Tustin Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Tustin

The City of Tustin has specific regulations regarding short-term rentals, such as those listed on various booking platforms. A short-term rental permit is required to operate an STR in Tustin legally.

According to the city's Short-Term Rentals handout, a short-term rental is defined as "the rental of all or any part of a dwelling unit to a person(s) as lodging for a period of less than thirty (30) days." Property owners must apply for a short-term rental permit, which must be renewed every two years.

Short-term rentals are allowed in the following areas within Tustin:

• Single-family dwelling units within single-family residential districts or designated single-family residential areas
• Multifamily residential districts or designated multifamily residential areas
• Commercial districts or designated commercial areas within a previously approved residential dwelling unit

However, accessory dwelling units (ADUs) are not permitted to be used as short-term rentals in Tustin.

To obtain a short-term rental permit, property owners must submit an application through the city's online portal, myOCeServices.ocgov.com. Required documentation includes:

1. A letter outlining the proposed short-term rental use type and operation
2. A floorplan of the residence
3. A copy of a blank lease agreement
4. Proof of ownership

The city has several regulations in place for short-term rentals, including:

1. A minimum of two off-street parking spaces must be available for guests at all times.
2. The maximum number of vehicles allowed is limited to one vehicle per one-bedroom unit or two vehicles per two or more bedrooms.
3. The maximum overnight occupancy is limited to two persons per bedroom plus two additional persons.
4. No exterior signs advertising the short-term rental are allowed.
5. Quiet hours must be observed, with noise levels not exceeding 55 decibels from 7:00 a.m. to 10:00 p.m. and 50 decibels from 10:00 p.m. to 7:00 a.m.

Failure to comply with the city's short-term rental regulations can revoke the permit. Two violations related to the ordinance will require the property owner to discontinue short-term rental operations for up to one year.

It's important to note that a change in ownership terminates the short-term rental permit, and the new owner must apply for a new permit to continue operating an STR.

Short-Term Rental Licensing Requirement in Tustin

The City of Tustin requires property owners to obtain a short-term rental permit to legally launch a short-term rental within the city. A short-term rental is defined as the rental of all or any part of a dwelling unit to a person or persons for lodging purposes for a period of less than 30 consecutive days.

To apply for a short-term rental permit, property owners must submit an application through the city's online portal, myOCeServices.ocgov.com. The application must include the following documentation:

1. A letter outlining the proposed short-term rental use type and operation
2. A floorplan of the residence
3. A copy of a blank lease agreement
4. Proof of ownership

Short-term rental permits must be renewed every two years. It's important to note that a change in ownership terminates the existing short-term rental permit, and the new owner must apply for a new permit to continue operating the STR.

Accessory Dwelling Units (ADUs) are not permitted to be used as short-term rentals in Tustin.

Failure to comply with the city's short-term rental regulations can revoke the permit. If a property owner receives two violations related to the STR ordinance, they will be required to discontinue short-term rental operations for up to one year.

In addition to obtaining a short-term rental permit, property owners must also collect a Transient Occupancy Tax (TOT) from their guests. The TOT rate in Tustin is 13% of the rent charged for occupancy during any 30 consecutive calendar days or less. TOT payments are due at the end of the month following the quarterly reporting period.

By adhering to the city's short-term rental licensing requirements and regulations, property owners can legally operate STRs in Tustin while contributing to the local economy through the collection of the Transient Occupancy Tax.

Required Documents for Tustin Short-Term Rentals

To apply for a short-term rental permit in Tustin, California, property owners must submit the following required documents along with their application:

1. A letter outlining the proposed short-term rental use type and operation. This letter should describe how the property will be used as a short-term rental, including the type of rental (e.g., entire home, private room), the maximum number of guests, and any other relevant operational details.
2. A floorplan of the residence. The floor plan should clearly show the layout of the property, including the number and location of bedrooms, bathrooms, and common areas. This helps the city ensure that the property meets the necessary safety and occupancy requirements for short-term rentals.
3. A copy of a blank lease agreement. The lease agreement should include all the terms and conditions that guests will be required to agree to when renting the property, such as the rental period, payment terms, house rules, and cancellation policy. This document helps the city verify that the property owner has established clear guidelines for the short-term rental operation.
4. Proof of ownership. Property owners must provide documentation that confirms their ownership of the property, such as a copy of the deed or a recent property tax bill. This requirement ensures that only legal property owners are applying for short-term rental permits.

In addition to these required documents, property owners may also be asked to provide additional information or documentation as part of the application process, such as proof of insurance, a business license, or a transient occupancy tax registration.

It's important for property owners to carefully review and compile all the necessary documents before submitting their short-term rental permit application to the City of Tustin. Incomplete applications or missing documentation can delay the approval process or result in the denial of the permit.

