Short-Term Rental Program 
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Short-term Rentals Map
New Applicants: Short-term Rentals, also known as Vacation Rentals, are only allowed within the City's Coastal and Commercial areas subject to City regulations explained in the Short-Term Rental License tab below. However, Home Sharing (i.e. renting out a room within a Single Family Residence while owner/authorized tenant resides at the property) is permitted throughout the City subject to first obtaining a Home Sharing License. Please contact program staff to determine whether your property is eligible for a STR license or to learn about the Home Sharing program.
STR Status and Location: To check the status and location of a STR, please visit the STR Map, the STR Database, or pgparcel.net.
Transient Occupancy Tax (TOT) rate: Current TOT rate is12%.
STR Program Revenue: Fiscal Year 16-17; Fiscal Year 17-18.
Number of active STR Licenses: There are currently 77 active STR Licenses within the Coastal and Commercial zoning areas. To check the status of a STR License, please visit the STR Map or Database.
Current STR Ordinance: A copy of the current Short-Term Rental License Ordinance can be viewed here.
Owners of Short-Term Rentals (STRs), also known as Vacation Rentals, are required to obtain a Short Term Rental or Home Sharing License per Chapters 7.40 and 23.64.350 of the Pacific Grove Municipal Code. These ordinances apply to all properties (including rooms and guest houses whether or not detached) rented for less than 30 consecutive days. If you (as the owner or tenant) are considering hosting short-term rentals, please read the information below carefully to determine your eligibility and the type of license you should be applying for.
Short-term Rental License
- The subject property must be in the Coastal or Commercial zone.
- The subject property must comply with the 55 foot Zone of Exclusion at the time of application.
- The property will be screened against this limit at the time of application.
- Applicant for the subject property must be the owner of record.
- A check for the amount of $413 for the application and neighborhood noticing fees. This amount is non-refundable.
- Checks must be made out to the City of Pacific Grove. An additional $680 will be due and payable to the City of Pacific Grove once an application has been approved and a license has been issued. (Credit card payments are subject to a 4% processing fee).
- A completed application packet.
- Incomplete applications will be not be accepted.
Definition
A Short-term Rental License (STR) allows rental of an entire dwelling unit.Cap, Density, and Occupancy Limits
- License Caps: STR Licenses are limited to 250 City-wide.
- Density: STR licenses are subject to a one-per-parcel and 55' zone of exclusion limits. The zone of exclusion is the distance of fifty-five (55) lineal feet from an existing STR parcel boundary.
- Occupancy: Overnight occupants (aged 18 or older) are limited to two persons per bedroom, plus one additional person per site. The maximum number of day time (non-overnight) occupants is limited to 1.5 times the number of overnight occupants.
Rules/Conditions
- Only the whole dwelling unit may be rented. (For renting a bedroom in your house, see Home Sharing).
- Established affordable housing units are not eligible for A STR license.
- Illegal residential units or unpermitted spaces associated with your property may not be rented.
- On-site parking, if available, shall be made available to renters.
- A Site Manager (i.e. property manager) is required unless the owner chooses to manage their own property. If an owner decides to manage their own property, the owner must reside no farther than 30 minutes by vehicle from the STR.
- Amplified sounds that are audible beyond the property boundaries are prohibited. Other noises that create a nuisance will be enforced in accordance with the City noise regulations.
- Auctions, commercial functions, and other similar activities are prohibited.
- Displaying of signs that indicate that the property is used or available for transient or short-term rental purposes is prohibited.
Home Sharing License
Definition
Cap, Density, and Occupancy Limits
Rules/Conditions
- The owner lives on site and can go about typical daily activities outside the home.
- A maximum of one bedroom may be rented to two adults; a second bedroom may be rented to children as part of the same contract.
- Guests shall have exclusive use of the rented bedroom(s) and shared use of a full bathroom and kitchen.
- No cooking facilities/appliances in bedrooms or bathrooms.
- Accessory structures or detached bedrooms can not be Home Sharing rental.
- Established affordable housing units are not eligible for any STR license.
- Illegal residential units or unpermitted spaces associated with your property cannot be rented.
- On-site parking shall be made available to renters.
- Amplified sounds that is audible beyond the property boundaries are prohibited. Other noises that create a nuisance will be enforced in accordance with the City noise regulations.
- Auctions, commercial functions, and other similar activities are prohibited.
- Displaying of signs that indicate that the property is used or available for transient or short-term rental purposes is prohibited.
Submitting Your Application
- Home Sharing Permit Application Form. (Download Application Packet)
- Affidavit affirming that smoke and carbon monoxide alarms are installed and that fire extinguisher are in an accessible location.
- Site Plan which shows all buildings, room labeled for use, and off-street parking.
- A Building Inspection Report obtained through a certified third-party general contractor or building inspector. The inspector must use the City STR Inspection Checklist. The City of Pacific Grove cannot recommend an inspector for you.
- Home Sharing Use Permit Application fee of $349.
- Copy of Driver’s License or Identification Card to confirm residency.
- Tenants must submit a copy of their lease agreement and a statement from the owner agreeing to the Short-Term Rental use of their property. It is the responsibility of the applicant to ensure that their lease does not prohibit subletting/short-term renting of the property.
- New owners must provide documentation to show ownership of property.
Attn: Housing Division – TUL
300 Forest Avenue
Pacific Grove, CA 93950
Application Review
- The property has outstanding Planning, Building, Housing, Fire, Health, Police, or other applicable City code violations.
- The Building Inspection identifies an unsafe condition.
Home Sharing License
- The $191 fee is annual and is prorated on a quarterly basis.
- The permit must be renewed annually on/before March 31st. Failure to renew a license prior to March 31st of each year will result in the suspension or revocation of the license
- The permit does not convey with the sale or transfer of the property.
