I have seen landlords who had to move to another city due to a job change. They decided to rent out their home in Monterey instead of selling it. The issue was timing. The moving date was set, but the process of renting was new to them. They needed to go through the steps one by one.

The average rent in Monterey is $2,795 (according to RentCafe). A one-bedroom apartment averages $2,544, while a two-bedroom goes for about $3,126. Due to the area's tourist nature, there can be fluctuations in market prices. It's important to find a few similar listings and check the market rates again.

Advertisements are placed on multiple platforms at the same time. Zillow, Apartments.com, and Zumper are sufficient. Photos should be taken during the day. The number of rooms, parking availability, and pet policies should be noted in advance. This helps organize inquiries effectively.

Tenant screening looks at three factors: credit score, proof of income, and previous rental history. Income is often based on being at least three times the rent. The same criteria must be applied to all applicants. A credit check requires tenant consent.

The lease should specify the rental period, monthly rent, payment date, security deposit, repair responsibilities, and termination conditions. It's a principle to avoid leaving verbal agreements.

• Recheck market rates for similar listings considering the tourist nature
• Advertise on multiple platforms with photos and conditions
• Verify tenants using credit score, income, and rental history
• Specify rental period, monthly rent, security deposit, and termination conditions in the lease
• Check security deposit limits, return deadlines, and notice periods

California has set the security deposit limit to one month's rent starting July 2024 (AB 12). Individual landlords with four or fewer rental units can charge up to two months' rent. Security deposits must be returned within 21 days after move-out or a deduction statement must be sent (Civil Code Section 1950.5). If rent is unpaid, procedures can begin after a three-day notice. For no-cause terminations, a 30-day notice is required if the tenant has lived there for less than a year, and 60 days if over a year.

A screening fee can be charged when receiving applications, but there is a cap. As of 2026, it is $65.86, and if more is charged than the actual cost, the difference must be refunded (Civil Code Section 1950.6).

There are also regulations on rent increases. If the building is over 15 years old, according to AB 1482, the annual increase is limited to the inflation rate plus 5%, with a maximum of 10%. Tenants who have lived there for over a year cannot be evicted without just cause. Personal single-family homes can be exempt if a notice clause is included in the lease. If turning a second home into a formal long-term rental, this aspect should be particularly noted.

Essential facilities like plumbing, heating, and security screens must remain in good working order. It is a principle to respond to repair requests within a reasonable time frame.

The contract duration should also be determined in advance. A fixed one-year lease is stable without worries about vacancies. Month-to-month leases offer flexibility but come with vacancy risks. If you are moving due to a job, starting with a one-year fixed lease is easier to manage.

Even in tourist-demand areas like Monterey, the content discussed in this article pertains to long-term rentals. Short-term rentals, which are rented out by the day, may require city ordinances or separate permits, so it's important to recognize that they are different.

If you are renting out your home, you should also review your existing homeowner's insurance. Coverage for owner-occupied insurance and rental insurance often differs. If you do not switch to landlord insurance, you may not be covered for incidents that occur while tenants are living there.

Details may vary by county. It is advisable to consult with a real estate professional or a rental law attorney before signing a contract. This article provides general information and is not legal advice.