Short-term rentals in Avalon, explained properly.

City staff prepare the application form. It may ask for the owner's name and contact details, the property, details of any entity applying and a person to accept service, and personal identification information including date of birth and a copy of a driver's license or identification card (Sec. 3-1.307). The Planning Commission holds a public hearing on each application, with notice published in a newspaper of general circulation in Avalon, mailed to the applicant and owners within 300 feet, and posted on the property on a notice of at least 11 inches by 14 inches, at least 10 days before the hearing (Sec. 3-1.309(b)). The owner must attend in person or virtually; failing to appear without a valid excuse is an independent ground for denial. The Commission may grant a license only when all necessary clearances have been obtained from law enforcement and other City departments and it has received no evidence that public health, safety or welfare will be injured (Sec. 3-1.309(d)). A new unit must be inspected before the use begins (Sec. 3-1.317(j)(2)). Notice under this article is in addition to any notice required for a Local Coastal Permit.

Sec. 3-1.308 says the fees for filing and processing applications, issuing licenses and renewals, on-site inspections and collecting fees tied to applications and enforcement are set by City Council resolution. Until a license fee is established, it is the fee set for a Transient Rental Conditional Use Permit. The fee schedule hasn't been reviewed yet, so no amount is shown here. The inspection cost is paid by the owner under the City's adopted fee schedule (Sec. 3-1.317(j)(2)), and an appeal fee is set by resolution (Sec. 3-1.311).

The Commission may approve a license, with conditions, that won't harm public health, safety or welfare or neighbouring property (Sec. 3-1.310(a)). It must find the site adequate, adjacent uses protected, streets adequate, and the use ancillary to the residential use of the unit (Sec. 3-1.310(b)). It must deny where the applicant fails to show the use will not be harmful, fails to attend the hearing without a valid excuse, previously had a transient rental license or conditional use permit revoked, previously operated a transient rental without a license (unless the Commission finds no bad faith on listed factors, with the burden on the applicant), or the property is out of compliance with the Municipal Code when heard (Sec. 3-1.310(d)). It also considers year-round rental status (a property rented for more than 30 consecutive days to the same occupant in the two years before the application should be denied absent adequate mitigation), neighbours' objections, and whether the grant would leave a year-round residence with more than a majority of its adjacent residences permitted or licensed for transient rental. For a condominium or similar project of 10 or more units, the applicant must give written approval from the governing association (Sec. 3-1.310(e)). The Commission must impose all the standards of Sec. 3-1.317 as conditions, plus others it finds appropriate.

Sec. 3-1.301 defines a second sale as the second sale of the property after the article's effective date. The first of the two sales can be a permissible one-time family transfer (Sec. 3-1.315(c)). Sec. 3-1.302(b) applies the same rule to grandfathered Conditional Use Permits, notwithstanding Sec. 9-8.408. Conditional Use Permits count toward the cap of 410 (Sec. 3-1.309).

When the Planning Commission denies an application it must notify the applicant in writing within 10 days, with reasons. The applicant may appeal to the City Council if the appeal is served on the City within 15 days of the written notice of denial and the appeal fee, set by council resolution, is paid (Sec. 3-1.311). The Commission's decision is final unless a timely appeal is taken to the Council (Sec. 3-1.309). Decisions to suspend or revoke may be appealed to the Council (Sec. 3-1.312(c)).

Licenses are renewed annually on or before January 1 of each year to check compliance with the Municipal Code and the license conditions. The Planning Department may renew without an investigation when the applicant verifies that the information submitted for the original issue is still valid (Sec. 3-1.316). Inspection reports are verified when the business license is renewed (Sec. 3-1.317(j)(3)).

Sec. 3-1.317(g) sets the maximum occupancy for transient rentals at two persons (including children and infants) per bedroom, plus two. The Planning Commission may in its discretion set a different maximum, lower or, where the property's configuration warrants it, higher, considering the size and location of the property, single- versus multi-unit properties, and the number and size of sleeping rooms. The maximum occupancy appears on the required window sign and the in-unit notice.

Sec. 3-1.317(e) requires off-street parking, on or off site, so that all vehicles with permits issued for the unit can park off street (except under a temporary permit issued to the owner as provided in Title 4). The owner, agent and managing agency must follow the Avalon vehicle ordinance, which lets transient renters use only the vehicle permitted for the location and bars charging for its use. Properties in the "flats" (as defined in Sec. 9-5.406) and in the condominiums known as Bahia Vista, Canyon Terrace and Sol Vista do not include a vehicle for transient guests. Title 4 and Sec. 9-5.406 haven't been reviewed yet.

