Are short-term rentals allowed in Monterey?

**No**, short-term rentals are strictly prohibited in all residential zones within the City of Monterey. To legally rent your property, stays must be for a minimum of 30 consecutive days. The City actively enforces this ban, so be sure to comply. Fines can reach $1,000 per day.

What is the TOT tax rate in Monterey, CA?

**10% TOT** is the current transient occupancy tax rate in Monterey. If you are operating a licensed hotel, motel, or approved B&B in a commercial zone, you are responsible for collecting this tax from guests. Ensure you remit these taxes to the city in accordance with local regulations, as penalties can apply.

What happens if I operate an illegal STR in Monterey?

**You will be fined.** Operating a short-term rental in a residential zone in Monterey can result in significant penalties. The City actively enforces its ban on stays less than 30 days, and fines can reach up to $1,000 per day for each violation. Always verify zoning regulations before operating.

Can renters host on Airbnb in Monterey?

**No**, tenants are not permitted to operate short-term rentals in Monterey. Since STRs are prohibited in residential areas, this rule applies to both property owners and renters. Any rentals must be for a minimum of 30 consecutive days to comply with city regulations and avoid facing substantial fines for violating the ban.

Do I need a permit for short-term rentals in Monterey?

**No**, there is currently no local STR-specific license required in Monterey, though standard state and county regulations may still apply. However, short-term rentals (less than 30 days) are PROHIBITED in all residential zones. Only licensed hotels and B&Bs in commercial zones are permitted to offer lodging for shorter stays.

Monterey, CA Short-Term Rental Laws | Learn STR by GoStudioM

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Monterey, CA Short-Term Rental Laws | Learn STR by GoStudioM

Regulation details

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Eligibility5 rules

Monterey: ADUs: Accessory Dwelling Units are strictly prohibited from being used as short-term rentals even if the main house is long-term rented.
Monterey does NOT allow tenants to host STRs. Only property owners may operate short-term rentals.
Monterey: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.

Requirements11 rules

Common mistakes and gotchas for STR hosts in Monterey: 1. PROHIBITION: STRs are completely banned in residential zones; there is no permit to apply for. 2. 30-DAY MINIMUM: Any rental for a period of less than 30 consecutive days is considered an illegal short-term rental. 3. ACTIVE ENFORCEMENT: The City uses monitoring software to identify and cite illegal listings on platforms like Airbnb and VRBO. 4. CITY VS COUNTY: Rules differ significantly in Unincorporated Monterey County; ensure your property is within City Limits before assuming these rules apply. 5. ADUs: Accessory Dwelling Units are strictly prohibited from being used as short-term rentals even if the main house is long-term rented. 6. HOTEL TAX: Even if operating legally (30+ days), different tax rules may apply if the stay becomes transient, though typically stays over 30 days are exempt from TOT.

Application process4 rules

How to set up an STR in Monterey: To host an Airbnb in the City of Monterey, you must be renting your property for 30 days or longer. Short-term rentals are currently illegal in all residential neighborhoods. If you are caught renting for less than 30 days, you can be fined $1,000 per day. Only licensed hotels, motels, and specific B&Bs in commercial zones are allowed to provide short-term lodging.

Taxes1 rule

Monterey charges a Transient Occupancy Tax of 0.1%. This applies to stays under 30 days. Note: Since STRs are prohibited in residential zones, platforms generally do not have tax collection agreements for residential STRs.

Limits & restrictions3 rules

Monterey requires a minimum stay of 30 nights.
Monterey: CITY VS COUNTY: Rules differ significantly in Unincorporated Monterey County; ensure your property is within City Limits before assuming these rules apply.
Monterey enforces quiet hours: 10:00 PM - 7:00 AM (Standard Noise Ordinance).

Penalties1 rule

Monterey enforces the following penalties for STR violations: First offense: Citation and fines up to $1,000 per day. Second offense: Increased administrative penalties. Third offense: Legal action. Daily fine: $1,000. Maximum fine: Cumulative daily fines.

Exemptions3 rules

Monterey: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
Monterey: HOTEL TAX: Even if operating legally (30+ days), different tax rules may apply if the stay becomes transient, though typically stays over 30 days are exempt from TOT.

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Summary

Restriction level

Why this classification

In plain English

At a glance

6 things hosts often miss

Regulation details

How to get permitted

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Frequently asked questions

1Are short-term rentals allowed in Monterey?

2What is the TOT tax rate in Monterey, CA?

3What happens if I operate an illegal STR in Monterey?

4Can renters host on Airbnb in Monterey?

5Do I need a permit for short-term rentals in Monterey?

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