Tax Obligations
Change of Contact Information
Renewing Your Home Sharing License
- Home Sharing Renewal Form.
- $191 License Renewal Fee (Checks payable to the City of Pacific Grove).
- Copy of Driver’s License or Identification Card to confirm residency.
- Affidavit affirming that smoke and carbon monoxide alarms are installed and that fire extinguisher are in an accessible location.
- A Building Inspection Report obtained through a certified third-party general contractor or building inspector. The inspector must use the City STR Inspection Checklist. The City of Pacific Grove cannot recommend an inspector for you.
- Tenants must submit a copy of their renewed lease agreement and a statement from the owner agreeing to the Short-Term Rental use of their property. It is the responsibility of the applicant to ensure that subletting or use of your unit as a short-term residential rental is not prohibited
Owner Responsibilities
- Owners must maintain a guest log book that includes the names, phone number, home addresses of guests, guest’s license plate numbers if traveling by car, and dates of stay.
- Owner must provide renters the following information:
- Restrictions on the occupancy limits
- Restrictions on noise, music and amplified sound
- Parking restrictions
- Trash collection schedule
- Information on relevant burn bans
- Information on relevant water restrictions
- Information on Sensitive Habitats
Complaints/Enforcement
- Call 9-1-1, if it is an emergency (such as fire, medical emergency, suspicious activity, etc)
- For non-emergency concerns, use our online complaint form (highly encouraged). Staff will follow up with you within 24 hours.
- You can also call our STR Hotline phone number. This is an effective method especially for those wishing to speak with a person to report the matter.
- You can also call our Code Compliance office directly at (831) 648-3116, or email us at codecompliance@cityofpacificgrove.org.
Short-term Rentals (STR) must operate consistent with the October 20th State guidance and checklist. Please direct your questions pertaining to this update to the Monterey County Health Department or the Monterey County District Attorney’s Office.
1. Short-term Rental License Renewal
STR License renewals will begin in February 2020. All existing STR owners will receive notices which will include license renewal instructions. In general, STR License renewal process will be as follows:General Guidelines:
- Early submissions are highly encouraged although an application can be submitted on the last day of the STR license renewal period (i.e. Tuesday, March 31st).
- 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 4:45 p.m. on March 31st.
Each STR license renewal packet must include all of the following items:
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 within the past two years.
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 lfrati@cityofpacificgrove.org.
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 $933 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.
2. Transient Occupancy Tax (TOT)
The Transient Occupancy Tax (TOT) rate is 12% 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.TOT returns can be filed online at https://pacificgrove.hdlgov.com/ or by mail. To file TOT returns by mail, complete and mail the TOT return form along with your payment to the following address:
City of Pacific Grove TOT Processing Center
8839 N Cedar Ave #212
Fresno, CA 93720
Additional Instructions:
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:
1. Determine Total Gross Rent for December: this is the total amount charged your occupants during the period, regardless of whether it was charged by you, or by Airbnb.
2. Determine Airbnb Gross Rent for December: this is the total amount charged by Airbnb for occupants who booked after December 1, 2017, and rented your property during the December period. You can determine this amount by finding in your Airbnb reports the amount of TOT charged your renters in December, and dividing that amount by 0.1.
3. Go to the City's TOT portal.
4. Proceed to file through the website, as normal. When prompted, provide the Total Gross Rent and Airbnb Gross Rent numbers. The website will exempt the TOT amount Airbnb paid on your behalf, so that you do not double pay the tax amount.
For questions regarding TOT or filing process, please contact the City's TOT processing center at (831) 920-3890, Monday through Friday, from 8 a.m. to 5 p.m.
3. Change of Contact Information
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) 648-3133 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 $32.
4. Complaints/Enforcement
Filing a complaint: Call 9-1-1 if it is an emergency (such as fire, medical emergency, suspicious activity, etc.).To file a complaint regarding excessive noise or a loud party, illegal parking, improper and excessive trash disposal, too many overnight guests, or any other disruptive behavior at a STR unit, please follow these steps:
Step 1: Contact the Site Manager – anytime (24/7): Site Manager’s contact information can be found on the STR placard (sample STR placard) posted on each STR unit or through the STR Database.
- 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 codecompliance@cityofpacificgrove.org. 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.
Step 2: Contact the Police Department at (831) 648-3143 if you are calling after business hours. If you are filing a complaint during business hours, you may call the City Hall directly at (831) 648-3116 or (831) 648-3190. When calling the Police Department and/or City Hall, please provide the STR address, a description of the nature of the activity, and any other relevant information. Complaints may be filed anonymously, however, you may wish to provide your contact information so that our code compliance staff can contact you to discuss your complaint in detail.
Note: If the nature of a complaint is non-emergency and cannot be resolved within 30 minutes (e.g. a tree needs pruning, a garage being used for living, or any other pre-existing condition at the STR unit that concerns you but is a non-emergency) report the situation to the Code Compliance office at (831) 648-3116 or codecompliance@cityofpacificgrove.org.
Reporting Illegal Short-term Rentals: Suspected illegal Short-term Rentals can be reported to the City via the following methods:
- Online compliant form
- (831) 648-3190 or (831) 648-3116
- codecompliance@cityofpacificgrove.org
Fines and Penalties for Illegal Short-term Rental Hosting
Violations of the City’s short-term rental ordinance are subject to penalties of at least 60 percent of the total revenue earned through illegal hosting. Penalties begin on day one of illegal short-term rental activity and continue to accrue until the violation is fully abated. Repeat violations may be subject to escalated penalties including referral to the City Attorney’s Office for additional assessment (i.e. lien) on the subject property. Further, illegal STR’s are ineligible from obtaining a STR license for two consecutive years.
5. Additional Information
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.