Laserfiche WebLink
Long-Term Solutions to Short-Term Rentals <br /> SUMMARY <br /> Short-term rental (STR) is defined as occupancy of a residence such as a home or an apartment <br /> for fewer than 30 days. <br /> Some Orange County residents complain that the growth of STRs impinges on their quality of <br /> life and adds costs to city government for additional code enforcement. The 2024-2025 Orange <br /> County Grand Jury (Grand Jury) investigation revealed that: <br /> • Cities with a growing number of STRs did not always receive higher complaint volumes. <br /> • Some cities employ effective strategies to manage complaints and other cities can learn <br /> from their success. <br /> • When cities ban STRs, this often leads to a never-ending game of"whack-a-mole" as <br /> soon as one unpermitted STR is shut down, another opens. <br /> • Code Enforcement(CE) errs on the side of leniency. <br /> • Some cities rarely pursue fines for STR violations or collect the Transient Occupancy <br /> Tax (TOT) on unreported STR income. <br /> • Some cities rely on the "honor system" for STR owners to report and pay the correct <br /> TOT. <br /> • The commonly held belief that STRs negatively impact affordable housing is not evident <br /> in cities with STRs. <br /> This report identifies best practices that city councils and their planning departments can use to <br /> more efficiently and effectively manage their STRs. This includes modifying STR ordinances, <br /> and for some cities, utilizing third-party digital tools for better code enforcement and data <br /> tracking to collect unreported TOT. <br /> BACKGROUND <br /> For many years, Orange County has been an international destination, with its forty-two miles of <br /> scenic coastline, Disneyland, Knotts Berry Farm, Angel Stadium, Honda Center, and other <br /> attractions. Vacation rental properties in Orange County's beach communities go back many <br /> decades; for instance, in the 1920s, Crystal Cove State Park offered camping sites to the public, <br /> and in the 1940s it offered trailers. <br /> For some, STRs are business opportunities. To others, STRs are a nuisance and impinge on <br /> neighbors' quality of life. In response to these conflicting priorities, some cities in Orange <br /> County have banned STRs, some have limited their number, and some have no limits. <br /> 2024-2025 Orange County Grand Jury Page 4 <br />