Regulated by City of Arroyo Grande. Arroyo Grande permits both homestays and whole-home vacation rentals, but each needs a Minor Use Permit (Plot Plan Review) approved before you operate, plus a city business licence. The rule that decides most applications is separation: a vacation rental cannot be established within 500 feet of an existing short-term rental or a school. In the older parts of town that single constraint rules out a lot of otherwise eligible homes, so the first thing worth checking is what is already licensed around you. Note too that much of the wine country addressed as Arroyo Grande sits outside the city limits and is permitted by the County instead.
10% city Transient Occupancy Tax, plus 1.5% for the county Tourism Marketing District and a further 2% for the Arroyo Grande Tourism Business Improvement District.
New permits are available in Arroyo Grande, so you can start from scratch here — but if you already hold one, switching is the faster route. Your permit stays in your name either way. How switching works.
We manage two homes here — a 13-acre estate that sleeps 14 and a working farm cottage — so we know how the city and county line splits this market and which rules land on which parcel.
Compare every SLO County market | How our management works
Permit rules and tax rates change. Confirm current requirements with City of Arroyo Grande.