🎯 STRisker: Bulletin - Monterey County, CA
Monterey County Eyes STR Ban as Lawsuit Raises Financial Alarm Bells
Legal Risk Drives Monterey County Toward STR Ban in Residential Areas
On January 6, county supervisors voted 3–2 to pursue a new ordinance that would ban STRs in unincorporated residential areas, while allowing them in commercial zones and agricultural operations. The move is closely tied to an ongoing lawsuit that county leaders fear could carry a steep price tag.
The lawsuit, filed by the Monterey County Vacation Rental Alliance, challenges the STR ordinance adopted in 2024. In response, the county announced in December that it was suspending enforcement of two provisions under dispute. One restricts homestays to resident owners who live in the property, and the other limits commercial STR activity to natural persons rather than corporations.
Melanie Schlotterbeck
MCVRA argues those rules unfairly single out non-resident owners and corporate entities, violating constitutional protections. As the case moves forward, county officials are increasingly focused on minimizing risk rather than defending every piece of the existing ordinance.
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While several supervisors expressed frustration that more than a decade of regulatory work could be undone by litigation, they ultimately supported the motion as a necessary safeguard. The new approach aims to redraw the boundaries of STR activity in a way that is simpler to defend legally, even if it is more restrictive.
Opposition came from Supervisors Luis Alejo and Chris Lopez. Alejo argued that the county could protect itself by only dropping enforcement of the two contested provisions, rather than imposing a broader residential ban. He warned against making sweeping policy changes before the court weighs in.
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For now, the lawsuit continues, with the next hearing scheduled for February 20. In the meantime, Monterey County’s vote sends a strong signal to short-term rental operators: zoning, not just permits, may soon determine where STRs can exist. As legal challenges increasingly shape local policy, the future of short-term rentals in the county remains uncertain and closely tied to the courtroom.
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