Pismo Beach Short-Term Rental Regulations

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Permit & Licensing

Vacation Rental (VR) Permit + Business License + TOT Certificate

This permit type does not require primary residence. Zoning restriction: Permitted in C-1, RR, and R-4 zones only.

Short-Term Rental (STR) License + Business License + TOT Certificate

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Application Process

Online application through CitizenServe portal at pismobeach.org/permitportal. Planning Division approval required before business license. Inspection required.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 14.5% of gross rental income.

Collection: Host self-remits. TOT Certificate required. Online filing available.

Rental Limits

Pismo Beach annual day limit: 182 days–unlimited (varies by permit type).

Occupancy & Density Limits

2 people per bedroom plus 2 additional people

Zoning & Restrictions

Owner-occupied: Permitted in R-1, R-2, R-3, OS-1, and OS zones only. No new permits being issued as of November 2023. Vacation Rental (VR) Permit + Business License + TOT Certificate: Permitted in C-1, RR, and R-4 zones only

Insurance & Safety

Insurance

Pismo Beach does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Inspection required (bedroom count, parking, safety standards)
• Good Neighbor Policy compliance mandatory
• Responsible party must be within 25 miles of property

Penalties for Non-Compliance

• $1,500 minimum for first violation
• $3,000 for second violation within one year
• $5,000 for each subsequent violation

Compliance Checklist

Follow these steps to legally operate a short-term rental in Pismo Beach:

1. Determine your permit type. Pismo Beach has 2 permit types. Identify which applies to your property (Vacation Rental (VR) Permit + Business License + TOT Certificate, Short-Term Rental (STR) License + Business License + TOT Certificate).
2. Meet safety requirements. Inspection required (bedroom count, parking, safety standards). Good Neighbor Policy compliance mandatory. Responsible party must be within 25 miles of property.
3. Apply for your STR permit. Submit application. Fees vary by type: Vacation Rental (VR) Permit + Business License + TOT Certificate $796.95; Short-Term Rental (STR) License + Business License + TOT Certificate $2,943.00. See permit types above to determine which applies.
4. Register for tax accounts. Set up lodging tax accounts with City of Pismo Beach Finance Department.
5. Collect and remit taxes. 14.5% on all bookings.
6. Renew annually. Renewal fees vary by permit type ($796.95 / $920.85). See permit types above.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Pismo Beach?

Yes. Pismo Beach requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types — one requires the property to be your primary residence, and another allows non-owner-occupied (investment) use. See the permit types above to find which applies to your property.

How much does a short-term rental permit cost in Pismo Beach?

Permit costs in Pismo Beach vary by type: non-owner-occupied $796.95; owner-occupied $2,943.00.

Does Pismo Beach require a short-term rental to be your primary residence?

It depends on the permit type. At least one Pismo Beach permit requires the property to be your primary residence, while another allows non-owner-occupied (investment) use — see the permit types above.

How many days a year can you short-term rent in Pismo Beach?

Pismo Beach's annual rental limit depends on the situation: 182 days–unlimited (varies by permit type).

What taxes do you pay on a short-term rental in Pismo Beach?

Short-term rental stays in Pismo Beach are subject to a combined 14.5% in lodging taxes. This combines 11% Transient Occupancy Tax (TOT) + 2% Lodging Business Improvement District (LBID) + 1.5% San Luis Obispo County Tourism Marketing District (TMD). The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Pismo Beach?

Operating without a permit can cost up to $5,000 per violation.