Orange Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Orange, California?

Short term rental regulations in Orange, California are outlined in the city's municipal code and enforced by the Finance Department [1]. These rules govern aspects like permitting, taxes, occupancy limits, and eligible zones for short term rental operators.

Starting a Short Term Rental Business in Orange

Orange, California, has implemented a Short-Term Rental (STR) ordinance, which allows for a limited number of STRs to operate in the city3. The city currently only allows 125 STRs to operate, and they have reached that number, maintaining a waitlist for those who would like to operate a short-term rental3.

To start a short-term rental business in Orange, follow these steps:

• Research local regulations: Familiarize yourself with the city's STR regulations, including the maximum number of permits allowed, zoning restrictions, and required documents1.
• Obtain a short-term rental permit and business license: Apply for a short-term rental permit and a business license, which cost $250 and $260, respectively4. The permit will only be issued for a property owned by an individual or a personal trust, and priority is given to City of Orange residents and owner-occupied properties4. Permits are limited to two properties per owner and are allowed only in zones which allow except mobile home zones4.
• Pay transient occupancy tax: All short-term rentals in Orange must pay a transient occupancy tax (TOT) of 10%4.
• Create a listing on a platform: List your property on a platform like Airbnb or VRBO to attract potential guests1.
• Implement a Good Neighbor policy: Ensure that your short-term rental adheres to the city's noise and parking regulations, and maintain a positive relationship with your neighbors1.

Short Term Rental Licensing Requirement in Orange

To start a short-term rental business in Orange, you need to obtain a short-term rental permit and a business license1. The permit costs $250, and the business license costs $2603. The permit will only be issued for a property owned by an individual or a personal trust, and priority is given to City of Orange residents and owner-occupied properties3. Permits are limited to two properties per owner and are allowed only in zones which allow except mobile home zones3.

• The application process for a short-term rental permit in Orange includes the following requirements:
• Submit a business license application and TOT registration form with your short-term rental permit application1.
• Provide a letter outlining the proposed short-term rental use type and operation4.
• Submit a floor plan of the property4.

It is essential to ensure compliance with the city's regulations, including the 10% transient occupancy tax (TOT)3. The TOT is required to be collected commencing October 1, 2021, and remitted to the City on a monthly basis, regardless of STR permit status1. If an STR booking was made prior to July 1, 2021, with TOT not included in the cost of the rental, it will not be assessed; however, TOT receipts are subject to audit1.

The maximum number of short-term rental permits allowed in Orange is 125, and this cap has been reached4. There is currently a waitlist for new permits2. It is crucial to stay updated on the city's regulations and ensure compliance to avoid fines or penalties.

Required Documents for Orange Short Term Rentals

To obtain a short-term rental permit in Orange, California, you need to submit an application that includes several required documents. The application process includes submitting a business license application and TOT registration form with your short-term rental permit application. You also need to provide a letter outlining the proposed short-term rental use type and operation, and a floor plan of the property. Additionally, you must submit to an initial inspection of the rental by the City, provide information for a local contact person who can respond to complaints within 30 minutes, and provide a diagram of the location of the property and parking (including off-street parking) with your application.

Finally, you must complete an executed indemnification document. A complete list of operating requirements can be found on the City of Orange website13.Once you have received your permit, you must ensure compliance with the city's regulations, including the 10% transient occupancy tax (TOT). The TOT must be paid for each stay, and it is your responsibility to ensure your guests abide by the Orange Municipal Code.

The City of Orange provides a 24/7 contact number neighbors may call to file a complaint. Any noise disturbances or violations can result in fines and possible eviction, as well as fines and revocation of your STR permit and business license23.To start a short-term rental business in Orange, you need to obtain a short-term rental permit and a business license. The permit costs $250, and the business license costs $260. Payment of the City's 10% Transient Occupancy Tax (TOT) must be made for each stay123.If you want to use your property for a short-term rental, you must obtain a permit and a business license.

The permit will only be issued for a property owned by an individual or a personal trust, and priority is given to City of Orange residents and owner-occupied properties. Permits are limited to two properties per owner and are allowed only in zones which allow except mobile home zones. The maximum number of short-term rental permits allowed in Orange is 125, and this cap has been reached.

Orange appears to actively enforce short-term rental regulations. The city monitors listings and issues warnings and citations to noncompliant hosts. However, some hosts note operating short-term rentals in Orange despite the rules. It is essential to stay updated on the city's regulations and ensure compliance to avoid fines or penalties24.

To start a short-term rental business in Orange, you need to follow these steps:

• Research all local short-term rental regulations.
• Obtain a short-term rental permit and a business license.
• Pay the transient occupancy tax.
• Create a listing on a platform like Airbnb or VRBO.
• Implement a Good Neighbor policy4.

In conclusion, Orange, California, has implemented a Short-Term Rental (STR) ordinance, which allows for a limited number of STRs to operate in the city. To start a short-term rental business in Orange, you need to obtain a short-term rental permit and a business license, and ensure compliance with the city's regulations, including the 10% transient occupancy tax (TOT).

The application process includes submitting several required documents, and the city actively enforces short-term rental regulations.