Tustin Short-Term Rental Taxes

Property owners who operate short-term rentals in Tustin, California, are required to collect and remit a Transient Occupancy Tax (TOT) to the city. The TOT is a tax imposed on guests who rent accommodations for a period of 30 consecutive days or less.

The current TOT rate in Tustin is 13% of the rent charged for occupancy. This means that property owners must add a 13% tax to the rental price and collect this amount from their guests. For example, if a property is rented for $100 per night, the TOT would be $13, making the total cost to the guest $113 per night.

Property owners are responsible for collecting the TOT from their guests and remitting the tax payments to the City of Tustin on a quarterly basis. The quarterly reporting periods are as follows:

1. January 1 through March 31
2. April 1 through June 30
3. July 1 through September 30
4. October 1 through December 31

TOT payments are due on or before the last day of the month following the end of each quarterly reporting period. For example, TOT payments for the first quarter (January 1 through March 31) would be due by April 30.

To remit TOT payments, property owners must complete a Transient Occupancy Tax Return form and submit it along with the tax payment to the City of Tustin. The form requires property owners to report the total gross rent collected, the amount of TOT collected, and any exemptions or adjustments.

Failure to collect and remit the TOT can result in penalties and interest charges. The City of Tustin may also revoke a property owner's short-term rental permit for non-compliance with the TOT requirements.

It's important for property owners to maintain accurate records of their short-term rental income and TOT collections to ensure compliance with the city's tax regulations. Some short-term rental platforms, such as Airbnb and Vrbo, may collect and remit the TOT on behalf of the property owner. However, the property owner's ultimately responsible for ensuring that the TOT is properly collected and remitted to the city.

Tustin Wide Short-Term Rental Rules

In addition to the licensing requirements and required documents, the City of Tustin has established several rules and regulations that apply to all short-term rentals operating within the city limits. These rules are designed to ensure the safety and well-being of guests, minimize the impact on neighboring properties, and maintain the character of residential neighborhoods.

Some of the key Tustin-wide short-term rental rules include:

1. Occupancy limits: The maximum overnight occupancy for a short-term rental is limited to two persons per bedroom, plus two additional persons. For example, a two-bedroom unit would have a maximum occupancy of six people.
2. Parking requirements: Short-term rentals must provide a minimum of two off-street parking spaces for guests at all times. The maximum number of vehicles allowed is limited to one vehicle per one-bedroom unit or two vehicles per unit with two or more bedrooms.
3. Noise restrictions: Short-term rental operators and guests must observe quiet hours and limit noise levels to no more than 55 decibels from 7:00 a.m. to 10:00 p.m. and 50 decibels from 10:00 p.m. to 7:00 a.m.
4. Advertising guidelines: Property owners are prohibited from placing any exterior signs advertising the short-term rental on the property.
5. Safety requirements: All short-term rentals must be equipped with functioning smoke detectors, carbon monoxide detectors, and fire extinguishers. The property owner must also provide guests with emergency contact information and evacuation routes.
6. Good neighbor policy: Short-term rental operators are required to provide guests with a copy of the city's good neighbor policy, which outlines expectations for guest behavior, including noise levels, parking, and trash disposal.
7. Transient Occupancy Tax: Property owners must collect and remit the 13% Transient Occupancy Tax (TOT) to the City of Tustin for all short-term rental stays of 30 consecutive days or less.

Failure to comply with these Tustin-wide short-term rental rules may result in citations, fines, and the revocation of the short-term rental permit. The city encourages all short-term rental operators to familiarize themselves with these regulations and to ensure that their guests are aware of and adhere to these rules throughout their stay.

Does Tustin Strictly Enforce STR Rules?

The City of Tustin actively enforces its short-term rental regulations. The city monitors listings on platforms like Airbnb and Vrbo to identify potential violations and issues warnings and citations for non-compliant hosts.

According to discussions on forums like Bigger Pockets and Reddit, some hosts have reported operating short-term rentals in Tustin despite the restrictions. However, most advise carefully reviewing and adhering to the city's rules to avoid fines and penalties.

Tustin is less Airbnb-friendly than some other cities in Orange County due to its strict regulations and enforcement. Cities like Anaheim and Newport Beach allow short-term rentals with permits, while Tustin has a more limited program with a cap on the number of permits issued.

Despite the risks, some hosts continue to operate short-term rentals in Tustin, either unaware of the regulations or willing to take the chance of being caught and fined. However, the general consensus among experienced hosts on real estate forums is that operating an STR in Tustin without proper permitting is not worth the potential consequences.

The City of Tustin's 24/7 complaint hotline and commitment to monitoring listings and enforcing regulations make it a challenging market for short-term rental operators looking to skirt the rules. While some hosts may slip through the cracks, the majority of successful STRs in Tustin are likely operating with proper permits and in compliance with the city's ordinances.

