FAQs • Pismo Beach • CivicEngage

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Short-Term Rentals / Homestays

1. What is a Short-Term Rental?: A Short-Term Rental (STR) is the rental of a detached single-family residence or accessory dwelling unit for less than 30 consecutive days where the primary residence is not being concurrently occupied by the owner (PBMC 17.113.020, 17.09.020). Existing duplexes or triplexes are not eligible to be used as Short-Term Rentals.

2. What is a Homestay Rental?: A Homestay Rental is an owner occupied, detached single-family residence where bedrooms are rented for compensation for less than thirty consecutive days (PBMC 17.113.020, 17.09.020).

3. Is there a difference between the application for a Short-Term Rental license and a Homestay license?: No. The application is the same. You will be required to select homestay or STR on the application to distinguish which you are applying for (PBMC 17.113.040, 17.09.040, 5.22.120).

4. What is the Good Neighbor Policy?: The City requires that all occupants of STRs adhere to the Good Neighbor Policy. The policy is intended to minimize the impacts on STRs on neighborhoods. An outline if the Good Neighbor Policy can be found in Section D. of the STR Application and Sections 17.113.070 and 17.09.070 of the PBMC.

5. How are 'days' counted when regulating STRs versus long-term rentals?: Days are counted in 24-hour periods. If advertising a long-term rental (<30 days), it must be advertised on a listing website (i.e. Airbnb, VRBO) for a minimum of 30 nights.

6. Can I rent my ADU as an STR?: No. However, legally permitted ADUs occupied by the property owner may be deemed to be the property owner's primary residence; where the primary residence is used as the STR. If the ADU is attached to the primary unit, you must live in the ADU and a homestay license is required (PBMC 17.117.080, 17.38.155).

7. Do I need to live in my STR once it is licensed?: Yes. The residence must be proven to be the property owner's primary residence. Documentation / evidence is required to demonstrate this is listed on the STR License Application (PBMC 17.113.060, 17.09.060, 5.22.100).

8. My property is in the correct zone, but I'm in a condominium or planned development, can I rent my home as an STR/Homestay?: Probably not. If the condominiums share a wall or are a part of a common lot, this is not considered 'detached' and only detached residences may be license as STR or Homestay.

9. I just bought a new house, when can I apply for an STR license?: You must own the residence for at least 6 months before you are eligible to apply for an STR license. You will be required to demonstrate the property is your primary residence. A list of documentation/evidence is listed on the STR License Application.

10. What if my house has an existing, attached ADU, am I eligible for an STR?: No, but you may be eligible for a homestay license. Please be advised, you must live in the ADU full-time in order to use the main residence as a homestay.

11. Who enforces the STR Ordinance?: The City is responsible for enforcement of the Short-Term Rental Ordinance (PBMC Chapter 17.113, Chapter 17.09, Chapter 5.22). A 3rd party contractor is used to help identify unlicensed STRs in operation in the City.

12. What if I know of an unlicensed STR/Homestay in my neighborhood?: To report an STR concern or violation, call the City's STR hotline (800) 866-4301. Please make sure you include the full address of the location you are calling about.

13. I am renting my home on a month-to-month basis, am I subject to the standards and provisions of this ordinance?: No, the City does not regulate long-term lease of property.

14. What are the fines if a residence is operating as an unlicensed STR?: Violations of the STR Ordinance may be punished as administrative violations where initial fines shall be, at a minimum, $750 and $1,000 for each subsequent violation. Each separate day or rental night in which a violation exists may be considered a separate violation. Soliciting the residence on a listing website (Airbnb, VRBO) is a considered a violation and any attempt to rent an unlicensed residence as a STR or homestay by advertising said property for short-term rental purposed is subject to the same administrative fines.

15. Do I need a Business License for my STR?: Yes. Please visit www.pismobeach.org/finance to complete a Business License application following submittal and approval of a STR Application through the Planning Division.

16. What can I expect at the STR / Homestay inspection?: The City will conduct the inspection to confirm the bedroom count, on-site parking, and applicable safety standards. If complaints are received about an STR or homestay, the City shall have the right to re-inspect the property (PBMC 17.113.070, 17.09.070).

17. What is the difference between a Vacation Rental and Short-Term Rental?: A Vacation Rental is a rental for 30 consecutive days or more permitted within C-1, RR,R-4,CD,CD-C, CD-M, and CD-V zones whereas Short-Term Rentals are rentals for less than 30 consecutive days permitted within R-1, R-2, R-3, RSL, RSM, PR, OS-1 and OS zones.