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Monterey Park, CA Rental Property Rules: Rental Registration (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

License trigger
more than 3 residential rental units citywide
Per-unit fee
$35.00 per unit above the 3-unit threshold
Owner-occupied units
excluded from the rental-unit count
Commercial units
separate fee, by square footage, Sec. 5.12.230(21)
Default penalty
misdemeanor, up to $1,000/6 months

Summary

In the City of Monterey Park, anyone renting out more than three residential units anywhere in the city is running a 'residential rental business' under Section 5.12.063 and must hold a city business license, paying $35 per unit under the fee schedule in Section 5.12.230(22).

It is unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the city without first having procured a license from the city so to do or without complying with any and all applicable provisions of this title. ... "Residential rental business"is the business of renting, leasing or making available for renting or leasing more than a total of three residential rental units at one or more locations within the city. ... Rental business, residential. $35.00 per residential rental units anywhere in the city. For example, if owner has two parcels, each containing four residential rental units, the fee shall be $175.00 (8 units minus 3 units equals 5 units; 5 times $35.00 equals $175.00)

Full Breakdown

Section 5.08.010 makes it unlawful to transact any business, trade or occupation in the city without first procuring a license, and Chapter 5.12 applies that requirement to landlords through a specific definition: a 'residential rental business' is renting, leasing or making available for rent more than a total of three residential rental units, whether they sit on one parcel or are spread across several locations in the city (Section 5.12.063). A 'residential rental unit' is defined broadly to include any room, building or structure designed for residential dwelling use, including hotel and motel rooms, apartments, single-family homes, and mobile home spaces, but excludes a unit the owner occupies (Section 5.12.064); the code presumes any unit the owner does not occupy is a rental unit.

The special classification fee schedule in Section 5.12.230(22) charges $35.00 per residential rental unit anywhere in the city, with the fee calculated only on units above the three-unit threshold; the code's own example walks through an owner of two four-unit parcels (eight units total, minus the three-unit exemption, times $35.00) owing $175.00. A separate, lower per-unit fee schedule applies to commercial rental units under Section 5.12.230(21), based on square footage rather than a flat per-unit charge.

Violations & Fines

Operating a residential rental business above the three-unit threshold without a city business license violates Section 5.08.010, and Chapter 5.12 is not among the code's designated infractions in Section 4.10.030, so it defaults to the code's general misdemeanor penalty: a fine of up to $1,000, up to six months in jail, or both, under Section 4.10.020. Police officers may also enter a rental business's premises free of charge at any time to demand proof of a valid license under Section 5.08.040.

Frequently Asked Questions

Do I need a business license to rent out property in Monterey Park?
Only if you rent more than three residential units anywhere in the city. Section 5.12.063 defines that as a 'residential rental business,' which needs a city business license under Section 5.08.010 and pays $35.00 per unit under the fee schedule.
How is the rental license fee calculated?
Section 5.12.230(22) charges $35.00 per residential rental unit anywhere in the city, applied only to units beyond the three-unit threshold; the code's own example has an eight-unit owner paying $175.00 after the exemption.
Does my own home count toward the unit total?
No. Section 5.12.064 excludes an owner-occupied unit from the definition of a residential rental unit, and presumes any unit the owner doesn't live in is a rental unit that counts toward the threshold.

Sources & Official References

Other rules in Monterey Park

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