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How to Permit an Airbnb in Cayucos

  • Writer: Tiana
    Tiana
  • Aug 4, 2024
  • 5 min read


If you’re dreaming of turning your Cayucos beach house into a short-term rental or Airbnb, you're in the right spot. Cayucos, with its charming pier and laid-back coastal vibes, is a fantastic place for vacationers, and renting your home out when you aren't there is a great way to make some extra income on your investment. To keep things running smoothly and legally, you’ll need to navigate a few local regulations. Here's an outline of everything you need to know to make sure your vacation rental hits ground running (legally)

What’s a Short-Term Rental in Cayucos?

In Cayucos, short-term rentals are places where folks stay for less than 30 days.

Getting the Green Light

Your first question may be, "Is my property eligible to be a vacation rental?" To start, ADU's (accessory dwelling units) and Guest Houses are not eligible to be Airbnbs or short term rentals.


Unlike Arroyo Grande, Morro Bay, Los Osos, there's no numerical limit to vacation homes in Cayucos. However, there are a lot of density-related rules that may make your home in-eligible.


Location Standards for Your Rental

Cayucos has some specific rules about where vacation rentals can be located:


  • Distance Requirements: If your property is zoned as Residential Single Family or Residential Suburban, no residential vacation rental shall be located within: (1) 100 linear feet of a parcel and on the same side of the street as the vacation rental; (2) 100 linear feet of the parcel on the opposite side of the street from the vacation rental; and (3) 50 foot radius around the vacation rental.

  • Residential Multi-Family Properties: If your home is zoned as a Residential Multi-Family parcel, no home shall be approved for a residential vacation rental if it is within 50 feet of another parcel with a residential vacation rental and/or other visitor-serving accommodation. Distances are measured from the closest property line of the property containing the vacation rental and/or other visitor-serving accommodation to the closest property line of the proposed residential vacation rental unit. In the case of condominium units, the property line is established as the wall of the individual unit.


Permits You’ll Need

Properties in Cayucos are in the "SLO Coastal Zone," so you'll have to ensure your property complies with and is permitted within the Coastal Zone. To legally rent out your Cayucos property, there are a few permits you’ll need to snag:


  • Zoning Clearance: This confirms that your property fits the zoning rules for vacation rentals in Cayucos.

  • Business License: This is a must-have to run your rental business legally. Since Cayucos is an unincorporated, you'll obtain licensing through San Luis Obispo county

  • Transient Occupancy Tax (TOT) Certificate: If your property is used as a vacation rental and falls under the Coastal Zone Land Use Ordinance, you’ll need this certificate.


How to Get Started

Contact the Permit Center in San Luis Obispo: Start by reaching out to the Permit Center at the Department of Planning and Building. They’ll walk you through the process and give you the forms you need. They’ll also let you know if your property qualifies for a Zoning Clearance or if you need a Minor Use Permit.

Apply for Zoning Clearance and Business License: If a Zoning Clearance is on the table, you’ll also need to apply for a county business license. Send your application to the Tax Collector’s Office. Once your business license is approved, the Planning and Building Department will issue your Zoning Clearance, and then you’ll get your business license after paying the fee.


What Documents You’ll Need for Zoning Clearance

When you apply for Zoning Clearance, be ready to provide:

  • Will Serve Letter: This shows that local water and sewer providers know about your rental and confirm they have enough capacity.

  • Site Plan: A map of your property showing parking spaces and bedroom count.

  • Local Property Management: Proof of local management, like a contract, or if you live nearby, evidence that you’ll be the local contact. This person needs to be available 24/7 to handle any tenant or neighborhood issues.

  • Proof of Notification: Names, addresses, and phone numbers of the local contact should be given to the Department of Planning and Building, the County Sheriff’s Office, the local Fire Agency, and the Sheriff Substation. Also, inform property owners within 200 feet of your rental.


Keeping It All in Check: Operational Standards

Here’s what you need to know about running your vacation rental:

  1. Tenancy and Occupancy Limits: You can have up to four individual tenancies per month. The rental can’t be used for anything other than vacation or full-time occupancy. Occupancy is capped at two people per bedroom plus two extra.

  2. Property Appearance: Keep the exterior looking like a home, not a hotel. No major changes that alter the look of the property, and no excessive noise, glare, or disruptions.

  3. Signage: You can’t put up on-site advertising to keep the neighborhood from looking commercial.

  4. Traffic and Parking: Make sure parking is available on-site, either in a garage or driveway—no street parking. Traffic should be similar to a typical residential home, with a maximum of 10 trips per day.

  5. Noise Control: Noise should be at levels typical for residential areas. Ensure your guests don’t cause unreasonable disturbances. Noise heard from 50 feet away from the property line is considered too much.

  6. Local Contact Person: A local manager or the owner (if living locally) must be available 24/7. This contact info needs to be posted inside the rental unit and shared with local agencies and neighbors.

  7. Transient Occupancy Tax (TOT): Follow Chapter 3.08 of the County Code for the TOT and include your TOT Certificate number in all rental ads.

  8. Handling Complaints and Violations: Start by addressing complaints with the local contact person. If unresolved, you can escalate to the County Sheriff’s Department or Code Enforcement. Violations can lead to fines or even losing your Zoning Clearance and Business License. Common issues include outdated contact info, exceeding limits, and not following noise or parking rules.

  9. Appeals: If your application for Zoning Clearance or a Minor Use Permit is denied, you can appeal. Appeals are reviewed by a Hearing Officer based on local procedures.

Running a short-term rental in Cayucos means following a detailed set of rules designed to keep the neighborhood's charm while hosting guests. From securing permits to sticking to operational guidelines, understanding these regulations is key for a successful rental. For more help, contact the SLO County Planning & Building Department at (805) 781-5600 or check their website for additional resources.


Helpful Links


Feel free to reach out if you need any more tips or have questions about the process. And, of course--if you're looking for someone to manage and do everything for you, I'd be thrilled to help! HERE WE ARE vacation home management is HERE FOR YOU 😉 🌊🏡


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