The rules, written down plainly.
The Monterey Peninsula may be the most complicated place in California to own a rental, and almost nobody has written the rules down clearly. This is our attempt. It is free, it is not gated, and you do not have to be a client.
Vacation and short term rental rules
Where nightly rental is banned, capped, closed, or still available, city by city. Includes the county ordinance that took effect in October 2025 and the two eligibility rules that disqualify most second home owners.
Rent increase limits and just cause
The 2026 to 2027 cap, how the single family exemption works, and the written notice that owners lose the exemption by forgetting.
City of Monterey rental registration
Mandatory, annual, publicly searchable, and being enforced since 15 August 2026. What it collects and what it costs.
Water permits and accessory units
Fixture units, the reason your remodel is stuck, and why the state's accessory dwelling unit reforms do not help you here without a water permit.
The renewal dates nobody shares.
Four different dates across the cities we cover. If you own in more than one of them, this is the single most common way owners fall out of compliance.
| Deadline | What is due | Where |
|---|---|---|
| 31 March | Short term rental license renewal | Pacific Grove |
| 1 May to 1 July | Rental registration window | City of Monterey |
| 30 June | Short term rental permit expiry | Marina |
| 30 June | Short term rental license renewal | Seaside |
| 1 August | New rent increase cap takes effect for the year | Statewide |
| 15 August | Enforcement against unregistered rentals | City of Monterey |
| Rolling | Vacation rental operation license renewal | Unincorporated county |
What changed for California landlords this year.
A short list of the statewide rules that took effect recently and catch owners who have not re-papered their process.
| Rule | Effect |
|---|---|
| AB 12 | Security deposits capped at one month's rent for most tenancies, with a narrow small landlord exception. |
| AB 2801 | Photographs required to support deposit deductions, taken at move in for tenancies beginning on or after 1 July 2025. Routine cleaning charges are prohibited. |
| SB 611 | You may not charge a tenant for serving a termination notice. At least one non electronic rent payment method must be offered. |
| AB 2493 | Screening fees must either be processed first come first served or refunded to every applicant not selected. Applicants get a copy of the credit report. |
| AB 2747 | Owners of fifteen or more units must offer positive rent payment reporting to credit bureaus. |
| AB 414 (2026) | Deposits paid electronically must be refundable electronically. |
| AB 1414 (2026) | Tenants may decline bundled or bulk internet service, with disclosure requirements on new leases and renewals. |
| SB 610 (2026) | Post disaster habitability duties, including debris removal, and a displaced tenant's right to return. |
| AB 246 (2026) | Temporary eviction protections for tenants with verified interruptions to Social Security payments. |
Reviewed August 2026. This is a summary written for owners, not legal advice, and several 2026 items were still settling as of writing. We confirm the current position before advising on a specific property.
What should your property actually earn?
A written rental analysis, delivered within one business day. Real leased comparables, the fee you would pay in dollars, and a straight recommendation.
- Recommended rent, supported by comparables rather than an online estimate
- What a furnished thirty day tenancy would produce at your address
- Current market value, using Sotheby's comparable sales
- An honest answer, including if the answer is that you should not hire us
Request your analysis
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