Morro Bay, CA short-term rental limits

What Morro Bay asks of you

• No new application for a full-home rental in a residential zone is accepted until active permits drop below 175.^[5]

• Applicants who are not eligible because of the density limitations go on a chronologically maintained waiting list.^[5]

• In the fee schedule in force since July 1, 2026, the Vacation Rental Monitoring and Administration Fee is $788. The schedule calls it the annual permit fee.^[6]

• The Vacation Rental Waitlist Application Fee is $50, marked new in that schedule.^[6]

• Only one full-home rental is permitted on a property with a detached single-unit dwelling.^[5]

• Multi-family developments in residential districts may not be used as short-term vacation rentals. Accessory dwelling units are excluded too.^[5]

• A home-sharing rental is a dwelling that is the host's primary residence. The host is on site throughout the guest's stay.^[5]

• A property management company may not submit the application. The property owner signs it under penalty of perjury.^[5]

• The application includes proof that the owner has insured the property as a short-term vacation rental. The code states no minimum coverage amount.^[5]

• The city's worksheet adds that insurance from Airbnb, Vrbo and other hosting platforms is not accepted.^[7]

• The city inspects the rental with the initial application, then every four years at renewal. Other renewals include a self-inspection form.^[5]

• The worksheet prices a re-inspection at $180 per hour, with a 1 hour minimum.^[7]

• The fee schedule lists its Re-inspection Fee at $186 per hour.^[6]

• Full-home occupancy is two individuals per bedroom, plus two, for a maximum of ten guests. Children under three years of age are excluded.^[5]

• No one under the age of twenty-one years is permitted as the primary renter.^[5]

• Guests park in onsite spaces only. The worksheet's parking table asks 2 off-street spaces for a single-family home.^[7]

• The local contact person initiates corrective action within one hour of being notified, whatever the day of the week.^[5]

• A sign legible from the public right-of-way identifies the short-term vacation rental. It carries the permit number, along with twenty-four-hour contact information.^[5]

• Hosting platform advertisements include the permit number. Advertising of unpermitted short-term vacation rentals is prohibited.^[5]

• Renewal forms are submitted sixty days prior to permit expiration. A permit whose renewal is submitted after expiration is deemed abandoned.^[5]

• The city's page goes further: a permit closed due to expiration cannot be reinstated, with no grace period available.^[4]

• Each day a violation continues is deemed a new violation. The section gives no dollar amount, leaving administrative fines to City Council resolution.^[5]

• An owner operating illegally while on the wait-list is removed from it. The host may not reapply for any property for two years.^[5]

• Section 17.30.220 states no quiet hours. It says guests must comply with all local noise restrictions.^[5]

What California asks wherever you host

These rules apply at this address whatever the city decides.

• No state license exists for short-term rentals in California. The state's 2025 act on booking platforms says it does not preempt a local short-term rental ordinance.^[1]

• Since July 1, 2024, every mandatory fee has to sit inside the rate you advertise. Only government taxes and fees may be added later.^[2]

• State law caps city fines when a short-term rental violation threatens health or safety. The first ceiling is $1,500. A second violation within the year reaches $3,000, each later one $5,000.^[3]