Sec. 3-1.317(h) prohibits use of unenclosed areas such as decks and balconies attached to a transient rental unit between 9:00 p.m. and 8:00 a.m., Monday through Sunday. Occupants must at all times comply with the Noise Ordinance in Chapter 5-13 (Sec. 3-1.317(i)), which we haven't reviewed yet. The in-unit notice must tell guests that deck and patio use in those hours is prohibited where it generates noise that would disturb a reasonable person next door.

The required sign and the in-unit notice must give the name of the managing agency, agent, property manager or owner and a local telephone number at which that party can be reached on a 24-hour basis (Sec. 3-1.317(b), (d)(2)). That person must maintain a physical presence within the City during the rental term to respond to complaints within 30 minutes of notification; failure to be available or answer the telephone counts as failure to respond (Sec. 3-1.317(j)(8)). Owners and agents must keep the contact information on the license application active and monitored (Sec. 3-1.305(g)).

Each unit must post, visible from outside, one sign that attaches to a window, no more than two square feet, bought from the Planning Department or made from a City template, showing the street address, the maximum occupancy, the name of the managing agency, agent, property manager or owner with a local 24-hour telephone number, and the City of Avalon Business License Number (Sec. 3-1.317(b)). Any sign or online posting advertising the unit must meet the City's advertising and sign requirements and show the business license number (Sec. 3-1.317(c)). Inside, a notice on or beside the front door must give the contact, the maximum occupants, trash and recycling information, the parking and occupancy rules, any water conservation rules the City has enacted, the deck and patio quiet hours, and a statement of Avalon's "zero tolerance" policy toward nuisances and rowdy behavior, with immediate termination of occupancy for violations; the same information must be in the rental agreement (Sec. 3-1.317(d)).

Sec. 3-1.317(d)(1) requires an in-person meeting at check-in to review rental regulations and verify that the number of guests arriving complies with the unit's occupancy limit. The person doing so must hold a valid City of Avalon Business License.

A new transient rental must be inspected before the use starts, within 30 days of approval, by a qualified inspector approved by the City, and an original signed inspection report goes to the Director of Finance (Sec. 3-1.317(j)(2)). Each unit is reinspected at least every three years, verified at business license renewal, and failing to submit reports results in revocation of approval (Sec. 3-1.317(j)(3)). The owner pays inspection costs under the City's adopted fee schedule. Minimum requirements include smoke detectors in each sleeping room and the corridor; at least one 2A:10B:C extinguisher per floor with current State Fire Marshal tags; outside door locks operable from inside without a key, with two exit doors if the unit is over 3,000 square feet; a clean and sanitary unit with no exposed wiring, leaking fixtures or pest evidence; safe stairs and railings; fenced or covered pools and spas; and clear exits (Sec. 3-1.317(j)(7)). A unit that fails an inspection gets a correction list and reinspection date, and its approval is suspended if there is an immediate health or safety hazard.

Sec. 3-1.317(f) requires the owner or managing agent to give each transient occupant written trash pick-up and recycling information and to make sure there are enough materials for disposing of trash under the City's program. The in-unit notice must also say that trash and refuse may not be left or stored on the property.

Sec. 3-1.302(a) says advertising by online short term rental platforms, among other forms of advertisement, that holds out that a person is conducting transient rentals in the City is prima facie evidence of conducting them. Under Sec. 3-1.305(c) an administrative citation may be imposed against the owner, the owner's agent, a hosting platform and any person with possession or control of the property, including renters. The tax chapter hasn't been reviewed yet, so any local platform reporting rules are not shown here.

Under Sec. 3-1.305(b), violations that pose a threat to public health and safety are infractions punishable under Government Code section 36900 at $1,500 for the first violation, $3,000 for the second and $5,000 for each additional violation within one year of the first. Other violations are infractions at $100 for the first, $200 for the second and $500 for each additional violation within one year of the first. Any violation may also draw an administrative citation under Chapter 1-9 of Title 1. The Planning Department may set up a hardship waiver to reduce a fine where the responsible party made a bona fide effort to comply after the first violation and full payment would be an undue financial burden. Each violation, even on the same day, is separate, and the City may start suspension or revocation after one violation (Sec. 3-1.305(c)). Operating during a suspension or after revocation is a misdemeanor (Sec. 3-1.313), as is failing to get a business license or continuing after its revocation (Sec. 3-1.317(a)(1)). Each day without a license is a separate violation (Sec. 3-1.302(a)). Remedies are cumulative (Sec. 3-1.305(f)).

