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

**Yes**, Morro Bay requires a Short-Term Vacation Rental (STVR) Permit for rentals under 30 days. You need to obtain this permit before operating. The permit costs $500, and you also need a business license and a fire inspection to comply with local regulations. (51 words)

What is the TOT tax rate in Morro Bay?

**11% TOT** plus a 3% TBID assessment is required for short-term rentals in Morro Bay. Hosts are responsible for collecting this from guests and remitting it to the city. Be sure to factor this tax rate into your pricing to ensure compliance. (45 words)

Are short-term rentals allowed in Morro Bay?

**Yes**, short-term rentals are allowed in Morro Bay, but they are subject to specific regulations. These regulations include obtaining a Short-Term Vacation Rental (STVR) permit, adhering to occupancy limits, and meeting parking requirements. Make sure to comply with all rules. (45 words)

How much does an STR permit cost in Morro Bay?

**The STR permit costs $500** in Morro Bay. This is a one-time fee to obtain the Short-Term Vacation Rental (STVR) Permit. In addition to the permit fee, you must also obtain a business license and pass a fire inspection to operate legally. (47 words)

Can renters host on Airbnb in Morro Bay?

**No**, tenants cannot host on Airbnb in Morro Bay. The regulations require the property owner to apply for and obtain the Short-Term Vacation Rental (STVR) permit. Renters are not eligible to apply for this permit, so subletting for short-term stays is prohibited. (48 words)

Morro Bay, CA Short-Term Rental Laws

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Regulation details

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Eligibility12 rules

Morro Bay: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
Morro Bay does NOT require the property to be a primary residence. Investment properties are allowed.
Morro Bay does NOT allow tenants to host STRs. Only property owners may operate short-term rentals.
Morro Bay, CA: You can have a co-host or property manager help manage your listing.

Requirements22 rules

Morro Bay requires liability insurance for STR hosts. Minimum coverage: 500,000. Insurance must specifically cover short-term rentals.
Morro Bay, CA: You must display your permit/registration number on your listing. Platforms may remove non-compliant listings.
Morro Bay, CA: Hosts must report their rental activity monthly to the city, even if platforms collect taxes.

Application process11 rules

Morro Bay STR permit - Step 1: Zoning and Density Check. Verify your property is in a permitted zone and that the neighborhood cap (if applicable) has not been reached. Time: 1 week.

Fees & costs1 rule

Morro Bay charges a registration fee of $500 (annual). Extended/additional fee: $300 (Annual renewal fee is typically lower than the initial application fee; currently $300 per fee schedule.).

Taxes1 rule

Morro Bay charges a Transient Occupancy Tax of 11%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO remit the 11% TOT but may not remit the 3% TBID assessment; hosts must verify.

Limits & restrictions8 rules

Morro Bay: One Permit Limit: Owners are generally limited to holding only one STVR permit within the city.
Morro Bay, CA occupancy calculation: 2 per bedroom plus 2 additional guests, not to exceed 10 total.. Count your bedrooms to determine your max guest limit.
Morro Bay limits STRs to a maximum of 10 guests. Formula: 2 per bedroom plus 2 additional guests, not to exceed 10 total.

Safety requirements1 rule

Morro Bay requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Visible address numbers, Egress windows in sleeping areas, One 2A:10BC rated fire extinguisher.

Penalties3 rules

Morro Bay: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
Morro Bay enforces the following penalties for STR violations: First offense: $100. Second offense: $200. Third offense: $500. Daily fine: Varies by violation. Maximum fine: Permit revocation. Permit may be revoked for violations.

Exemptions3 rules

Morro Bay: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
Morro Bay, CA: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
Morro Bay exempts the following from STR regulations: long-term rentals (30+ days).

Morro Bay

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Frequently asked questions

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Summary

Restriction level

Why this classification

In plain English

At a glance

7 things hosts often miss

Regulation details

Frequently asked questions

1Do I need a permit for short-term rentals in Morro Bay?

2What is the TOT tax rate in Morro Bay?

3Are short-term rentals allowed in Morro Bay?

4How much does an STR permit cost in Morro Bay?

5Can renters host on Airbnb in Morro Bay?

Disclaimer