole-home short-term rental can each follow different rules and approval paths. For parcel-level answers, contact the Planning Division with your exact address and APN. You can also reach Planning by phone at (760) 744-1050 ext. 3204.
Your homeowners association can restrict rentals independent of city rules. Many HOAs prohibit short-term rentals in their CC&Rs and Rules and Regulations. Recent state updates such as Assembly Bill 1410 adjusted certain HOA rental provisions, but they did not broadly legalize short-term vacation rentals that CC&Rs prohibit. For context, see this attorney commentary on AB 1410.
Bottom line: even if the City would allow transient use on your parcel, your HOA can still restrict or ban it. Always review the recorded CC&Rs and any amendments before you list.
If your property is eligible for short stays, San Marcos imposes a 10 percent Transient Occupancy Tax that you must register for and remit. The Finance/TOT page provides forms and instructions for operators on lodging stays under 30 days. Start with the City’s TOT guidance and confirm whether a business license or permit is required for your specific use.
Permit needs can vary by zone and use type. For example, a bed and breakfast can require a Conditional Use Permit in certain zones. The Planning Division is the right contact to confirm if your address needs any discretionary approvals.
Use this simple process before you advertise a short-term rental near San Elijo Town Center:
Short-term rentals operate across San Diego County, and third-party data shows active STR listings in San Marcos. Remember, seeing a listing online does not mean it is legal. Treat platform listings as market context, not regulatory approval.
If you suspect an unlawful STR next door, document dates, times, and any noise or parking issues. Report concerns to your HOA and the City’s Planning or Code Enforcement channels. For immediate disturbances, use the Sheriff or non-emergency police line. For tax-related issues, City Finance can audit for unpaid TOT.
If you plan to buy with the idea of hosting short stays, verify your parcel’s permissions before you remove contingencies. If you are selling, being clear on whether STRs are permitted can help set buyer expectations and reduce friction later. A quick call to Planning and a review of your CC&Rs can prevent surprises for everyone involved.
Looking for a local perspective on how these rules may affect your move or sale near San Elijo Town Center? Reach out to Amy Jensen for neighborhood guidance, pricing insight, and a smooth plan forward.
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