Short-term rentals in San Luis Obispo
The City of San Luis Obispo and SLO County treat short-term rentals very differently. Here's what's allowed where, what permits you need, and the taxes guests pay.
City of San Luis Obispo
- A homestay, meaning short-term rental of an owner-occupied home, is allowed with a City Homestay Permit, a business license and owner occupancy, plus limits on guests, parking and a designated responsible party (City of SLO).
- A vacation rental, meaning short-term rental of a home the owner doesn't live in, "remains a prohibited use" in the City.
- All lodging, including homestays, collects a 10% transient occupancy tax, plus 2% and 1% tourism assessments. Airbnb collects these automatically for bookings made through its platform.
- The City clarified its homestay permit rules in its 2026 housing rules update (local actions).
Unincorporated SLO County
- In Cambria, Cayucos and Avila Beach, a vacation rental needs a Vacation Rental Zoning Clearance, a business license and a transient occupancy tax certificate, and must meet spacing rules from other rentals (County user guide).
- Other coastal communities (including Los Osos, Oceano and San Simeon) and rural coastal areas need a Minor Use Permit. Inland areas need only a business license, though some areas have their own rules.
- County rules: no more than two people per bedroom plus two; all parking on-site; and a local contact available 24 hours a day, whose details go to neighbors within 200 feet.
- A County vacation rental license lapses after 12 months if not renewed, and it can't be transferred to a new owner.
Each incorporated city in the county (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach) sets its own short-term rental rules. Check with that city before you buy or list.
Questions people ask
Can I run an Airbnb in the City of San Luis Obispo?
Only as a homestay: the short-term rental of an owner-occupied home, with a City Homestay Permit, business license and transient occupancy tax. Renting a whole home you don't live in for less than 30 days (a vacation rental) is a prohibited use in the City.
What taxes apply to short-term rentals in SLO?
Lodging in the City, including homestays, collects a 10% transient occupancy tax, a 2% Tourism Business Improvement District assessment and a 1% Tourism Marketing District assessment. Airbnb collects and remits these automatically for bookings made through Airbnb.
Can I have a vacation rental in Cambria, Cayucos or Avila Beach?
Yes, with a County Vacation Rental Zoning Clearance, business license and transient occupancy tax certificate, if the property meets the County standards, including spacing from other vacation rentals. A Minor Use Permit can modify the location standard.
Official sources
- City of SLO: Permits for homeowners and renters (homestays)
- County of SLO: Coastal vacation rental user guide
General information, not legal advice. Laws and local rules change, and exemptions depend on the facts. For a specific situation, check the source or talk to a California-licensed attorney. Tenants and landlords can also use the California Courts eviction & housing self-help guide. Last reviewed October 8, 2026.