Overview: Are Short-Term Rentals Allowed in Pacific Grove, CA?

Yes, short-term rentals (STRs) are permitted in Pacific Grove, CA, but with significant restrictions. The City operates a highly regulated STR program with two distinct categories:

1. Short-Term Rental (STR) Licenses - For renting an entire dwelling unit. These are only allowed within the City's Coastal and Commercial zoning areas and are subject to strict caps and density limits.

2. Home Sharing Licenses - For renting rooms within a residence while the owner/tenant lives on-site. These are permitted city-wide without caps or density restrictions.

Pacific Grove currently issues 84 active STR licenses out of a maximum of 250 city-wide. The city implements both a cap on total licenses and strict density requirements to mitigate community impacts.

How to Start a Short-Term Rental Business in Pacific Grove

Step 1: Determine Property Eligibility

Before applying, verify:

• Your property is located within an eligible zone (Coastal or Commercial for STRs; any zone for Home Sharing)
• Your property is not within the 55-foot Zone of Exclusion from any existing STR
• Your property does not have unresolved code violations
• Your property is a legal dwelling unit (no unpermitted spaces)

You can check your property's status using:

• The STR Map
• The STR Database
• PGParcel

Step 2: Choose License Type

Short-Term Rental License (entire dwelling):

• Must be in Coastal or Commercial zone
• Subject to 250 city-wide cap
• Subject to 55-foot Zone of Exclusion
• Subject to 15% block density limit
• Higher application and renewal fees
• More stringent occupancy limits

Home Sharing License (rent rooms while living on-site):

• Allowed city-wide
• No cap or density restrictions
• Owner must reside on-site
• Maximum one bedroom rented to adults (2nd bedroom allowed for children)
• Lower fees

Step 3: Prepare Application Package

For STR licenses, you'll need:

• Completed STR License Application with inspection required
• $141 non-refundable application fee
• Building inspection report from certified third-party inspector
• Site plan and floor plan
• Affidavit for smoke/CO alarms and fire extinguisher
• Additional $124 license fee upon approval

For Home Sharing licenses, you'll need:

• Completed Home Sharing License Application
• $81 permit application fee
• Building inspection report
• Site plan showing room designations and parking
• Affidavit for smoke/CO alarms and fire extinguisher
• Proof of residency (Driver's License)
• If leasing, lease agreement and owner authorization

Step 4: Submit Application

Submit complete applications to:

City of Pacific Grove
Housing Division - TUL
300 Forest Avenue
Pacific Grove, CA 93950

Office hours: 8am-12pm and 1pm-4:45pm, Monday-Friday. In-person submissions are encouraged.

Step 5: Await Review and Approval

Application review takes approximately 3 weeks. You'll be notified by email and phone when approved.

For Home Sharing licenses:

• Pay $265 annual license fee (prorated quarterly)
• Sign Owner Responsibility Statement
• License must be displayed in unit

For STR licenses:

• License will be mailed to owner, manager, or site manager
• License must be displayed in unit
• Placard with contact information must be posted at front entrance

Step 6: Fulfill On-Going Obligations

• Pay 12% Transient Occupancy Tax (TOT) monthly by the 15th of the following month
• Maintain guest log with guest information
• Respond to complaints within 30 minutes
• Ensure property complies with all regulations
• Renew licenses annually before March 31st
• Update listings to include license number
• Email STR listing links to lfrati@cityofpacificgrove.org

Required Documents, Permits, Licenses, and Guidelines

For STR Licenses (Entire Dwelling Rental)

Application Requirements:

• STR License Application Form (available on City website)
• Building Inspection Report (from certified third-party using City checklist)
• Site/Floor Plan showing room uses and parking
• Affidavit for smoke/CO alarms and fire extinguisher
• $141 application fee (non-refundable)
• Additional $124 license fee upon approval
• Proof of property ownership or tenant authorization

Ongoing Requirements:

• Annual license renewal ($221 renewal fee)
• Monthly TOT filing and payment (12% of gross rent)
• Guest log maintenance
• Display of license and placard
• Building inspection every 2 years
• Compliance with occupancy, parking, noise, and other regulations

For Home Sharing Licenses (Rent Rooms While Living On-Site)

Application Requirements:

