FAQs • Avalon, CA • CivicEngage

How much is transient occupancy tax?: The City assesses a Transient Occupancy Tax of 12% on rent charged for stays of thirty (30) consecutive days or less. Rent subject to tax includes management fees, cleaning fees, and all other non-optional fees associated with the rental activity. Operators are required to collect the tax at the same time the rent is collected and identify the amount of tax separately from the amount of the rent charged. Operators are required to report rental activity and remit taxes collected to the Finance Department on or before the last day of the month following the reported month (e.g. taxes collected for rental activity during the month of June must be reported and remitted to the City by July 31st).

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Transient Rentals

1. What is a Transient Rental (Vacation Rental)?: Any property rental period for a period of 30 days or less is considered transient.

2. May I rent my home transiently?: Transient rentals are allowed in any zone within the City with approval of a Transient Rental License, Business License and payment of transient rental occupancy tax (TOT).

3. Are there any other restrictions?: The property may not have been a year round rental within the last two years. All bedrooms must meet a minimum size of 70 square feet and have an operable window of no less than 5.7 sq. ft. and must be 3 feet from the property line.

4. What are the typical conditions placed on Transient Rental Licenses?: Property on the “flats” area is typically not allowed to include a vehicle with the rental. Deck use is prohibited between 10 pm and 8 am for all properties. Occupancy is limited to two (2) persons per bedroom with possibility of an additional two (2) being approved.

5. How much is transient occupancy tax?: The City assesses a Transient Occupancy Tax of 12% on rent charged for stays of thirty (30) consecutive days or less. Rent subject to tax includes management fees, cleaning fees, and all other non-optional fees associated with the rental activity. Operators are required to collect the tax at the same time the rent is collected and identify the amount of tax separately from the amount of the rent charged. Operators are required to report rental activity and remit taxes collected to the Finance Department on or before the last day of the month following the reported month (e.g. taxes collected for rental activity during the month of June must be reported and remitted to the City by July 31st).

6. May I manage my rental myself?: Each rental property is required to have an on-island representative that is available 24/7 to respond to any after hour’s issue with the property. A sign (issued by the City) is required to be posted on the front of the property listing the representative and their contact phone number and the approved occupancy. The representative does not have to be a management company. Chronic complaints regarding the unit may be grounds for renovation of the Transient Rental License.

7. May I allow pets in the property?: To allow pets is your decision. However City of Avalon has leash law and a “pick up after your pet” law in all areas of the City. (Disposal bags are available in various locations in dispensers) Dogs are not allowed on the public beaches. Code Enforcement may be issued citations for violations.

8. How do I keep my Transient Rental License active if I do not want to rent it for a period of time?: Renew the business license every year and pay TOT no less than once in any twelve month period.

9. Does a Transient Rental License transfer with a sale of the property?: Transient Rental Licenses must be reapplied for at the time of a new property owner.