SHORT TERM RENTAL ORDINANCE

The City Council recently adopted a Short-Term Rental Ordinance to create clear rules for vacation rentals (like Airbnb/VRBO) and better protect neighborhood quality of life. The ordinance sets up a permitting program administered through a third-party vendor, with a cap of 45 permits per council district (up to 180 citywide). Once the application process launches, operators will need a City permit to legally operate, and hosts must meet eligibility requirements— including a local residency requirement (living in National City or within a quarter-mile of the rental).
The ordinance also includes stronger enforcement tools, with penalties up to $1,500, possible permit revocation for violations, and immediate revocation tied to certain felony activity connected to the rental. It prohibits operators with certain serious criminal records (including offenses related to prostitution and other specified crimes), and it applies the City’s 10% Transient Occupancy Tax (TOT) to short-term rentals. The goal is straightforward: allow short-term rentals only when they’re responsibly managed, accountable, and not disrupting residents’ safety and peace.