🎯 STRisker: Bulletin - Monterey County, CA
Monterey County Rolls Out Coastal Vacation Rental Rules
Monterey County Rolls Out Coastal Vacation Rental Rules
Vacation rentals along Monterey County’s coastline are entering a new era of regulation. On September 23, 2025, the Board of Supervisors approved a comprehensive ordinance aimed at managing short-term rentals in unincorporated coastal areas, including Carmel, Big Sur, and other high-demand zones.
These regulations follow inland vacation rental rules adopted in August 2024, which became effective in October 2024. The phase-out period for unpermitted inland rentals ended in April 2025, and now coastal rules are set to roll out October 24, 2025, with all existing operations required to comply by December 24, 2025.
đź“– The ordinance defines three types of vacation rentals:
- Homestays: Owner-occupied rentals with at least one bedroom for personal use. Limited to one rental contract per seven-day period but no caps on the number of properties.
- Limited Vacation Rentals: Non-owner-occupied properties, allowed up to three times a year.
- Commercial Vacation Rentals: Higher-frequency rentals that require discretionary approval and are subject to area-based caps.
STRisker Government Office Dashboard
Trying to keep up with the main players in the STR game? Know your councilmembers, commissioners, committee chairs, and key staff that are part of the process.
Board discussions highlighted the importance of aligning the rules with local land use policies and the unique character of coastal neighborhoods. Supervisors praised the extensive community engagement, noting that input from residents helped shape the final regulations. Staff also reported a slight increase in permitted rentals and confirmed that transient occupancy tax revenues remain stable, thanks to ongoing coordination with the Treasurer Tax Collector.
Looking forward, the Board plans a review in February 2026 to evaluate compliance, assess the regulations’ effectiveness, and make adjustments if necessary. The goal is to ensure the rules continue to balance tourism benefits with neighborhood preservation and environmental protection.
For coastal property owners, understanding the distinctions between homestays, limited, and commercial rentals is key to operating legally. For residents, the ordinance provides clarity and reassurance that rental activity will be monitored and controlled, preventing potential overuse or community disruption.
Monterey County’s approach reflects a commitment to sustainable tourism, neighborhood integrity, and responsible property use. With the coastal rules taking effect October 24, both homeowners and residents can expect greater predictability and a clear framework for managing vacation rentals.
Stay Updated with STRisker
STRisker offers tools and features to keep you updated with the Short-Term Rental movement across the U.S.
👍 We’d love your feedback.
We're always looking for ways to improve Bulletins.
Was this one useful to you? Other topics you'd like to see get covered?
✉️ Just reply directly to this email. We read and respond to every message!
-Will McClure
🙋 P.S.
Know someone else who should be reading this Bulletin? Feel free to forward this along. We want to make sure operators and stakeholders are aware of regulatory changes in their area.