Mission Viejo Short Term Rental Regulation: A Guide For Airbnb Hosts

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

Are you considering investing in a property for short-term rental purposes in Mission Viejo, California? It's essential to be well-informed about the specific regulations and restrictions that apply to short-term rentals in this area. Mission Viejo, located in Orange County, is a popular tourist destination, making it an attractive location for those interested in venturing into the short-term rental market.

Starting a Short Term Rental Business in Mission Viejo

If you are considering starting a short-term rental business in Mission Viejo, there are a few things you need to know. First, the city of Mission Viejo does not have an ordinance regarding short-term rentals2. However, hosts are required to register with the city and obtain a permit3. The permit costs $250, and a business license is also required, which costs $2601.Before you start your short-term rental business, it is important to check if your property is eligible for short-term rentals. You should also check the city ordinance to make sure you won't be in violation of the law. On top of that, if you belong to an HOA, check with your association manager to make sure you aren't violating a community policy3.

Managing an Airbnb in Mission Viejo can be challenging for hosts who live out of town or have other commitments. A professional Airbnb management company can help with tasks such as guest communication, cleaning, and maintenance4. They can also provide guidance on pricing, marketing, and local regulations.

Short Term Rental Licensing Requirement in Mission Viejo

In Mission Viejo, California, individuals interested in operating short-term rentals, such as Airbnb or VRBO, are required to adhere to specific licensing regulations. The city council has updated its transient occupancy tax to include short-term rentals, necessitating hosts to collect and remit the lodging tax, similar to hotels and other lodging facilities2. This update aims to ensure that short-term rental properties have the same responsibilities for tax collection and remittance as hotels2. Additionally, property owners are required to obtain a short-term rental permit, which needs to be renewed every two years5. The permit application process involves submitting various documentation, including a letter outlining the proposed short-term rental use, a floor plan of the residence, a blank lease agreement, and proof of ownership5.

This regulatory framework is part of the city's efforts to address the growing popularity of short-term rentals and to ensure compliance with tax requirements. By extending the lodging tax to short-term rentals and implementing permit requirements, Mission Viejo aims to regulate this type of accommodation and maintain a level playing field with traditional lodging providers.

These regulations are in line with the broader trend of cities across Orange County, including Aliso Viejo, Anaheim, Laguna Beach, Newport Beach, and Irvine, taking a closer look at short-term rentals and implementing measures to govern their operation4. Therefore, individuals considering engaging in short-term rentals in Mission Viejo should be mindful of these requirements and seek legal counsel to ensure full compliance with the city's ordinances and tax regulations4.

Required Documents for Mission Viejo Short Term Rentals

If you are planning to rent out your property or part of your property as a short-term rental in Mission Viejo, you are required to register with the city and obtain a permit3. The city of Mission Viejo does not have an ordinance regarding short-term rentals2. However, hosts are required to collect a Transient Occupancy Tax (TOT) from each guest, which is eight percent (8%) of the rent charged5. The TOT is a lodging tax that is collected from hotels and other lodging facilities and is put toward the city's general revenue1.

The city council recently updated its transient occupancy tax to ensure that short-term rental properties have the same responsibilities for collection and remittance of the tax to Mission Viejo as hotels1. The ordinance was updated to add "online travel company" and "short-term rental unit" to ensure these parties are responsible for collecting the lodging tax1. The renovated ordinance defines short-term rental units as temporary lodging in hotels, motels, and residential units for less than 30 consecutive calendar days1.

It is important to note that not all short-term rental owners are paying the TOT2. According to Cheryl Dyas, director of administrative services, there are about 150 short-term rentals in Mission Viejo, but the city only collected $5,700 in taxes last year from these facilities2.

To summarize, the required documents for short-term rentals in Mission Viejo include a permit from the city and the collection of the Transient Occupancy Tax (TOT) from each guest.

Mission Viejo Short Term Rental Taxes

As of January 2024, Mission Viejo has clarified that short-term rentals, including those listed on platforms like Airbnb and VRBO, are required to collect a lodging tax. This tax, known as the transient occupancy tax (TOT), is a contribution to the city's general revenue and has always been enforced on hotels. The recent update to the ordinance aims to close loopholes and explicitly includes short-term rentals in the tax requirement1.

The city's code now defines short-term rental units as temporary lodging in hotels, motels, and residential units for less than 30 consecutive calendar days. The city attorney emphasized that this update does not change the existing tax rate but rather modernizes the language used in the ordinance1.

Despite the requirement, not all short-term rental owners are compliant. The city reported that out of approximately 150 short-term rentals in Mission Viejo, only a small number actively pay the TOT2. Operators and facilitators of short-term rentals are mandated to collect the TOT, which amounts to eight percent of the rent charged4.

In summary, Mission Viejo's recent clarification and update to its ordinance make it clear that short-term rentals are subject to the same lodging tax responsibilities as hotels. The city is taking steps to ensure compliance and equitable tax treatment across all lodging facilities, aiming to boost tax revenue for its general fund2.

Mission Viejo wide Short Term Rental Rules

In Mission Viejo, California, the regulations regarding short-term rentals have been clarified to ensure that hosts are aware of their responsibilities. The City Council updated its transient occupancy tax to include short-term rentals, requiring them to collect and remit the lodging tax, which contributes to the city's general revenue1. This update was made to close any existing loopholes and ensure that short-term rental properties are held to the same standards as hotels in terms of tax collection and remittance1.

