Measure M: Effective November 27, 2018, new Short-Term Rentals (STR’s) are prohibited in areas outside the Coastal and Commercial zones. Existing Short-term Rentals outside the Coastal and Commercial zones are required to sunset on Wednesday, May 27, 2020. All existing STR Licenses outside the Coastal and Commercial zones will be ineffective on Thursday, May 28, 2020. To check the zoning of a STR, please visit the STR Map, the STR Database, or pgparcel.net. Furthermore, Home Sharing Licenses are affected by Measure M -- Home Sharing/Room Rentals are permitted throughout the City subject to City rules and regulations.
Measure U: Effective July 1, 2019, the Transient Occupancy Tax (TOT) rate will increase from 10% to 12%.
STR Waitlist: There is currently no STR waitlist. However, a waitlist for STR licenses within the Coastal and Commercial Zones may be established in the future. Please let us know If you wish to be notified regarding the STR waitlist.
STR Lottery: Lottery results are available through the STR Database.
Current STR Ordinance: A copy of the current Short-Term Rental License Ordinance can be viewed here.
Existing License Holders
Over the last year, significant STR program changes have taken place. In May 2018, the City conducted a one-time STR Lottery that determined 51 STR Licenses to sunset on April 30, 2019. In November 2018, residents of Pacific Grove voted on Measure M and U which were subsequently passed, and approved on November 27, 2018. Both the STR Lottery and Measure M have direct implications on the vast majority of existing STR licenses. Please read the information below to understand how your STR license may be impacted and what license renewal requirements are:
STR Lottery: If your STR license was selected in the STR lottery; that means your STR license is scheduled to sunset on April 30, 2019. Since your current STR license expires on March 31, 2019, you are still required to renew your STR license should you wish to keep your license for the period of April 1 - April 30, 2019. The renewal process for these 51 STR Licenses will be simple and subject to $68.49 prorated fee. You will receive a notice along with the required paperwork and instructions during the second week of February. Lottery results are available through the STR Database. [Download Application Packet]
Measure M: If your STR property is outside the Coastal and Commercial zoning areas, your STR License is scheduled to sunset on Wednesday, May 27, 2020. STR Zoning information can be found through the STR Database, STR Map, or pgparcel.net. You may be able to renew your STR license for a full year. The fee to renew your STR License is $822. Detailed instructions on your STR License renewal are available in the “1 - Short-term Rental License Renewal” section below. You will receive a notice along with the required paperwork and instructions during the second week of February.
- [Download Application Packet] - If a Building Inspection Report is required.
- [Download Application Packet] - If a Building Inspection Report is not required.
Measure U: Effective July 1, 2019, the Transient Occupancy Tax (TOT) rate will increase from 10% to 12%. You can expect to receive detailed clarification the TOT increase and its applicability within the next few weeks.
General STR License Renewal Information/Guidelines: STR License renewal for 2019-20 will begin on Monday, February 11, 2019 and end at 5 p.m. on Friday, March 29, 2019. Early submissions are highly encouraged although an application can be submitted on the last day of the STR license renewal period (i.e. Friday, March 29, 2019). The City will not be responsible for late receipt of any mailed application.
STR License renewal for 2019-20 will begin on Monday, February 11, 2019 and end at 5 p.m. on Friday, March 29, 2019. The City will send out renewal notices and application packets to all STR licensees in early Februay this year. Notices will provide specific instructions (including whether or not an inspection report is required) on the renewal process. In general, STR License renewal process will be as follows:
- Early submissions are highly encouraged although an application can be submitted on the last day of the STR license renewal period (i.e. Friday, March 29, 2019).
- The City will not be responsible for late receipt of any mailed application. All STR License Renewal applications must be received by no later than 5 p.m. on Friday, March 29, 2019.
Each STR license renewal packet must include all of the following items: (Download Application Packet)
1. STR License Renewal Form (Type or print; all sections must be filled out completely). Please note the following:
- A STR owner is (while the licensed STR unit is rented) farther than 30 minutes away by car from the STR unit must appoint a Site Manager;
- A STR owner must provide contact information for the placard which will be posted on the exterior of the STR Unit in a location visible at the front entrance. Any contact number(s) provided for the placard must be reachable 24/7.
- If different than owner and/or site manager, the STR must provide name, phone, and email of the person(s) managing bookings and responsible for collection and remittance of Transient Occupancy Tax (TOT)
2. Signed affidavit affirming appropriate smoke and carbon monoxide alarms are installed and fire extinguisher(s) are in accessible locations.
3. Building Inspection Report obtained through a certified third-party general contractor or building inspector. A Building Inspection Report is not required if one was submitted in February/March 2018.
4. Signed Owner Responsibility Form
5. List of hyperlinks for each online listing for the STR unit. All online listings must include the City-issued STR license number in the main title or property description areas of online listings. Online listing ID numbers and/or URLs must be submitted prior to your application submittal via email to firstname.lastname@example.org or https://goo.gl/kzCrny.
6. Proof of TOT payment to demonstrate that the licensed STR unit has been rented for a minimum of:
- 3 nights during the preceding 90 days – this applies to those STR license holders who obtained their license during the preceding 1-3 months;
- 12 nights during the preceding 180 days – this applies to those STR license holders who obtained their license during the preceding 4-6 month; and
- 24 nights in the year prior to the STR License renewal application – this applies to those STR license holders who have held a STR license for a whole year.
Acceptable proof of payment documentation include copies of filed TOT returns, deposited checks, and/or HDL receipts confirming that your TOT return was filed and processed.
