Orange County reevaluates STR regulation policy

US: Officials in Orange County, California, are evaluating changes to regulations governing short-term rentals to curb unpermitted STRs and “party houses” in the region.

A report from the OC Grand Jury last month recommended that county officials reassess and update their STR ordinances. This includes preparing for the 2026 FIFA World Cup and the 2028 Olympics, which could bring an influx of visitors to the area.

The Grand Jury highlighted that STR owners currently report and pay their bed tax on the honour system, suggesting that cities adopt more stringent tax collection practices.

Across the country, local governments have been tightening STR regulations in response to complaints from residents about noisy guests, parking issues, and overflowing trash cans. Some cities are now placing limits on the number of STRs allowed, which has raised concerns among homeowners who depend on the extra income from platforms like Airbnb and Vrbo.

Nathan Steele, a Seal Beach City Council member who operates an STR in Long Beach, expressed his position: “We don’t want parties. We don’t want our neighbours upset with us, but we want to open our homes to visitors.”

In Fullerton, city officials have enacted a 45-day moratorium on STRs, following reports of nearly 200 unpermitted properties. The city will evaluate the impact of vacation rentals and consider changes to its STR regulations.

Mayor Fred Jung stated, “This is a scenario that requires action on our part to reexamine where our vulnerabilities are as a city and ramp up to maintain our quality of life.”

Fullerton council member Nicholas Dunlap argued that a more permanent solution is needed beyond the moratorium.

Meanwhile, Dana Point officials have begun issuing permits for select STRs and have contracted a third-party service to help identify unauthorised operators.

The Orange County Grand Jury’s report revealed that 19 cities in the county have banned STRs, while 15 cities allow them. The report also highlighted challenges in enforcing STR regulations, with complaints sometimes going unaddressed for up to a week and leniency shown by code enforcement officers.

Some communities, like Seal Beach, are raising concerns about short-term rentals being located near schools. In some cases, STR owners have listed proximity to schools as an amenity, which could pose safety risks.  To address this, the Seal Beach City Council is considering creating buffer zones to keep STRs a safe distance from schools and protect children’s safety.

Highlights:

• As short-term rental regulations grow stricter, cities like Orange County are reassessing their rules to tackle unpermitted listings and party houses.
• A recent report from the Orange County Grand Jury highlights the need for stronger tax collection practices for STRs. This could prompt more cities to enforce stricter tax policies.