Monterey County Embraces a New Era: Coastal Short-Term Rental Regulations Officially Certified!
Get ready, Monterey County! As of August 13, 2025, a significant shift has occurred in how short-term rentals, or vacation rentals, will operate within our beautiful coastal zones. The California Coastal Commission has officially certified Monterey County’s short-term rental ordinance, a move that’s been years in the making and aims to strike a better balance between welcoming visitors and preserving the unique character of our communities. This certification means the rules that have been guiding inland areas are now extending their reach to our precious coastline, marking a major milestone for both property owners and residents alike. For a long time, Monterey County has been navigating the complexities of short-term rentals. Discussions, planning, and plenty of public input have all contributed to this new framework. The goal? To harness the economic benefits of vacation rentals while also safeguarding our neighborhoods and ensuring there’s still plenty of housing available for locals. It’s a tricky balance, but this new ordinance is a big step towards achieving it.
Understanding the New Rules of the Road for Vacation Rentals
So, what does this all mean for you? The newly certified ordinance lays out a clear set of guidelines for short-term rentals across the county. It categorizes these rentals into distinct types, each with its own specific set of rules. This clarity is super important for property owners trying to stay compliant and for residents who want to know what’s happening in their neighborhoods.
Breaking Down the Vacation Rental Categories
Monterey County’s ordinance defines three main types of vacation rentals:
Homestays: Sharing Your Space
Think of a homestay as when you, the homeowner, are actually living in the house while renting out a part of it, or even the whole place, for short stays. These are allowed pretty much everywhere in the county, and the key here is that the owner is present. It’s a great way for homeowners to earn a little extra income without completely changing their living situation.
Limited Vacation Rentals: Occasional Stays
This category is for those times when you might want to rent out your property occasionally. A limited vacation rental allows a property to be rented for short stays a maximum of three times within a calendar year. This is also permitted countywide and is perfect for homeowners who want to rent their place out now and then, rather than making it a full-time business.
Commercial Vacation Rentals: Running a Business
When a property is rented out for short-term stays more than three times a year, it falls into the commercial vacation rental category. These types of rentals have stricter rules and are actually banned in some of our most sensitive coastal areas. We’re talking about places like Big Sur, Carmel Highlands, and the residential zones of Moss Landing and Carmel Valley. In other areas, commercial vacation rentals might be allowed, but they’ll definitely need specific permits. If you’re in an inland area, you’ll need a Use Permit, and if you’re in the Coastal Zone, a Coastal Development Permit is the way to go. These permits involve a more detailed review process to make sure everything aligns with local land-use plans and environmental concerns.
Getting Your Ducks in a Row: Permits and Licenses. Find out more about Monterey County short-term rental ordinance certification.
To legally operate any kind of vacation rental in Monterey County, you’ve got to jump through a few hoops when it comes to permits and licenses. These steps are designed to make sure everyone’s playing by the rules and that the county collects the necessary taxes and fees.
The Essential Operator Permit
No matter what type of vacation rental you’re running, you’ll need to get a “Vacation Rental Operator’s Permit” from the County of Monterey Housing and Community Development. This permit is basically your official stamp of approval, showing that you’ve met the county’s basic requirements for managing short-term rentals.
Registering with the Treasurer-Tax Collector
On top of the operator permit, all hosts need to register with the County of Monterey Treasurer-Tax Collector. This is a really important step because it’s how the county collects the Transient Occupancy Tax (TOT), which you might know as the “bed tax” or “hotel tax.” This tax applies to stays of 30 consecutive calendar days or less and is a key source of revenue for the county.
Special Permits for Commercial Operations
If you’re running a Commercial Vacation Rental, you’ll need additional permits depending on where your property is located. For inland areas, a Use Permit is required, and for those in the Coastal Zone, a Coastal Development Permit is mandatory. These permits involve a more thorough review process, ensuring that your commercial operation fits nicely with local land-use policies and environmental considerations.
The Road to Certification: A Phased Rollout
The implementation of these regulations has been a bit of a phased process, which makes sense given the different considerations for inland versus coastal areas.
Inland Ordinances: Already in Play. Find out more about California Coastal Commission Monterey County vacation rentals guide.
The Vacation Rental Ordinances for the inland, unincorporated areas of Monterey County officially kicked off on October 14, 2024. That’s when the county started accepting applications for vacation rentals in those parts of the county. If you had applications in before that date, or if yours hadn’t been approved, denied, or appealed yet, you’ve had to make sure you’re compliant with the new rules.
Coastal Zone: Now Certified!