The ordinance now specifically references short-term rentals and online travel companies, making it clear that they are responsible for collecting the lodging tax1. The definition of short-term rental units has been expanded to include temporary lodging in residential units for less than 30 consecutive calendar days1. Despite these regulations, it has been noted that not all short-term rental owners are consistently paying the required taxes2.

The city of Mission Viejo does not have a specific ordinance regarding short-term rentals3. However, it is evident that the city is taking steps to ensure that short-term rentals are included in the tax framework to prevent any potential revenue loss.

In summary, Mission Viejo has extended its lodging tax regulations to encompass short-term rentals, emphasizing the equal responsibility of short-term rental properties and hotels in collecting and remitting the lodging tax. This move aims to ensure fairness and consistency in tax compliance across different lodging facilities within the city.

Does Mission Viejo strictly enforce STR rules?” Is Mission Viejo Airbnb friendly?

Short-term rentals (STRs) like Airbnb and VRBO are becoming increasingly popular in Mission Viejo, California. However, the city does not have an ordinance regarding short-term rentals2. Despite this, hosts are required to register with the city and obtain a permit3. The city also requires hosts to collect lodging taxes, which are subject to the same rate as hotels1.

Mission Viejo officials have clarified that short-term rentals must pay lodging taxes, too1. The city council updated its transient occupancy tax to ensure that short-term rental properties have the same responsibilities for collection and remittance of the tax to Mission Viejo as hotels1. The city also updated its code to reflect that short-term rentals are also subject to the same hotel taxes2.

Although Mission Viejo is not known to be strict in enforcing STR rules4, hosts are still required to register with the city and obtain a permit3. According to Bigger Pockets and Reddit responses, hosts operate in Mission Viejo despite the rules5.

To start a short-term rental business in Mission Viejo, hosts must check if their property is eligible for short-term rentals, register with the city and obtain a permit, adhere to all city regulations and requirements, and collect and pay lodging taxes3.

How to Start a Short Term Rental Business in Mission Viejo

To start a short-term rental business in Mission Viejo, California, there are several key steps to follow. First, it is essential to register with the city and obtain a permit. The city of Mission Viejo requires hosts to register their short-term rentals and obtain a permit to ensure compliance with local regulations3. Additionally, hosts are required to pay Transient Occupancy Tax (TOT) and are responsible for collecting and remitting this tax to the city14. The city is actively updating its code to reflect the evolving landscape of short-term rentals, and it is important for hosts to stay informed about any changes in the regulations1.

Furthermore, it is crucial to adhere to the city's rules and regulations regarding occupancy limits, parking, and noise levels5. Given the increase in tourism during certain seasons, such as the holiday season and the peak season from May to September, hosts should also be prepared to manage their properties effectively during these periods5.

In summary, to start a short-term rental business in Mission Viejo, hosts should focus on the following steps:

• Register with the city and obtain a permit.
• Understand and comply with the city's Transient Occupancy Tax (TOT) requirements.
• Stay informed about any updates or changes in the city's regulations.
• Adhere to the rules regarding occupancy limits, parking, and noise levels.
• Prepare for increased tourism during peak seasons and consider seeking professional management assistance, especially if the host lives out of town5.

Who to contact in Mission Viejo about Short Term Rental Regulations and Zoning?

To ensure compliance with short-term rental regulations and zoning in Mission Viejo, California, it is essential to contact the city's Planning and Building Department. They can provide detailed information on the specific requirements and regulations for short-term rentals. You can reach the Planning and Building Department at (949) 470-3053 or via email at planning@cityofmissionviejo.org.

Additionally, visiting the city's official website and contacting city staff directly can provide further insights and guidance on the necessary steps to operate a short-term rental property within the legal framework. It is important to proactively seek this information to avoid any potential violations and ensure a smooth and lawful operation of your short-term rental property in Mission Viejo.

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

Mission Viejo, California has specific short-term rental regulations that require hosts to register with the city and obtain a permit. The city also has rules in place regarding occupancy limits, parking, and noise levels. Managing an Airbnb in Mission Viejo can be challenging for hosts who live out of town or have multiple properties. However, the city's attractive location in the Saddleback and the increase in tourism during the holiday season make it an appealing destination for Airbnb's. The peak season for Airbnb stays and tourism in Mission Viejo is from May to September, when visitors come to enjoy the warm weather and outdoor activities. Despite the challenges, hosts operate in Mission Viejo, and the most sought-after amenities in the area include access to outdoor activities like hiking, as well as amenities like a pool or outdoor seating area. Location-wise, visitors prefer properties that are near shopping centers and local attractions like the Irvine Spectrum Center.

For hosts looking to navigate the local regulations, professional Airbnb management companies can provide guidance on pricing, marketing, and local regulations, as well as help with tasks such as guest communication, cleaning, and maintenance. These companies offer a suite of technology dedicated to providing the best service, with no cancellation fees or contract lock-in.

In summary, while there are challenges in managing short-term rentals in Mission Viejo, the city's appeal as a tourist destination and the assistance available from professional management companies make it a viable location for Airbnb hosts.