Short-Term Rental Regulations
in San Luis Obispo, CA

Airbnb listings are allowed in San Luis Obispo, CA, but with restrictions. Owner-occupied 'homestay' rentals are allowed with a homestay permit; non-owner-occupied 'vacation rentals' are prohibited in all zones. Homestays are limited to a maximum of four adult overnight guests, must meet building/fire codes, cannot be in ADUs or RVs, and advertisements must include the business license number; the owner must verify primary residence annually and be within a 15-minute drive and available 24/7 or designate a responsible party. A permit is required before you can host. These rules apply to all short-term rental platforms (Airbnb, Vrbo, Booking.com, etc.) — not just Airbnb specifically. See the official source linked on this page for full requirements. Last verified 2026-05-14.

Owner-occupied 'homestay' rentals are allowed with a homestay permit; non-owner-occupied 'vacation rentals' are prohibited in all zones. Homestays are limited to a maximum of four adult overnight guests, must meet building/fire codes, cannot be in ADUs or RVs, and advertisements must include the business license number; the owner must verify primary residence annually and be within a 15-minute drive and available 24/7 or designate a responsible party.

Yes, a permit is required to operate a short-term rental in San Luis Obispo. 1) Submit a homestay permit application to the Community Development Department (director approves; applications available at the Community Development office). 2) Obtain a business license and remit Transient Occupancy Tax (TOT) and any TBID assessments; provide annual verification of primary residence (e.g., homeowner’s property tax exemption) and contact information for owner/responsible party. 3) The director may require public notification and may refer applications to a hearing if there are objections; permits can be conditioned or revoked for violations.

1) Submit a homestay permit application to the Community Development Department (director approves; applications available at the Community Development office). 2) Obtain a business license and remit Transient Occupancy Tax (TOT) and any TBID assessments; provide annual verification of primary residence (e.g., homeowner’s property tax exemption) and contact information for owner/responsible party. 3) The director may require public notification and may refer applications to a hearing if there are objections; permits can be conditioned or revoked for violations.

Vrbo is permitted in San Luis Obispo, CA under the same restrictions that apply to Airbnb — local rules govern the rental itself, not the specific platform. You must hold a valid permit before hosting on Vrbo. Last verified 2026-05-14.

Short-term rental hosts in San Luis Obispo are typically responsible for lodging, occupancy, and applicable sales taxes — these usually apply even where hosting is allowed without a permit. Rates and remittance rules vary by jurisdiction (state, county, and city can each levy a share); confirm the current rates with the official source linked on this page. Platforms such as Airbnb and Vrbo collect some taxes automatically, but the host remains liable for any not collected on their behalf.

We are not currently tracking any recent short-term rental ordinance changes for San Luis Obispo. STR rules change frequently — verify the current requirements with the city or county before listing, using the official source linked on this page.