Overview: Are Short-Term Rentals Allowed in Big Sur, CA?

Short-term rentals are BANNED in Big Sur, CA. Under Monterey County's comprehensive vacation rental ordinances that took effect in October 2024, commercial vacation rentals (non-hosted rentals rented more than three times per year) are explicitly prohibited in Big Sur, along with other coastal areas including Carmel Highlands and residential areas of Carmel Valley and Moss Landing.

Big Sur is located in unincorporated Monterey County and falls under the county's coastal jurisdiction, making it subject to these restrictive regulations designed to preserve the area's character and protect local housing stock.

Starting a Short-Term Rental Business in This Market

Due to the complete ban on commercial vacation rentals in Big Sur, you cannot legally start a new short-term rental business in this area. The only exception would be:

Homestays Only: Owner-occupied properties where the owner lives on-site during guest stays may be permitted, but these must comply with strict regulations including:

• Primary residence requirement for the property owner
• Owner must be present during all guest stays
• 7-day minimum rental contract requirement
• Limited to three rentals per year maximum

Required Documents, Permits, and Licenses

While commercial STRs are banned in Big Sur, for the limited homestay operations that may be permitted, the following would be required:

Primary Requirements:

• Vacation Rental License: $965 fee from Monterey County
• County Business License: Required before operation
• Transient Occupancy Tax (TOT) Certificate: For tax collection and remittance

Documentation Requirements:

• Neighbor Notification: Informational letter to all neighbors within 300-foot radius
• Property Manager Designation: 24/7 available contact who can respond within 30 minutes
• Fire Safety Compliance: Documentation of compliance with fire safety rules
• Occupancy and Parking Plans: Demonstrating compliance with limits

Specific Regulations for Short-Term Rentals

Monterey County Regulations (Effective October 14, 2024):

Prohibited Areas:

• Big Sur: Complete ban on commercial vacation rentals
• Carmel Highlands: Complete ban on commercial vacation rentals
• Residential areas of Carmel Valley and Moss Landing: Complete ban on commercial vacation rentals

Operational Requirements for Any Permitted STRs:

• Property Manager: Must be available 24/7 and able to respond to site within 30 minutes
• Quiet Hours: Must observe local quiet hours; outdoor amplified sound prohibited
• Fire Safety: Outdoor fire pits and fireplaces banned at all vacation rental properties
• License Display: Vacation rental license number must be listed on all advertisements and contracts
• Single-Family Only: STRs only allowed in single-family dwellings

Penalty Structure:

• Violations: Fines up to $5,000 per day
• Permit Revocation: Possible for non-compliance
• Platform Requirements: Airbnb, Vrbo must remove non-compliant listings within 10 days or face $1,000 per offense fines

California State Regulations:

• TOT Collection: Hosts responsible for collecting and remitting transient occupancy taxes
• Business Registration: May require state business license depending on operation scale
• Income Reporting: All rental income must be reported for state tax purposes

Contact Information for Local Authorities

Monterey County Housing & Community Development Department

Phone: Contact main county line for department routing
Website: www.countyofmonterey.gov/government/departments-a-h/housing-community-development/permit-center/short-term-rentals

Monterey County Planning Department

Website: www.countyofmonterey.gov/government/departments-a-h/housing-community-development/planning-services/current-planning/general-info/vacation-rental-aka-short-term-rental-ordinances-coastal-inland

Monterey County Auditor-Controller (TOT)

For TOT Certificate and Tax Questions
Website: www.countyofmonterey.gov/government/departments-i-z/treasurer-tax-collector/transient-occupancy-tax

Important Links and Sources

Primary Source Pages:

• Monterey County Short-Term Rentals
• Vacation Rental Ordinances - Coastal & Inland
• Keep Big Sur Wild - STR Information
• Avalara Tax Guide - Monterey County STR Ban

Critical Investment Considerations

For STR Investors: Big Sur represents a high-risk, non-viable market for short-term rental investment due to:

1. Complete Commercial STR Ban: No path to legal commercial operation
2. Strict Enforcement: Up to $5,000 daily fines for violations
3. Community Opposition: Strong local advocacy against STR expansion
4. Coastal Commission Oversight: Additional regulatory layer for coastal areas
5. No Grandfathering: Existing permits must comply with new rules within seven years

The regulations in Big Sur are specifically designed to preserve the area's natural character and prevent the displacement of local housing by vacation rentals. Investors should consider alternative markets with more permissive STR regulations.

Contact Keep Big Sur Wild for community perspective: info@keepbigsurwild.org