With the growing popularity of vacation rental sites like Airbnb, Homestay and VRBO, many property owners in SLO County are finding ways to capitalize on this expanding market. Anyone who lives here knows that each city has its own quirks and characteristics that make it unique. You’ll quickly find that rules and regulations regarding vacation rentals are no different; varying from location to location. If you have a property and are considering hosting visitors, here are a few things you should know.
Regardless of location, an additional 10.5% to 13% is collected from all rental guests. This includes Transient Occupancy Tax (TOT), Tourism Marketing District (TMD) assessment and Tourism Business Improvement District (TBID) assessment. Owners are required to obtain a permit and business license, which are non-transferable with the sale of real property. For a complete list of rules and regulations, visit the appropriate websites listed below:
Arroyo Grande: Any rental or homestay must not exist within 300 feet of an existing vacation rental or homestay on the same street. Vacation rentals require an emergency contact be assigned to each rental property, and must reside within a 15 minute drive of the property. Upon approval of a permit, City staff mails postcards to property owners within 300 feet of the subject property, which lists contact information for the emergency contact identified by the owner. www.arroyogrande.org
Atascadero: Short-term rental stays must be less than 30 days. The City allows only one vacation rental per property and one rental party at a time. Rentals are not allowed in ADUs that were permitted after January 1st, 2020. www.atascadero.org
Grover Beach: There are 2 zones established for non-owner occupied rental permits: “Coastal” and “Non Coastal”. There is a maximum of 40 Coastal permits and 60 Non-Coastal permits given out. Currently, all Non-Coastal permits have been issued and a waitlist has been established. Tiny homes are prohibited from use as a short-term rental. www.grover.org
Morro Bay: Short-term vacation rentals shall not be located within ADUs. Rentals are limited to 4 individual tenancies per month. www.morrobayca.gov
Paso Robles: Short-term rental permits are valid for 3 years after approval. Those in good standing may be renewed. The City only allows 325 permits at a time. It is currently at capacity and any new applications are being wait-listed. However, this does not apply to homeshares. The City also maintains a “Short Term Rental Dashboard” website, which maps all rentals and lists those permits that are currently under review. www.prcity.com
Pismo Beach: Vacation rentals are limited to a maximum of 182 rental days/year, while homestays are not limited. The number of rentable bedrooms equal the number of parking spaces required. www.pismobeach.org
San Luis Obispo: Allows homestays only. Short-term rentals without a host on-site are prohibited. The City of SLO has an agreement with popular vacation rental site Airbnb. The website collects the required 13% TOT and assessments upon booking and then transmits the funds directly to the City. Any rentals that are not booked through Airbnb need to report and remit taxes and assessments separately. www.slocity.org
Unincorporated Areas: Properties outside of the seven incorporated cities are regulated by the County. This includes Cayucos, Cambria, Los Osos, Templeton, Oceano, Nipomo and Avila Beach, among others. For information regarding these locations, please visit: www.slocounty.ca.gov
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