• Home Sharing License Application Form
• Building Inspection Report (from certified third-party using City checklist)
• Site/Floor Plan showing room designations and parking
• Affidavit for smoke/CO alarms and fire extinguisher
• Proof of residency (Driver's License)
• If leasing: lease agreement and owner authorization
• $81 application fee + $265 annual license fee

Ongoing Requirements:

• Annual license renewal (before March 31st)
• Monthly TOT filing and payment (12% of gross rent)
• Guest log maintenance
• Display of license
• Building inspection annually
• Compliance with occupancy, parking, noise, and other regulations

General Guidelines

All STR operators must comply with:

• Pacific Grove Municipal Code Chapter 7.40
• Transient Occupancy Tax regulations (Chapter 6.09 PGMC)
• Occupancy limits (2 adults per bedroom + 1 additional)
• Noise regulations (no amplified sound beyond property boundaries)
• Parking requirements (provide on-site parking if available)
• Waste management regulations
• Advertising regulations (license number must appear in all listings)

Specific Regulations for Short-Term Rentals in Pacific Grove

City-Level Regulations

License Caps and Limits:

• Maximum 250 STR licenses city-wide
• One STR license per parcel
• 55-foot Zone of Exclusion from existing STRs
• 15% block density limit
• STRs only allowed in Coastal and Commercial zones

Occupancy Limits:

• Overnight: 2 adults per bedroom + 1 additional person
• Daytime: 1.5 times overnight limit
• Maximum 1 bedroom for adults (2nd bedroom only for children in Home Sharing)

Operational Requirements:

• Site Manager required (unless owner manages and lives within 30 minutes)
• Site Manager must respond within 30 minutes of complaint
• On-site parking must be made available to guests
• No amplified sound audible beyond property boundaries
• No auctions, commercial functions, or similar events
• No signs indicating STR use on the property
• Guest log with names, contact info, addresses, license plates, dates
• License number must appear in all online listings
• Contact information must be posted at front entrance

Inspection Requirements:

• Building inspection by certified third-party inspector
• Building inspection required at initial application
• Building inspection required every 2 years for STRs
• Building inspection required annually for Home Sharing
• Inspections must use City-provided checklist

Tax Requirements:

• 12% Transient Occupancy Tax (TOT)
• Monthly filing and payment (due by 15th of following month)
• Applies to all gross rental receipts
• Airbnb collects and remits TOT for bookings through their platform
• All other platforms require owner remittance

County-Level Regulations

Monterey County has not enacted specific STR regulations beyond state requirements. County health and safety codes still apply to STRs.

State-Level Regulations (California)

California has not enacted statewide STR regulations. However, the following state laws may apply:

• Fair Housing Laws: Prohibit discrimination in rental housing
• Civil Code 1950.5: Security deposit regulations
• California Health and Safety Code: Habitability requirements
• Business and Professions Code: Advertising regulations
• California Tax Code: TOT regulations (collected at city level)

Pacific Grove's STR regulations are stricter than state minimums in most areas, particularly regarding caps, density limits, and operational requirements.

Contact Information for Local STR Authority

Short-Term Rental Program Contact:

Lori Frati, Short-Term Rental Program
City of Pacific Grove
300 Forest Ave
Pacific Grove, CA 93950

Phone: (831) 648-3133
Fax: (831) 375-9863
Email: lfrati@cityofpacificgrove.org

Other Important Contacts:

• Code Compliance (Complaints): (831) 648-3116 or codecompliance@cityofpacificgrove.org
• Police (Non-Emergency): (831) 648-3143
• TOT Processing Center: (831) 920-3890
• General City Information: (831) 648-3100

Submit Applications and Payments to:

City of Pacific Grove
Housing Division - TUL
300 Forest Avenue
Pacific Grove, CA 93950

File TOT Returns Online: https://pacificgrove.hdlgov.com/ Mail TOT Returns To:

City of Pacific Grove TOT Processing Center
8839 N Cedar Ave #212
Fresno, CA 93720

Links to Source Pages

1. Pacific Grove Short-Term Rental Program
2. Pacific Grove Municipal Code Chapter 7.40 - Short-Term Rental License
3. STR Maps and Database
4. STR Permits Portal
5. Transient Occupancy Tax Portal
6. Code Compliance Complaint Form

This guide provides all essential information for STR investors considering Pacific Grove as a market. The regulations are complex but the city provides robust support through staff assistance and online resources. Compliance is critical given the strict enforcement and significant penalties for violations.