Short Term Rentals

The City Council adopted rules and regulations regarding the permitting of Vacation Rentals and Homestays. This page is intended to be a helpful location for members of the public to access the City’s most recent regulations regarding Short Term Rentals. If you have any questions about Short Term Rentals, please contact the Community Development Department at (805) 473-5420.

A vacation rental is defined as a “structure being rented for less than thirty (30) days without concurrently being occupied by the owner/operator where the short-term lodging is provided for compensation, whereas a homestay is defined as an owner-occupied dwelling unit where a maximum of two short-term lodging rooms are provided for compensation.”

Application Process

Both homestays and vacation rentals are permitted with the approval of a Minor Use Permit – Plot Plan Review. Application for Short Term Rentals can be submitted through the City’s Permit Portal. To apply, please select “Apply for a Permit” underneath “Planning Permits.” You will then select “Plot Plan Review” from the list of available permit types. The application fee for Plot Plan Reviews can be found on the City’s Master Fee Schedule.

 

Vacation Rentals 

At the time of submittal, the following items are required to be submitted for the application to be deemed complete:

  1. Payment of the required fee
  2. A site plan of the property;
  3. A floor plan of the structure(s); 
  4. An emergency contact person residing within a 15-minute drive of the rental property; and
  5. Mailing labels with property owner mailing addresses for all properties within a 300’ radius of the rental property.

Operators of Vacation Rentals are required to comply with the following Performance Standards:

Performance Standards and Conditions for Vacation Rentals.

1. Operators of vacation rentals are required to obtain a minor use permit-plot plan review (Section 16.16.080) and a business license.

2. Any proposed vacation rental shall be compatible with the neighborhood in which it is located in terms of landscaping, scale and architectural character. The use shall be harmonious and compatible with the existing uses with the neighborhood.

3. All Building Code and Fire Code requirements for the level of occupancy of the vacation rental shall be met.

4. All environmental health regulations shall be met.

5. The operator of the vacation rental shall, at all times while the property is being used as a vacation rental, maintain a contact person/entity within a fifteen-minute drive of the property. The contact person or entity must be available via telephone twenty-four (24) hours a day, seven days a week, to respond to complaints regarding the use of the vacation rental. The contact person or entity shall respond, either in person or by return telephone call, with a proposed resolution to the complaint within three hours between seven a.m. and nine p.m., and within thirty (30) minutes between nine p.m. and seven a.m.

6. The operator of the vacation rental shall annually, at the time of renewal of the business license, notify the community development department of the name, address and telephone number of the contact person required in subsection (C)(6).

7. A written notice shall be conspicuously posted inside each vacation rental unit setting forth the name, address and telephone number of the contact person required in subsection (C)(6). The notice shall also set forth the address of the vacation rental, the maximum number of occupants permitted to stay overnight in the unit, the maximum number of vehicles allowed to be parked on-site, and the day(s) established for garbage collection. The notice shall also provide the non-emergency number of the Arroyo Grande Police Department.

8. On-site advertising of the vacation rental is prohibited.

9. The number of overnight occupants shall be limited to two persons per bedroom and two additional persons. A bedroom shall meet the minimum size requirements as defined in the Building Code.

10. All refuse shall be stored in appropriate containers and placed at the curb for collection every week.

11. The operator of the vacation rental shall pay transient occupancy tax as required by Arroyo Grande Municipal Code Section 3.24.030.

12. Establishment of a vacation rental within three hundred (300) feet of an existing vacation rental on the same street shall not be permitted.

13. Violations. Violation of these requirements shall constitute grounds for revocation of the minor use permit pursuant to Section 16.16.220.

 

Homestays

At the time of submittal, the following items are required to be submitted for the application to be deemed complete:

  1. Payment of the required fee
  2. A site plan of the property; and
  3. A floor plan of the structure(s); 

Operators of Homestays are required to comply with the following Performance Standards:

Performance Standards and Conditions for Homestays.

1. Operators of homestays are required to obtain a minor use permit-plot plan review (Section 16.16.080) and a business license.

2. Any proposed homestay shall be compatible with the neighborhood in which it is located in terms of landscaping, scale and architectural character. The use shall be harmonious and compatible with the existing uses with the neighborhood.

3. All Building Code and Fire Code requirements for the level of occupancy of the homestay shall be met.

4. All environmental health regulations shall be met.

5. The operator shall reside on the premises.

6. Individual guest stays shall be limited to fourteen (14) days, with a seven-day period between stays.

7. On-site advertising of the homestay is prohibited.

8. A bedroom shall meet the minimum size requirements as defined in the Building Code.

9. The operator of the homestay shall pay transient occupancy tax as required by Arroyo Grande Municipal Code Section 3.24.030.

10. Establishment of a homestay within three hundred (300) feet of an existing homestay on the same street shall not be permitted.

11. Violations. Violation of these requirements shall constitute grounds for revocation of the minor use permit pursuant to Section 16.16.220.


Permit Approval

The Community Development Director is authorized to approve Minor Use Permit applications for both vacation rentals and homestays. Approvals may be granted when an application demonstrates compliance with the performance standards and special conditions applicable to short term rentals. Upon the approval of a permit for vacation rentals, Community Development staff will mail postcards to property owners within 300 feet of the subject property notifying them of the approval. The postcard includes basic information about the project and contact information for the emergency contact identified by the applicant to address disturbances at the property when it is being rented. Information about the appeal process is also included.


Appeal Process

The appeal period for Short Term Rentals is based upon the date of approval of the permit. From the date of approval, an appeal must be filed within ten (10) calendar days of the approval date or by 5:00 pm on the day following the Planning Commission meeting on which the approval is reported on the Planning Commission agenda, whichever is longer.

The form to appeal a decision made by the Community Development Director can be found here. This form lists the applicable appeal fee as well as the requirement to provide mailing labels at the time the appeal is submitted.