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Casago SoCal, a DBA of Acme CA Vacations, Inc. · Michael Flannery · CA DRE #02439360.
Monterey · Carmel · Santa Cruz · Regulation watch
This one destination name covers ten separate authorities, and two of them give an owner no path at all. Every row below names its official source and the date it was checked.
Existing owner? Access your Owner Portal
Match the parcel before anything else. Monterey, Carmel-by-the-Sea and Pacific Grove are incorporated cities in Monterey County; Santa Cruz and Capitola are incorporated cities in Santa Cruz County. Each runs its own program, and two of them do not permit short stays at all. Everything outside those city limits is unincorporated county — Pebble Beach and Carmel Highlands on one side, Live Oak, Pleasure Point and Aptos on the other — and the two counties have separate ordinances with different licence types. Much of this market also sits inside the California coastal zone, which adds Coastal Act considerations on top. A neighbourhood name, a mailing address or a nearby beach settles none of this.
This is the part owners most want softened, so it is stated plainly and first. The City of Monterey’s own Code Compliance page, checked 2026-09-20, says any house rental of less than 30 days is illegal in Monterey, names the ordinance at City Code section 22-19.5 and says the City actively enforces it. There is no application, licence, waiting list or cap to get onto. The City of Carmel-by-the-Sea’s short-term rental page, checked the same day, says no home or subordinate unit may be rented for less than 30 consecutive days in the residential district, and publishes no permit or exception process.
So if your home is inside Monterey city limits, or in a Carmel-by-the-Sea residential district, there is no short-stay plan to build and nothing for us to quote on. You should know that before you enquire, not after. Two things are still worth checking. A stay of 30 days or more is a different use under both rules and a different conversation. And the boundary is not obvious: plenty of homes with a Carmel or Monterey mailing address sit in unincorporated Monterey County, where the County’s own licence framework applies instead. Confirm the parcel before you conclude anything from this panel.
Jurisdictions
These are summaries of what each official source says on the date shown. They are not legal advice and not a determination about your property.
| Property area / authority | What to check | Official source |
|---|---|---|
| Inside the incorporated City of MontereyCity of Monterey | The City’s Code Compliance page states that any house rental of less than 30 days is illegal in Monterey, identifies the advertisement of short-term rentals ordinance at Monterey City Code section 22-19.5, and says the City actively enforces it, directing residents who suspect a violation to the Code Compliance Coordinator. There is no application, licence or waiting list published for a short-stay use inside city limits. A stay of 30 days or more is a different use and a different conversation. This row governs only addresses inside the City of Monterey; it does not reach Pacific Grove, Carmel-by-the-Sea, Seaside, Marina, Sand City or unincorporated county land. | No owner path today City of Monterey — Code Compliance Checked 2026-09-20 |
| Inside the incorporated City of Carmel-by-the-Sea, residential districtCity of Carmel-by-the-Sea | The City’s short-term rental page states that no home or subordinate unit may be rented for less than 30 consecutive days in the residential district, and directs questions to the Planning and Building Department. The page publishes no permit, licence or exception process for a residential-district parcel. Two things still need confirming for any individual address: that the parcel is actually inside the City rather than in unincorporated Monterey County, which happens often on the edges of Carmel, and which district the parcel sits in. Do not extend the residential-district statement to a commercial district or to any other jurisdiction. | No owner path in the residential district City of Carmel-by-the-Sea — Short-Term Rentals Checked 2026-09-20 |
| Inside the incorporated City of Pacific GroveCity of Pacific Grove | A licence is required for any property, including rooms and guest houses whether or not detached, rented for less than 30 consecutive days, under Pacific Grove Municipal Code Chapters 7.40 and 23.64.350. The City states that new Short-Term Rental licence applications are currently being accepted on a first-come, first-serve basis, but that new applicants are limited to the City’s Coastal and Commercial areas. STR licences are capped at 250 city-wide and the City reported 84 active licences when this page was checked. Density is one per parcel plus a 55-foot zone of exclusion measured from an existing STR parcel boundary, screened at application. Overnight occupants aged 18 or over are limited to two per bedroom plus one per site. A site manager is required unless the owner manages the property and lives within 30 minutes by vehicle. On-site parking, if available, must be made available to renters. The City states the application fee is $141 with a further $124 due on approval, and gives the current transient occupancy tax rate as 12%. Home Sharing, where the owner lives on site and rents one room, is permitted throughout the City and the City states it is not subject to the cap and density limits. | City of Pacific Grove — Short-Term Rental Program Checked 2026-09-20 |
