Orange County officials are considering new regulations on short-term rentals, such as Airbnbs, to address concerns about unpermitted rentals and party houses. Two cities in the county are already reviewing their ordinances, and more may follow suit. The Orange County Grand Jury released a report last month recommending that cities update their short-term rental rules and prepare for the increased demand expected during the 2026 FIFA World Cup and 2028 Olympics.
The Grand Jury’s report highlighted issues with the current system, such as the reliance on the honor system for short-term rental owners to report and pay taxes. It suggested that cities adopt better methods for tax collection to ensure accurate payments. According to Voice of OC, complaints about short-term rentals often involve noise and parking issues, prompting cities like Seal Beach to consider banning rentals near schools.
Fullerton has implemented a temporary moratorium on new short-term rentals to evaluate their impact. Meanwhile, Dana Point is working with a third-party company to identify unpermitted rentals. The OC Register reports that cities with more short-term rentals don’t always have higher complaint volumes, suggesting that effective management strategies can mitigate issues.
The Grand Jury found that while short-term rentals can disrupt neighborhoods, they don’t significantly impact affordable housing. They recommend cities revise ordinances and use digital tools to improve enforcement and tax collection. As Orange County prepares for upcoming international events, balancing the needs of residents and rental operators will be crucial.
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