I am Alex, a 25-year-old from Nebraska, married with two kids. I love the outdoors, hiking, and camping, and I’m always looking for ways to save money while still enjoying life’s adventures. I believe in clear, straightforward information that helps families make smart decisions. Monterey County’s New Vacation Rental Ordinance: Your Guide to Coastal Stays Hey there, fellow adventurers and lovers of the great outdoors! Alex here, checking in from Nebraska. My family and I are always on the lookout for our next getaway, and we know how important it is to find places that are not only beautiful but also well-managed and community-friendly. That’s why I was so interested to learn about the recent changes in Monterey County, California, regarding vacation rentals. It’s a big deal for anyone planning a trip to that stunning coastline, and I want to break down what you need to know. Monterey County has been working for nearly a decade to get a handle on short-term rentals, and they’ve finally gotten the green light from the California Coastal Commission for a new ordinance. This is a huge step, especially for a place as special as the Monterey coast. Think dramatic cliffs, rolling waves, and that classic California charm – it’s a place worth protecting. A Landmark Decision for Coastal Charm The California Coastal Commission’s approval is a really big deal. It means Monterey County now has a clear set of rules for vacation rentals, or short-term rentals (STRs) as they’re often called, in its coastal zone. For years, there just weren’t many regulations, which led to some community worries. This new ordinance is designed to create a framework for responsible renting, so everyone can enjoy the coast while respecting the local environment and neighborhoods. It’s like getting a new set of rules for a favorite hiking trail – it helps keep things safe, clean, and enjoyable for everyone. As someone who loves getting out in nature, I appreciate that kind of thoughtful planning. Understanding the New Rules: What’s What? Monterey County’s new ordinance is pretty detailed, and it breaks down vacation rentals into three main categories. This makes sense, because not all rentals are the same, right? Knowing the difference helps you understand what’s allowed where. The Three Types of Vacation Rentals * Homestays: This is when the owner lives in the home while it’s being rented out. Think of it as renting a room or a part of the house. These are allowed all over the county, which is great for homeowners who want to earn a little extra income while still being present. * Limited Vacation Rentals: If you want to rent out your whole place, but only a few times a year (up to three times, to be exact), this category is for you. It offers flexibility for homeowners who don’t want to rent their property full-time. * Commercial Vacation Rentals: These are the properties rented out more than three times a year. They’re the ones that will see the most significant changes under the new ordinance, as they have the biggest impact on neighborhoods and resources. Where Can You Rent? Geographic Restrictions and Caps One of the most significant parts of this new ordinance is how it addresses specific areas. Some places are just too special and sensitive to handle a high volume of commercial rentals. Banning Commercial Rentals in Big Sur and Carmel Highlands This is a big one: commercial vacation rentals are now completely banned in Big Sur and the Carmel Highlands. The county made this decision because these areas are known for their wild, unspoiled beauty and unique environmental needs. They want to preserve that “wild, rural, and unspoiled nature” of Big Sur and protect the specific resources in the Carmel Highlands. For families like mine who love exploring places like Big Sur, this means a better chance of experiencing its natural wonder without the potential downsides of too many rentals. Capping Rentals in Other Coastal Areas Even outside of Big Sur and Carmel Highlands, there are limits. The ordinance aims to cap the total number of unhosted short-term rentals (which are the commercial ones) at 334 units across the entire Monterey County coastal zone. Right now, there are about 400 of these rentals operating, so this is a noticeable reduction. It’s all about finding that balance between welcoming visitors and protecting the community. Addressing Community Concerns: Listening to Residents This ordinance didn’t just appear out of nowhere. It’s the result of years of listening to what people in Monterey County are saying. Craig Spencer, the Director of Housing and Community Development for Monterey County, has been a key voice in this process. He’s highlighted that commercial vacation rentals can have a big impact on neighborhoods. The Real-World Impacts of Rentals Spencer pointed out that unregulated short-term rentals can lead to more trash, noise complaints, and parking problems. It’s easy to see how that could disrupt the peace and quiet of a neighborhood, especially for families. He emphasized that the county needed to move away from a situation with “no rules and regulations.” That’s a sentiment I can definitely relate to – having clear guidelines makes things so much smoother for everyone. Keeping Neighborhoods Neighborly The goal here is to make sure that vacation rentals don’t overwhelm residential areas. The ordinance includes a cap that limits vacation rentals to no more than 4% of single-family homes in any given area. This is a smart way to ensure that neighborhoods keep their character and don’t become solely tourist zones. It’s about maintaining that balance so communities can thrive. The Road to Approval: A Long Journey Getting this ordinance approved was a long process, involving a lot of back-and-forth between Monterey County and the California Coastal Commission. A Decade in the Making Monterey County has spent nearly ten years working on this. That’s a long time, and it shows how complex the issue is and how committed the county is to