| Inside the incorporated City of Santa CruzCity of Santa Cruz | The City requires both a short-term rental permit and a Transient Occupancy Tax certificate. It defines hosted as an STR where the owner lives in the home for more than six months per year, and states that a total of 250 owner-occupied or hosted STR permits are available on a first come, first served basis. The City states plainly that it will not be issuing new non-hosted STR permits, while several existing, legally permitted and operating non-hosted STRs will be allowed to continue. It also states that short-term rentals are prohibited on properties containing both a single-family home and an ADU or JADU. Hosted applications require three proofs of principal residency alongside site plans, floor plans and photographs, and the City says it has 30 calendar days to review an application once fees are paid. Anything relying on an existing legacy permit needs address-level confirmation. | City of Santa Cruz — Short-Term Rentals Checked 2026-09-20 |
| Inside the incorporated City of CapitolaCity of Capitola | The City defines a vacation rental as a residential home or portion of a home rented for less than 30 days, at Section 17.160.020. Whether a Capitola home may be one is decided by geography: the City has established a Vacation Rental Use (VRU) overlay district, described as Capitola Village, Riverview Avenue as far north as city hall, as far west as Cliff Drive, as far east as Monterey Avenue and as far south as Capitola Beach. The City states that homes located outside this area may not be rented as vacation rentals and may only be operated as long-term rentals of 30 nights or more. Inside the district, a vacation rental permit and a business licence are required, transient occupancy tax must be reported monthly including months with no occupancy, and planning staff review the application for zoning and parking compliance. The City states that owners renting outside the VRU zone or without proper permits will be ordered to cease and may face daily fines. | City of Capitola — Vacation Rentals Checked 2026-09-20 |
| Unincorporated Monterey County, including Pebble Beach, Carmel Highlands and Big SurCounty of Monterey Housing and Community Development | County rules apply only outside incorporated city limits, and the County lists Carmel-by-the-Sea, Monterey, Pacific Grove, Marina, Sand City, Seaside and others as cities it does not govern. The County operates a Vacation Rental Operation License under Monterey County Code Chapter 7.120, with separate inland regulations at MCC Section 21.64.290, effective in the unincorporated inland areas on October 14, 2024, and coastal regulations adopted as Ordinance No. 5439 by the Board of Supervisors on September 23, 2025 and effective October 24, 2025. The County states it began accepting coastal applications on October 24, 2025 through its online portal. Only detached single-family dwellings are eligible, including a mobile or manufactured dwelling on a permanent foundation; duplexes, condominiums, multiple-family dwellings, ADUs and JADUs are not. The County distinguishes a Commercial Vacation Rental, rentable an unlimited number of times a year non-hosted, from a Limited Vacation Rental, rentable up to three times a year non-hosted, from a Homestay, which requires the owner to stay in the home and for it to be the owner’s primary residence. A Commercial Vacation Rental additionally requires a Use Permit or a Coastal Development Permit, and every path also needs a TOT certificate and a business licence from the Treasurer-Tax Collector. The County has posted a limited suspension of specific terms following Monterey County Vacation Rental Alliance v. County of Monterey, Monterey County Superior Court Case No. 24CV004922: it will not enforce the provision found to violate the Dormant Commerce Clause by treating non-resident owners differently from residents for homestays, nor the provision found to violate the Equal Protection Clauses by treating corporate or other non-individual entity owners differently from natural persons, and administrative penalties under MCC Section 7.120.160(D) will not exceed the maximum in California Government Code section 25132(e)(1). The County states the litigation is ongoing and that it cannot predict future rulings or amendments. | County of Monterey Housing and Community Development — Vacation Rentals Checked 2026-09-20 |
