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Cayucos, CA

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STR Regulations for Cayucos, California

Overview: Short-term rentals (referred to as “residential vacation rentals”) are allowed in Cayucos, CA. Cayucos is in San Luis Obispo County’s Coastal Zone and is subject to the County’s Coastal Zone Land Use Ordinance Section 23.08.165. The County’s rules govern where and how you may operate, the permits and licenses required, the documentation and noticing you must complete, and ongoing compliance standards.

Note on scope: Cayucos is an unincorporated community in San Luis Obispo County and therefore does not have its own city STR ordinance; it is governed by County rules, including the Coastal Zone standards in Section 23.08.165 and countywide business licensing and tax processes.

1) Are Short-Term Rentals Allowed in Cayucos? (Explicit Answer)

Yes—residential vacation rentals are allowed in Cayucos when they comply with the County’s Coastal Zone standards, including:

  • Location standards specific to Cayucos (proximity to other vacation rentals and visitor-serving accommodations).
  • Performance standards (occupancy, parking, noise, local contact).
  • Required permits and licenses (Zoning Clearance, Business License, and Transient Occupancy Tax/Tourism Marketing District registration).
  • Noticing to agencies and neighbors within 200 feet.
  • Prohibitions (no STRs in ADUs, guesthouses, or agricultural worker housing; restrictions in Williamson Act areas).

These requirements are established by San Luis Obispo County Code Title 23, Section 23.08.165.

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2) How to Start a Short-Term Rental Business in Cayucos (Step-by-Step)

Cayucos STRs are processed through the County’s Coastal Zone rules and permitting. The steps below reflect the County’s official sequence.

Step 1: Preliminary Eligibility & Zone Verification

  • Confirm the property is in the Coastal Zone. If unsure, use the County GIS Land Use Viewer to check Coastal Zone status.
  • Confirm the property is not in a Williamson Act area. If it is, additional requirements apply.
  • Verify the proposed rental is not an ADU, Guesthouse, or Agricultural Worker Housing (farm support housing)—these are not allowed.
  • Verify the subject residence meets the permitted use category and location standards (see Section 3 for Cayucos-specific proximity rules).

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Step 2: Business Location Verification with Planning & Building

  • Submit a business location verification request to Planning & Building. Wait for staff confirmation that a zoning clearance can be applied for before proceeding.

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Step 3: Tax Collector — Business License Application

  • Complete the County Business License Application and email it to the Tax Collector or mail it to the address provided. A staff member will contact you within 24 hours (Mon–Fri, excluding holidays) to review additional requirements.
  • You must continue to Step 4 (Planning) after this step is complete.

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Step 4: Assemble Required Documents (see Section 3 for full list)

  • Grant Deed; Owner Consent (if applicant is not owner).
  • Site plan and floor plan (hand-drawn acceptable, no scale required).
  • Will Serve Letter from water/sewer supplier.
  • Completed Coastal Vacation Rental Certification Form.
  • Notification letter using the Sample Letter Template; mail to all property owners within 200 feet and to agencies (Sheriff, fire, substation).
  • Mailing list for the notices.

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Step 5: Apply via PermitSLO

  • Submit the zoning clearance application and upload all required documents on PermitSLO.
  • After staff review, you will receive an invoice. Pay it online to begin the formal review timeline.

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Step 6: Approval, TOT/TMD Registration, and License Issuance

  • Once the Planning & Building Zoning Clearance is approved, the Tax Collector will mail the Business License and complete your Transient Occupancy Tax (TOT) and Tourism Marketing District (TMD) registration.
  • Note: The County’s vacation rental submittal guides indicate you must collect and remit TOT (9%) and TMD (1.5%). Verify your TOT/TMD rate and process with the Tax Collector at the time of issuance.

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3) Required Documents, Permits, Licenses, and Guidelines

Permits & Licenses

  • Vacation Rental Zoning Clearance (Coastal Zone) issued by SLO County Planning & Building.
  • County Business License issued by the Auditor-Controller-Treasurer-Tax Collector.
  • Transient Occupancy Tax (TOT) Registration and Tourism Marketing District (TMD) assessment registration through the Tax Collector.

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Required Documentation Checklist

  • Grant Deed (title evidence).
  • If applicant is not the owner: Land Use Consent of Property Owner Form (owner authorization).
  • Site Plan (show structures and parking locations; hand-drawn is acceptable; no scale required).
  • Floor Plan (show all rooms and floors; hand-drawn is acceptable; no scale required).
  • Will Serve Letter from the community water and sewer supplier confirming capacity for vacation rental use.
  • Completed Coastal Vacation Rental Certification Form.
  • Notification letter using the County Sample Letter Template; mail to:
    • All property owners within a 200-foot radius of the proposed vacation rental.
    • County Sheriff’s Office (main office).
    • Local fire agency.
    • Local sheriff substation.
  • Mailing list used for notification (generated from the County GIS Land Use Viewer).