7) Check for the amount of $822 payable to the City of Pacific Grove. Credit card payments are subject to a 4% credit card processing fee.
Submit a complete STR license renewal application packet to the City, in person or by mail to the following address:
City of Pacific Grove
Short-Term Rental Program
300 Forest Avenue
Pacific Grove, CA 93950
Upon full satisfaction of all STR license renewal application requirements, a STR license may be renewed. The City will notify the owner (except if unless the owner requested mail delivery) by email and phone when the license is ready for pick up at the Community and Economic Development Department. If an owner requested mail delivery of a STR license, the City will issue a courtesy notice to the owner at the time the license has been mailed.
Further, the City will provide laminated placards to STR owners concurrent with mailing of the STR license or when an owner picks up the license. Upon receipt of the renewed STR license, owners are required to replace the old license with the renewed license and prominently display the new license in plain view within the unit. The owner is also required to post the placard at the front entrance of the STR unit.
Within 15 days of receipt of the renewed STR license by owner, the owner must provide the following information to the City:
1. A photo confirmation of the STR license being prominently displayed in plain view within the STR unit.
2. A photo confirmation of the placard being in a prominent location at the front entrance of the STR unit.
Grounds for nonrenewal of a STR License:
1. Incomplete application.
2. Failure to demonstrate the STR license number is displayed in all the online listings or failure to provide hyperlinks of each online listing to the City.
3. Failure to remit payment to the City at the time the STR license renewal application is submitted.
4. The STR unit fails the Building Inspection, or the Building Inspection Report identifies an unsafe condition.
5. Failure to demonstrate that the licensed STR unit has been rented at least once during the preceding 90 days, 4 times during the preceding 180 days, or at a minimum of 8 times in the year prior to the STR renewal application.
6. Evidence of two or more verified violations as described in Section 7.40.080(d) during the preceding 12 months.
7. Failure to demonstrate all TOT owed to the City has been paid prior to the date of the STR renewal application.
The Transient Occupancy Tax (TOT) rate is 10% and is payable to the City on a monthly basis. Payments are due by the 15th day of the month following the close of each reporting period. For example, taxes collected for the first time started in January; those taxes collected are due no later than February 15th.
City of Pacific Grove TOT Processing Center
8839 N Cedar Ave #212
Fresno, CA 93720
For those of you who are hosting short-term rentals through Airbnb (exclusively or otherwise), you may already know that Airbnb is collecting and remitting TOT for all bookings/reservations that were confirmed on or after December 1, 2017. Please note that Airbnb will not collect or remit your TOT for bookings that you have confirmed prior to December 1, 2017. Therefore, it is your responsibility to pay TOT on all reservations that were confirmed prior to December 1, 2017 and honored in December, or that will be honored in the coming months.
Please also note that the City does not have TOT collection and remittance agreements with any other hosting platform (including VRBO, HomeAway, TripAdvisor, Flipkey, vacationrentals.com, etc.). Therefore, it is your responsibility to pay TOT on all income earned through the aforementioned hosting platforms.
Finally, please be advised that you are required to file your TOT return monthly, regardless of whether you use Airbnb exclusively, or are hosting short-term rentals on multiple hosting platforms. Here are instructions for filing TOT for the upcoming reporting periods, in view of these changes:
If the owner and/or street address of the STR have changed, you MUST submit a new application.
If other application information (such as phone number, email, mailing address, etc) has changed, owners/agents MUST immediately supply the information to the City, without having to submit a new application. The information can be submitted to the City using the STR Contact Update Form. Alternatively, you can call (831) 648-3190 to update your information.
If your property manager has changed, you MUST appoint a new property manager as soon as possible. You must submit a written request and a statement with signature from your agent to the City.
Once we have received your updated contact information, we will change your license accordingly. The fee for amending and reprinting your license is $5.
Filing a complaint:
- If the Site Manager responds, please describe your complaint and ask that your complaint be resolved immediately or within no more than 30 minutes of your request as required by the Ordinance. You may elect to provide your name and contact information to the STR Site Manager so they can follow up with you on your complaint.
- If your complaint is resolved within 30 minutes from the time you notified the STR Site Manager, then the City will deem this as complete. You may notify the City of such complaint(s) via the online complaint form or via email at email@example.com. The City will track each incident against a STR and take all incidents into account at the time of license renewal.
- If STR Site Manager does not respond, then go to step 2. If your complaint is not resolved within 30 minutes from the time you notified the STR Site Manager, leave a voice message for the Site Manager describing your concern(s), and provide your name and contact information to the STR Site Manager so they can follow up with you on your complaint.
Reporting Illegal Short-term Rentals:
Fines and Penalties for Illegal Short-term Rental Hosting
Over the past few months, the City has held numerous public hearings to revise STR regulations. At the December 20, 2017 meeting, the City Council adopted the revised STR ordinance and the Administrative Procedures manual. The new ordinance repealed and replaced Chapter 7.40 of the Pacific Grove Municipal Code in its entirety for ease of staff interpretation and understanding by the public. Below is a list of all public hearings on this matter:
- 12-20-17 City Council meeting
- 12-06-17 City Council Meeting
- 11-13-17 Public Workshop
- 11-01-17 City Council Meeting
- 10-18-17 City Council Meeting
- 09-06-17 City Council Meeting
- 08-17-17 Planning Commission Meeting
- 06-28-17 City Council Meeting
- 06-07-17 City Council Meeting
- 05-17-17 City Council Meeting
City Council meeting minutes and video recordings are available at the City Council page.