| Unincorporated Santa Cruz County, including Live Oak, Pleasure Point, Aptos, Seacliff, La Selva Beach, Davenport and the San Lorenzo ValleyCounty of Santa Cruz Unified Permit Center | County rules apply only outside incorporated city limits, so a Live Oak, Pleasure Point or Aptos address is County territory and a Santa Cruz or Capitola city address is not. The County defines a hosted rental as one where the owner or a long-term resident acting as host occupies one legal bedroom while one to three other legal bedrooms are rented, and a non-hosted rental as a short-term rental of an entire home. Permits are allocated by designated area: the Davenport/Swanton Designated Area, the Live Oak Designated Area, the Seacliff/Aptos/La Selva Beach Designated Area, and everywhere outside a designated area. The caps the County published when this page was checked were 3 non-hosted and 4 hosted in Davenport/Swanton, 262 and 18 in Live Oak, 147 and 45 in Seacliff/Aptos/La Selva Beach, and 270 and 185 outside the designated areas. A block density rule prohibits a non-hosted permit on a parcel adjacent to two or more parcels with active non-hosted permits. The County states permits are issued first-applied, first-issued with permit availability evaluated on a bi-annual basis, and gives an annual fee of $145. Short-term rentals are prohibited within mobile home parks, affordable housing units and apartment buildings, and on properties containing an ADU or JADU. Whether a cap has headroom today is a question for the County, not something a published number settles. | County of Santa Cruz Unified Permit Center — Short-Term Rentals Checked 2026-09-20 |
| Any parcel inside the California coastal zone, in either countyCalifornia Coastal Commission | Much of this market is in the coastal zone, and that changes how a local rule takes effect. In a December 6, 2016 letter to coastal planning and community development directors, the Commission wrote that vacation rental regulation in the coastal zone “must occur within the context of your local coastal program (LCP) and/or be authorized pursuant to a coastal development permit (CDP)”, that such regulation “constitutes development to which the Coastal Act and LCPs must apply”, and that the Commission does “not believe that regulation outside of that LCP/CDP context (e.g., outright vacation rental bans through other local processes) is legally enforceable in the coastal zone”. The same letter says the Commission “has not historically supported blanket vacation rental bans under the Coastal Act”, while adding that where a community already provides an ample supply and further proliferation would impair community character or other coastal resources, restrictions may be appropriate. It names Santa Cruz County among the communities with certified LCP vacation rental programs going back over a decade. This is guidance about how local programs get certified. It is not a permit, it does not override a city’s current published position, and it gives no owner a right to rent. Ask the local authority how its certified local coastal program treats your parcel. | California Coastal Commission — Short-Term/Vacation Rentals in the California Coastal Zone, December 6, 2016 Checked 2026-09-20 |
| California taxes and transient occupancy taxState of California, then the city or county with jurisdiction | There is no single statewide lodging tax to register for. The California Department of Tax and Fee Administration describes itself as administering sales and use tax in addition to several special taxes and fees, and does not set transient occupancy tax. TOT is imposed and collected locally: Pacific Grove publishes a current rate of 12%, Capitola requires monthly TOT reporting including months with no occupancy, the City of Santa Cruz requires a TOT certificate alongside the STR permit, and Monterey County requires a TOT certificate from its Treasurer-Tax Collector. Register with whichever authority actually covers the parcel, and treat a TOT registration as a tax obligation rather than as permission to operate. | State of California — California Department of Tax and Fee Administration Checked 2026-09-20 City of Pacific Grove — Short-Term Rental Program Checked 2026-09-20 City of Capitola — Vacation Rentals Checked 2026-09-20 County of Monterey Housing and Community Development — Vacation Rentals Checked 2026-09-20 |
| HOA, condominium, deed, lease and insurance documentsPrivate governing documents | No city, county or state source decides whether a private community permits the intended rental use, the guest parking, the gate access or the amenity use. On this coast that includes Pebble Beach and other gated community documents, beach-adjacent condominium rules in Capitola and Aptos, Carmel-area deed restrictions, and mountain and valley community covenants inland. These can be stricter than any public rule, they are enforced separately, and a public permit does not override them. Read the controlling documents and get any determination in writing before the home is marketed. | Further verification needed |
Steps in order
Get an authority-confirmed answer on whether the parcel is inside Monterey, Carmel-by-the-Sea, Pacific Grove, Santa Cruz or Capitola, or in unincorporated Monterey or Santa Cruz County — and whether it is inside the coastal zone. Keep the answer in the property file. Around Carmel and around Santa Cruz this single step changes the outcome more often than any other.
