County staff to return in 2025 with data and possible amendments to vacation rental rules after coastal certification

Monterey County planning staff on Dec. 4 reviewed implementation of the county’s recently adopted vacation‑rental regulations and mapping tools, and the Board of Supervisors directed staff to return in the third quarter of 2025 with implementation data and potential amendments.

Taylor Price, planning staff, and Melanie Bridal, the county’s Chief of Planning, led a study session summarizing the regulation that defines vacation rentals as use of all or a portion of a residential property for 30 calendar days or less, and that establishes three permit categories: homestays, limited vacation rentals and commercial vacation rentals. Price noted the inland rules went into effect Oct. 14, 2024, while the coastal ordinance remains pending certification by the California Coastal Commission.

“Holiday rental regulations became effective in the inland area of unincorporated Monterey County on October 14, 2024,” Price said. He reviewed a web‑based mapping application and a step‑by‑step applicant guide posted on the county implementation page and told supervisors the county had begun processing applications. As of Dec. 2 staff reported 18 applications had been submitted for different permit types: four homestay applications, two limited vacation rental applications and 12 commercial vacation rental applications; one homestay had been approved in Carmel Valley.

Staff outlined possible future amendments the board had discussed during ordinance adoption, including further limiting commercial vacation rentals in additional residential zones (petitioners singled out Del Monte Forest), subdividing the commercial cap in the Greater Monterey Peninsula area to avoid concentration in parts of Pebble Beach, additional concentration/density limits, and whether long‑term renters should be permitted to operate homestays. Staff proposed returning in Q3 2025 with implementation data and to set renewal fees earlier in 2025.

Public comment during the study session reflected the range of positions. Comments from Pebble Beach Company requested tighter limits for Del Monte Forest and urged the board not to allow long‑term renters to operate homestays. Owner‑operators and the Monterey County Vacation Rental Alliance commented that bans on commercial rentals in residential zones would push short‑term rentals into other inland neighborhoods and hurt local operators and transient occupancy tax (TOT) revenue. Several community members urged stricter limits to preserve long‑term housing in North County and coastal residential neighborhoods. Several speakers asked that any data returned to the board include enforcement experience to date.

After additional board discussion the motion to have staff return in Q3 2025 with data on permits, enforcement, and potential revenue impacts and to provide options for targeted amendments passed 3‑1. The board did not adopt any ordinance changes at the Dec. 4 meeting; staff emphasized that changes affecting the certified coastal ordinance would be subject to the California Coastal Commission’s review and approval once the coastal certification process is complete.

Staff also noted one of the near‑term implementation items: a spring/summer 2025 item to set renewal fees and to consider reduced fees for limited vacation rentals. The mapping tool and application guide remain available on the county’s vacation‑rental implementation web page.