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4) Specific Regulations (Cayucos, SLO County Coastal Zone, and State)

Cayucos Location Standards (Section 23.08.165.c(2))

  • Within Residential Single-Family and Residential Suburban land use categories:
    • No residential vacation rental within:
      • 100 linear feet of a parcel on the same side of the street as the vacation rental.
      • 100 linear feet of the parcel on the opposite side of the street.
      • 50-foot radius around the vacation rental.
    • Distances are measured from the closest property lines.
    • These standards also apply to other visitor-serving accommodations (e.g., bed and breakfast, homestay).
  • Within Residential Multi-Family land use category:
    • No approval if within 50 feet of another parcel with a residential vacation rental or other visitor-serving accommodation.
    • For condominiums, the “property line” is the wall of the individual unit.
  • Modification: The standards may be modified through a Minor Use Permit approval when a Development Plan is not otherwise required.

Cayucos performance standards, tenant limits, and compliance:

  • Tenancy Limit: A residence shall not exceed four individual tenancies per calendar month.
  • Occupancy: Maximum occupants shall not exceed two persons per bedroom plus two additional persons, and must also be consistent with the on-site parking capacity specified in the Zoning Clearance.
  • Appearance/Visibility: No change to the residential exterior character via colors, materials, lighting, or accessory structures that are not architecturally consistent with the residence; no emission of noise, glare, flashing lights, vibrations, or odors not commonly experienced in residential areas.
  • Signs: Availability of the rental shall not be advertised on-site.
  • Traffic: Vehicles and traffic generated must not exceed normal residential traffic volume (up to 10 trips per day).
  • On-Site Parking: All guest parking must be entirely on-site (garage, driveway, or off the roadway). No on-street parking by guests at any time.
  • Noise: Must comply with County noise standards. Loud/unreasonable noise is measured based on audibility at 50 feet from property lines and may be documented by County Sheriff or Code Enforcement.
  • Local Contact/Property Management: A local contact person must be available 24/7. The name, address, and telephone number(s) of the local contact must be:
    • Posted prominently in the rental unit.
    • Provided to Planning & Building, Sheriff (main and local substation), and local fire agency.
    • Provided to neighboring property owners within 200 feet.
    • Incorporated into rental contracts as an addendum; changes must be promptly reported to the agencies and neighbors.
  • Transient Occupancy Tax: Must comply with Chapter 3.08 of the County Code (TOT), include the TOT certificate number in all advertising, and remit TOT and TMD as required.
  • Complaints & Enforcement: Complaints should first go to the local contact. If unavailable or unresponsive, contact Sheriff Dispatch. If the contact cannot be reached due to unavailability or outdated information, County Code Enforcement may be notified. Violations can lead to revocation of Zoning Clearance and Business License, with specific triggers listed in the ordinance.
  • Effect on Existing Rentals: If a business license expires, a new Zoning Clearance and Business License are required and must meet all current standards.

Prohibited Uses and Areas:

  • Vacation rentals are not allowed in an Accessory Dwelling Unit (ADU), Guesthouse, or Agricultural Worker Housing (farm support housing).
  • Williamson Act lands may require additional review and standards.

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State-Level Context (California)

  • Transient Occupancy Tax (TOT): California allows counties to levy TOT on short-term lodging; SLO County’s TOT rate is 9% plus a Tourism Marketing District assessment (TMD) of 1.5% (10.5% combined). Confirm rates and collection procedures with the Tax Collector.
  • Coastal Act: As a Coastal Zone property, compliance with the California Coastal Act may be relevant. Consult County staff during application if your property has coastal access or resource considerations.
  • ADU Restrictions: State law restricts STR use in certain ADUs; County rules here specifically prohibit vacation rentals in ADUs, guesthouses, and agricultural worker housing.

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Cayucos

Market Saturation Score

036912
Low Saturation
1/ 12
months with declining YoY revenue
0–1 declining months: minimal saturation pressure — revenue trends are stable.
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Photos of Cayucos

Overview of Cayucos

Cayucos, California, is a small coastal town located in San Luis Obispo County along California's Central Coast. With a population of around 2,500 residents, it offers a quaint, small-town atmosphere while still providing access to a range of amenities and attractions. The town is situated approximately 23 miles northwest of San Luis Obispo, the closest major city, making it an easily accessible destination for visitors seeking a more relaxed, beachfront experience.

Known for its historic charm and scenic beauty, Cayucos boasts several specific landmarks that highlight its appeal for short-term rentals. One of the town's central attractions is the Cayucos Pier, originally built in 1872, which offers stunning ocean views and is a popular spot for fishing and leisurely walks. Another key landmark is the Estero Bluffs State Park, located just north of the town, providing hiking trails and opportunities to observe diverse wildlife.

Additionally, the town is known for its unique Downtown area, featuring a variety of boutiques, antique shops, and restaurants. The Cayucos State Beach is another significant attraction, ideal for surfing, swimming, and sunbathing, making it a magnet for visitors looking to enjoy beach activities.

Overall, Cayucos offers a tranquil and picturesque setting that is perfect for short-term rentals, combining natural beauty, historic landmarks, and accessibility to outdoor activities.

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