Orange Short Term Rental Taxes

Short-term rental taxes are an essential aspect of operating a short-term rental business in Orange, California. All short-term rentals in Orange must pay a transient occupancy tax (TOT) of 10%12. The TOT is a tax owed to the city by anyone who occupies a room for 30 days or less2. This tax must be paid to the owner or the listing platform on behalf of the City of Orange2. Taxable receipts include, but are not limited to, nightly rents, weekly rents, standard cleaning fees, pet fees, internet charges, and late check-out fees2.

The TOT must be remitted to the city on a monthly basis, regardless of the short-term rental permit status2. If an STR booking was made before July 1, 2021, with TOT not included in the cost of the rental, it will not be assessed; however, TOT receipts are subject to audit2.It is the responsibility of the short-term rental owner to ensure compliance with the city's regulations, including the TOT2. Failure to comply with the TOT regulations can result in fines and revocation of the short-term rental permit and business license2.

California Wide Short Term Rental Rules

In Orange County, California, the regulations for short-term rentals vary by city. As of June 2021, Orange implemented a Short-Term Rental ordinance, allowing only 125 STRs to operate, with a current waitlist for additional operators1. On the other hand, Garden Grove and Irvine have banned all short-term rentals in residential zones, imposing substantial fines and penalties for violations1. Huntington Beach initially allowed short-term rentals, but the policy was reversed, and new permits are not being issued1. In Anaheim, there are 277 permitted short-term rentals, but the city has restrictions on opening new ones1.

These regulations highlight the importance of understanding the specific rules in each city within Orange County. It is crucial for individuals looking to engage in short-term rentals to conduct thorough research and ensure compliance with the local regulations to avoid potential legal consequences.

By being aware of the diverse regulations across Orange County, individuals can make informed decisions about their short-term rental activities and avoid any legal issues that may arise from non-compliance with the specific rules in each city.

Does Orange Strictly Enforce STR Rules?

Orange, California has implemented a Short-Term Rental (STR) ordinance, effective since June 10, 2021, which allows a maximum of 125 STRs to operate in the city. The city has reached this limit and now maintains a waitlist for those who wish to operate a short-term rental. The ordinance requires all STRs to obtain a permit, which expires one year from the date of issuance and must be renewed annually. The permit costs $250, and the business license fee is $260.

The city strictly enforces these regulations, and the permit is non-transferable. Additionally, all short-term rentals must pay a transient occupancy tax (TOT) of 10%. The city's regulations also specify that the permit will only be issued for a property owned by an individual or a personal trust, with priority given to City of Orange residents and owner-occupied properties.

Permits are limited to two properties per owner and are allowed only in zones that allow residential uses, except in mobile home parks. The city provides a 24/7 contact number for neighbors to file complaints about any violations, and it is the responsibility of the permit holder to ensure that their guests abide by the Orange Municipal Code. The city's commitment to working with local officials to ensure compliance with the regulations is evident.

How to Start a Short Term Rental Business in Orange?

To start a short-term rental business in Orange, California, follow these steps:

Research Local Regulations: Understand the specific short-term rental regulations in Orange, including zoning, permit requirements, and tax obligations.

Obtain Permits and Licenses: Acquire a short-term rental permit and a business license. The permit costs $250, and the business license fee is $260. The permit will only be issued for a property owned by an individual or a personal trust, with priority given to City of Orange residents and owner-occupied properties. Permits are limited to two properties per owner and are allowed only in specific zones, excluding mobile home zones3.

• Pay Transient Occupancy Tax (TOT): All short-term rentals in Orange must pay a transient occupancy tax of 10% for each stay3.
• Create Listings on Platforms: Once licensed, create listings on platforms like Airbnb or VRBO.
• Implement Good Neighbor Policy: Adhere to the Good Neighbor policy, ensuring that guests respect the peace and quiet of the neighborhood.

The city actively enforces short-term rental regulations, monitoring listings and issuing warnings and citations to non-compliant hosts2. Operating a short-term rental without the necessary permits and licenses can result in significant consequences, including fines, permit revocation, and potential eviction4.

Who to Contact About Short Term Rental Regulations and Zoning?

Contact the Orange Finance Department at 714-744-2270 or stradmin@cityoforange.org regarding short term rental permits, taxes, and other regulations [1].

What do Airbnb hosts in Orange on Reddit and Bigger Pockets think about local regulations?

Some Airbnb hosts in Orange are operating despite the regulations, while others are aware of the restrictions and are cautious about their listings24. Here are some key points from the search results:

• Some hosts on Reddit and Bigger Pockets forums have reported operating short-term rentals in Orange despite the rules2.
• The city actively enforces short-term rental regulations, monitoring listings and issuing warnings and citations to noncompliant hosts4.
• Some hosts note operating successfully despite restrictions due to lax enforcement4.
• Most advise carefully reviewing local rules before listing a property4.

In conclusion, while Orange has strict regulations for short-term rentals, some hosts are still operating in the city. It is essential for hosts to stay updated on the city's regulations and ensure compliance to avoid fines or penalties.