Pacific Grove, California Airbnb Rules & Investment Guide

• Underwrite the exact address rather than a citywide revenue, occupancy, nightly-rate, or return forecast.
• Determine first whether the intended model is an entire-dwelling STR or resident-hosted home sharing.
• Treat written City confirmation of jurisdiction, zoning, and license eligibility as a purchase contingency.
• Price licensing, inspections, lodging tax, insurance, utilities, parking, management, and maintenance from current records and quotes.
• Confirm HOA, deed, lease, lender, and insurance restrictions separately because City approval does not override private limits.
• Build the final decision from verified acquisition costs, lawful capacity, operating obligations, and conservative property-specific booking assumptions.

• Confirm the parcel is inside incorporated Pacific Grove; a Pacific Grove mailing address alone does not establish City jurisdiction.
• New entire-dwelling STR applicants must be in an eligible coastal or commercial area and satisfy City screening.
• Entire-dwelling STR licenses are limited to one per parcel and are subject to the 55-foot exclusion zone from an existing STR parcel boundary.
• Affordable housing units, illegal residential units, and unpermitted spaces are not eligible for an STR license.
• Home sharing is limited to a qualifying single-family dwelling and excludes condominiums, multifamily units, accessory units, detached rooms, and hotel-style uses.
• Use the City STR map, permit database, parcel viewer, and direct staff confirmation before relying on a listing or seller representation.

• Obtain the applicable City STR or home-sharing license before renting or advertising a stay of fewer than 30 consecutive days.
• For a new entire-home STR, the owner of record submits the application, site and floor plans, required inspection report, fees, and supporting information.
• The City program page currently lists a $141 application and neighborhood-notice amount plus $124 after approval; confirm amounts before filing.
• Home-sharing applicants submit the City application, safety affidavit, site plan, third-party inspection, residency proof, and any required owner consent.
• The City currently lists an $81 home-sharing use-permit application and a $265 annual license charge at issuance; confirm amounts before filing.
• Licenses renew by March 31, are property-specific, and do not transfer with a sale or to another location.

• The resident must occupy the home throughout every home-sharing stay; the resident may be the owner or an authorized tenant.
• Only one bedroom may be rented to adults, with a second bedroom allowed for children under the same contract.
• No more than two adults may occupy the rented bedroom.
• Guests receive exclusive use of the rented bedroom and shared use of a full bathroom and kitchen.
• Bedrooms and bathrooms may not contain cooking facilities, and detached or accessory spaces do not qualify.
• Home-sharing licenses avoid the entire-home STR cap and density limits, but City permit, inspection, tax, and operating duties still apply.

• Use the City checklist for sleeping-room egress, smoke alarms, carbon monoxide alarms, GFCI protection, heating, water heater, sanitation, and safe access.
• A certified third-party general contractor, building inspector, or home inspector must complete the required inspection report.
• Correct unsafe conditions and outstanding Planning, Building, Housing, Fire, Health, Police, or other City violations before issuance.
• Maintain smoke alarms in sleeping rooms and circulation areas, carbon monoxide alarms on required levels, and accessible fire extinguishers.
• Keep garages, driveways, appliances, garbage service, and the property in the safe condition represented to the City.
• Recheck permit history when renovations, added sleeping areas, garage use, or unpermitted work could affect lawful occupancy.

• For an entire-home STR, follow the occupancy assigned by the City; the ordinance ceiling is two adults per bedroom plus one additional person per unit.
• Make each designated on-site parking space available to overnight guests and follow the vehicle limit shown on the license.
• An owner who manages an entire-home STR must live within a 30-minute drive or appoint a site manager under City program rules.
• Give a responsible guest the occupancy, parking, noise, trash, burn-ban, water, and sensitive-habitat instructions that apply to the stay.
• Prohibit amplified sound audible beyond the property boundary, nuisance activity, auctions, weddings, and similar commercial functions.
• Maintain a guest log with the responsible tenant name, phone, home address, vehicle plate when applicable, and dates of stay.

• Collect Pacific Grove transient occupancy tax at 12 percent of taxable rent for stays of 30 consecutive calendar days or less, unless a valid exemption applies.
• Register for a transient occupancy tax account and post the registration certificate as required.
• File the City return every month, including zero-activity periods, and pay by the 15th day of the following month under current City instructions.
• Report total gross rent and platform-collected amounts accurately so tax already remitted by Airbnb is not paid twice.
• Do not assume another platform collects for Pacific Grove; the City states operators remain responsible for non-Airbnb bookings.
• Preserve tax and booking records for at least three years and verify other tax obligations with qualified advisers.

• Do not publish or maintain an entire-home STR or home-sharing advertisement until the required City license is issued.
• Place the City license number conspicuously in the main title or property-description area of every online listing.
• Provide the City with hyperlinks for new or modified online listings within the required timeframe.
• Display the license inside the unit and the City placard at the front entrance when required for the license type.
• Reconcile platform statements, direct bookings, cancellations, fees, gross rent, and City tax filings every reporting period.
• Platform tax collection does not replace zoning, licensing, inspection, guest-record, parking, or local-management compliance.

• Renew by March 31 with the required forms, fee, safety affidavit, current listing links, tax proof, and inspection report when due.
• Existing entire-home licenses must document the minimum rental activity specified by the City for the applicable ownership period.
• Report material application changes promptly; unreported changes, unsafe conditions, unpaid tax, or false statements can block issuance or renewal.
• Respond to issues immediately; repeated verified occupancy, noise, trash, parking, or other violations can support suspension or revocation.
• Unlicensed use and advertising may create daily infractions, administrative penalties, tax assessments, liens, and a period of ineligibility.
• Recheck the ordinance, City program page, license, and staff guidance before purchase, renewal, a management change, or an operating-model change.

• Pacific Grove STR Program: confirm eligibility, application status, license details, and current fees at (831) 648-3133 or lfrati@cityofpacificgrove.org.
• Planning and zoning: confirm parcel zoning and proposed use with Community Development before relying on a map or marketing statement.
• Code Compliance: submit concerns online, call (831) 648-3116, or email codecompliance@cityofpacificgrove.org; call 9-1-1 for emergencies.
• Pacific Grove TOT Processing Center: confirm registration and filing at (831) 920-3890 or PacificGroveTOT@hdlgov.com.
• Use the City permit database, STR map, parcel viewer, inspection records, and title documents to test the seller’s claims.
• Build the property model from the contract, inspections, insurance quotes, permits, tax records, verified rules, and conservative property-specific assumptions.

Use these primary sources to verify the current rules for the exact property and operating model.