Inside the City of Monterey, and in a Carmel-by-the-Sea residential district, the answer stops here. In Pacific Grove, ask whether the parcel is in the Coastal or Commercial area, whether it clears the 55-foot zone of exclusion, and whether the city-wide cap has room. In the City of Santa Cruz, ask whether a hosted permit is available and whether the property has an ADU or JADU. In Capitola, ask whether the parcel is inside the Vacation Rental Use overlay district. In either county, ask about licence type, designated-area caps, block density and the queue.
There is no statewide lodging tax. Transient occupancy tax is imposed by the city or county covering the parcel: Pacific Grove publishes a 12% rate, Capitola requires monthly reporting including months with no occupancy, the City of Santa Cruz requires a TOT certificate alongside the permit, and Monterey County requires a TOT certificate and a business licence from its Treasurer-Tax Collector. State sales and use tax is a separate question for CDTFA. A TOT registration is a tax obligation, never permission to operate.
HOA rules, CC&Rs, condominium rules, deed restrictions, leases and insurance conditions decide guest parking, gate and amenity access, and sometimes whether the use is permitted at all. Around this bay that includes gated community documents, beach-adjacent condominium rules and Carmel-area deed restrictions. Get any determination in writing before marketing.
In Pacific Grove that includes a site manager, or owner management from within 30 minutes by vehicle, on-site parking made available to renters where it exists, and a prohibition on amplified sound audible beyond the property boundaries. In Capitola it includes the parking review and monthly TOT filing. In the City of Santa Cruz a hosted application requires three proofs of principal residency. Check what your own authority requires to be installed, posted or contactable.
Keep researching
No. The City’s Code Compliance page, checked 2026-09-20, states that any house rental of less than 30 days is illegal in Monterey, identifies the advertisement of short-term rentals ordinance at Monterey City Code section 22-19.5, and says the City actively enforces it, directing residents who suspect a violation to its Code Compliance Coordinator. No application, licence, cap or waiting list is published, so there is no owner path inside city limits to plan around. A stay of 30 days or more is a different use and a separate conversation.
Not in the residential district. The City’s short-term rental page, checked 2026-09-20, states that no home or subordinate unit may be rented for less than 30 consecutive days in the residential district, and directs questions to the Planning and Building Department. No permit or exception process is published. Confirm which district the parcel is in, and confirm it is inside the city at all — Carmel Highlands, Carmel Valley and other nearby areas are unincorporated Monterey County with a different framework.
Yes, with conditions, as at 2026-09-20. The City states new Short-Term Rental licence applications are being accepted on a first-come, first-serve basis, that the subject property must be in the Coastal or Commercial zone, and that it must comply with the 55-foot zone of exclusion at application. Licences are capped at 250 city-wide and the City reported 84 active licences on that date. Home Sharing, where the owner lives on site and rents one room, is permitted throughout the City and the City states it is not subject to the cap and density limits.
No. The City states it will not be issuing new non-hosted STR permits, while several existing, legally permitted and operating non-hosted STRs will be allowed to continue. It offers 250 owner-occupied or hosted permits on a first come, first served basis, defining hosted as the owner living in the home for more than six months per year, and it prohibits short-term rentals on properties containing both a single-family home and an ADU or JADU. Checked 2026-09-20.
The County operates a Vacation Rental Operation License under MCC Chapter 7.120, with inland regulations effective 14 October 2024 and coastal Ordinance No. 5439 effective 24 October 2025. Its page, checked 2026-09-20, also posts a limited suspension of specific terms after Monterey County Vacation Rental Alliance v. County of Monterey, Case No. 24CV004922: the County will not enforce the provision found to violate the Dormant Commerce Clause by treating non-resident owners differently for homestays, nor the provision found to violate Equal Protection by treating entity owners differently from natural persons, and administrative penalties will not exceed the Government Code section 25132(e)(1) maximum. The County states the litigation is ongoing.
It adds a layer. In a December 6, 2016 letter to coastal planning and community development directors, the California Coastal Commission wrote that vacation rental regulation in the coastal zone must occur within a local coastal program or be authorised by a coastal development permit, that such regulation constitutes development to which the Coastal Act and LCPs must apply, and that it does not believe regulation outside that context, including outright bans through other local processes, is legally enforceable in the coastal zone. The same letter says the Commission has not historically supported blanket bans, while noting restrictions may be appropriate where a community already has an ample supply. That is guidance about how local programs get certified. It is not a permit and it does not override what a city publishes today.
Next step
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