Executive Overview: STR Status in Pescadero

Short-term rentals are allowed in Pescadero, CA, but with significant restrictions. Pescadero is located within the unincorporated San Mateo County Coastal Zone, where STRs are permitted under specific conditions. As of June 2017, property owners may legally rent part or all of their home as a short-term rental (less than 30 days) with proper permits and payment of Transient Occupancy Tax (TOT). However, the regulations are quite restrictive compared to many other markets.

How to Start a Short-Term Rental Business in Pescadero

Step 1: Zoning Verification

First, confirm your property is eligible by verifying zoning through the Planning Department's "Find My Zoning" portal. STRs are only permitted in:

• Single Family Residential (R-1) zones
• Multi-Family Residential (R-3) zones

Critical limitation: Accessory Dwelling Units (ADUs) are explicitly prohibited from STR use.

Step 2: Pre-Application Consultation

Schedule an appointment with a county planner to review your application materials before submission. This is strongly recommended and can be done:

• Online through their booking system
• In-person during counter hours: Monday-Thursday, 8am-12pm and 1pm-4pm

Step 3: Obtain Required Permits and Licenses

1. Short-Term Rental Permit (required for all STRs)
2. Transient Occupancy Tax Certificate (TOT)
3. Business License (through County Tax Collector)

Step 4: Application Submission

Submit your STR permit application through the Accela Citizen Access portal online.

Required Documents, Permits, and Licenses

Short-Term Rental Permit

• Estimated Cost: $500
• Processing Time: 3-4 weeks
• Application Method: Online via Accela Citizen Access portal
• Required Documents:
  • Proof of Transient Occupancy Tax Certificate
  • Property documentation showing legal residence status
  • Contact information for designated local contact person

Transient Occupancy Tax Certificate

• Authority: San Mateo County Tax Collector
• Process: Apply through County's TOT system
• Requirement: Must be obtained before STR permit application
• Source: sanmateocounty.hdlgov.com/Home/Home/TOTandSTR

Business License

• Authority: San Mateo County Tax Collector
• Requirement: Required for all STR operations
• Contact: Revenue Services Department

Specific Regulations for Short-Term Rentals

Annual Night Limitation

• Maximum: 180 nights per calendar year
• This is a hard cap - no exceptions

Occupancy Limits

• Maximum Guests: 2 persons per bedroom + 2 additional persons
• Children: Under 12 years of age are not counted toward maximum
• Calculation: Example: 3-bedroom unit = (3×2) + 2 = 8 maximum guests

Parking Requirements

• Standard: Minimum 1 parking space (garage, driveway, or on-site)
• Large Groups: 2 parking spaces required if occupancy exceeds 8 guests
• Availability: Parking must be available for tenant use during rental periods

Local Contact Requirement

• Designation: Must designate a local contact person
• Proximity: Contact must remain within 20-mile radius of rental unit
• Availability: Must be available 24/7 while unit is occupied
• Response: Must be able to respond to questions/concerns promptly

Property Type Restrictions

• Primary Structure Only: STRs must be in legal residences
• Prohibited: Accessory Dwelling Units (ADUs) cannot be used for STRs
• Zoning: Only R-1 and R-3 zones permitted

Regulatory Framework: County and State Level

San Mateo County Coastal Zone Regulations

The Pescadero area falls under San Mateo County's Coastal Zone STR regulations, which are more restrictive than standard county rules. Key differentiators:

• 180-night annual limit (vs. no limit in non-coastal areas)
• Enhanced environmental protection considerations
• Coastal Development Permit requirements may apply

California State Requirements

While not explicitly detailed in the provided materials, STR operators in California must generally comply with:

• AB 3182 (2020): Requiring cities/counties to allow STRs in residential zones
• Platform Registration: If using platforms like Airbnb, registration requirements may apply
• Tax Obligations: TOT payment requirements at state and local levels

Environmental and Coastal Considerations

• Properties in the Coastal Zone may require additional environmental reviews
• Coastal Development Permits may be required for certain improvements
• Compliance with California Coastal Act provisions

Contact Information for Local Authority

San Mateo County Planning and Building Department

• Phone: (650) 363-1825
• Address: 455 County Center, 2nd Floor, Redwood City, CA 94063
• Website: www.smcgov.org/planning
• Email: planning@smcgov.org
• Hours: Monday-Thursday, 8am-12pm and 1pm-4pm

Short-Term Rental Specific Contacts

• Permit Applications: Through Accela Citizen Access portal
• Planning Questions: Current Planning Section
• Zoning Verification: "Find My Zoning" portal

San Mateo County Tax Collector (TOT and Business Licenses)

• Phone: (650) 363-4777
• Website: www.smcgov.org/tax
• TOT Information: sanmateocounty.hdlgov.com/Home/Home/TOTandSTR

Additional Resources

• Permit Status Check: aca-prod.accela.com/smcgov
• Fee Information: Planning Service Fee Schedule available on county website
• Coastal Commission: For coastal-related questions

Investment Considerations and Market Analysis

Regulatory Environment Assessment

Pescadero's STR market operates under one of California's most restrictive regulatory frameworks:

• Annual Cap: 180-night limitation significantly restricts revenue potential
• Compliance Burden: Multiple permit requirements and ongoing regulatory obligations
• Enforcement: Active monitoring and enforcement by county authorities

Market Positioning

Given the restrictions, successful STR operations in Pescadero must:

• Focus on premium positioning to maximize revenue per available night
• Operate with exceptional compliance to avoid enforcement actions
• Consider the 180-night limit as a hard business constraint

Due Diligence Recommendations

Before investing in Pescadero STR properties:

1. Verify zoning eligibility through county resources
2. Calculate realistic revenue under 180-night annual limit
3. Factor permit and ongoing compliance costs into investment analysis
4. Consider market demand in this coastal, rural location
5. Review insurance implications of STR use

Links to Source Pages

• Primary STR Information: www.smcgov.org/planning/short-term-rental-permit-coastal-zone
• TOT Registration: sanmateocounty.hdlgov.com/Home/Home/TOTandSTR
• Permit Application Portal: aca-prod.accela.com/smcgov/Welcome.aspx
• Find My Zoning Tool: www.smcgov.org/planning/get-zoning-information
• Planning Fee Schedule: www.smcgov.org/planning/planning-service-fee-schedule
• Monterey County Reference: documents.coastal.ca.gov/reports/2025/8/w15a/w15a-8-2025-exhibits.pdf (Note: While Monterey County, this provides additional California coastal STR regulatory context)

Disclaimer: This guide is based on the provided source materials and current regulations as of the information available. STR regulations can change frequently. Investors should verify current requirements with San Mateo County authorities before making investment decisions.