For the Coastal Zone of unincorporated Monterey County, the ordinances were waiting on the green light from the California Coastal Commission. This review process is crucial because it ensures the regulations align with the California Coastal Act and do a good job of protecting our coastal resources. With the certification date of August 13, 2025, these regulations are now fully enforceable in our coastal areas. It’s a big deal!
Tackling Unpermitted Rentals: What You Need to Know
The transition period has definitely brought up some questions about unpermitted vacation rentals, especially in the Coastal Zone.
Temporary Operation in the Coastal Zone
Before the California Coastal Commission’s certification, unpermitted vacation rentals in the Coastal Zone were allowed to continue operating on a temporary basis. However, this didn’t stop Monterey County from addressing any complaints related to issues like noise, health, life, or safety concerns that popped up with these operations.
Compliance Deadlines for Inland Areas
In the inland areas, if you were operating an unpermitted vacation rental, you had until April 14, 2025, to submit an application or get compliant with the new regulations. For vacation rentals that already had permits in the inland area, you’ll need to bring them into compliance when your current permit expires, or within seven years from October 14, 2024, whichever comes first.
Key Rules and Restrictions to Keep in Mind. Find out more about Monterey County vacation rental categories explained tips.
The new ordinances come with some specific provisions designed to manage how vacation rentals impact our local communities.
Sensitive Coastal Areas Get Extra Protection
A really important part of these new rules is the ban on commercial vacation rentals in certain environmentally sensitive areas. This includes iconic spots like Big Sur and the Carmel Highlands. This measure is all about preserving the unique character and ecological health of these stunning coastal landscapes.
Putting a Cap on Short-Term Rentals
In unincorporated areas, the ordinance might limit short-term rentals to a certain percentage of single-family homes. For example, there’s a proposed limit of four percent of single-family housing units in unincorporated areas being allowed for short-term rental use. This is a move to help manage the impact on the long-term housing market and prevent too many residential properties from being turned into short-term rentals.
Making Sure Everyone’s on Board: Enforcement and Compliance
The real success of this new ordinance will depend on how well it’s enforced and how easy it is for property owners to understand and follow the rules.
It’s All About the Complaints
Monterey County actively collects complaints related to short-term rental activity in unincorporated areas. If you have concerns or notice any code violations, you can report them to the County of Monterey Code Compliance Division through their online portal. This complaint-driven approach helps the county address issues as they arise.
The Importance of Land Use Permits. Find out more about Homestay vs Limited vs Commercial vacation rentals Monterey strategies.
Operating a short-term rental in unincorporated Monterey County means you absolutely need a land use permit that specifically allows for this type of specialized land use. And remember, if your property is within city limits, you’ll need to check with the respective city’s planning department, as each city has its own set of rules.
The Bigger Picture: A Countywide Effort
The certification of the Coastal Zone ordinance is a huge step in Monterey County’s ongoing journey to regulate short-term rentals. This whole initiative has been a pretty complex undertaking, involving lots of different people and addressing a whole range of community concerns.
A Look Back: The History of Regulation
Monterey County has been talking about and working on vacation rental ordinances for its unincorporated areas for a long time, dating back to the late 1990s, with a more focused effort starting around 2013. The county has historically had an ordinance for inland areas (Title 21) that covers transient use for payment in various residential structures. This earlier ordinance offered a discretionary permit process for non-Bed and Breakfast short-term rentals in inland areas.
Addressing Housing and Neighborhood Character
A big reason behind the push for stronger short-term rental regulations has been the worry about losing affordable, long-term housing and the potential for residential neighborhoods to become more commercialized. Groups like LandWatch Monterey County have been advocating for interim ordinances and a pause on issuing permits to tackle these issues, stressing the need for environmental review and public input when developing countywide regulations.
Different Rules for Different Cities
It’s really important to remember that the rules for short-term rentals can be quite different between the unincorporated areas of Monterey County and the incorporated cities within it. Each city, like Monterey, Carmel-by-the-Sea, Pacific Grove, Del Rey Oaks, Marina, and Seaside, has its own ordinances, and these can vary quite a bit in how strict or broad they are. The Monterey County Vacation Rental Alliance (MCVRA) has been actively involved in advocating for reasonable regulations across these different jurisdictions.
What’s Next: The Ongoing Evolution of Short-Term Rental Policies
The certification of Monterey County’s short-term rental ordinance is a major achievement, but the world of short-term rental regulation is always changing. As the county puts these new rules into practice and enforces them, we’ll likely see ongoing monitoring and maybe even some adjustments to make sure they’re really serving the community’s needs while also supporting a sustainable tourism economy. Finding that sweet spot between property rights, community well-being, and economic vitality will continue to be the main focus as these regulations really take hold. What are your thoughts on these new short-term rental regulations? Let us know in the comments below!