Overview: Are Short-Term Rentals Allowed in Grover Beach, CA?

Yes, short-term rentals are explicitly allowed in Grover Beach, CA. The City of Grover Beach permits short-term rental accommodations pursuant to its adopted Short-Term Rental Ordinance, which offers visitors a unique opportunity to experience the coastal community. However, there are significant restrictions and caps on non-owner occupied STRs.

Key Point: As of the provided information, there are NO Non-Owner Occupied STR permits currently available. Property owners interested in non-owner occupied permits must join a waitlist. Owner-occupied STR permits are available.

How to Start a Short-Term Rental Business in Grover Beach

Step 1: Determine Your STR Type

• Owner-Occupied STR: You must be present during guest stays (between 10 PM to 7 AM) and utilize the property as your "primary residence" on your Tax Assessment bill.
• Non-Owner Occupied STR: You will not be present during guest stays (typically second homes). Currently not available - must join waitlist.

Step 2: Verify Property Eligibility

• Must be a "legal dwelling unit" with building permits for habitable residential area
• Allowed in: single-family dwellings, mobile homes, multi-family dwellings, and mixed-use project dwellings
• Prohibited in: live-work units, caretaker units, most accessory dwelling units, affordable housing units, outdoor camping tents, vehicles (RVs, boats, etc.)

Step 3: Submit Online Application

• Applications must be submitted online only - no applications accepted at City Hall or via U.S. Mail
• Process is first-come, first-served
• Review Administrative Rules before applying

Step 4: Obtain Required Business License

• A separate Business Tax Certificate is required in addition to the STR permit

Required Documents, Permits, Licenses, and Guidelines

Required Permits and Licenses:

1. Short-Term Rental Permit
   • New Owner-Occupied: $275.00
   • New Non-Owner Occupied: $330.00 (currently unavailable)
   • Renewal: $218.00 (both types)
2. Business Tax Certificate: $64.00 annually

Required Documentation:

• STR Application (online only)
• Self-certification form (for renewals)
• Floor plans and site plans confirming legal construction
• Property ownership verification
• Compliance with all building permits and zoning requirements

Important Guidelines:

• Permits expire annually on July 31 - no pro-rating of fees
• Permits are non-transferable upon property sale
• Must comply with Transient Occupancy Tax (TOT) and Tourism Marketing District (TMD) requirements

Specific Regulations for Short-Term Rentals

City-Level Regulations (Grover Beach Municipal Code Article IX, Chapter 4):

Geographic Caps:

• Coastal Zone: Maximum 40 STR permits (properties west of North 4th Street and South 5th Street)
• Non-Coastal Zone: Maximum 60 STR permits (properties east of North 4th Street and South 5th Street)
• Waitlist exists for non-coastal zone permits

Recent Ordinance Amendments (2024):

• Accessory Dwelling Units (ADUs) must be rented for at least 30 days (STRs are less than 30 days)
• Limits established on STR waitlist properties to prevent abuse
• Response time requirement: 45 minutes for responsible party to be on-site following complaints (up from 30 minutes)

Operational Requirements:

• Responsible party must be available and respond to complaints within 45 minutes
• Must adhere to "Good Neighbor" guidelines
• Monthly TOT/TMD tax reporting required (even for zero stays)
• No STRs allowed in certain housing types (see property eligibility section)

State-Level Regulations (California):

ADU Restrictions: State law requires ADUs to be rented for at least 30 days, which impacts STR regulations for ADU properties.

Tax Collection: All short-term rentals must comply with state and local tax requirements.

County-Level Regulations:

• San Luis Obispo County Assessor's Office maintains residential building records for properties
• CC&Rs and HOA regulations must be obtained from San Luis Obispo County Recorder's Office

Contact Information for Local Authority

Primary Contact:

• Community Development Department
  • Phone: (805) 473-4520
  • Email: str@groverbeach.org
  • Address: 154 S 8th Street, Grover Beach, CA 93433
  • Hours: Monday-Friday, 8:00 AM to 5:00 PM

Code Compliance:

• Phone: (805) 440-1336

General City Information:

• Phone: (805) 473-4550

Online Resources:

• STR Application: str.deckard.com/ca-san_luis_obispo-city_of_grover_beach
• Waitlist Registration: www.grover.org/616/Join-the-Waitlist

Source Links

City Official Pages:

• Main STR Page: www.grover.org/345/Short-Term-Rentals
• STR Application: www.grover.org/506/Apply-for-STR
• STR FAQ: www.grover.org/346/Frequently-Asked-Questions
• STR Application Guide: www.grover.org/507/STR-Application-Guide

Legal Documents:

• STR Ordinance: www.grover.org/DocumentCenter/View/12866/Art-IX-Chapter-4---REVISED-Ord-22-06
• Administrative Rules: www.grover.org/DocumentCenter/View/12232
• Good Neighbor Brochure: www.grover.org/DocumentCenter/View/8892
• STR Application Submittal Checklist: www.grover.org/DocumentCenter/View/14840/STR-Application-Submittal-Checklist

News Coverage:

• KSBY Article on Ordinance Amendments: www.ksby.com/grover-beach/grover-beach-makes-amendments-to-their-short-term-rental-ordinance

Additional Resources:

• Tax Payment (TOT/TMD): www.grover.org/543/Tax-Payment-TOTTMD
• Report a Complaint: www.grover.org/413/Report-a-Complaint
• Coastal Zone Map: www.google.com/maps/d/edit?mid=1SIhbhqMyPvoDZdcp4twLkk7CEXcMfXTj&usp=sharing

Note: This guide reflects regulations as of the provided information. STR regulations can change frequently, so investors should verify current requirements with the City of Grover Beach Community Development Department before making investment decisions.