If the Planning Department finds a license is not in good standing, it must bring the matter to the Planning Commission (Sec. 3-1.312(a)). The Commission must revoke or suspend where the licensee violated the Municipal Code, the article or the license terms without curing before action is brought, where the license was granted on false or fraudulent evidence, testimony or application, or where the licensee violated the article or a condition three or more times within a year, even if cured. The licensee may appear, be heard and call witnesses, and the Commission's decision may be appealed to the City Council. A license that isn't renewed is sent to the Commission for suspension or revocation (Sec. 3-1.316(b)). After a revocation for non-compliance with the registration, inspection and operation requirements, no new business license or Transient Rental License may be issued to the same licensee for 12 months (Sec. 3-1.317(j)(6)), and a prior revocation is also a ground to deny a new application (Sec. 3-1.310(d)(3)). Failure to comply with a lawful order of a fire, law enforcement, code enforcement or other public safety officer may result in revocation or suspension (Sec. 3-1.305(d)).

California Revenue and Taxation Code section 7280 lets the legislative body of any city, county, or city and county levy a tax on the privilege of occupying a room or other living space in a hotel, inn, tourist home or house, motel or other lodging, unless the stay is longer than 30 days. A county's tax applies only in its unincorporated areas. The rate, registration and filing rules are set by each city or county, so the local tax is shown in the city's own section of this page.

Government Code sections 50990 to 50996 (Senate Bill 346, 2025) apply only in a city or county that adopts an ordinance making them apply. Where they apply, a booking platform must, on the local agency's request, report the physical address with nine-digit ZIP code of each short-term rental it facilitated (no more often than every 3 months, or monthly if the local tax is remitted monthly), and must include in each listing any applicable local license number and any transient occupancy tax certification issued by the local agency. The local agency may fine a platform that does not report. The act does not stop a city or county from regulating short-term rentals, platforms or tax collection in other ways.

Government Code section 66333(g) requires a city's junior accessory dwelling unit ordinance to require that a rental of a junior ADU be for a term longer than 30 days (as amended by Assembly Bill 1154, in force January 1, 2026). Section 66323(e) requires a city to require that a rental of an ADU created under that section (the ministerial, by-right approvals) be for a term longer than 30 days. For other ADUs on a lot with a single-family home, section 66315 bars standards beyond section 66314, including owner occupancy, except that a city may require that the property be used for rentals of terms 30 days or longer. Cities can be stricter in their own codes; see the city section.

Civil Code section 4741 says an owner in a common interest development is not subject to a governing-document provision that prohibits, has the effect of prohibiting, or unreasonably restricts renting or leasing a separate interest, ADU or junior ADU, and an association may not cap rentals below 25 percent of the separate interests. The same section says it does not prohibit an association from adopting and enforcing a provision that prohibits transient or short-term rental of a separate property interest for 30 days or less. Check your association's governing documents.

Civil Code section 1940 applies the chapter on hiring of real property (Civil Code sections 1940 to 1954.071) to tenants, lessees, boarders, lodgers and others who hire dwelling units, but excludes a person in transient occupancy in a hotel, motel, residence club or other facility when the stay is or would be subject to a transient occupancy tax under Revenue and Taxation Code section 7280 (stays of 30 days or less). Stays longer than that are not covered by this exclusion.

In a December 6, 2016 letter to coastal cities and counties, the California Coastal Commission said that regulating short-term or vacation rentals in the coastal zone must happen within the local coastal program or under a coastal development permit, because it changes the intensity of use and access to the shoreline and so counts as development under the Coastal Act. The Commission said it does not believe outright bans adopted outside that process are legally enforceable in the coastal zone, that it has not historically supported blanket bans, and that it has supported limits such as caps on numbers by area, limits on days, occupancy limits, 24-hour response, parking, noise and signage rules and payment of transient occupancy tax. This applies only to places inside the coastal zone.