How to Start a Short-Term Rental Business in Tustin

If you're interested in starting a short-term rental business in Tustin, California, follow these steps to ensure compliance with local regulations and set yourself up for success:

1. Research and understand Tustin's short-term rental regulations, including zoning restrictions, permit requirements, occupancy limits, parking requirements, and noise restrictions.
2. Determine if your property is eligible for use as a short-term rental. In Tustin, short-term rentals are allowed in single-family residential districts, multifamily residential districts, and some commercial districts with previously approved residential dwelling units. Accessory Dwelling Units (ADUs) are not permitted to be used as short-term rentals.
3. Prepare your property for short-term rental use. This may include furnishing the space, providing essential amenities, and ensuring the property meets all safety requirements, such as smoke detectors, carbon monoxide detectors, and fire extinguishers.
4. Obtain necessary permits and licenses. Apply for a short-term rental permit through the city's online portal, myOCeServices.ocgov.com. Submit all required documents, including a letter outlining your proposed short-term rental operation, a floorplan of the residence, a copy of a blank lease agreement, and proof of ownership.
5. Develop a comprehensive lease agreement that outlines the terms and conditions of the rental, including the rental period, payment terms, house rules, and cancellation policy.
6. Set up a system for managing bookings, communicating with guests, and handling maintenance and cleaning between stays. Consider streamlining these processes using a short-term rental platform like Airbnb or Vrbo.
7. Implement a guest screening process to ensure the safety and security of your property and neighborhood. This may include requiring guests to provide identification, sign a rental agreement, and agree to house rules.
8. Establish a pricing strategy that accounts for demand, seasonality, and local competition. Research similar short-term rentals in your area to determine a competitive nightly rate.
9. Market your short-term rental through various channels, such as listing platforms, social media, and local tourism websites. Provide high-quality photos, detailed descriptions, and accurate information about your property and its amenities.
10. Comply with ongoing short-term rental requirements, such as renewing your permit every two years, collecting and remitting the Transient Occupancy Tax (TOT), and maintaining your property to meet safety and quality standards.

Who to Contact in Tustin about Short-Term Rental Regulations and Zoning?

For questions or concerns regarding short-term rental regulations and zoning in Tustin, California, property owners and interested parties should contact the City of Tustin's Community Development Department.

The Community Development Department is responsible for overseeing land use, zoning, and planning within the city, including the administration of short-term rental permits and enforcement of related regulations.

To reach the Community Development Department, you can:

1. Call the department directly at (714) 573-3140. Staff members are available to answer questions and provide guidance on short-term rental requirements, the application process, and zoning restrictions.
2. Email the department at comdev@tustinca.org. When emailing, be sure to include your name, property address, and a detailed description of your question or concern. A staff member will respond to your inquiry as soon as possible.
3. Visit the Community Development Department in person at:
   City of Tustin
   Community Development Department
   300 Centennial Way
   Tustin, CA 92780
   
   Office hours are Monday through Thursday from 7:30 a.m. to 5:30 p.m. and Friday from 8:00 a.m. to 5:00 p.m. (closed alternate Fridays).

In addition to contacting the Community Development Department, property owners can also access information about short-term rental regulations and zoning on the City of Tustin's website at www.tustinca.org. The website provides access to the city's municipal code, zoning ordinances, and short-term rental permit application materials.

What Do Airbnb Hosts in Tustin on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Tustin have shared their thoughts and experiences regarding local short-term rental regulations on various online forums, such as Reddit and Bigger Pockets. Here are a few notable examples:

A Reddit user posted in the r/AirbnbHosts subreddit, stating that while the permit process in Tustin can be time-consuming, the city's regulations are generally fair and manageable. They mentioned that the city's staff was helpful in guiding them through the application process and answering any questions they had.

In a thread on the Bigger Pockets forum titled "Tustin, CA Short-Term Rental Regulations," a user shared their experience operating an Airbnb in Tustin. They noted that the city's occupancy limits and parking requirements can be challenging for larger properties but emphasized the importance of complying with all regulations to avoid potential fines or permit revocation.

Another Bigger Pockets user commented that while Tustin's short-term rental regulations are more stringent than some neighboring cities, they believe the rules help maintain the quality of life for residents and ensure a level playing field for all hosts. They appreciated the city's efforts to balance the needs of both short-term rental operators and the community as a whole.

On the r/Airbnb subreddit, a user shared their frustration with the city's requirement to renew short-term rental permits every two years, stating that it creates additional administrative work and expenses for hosts. However, they also acknowledged that the renewal process helps the city maintain oversight and ensures that all short-term rentals continue to meet the necessary standards.

Overall, while Airbnb hosts in Tustin may have varying opinions on specific aspects of the city's short-term rental regulations, there seems to be a general consensus that compliance is essential for the success and longevity of their businesses. Many hosts appreciate the city's efforts to create a clear and comprehensive regulatory framework, even if navigating the permit process and adhering to all requirements can be challenging at times.