finding a solution that works. It’s a good reminder that important changes often take time and careful consideration. The Coastal Commission’s Crucial Role The California Coastal Commission is a really important player here. They make sure that local rules for coastal areas line up with the state’s goals for protecting the coast and ensuring public access. Their approval is essential for these new rules to take effect in the coastal zone. What’s the Timeline? The Monterey County Board of Supervisors first passed the ordinances in August 2024. For the inland areas, the rules went into effect in October 2024. But for the coastal areas, it all hinged on the Coastal Commission’s approval. Now that it’s approved, the ordinance will go back to the Board of Supervisors for final adoption. It should become effective about a month after that. Staying Compliant: What Operators Need to Do If you’re thinking about operating a vacation rental in Monterey County, or if you already are, you’ll need to get familiar with the new requirements. Getting Your Permits and Licenses Operators will need to get a Vacation Rental Operator’s Permit from the County of Monterey Housing and Community Development. You’ll also need to register with the Treasurer/Tax Collector and get a business license. For Commercial Vacation Rentals, you might need a Use Permit or a Coastal Development Permit, depending on where you are. It sounds like a bit of paperwork, but it’s all part of making sure things are done right. Deadlines for Existing Rentals If you have an unpermitted vacation rental in the inland areas, you had until April 14, 2025, to apply or get compliant. For those already permitted in the inland areas, you need to follow the new rules when your current permit expires, or within seven years of October 14, 2024. For rentals in the coastal zone, you can operate temporarily until the new ordinance is certified, but the county can still address complaints about noise or safety. The Financial Side: Fees and Taxes Let’s talk about the money involved. Operating a vacation rental comes with costs, including permits and taxes. Permit Fees and Costs While the exact fee schedule can change, getting a vacation rental permit in Monterey County has historically involved significant costs. For example, past estimates for coastal zones were around $14,000. The new regulations require a Vacation Rental Operation License, with an initial fee of about $1,100, and annual renewals expected to be lower. You’ll also need a separate business license, which has its own fees. For example, the renewal fee for a vacation rental operation license that doesn’t require changes is $135, while licenses needing operational changes are $357.50. The Transient Occupancy Tax (TOT) Just like hotels, vacation rental operators need to collect and pay the Transient Occupancy Tax (TOT). This is often called a “bed tax” or “hotel tax” and is charged to guests staying for less than 30 days. The county collects this tax to help fund tourism and community programs. In Monterey County, the TOT rate is 10.5%. Different Views on the New Rules It’s natural for new regulations like this to spark different opinions. Concerns from Property Owners Some property owners, like Lowell Strauss, worry that these new rules might discourage visitors from coming to Monterey County or even California. He believes that simply getting rid of short-term rentals won’t magically create more affordable housing and suggests that the real goal might be to keep certain people out of neighborhoods. It’s a valid point to consider – how do we balance preservation with accessibility? Appreciation for the County’s Work On the other hand, officials like Monterey County Supervisor Kate Daniels appreciate the extensive work that went into creating these regulations. She acknowledges that while the ordinance might need tweaks in the future, the Coastal Commission’s approval is a major milestone. It’s clear that a lot of effort has gone into finding a workable solution. Looking Ahead: What’s Next? The approval of this ordinance is a big step, but the work isn’t entirely done. Ongoing Implementation and Monitoring Monterey County is committed to keeping everyone informed. They’re updating a dedicated webpage with all the application materials and information needed for the ordinance’s implementation. This is super helpful for making sure everyone has the latest details. Room for Future Adjustments As Supervisor Kate Daniels mentioned, there will be opportunities to refine and adjust the ordinance as needed. This flexible approach is important. It means the county can learn from how the regulations work in practice and make changes based on what’s best for the community and the beautiful coastal environment. Key Takeaways for Your Next Coastal Adventure So, what does this all mean for you, especially if you’re planning a trip to Monterey County? * New Rules are in Effect: For inland areas, the rules started in October 2024. For the coast, they’ll be fully in effect soon after the Board of Supervisors’ final adoption. * Bans and Caps: Commercial vacation rentals are banned in Big Sur and Carmel Highlands. Elsewhere along the coast, there’s a cap of 334 units for unhosted rentals. * Permits are Key: If you plan to operate a vacation rental, make sure you understand and obtain all the necessary permits and licenses. * Taxes Apply: Remember to collect and remit the Transient Occupancy Tax (TOT). This new ordinance is a significant move by Monterey County to manage short-term rentals effectively. It’s about protecting the unique character of the coast while still welcoming visitors. For families like mine, it means a more predictable and enjoyable experience when we explore these beautiful areas. Are you planning a trip to Monterey County? Have you stayed in a vacation rental there before? Let us know your thoughts in the comments below! We’d love to hear about your experiences and any tips you have for navigating these new regulations.