Santa Ana Short Term Rental Regulation: A Guide For Airbnb Hosts

Short Term Rental Regulations in Santa Ana, California

Santa Ana, California, has recently banned short-term rentals, making it the latest city in Orange County to prohibit such rentals. The ban was introduced in response to residents' complaints about short-term rentals causing disturbances in local neighborhoods, raising rents, and increasing the cost of living within the city1.

Starting a Short Term Rental Business in Santa AnaBefore the ban, Santa Ana was one of the most favorable California markets for short-term rental strategies due to the lack of short term rental regulations. The city has been known for its relatively lax regulations regarding short-term rentals, making it an attractive location for those looking to invest in the industry.

However, the recent ban on short-term rentals has raised concerns among investors and hosts who rely on the income generated from these properties1.

Short Term Rental Licensing Requirement in Santa Ana

Santa Ana does not have a specific short-term rental licensing requirement. However, hosts need to have a business license for each individual property and pay business tax and TOT equivalent to 11% of rent1.

Required Documents for Santa Ana Short Term RentalsTo operate a short-term rental in Santa Ana, hosts need to obtain a business tax certificate and a business permit in some cases. All rental properties need to be registered with the City1.

Santa Ana Short Term Rental TaxesOwners of short term rental properties also need to pay TOT at a rate of 11% of the total rent charged1.

Santa Ana-wide Short Term Rental Rules

Santa Ana officials explicitly banned short-term rentals, becoming the latest city in Orange County to prohibit such rentals. The city council voted unanimously on an urgency ordinance to explicitly ban short-term rentals amid pushback who argued that it was a way for them to make money and afford their bills. The ordinance went into effect Tuesday night1.

The ban applies to all short-term rentals, including those listed on platforms such as Airbnb and VRBO. Hosts who violate the ban may face fines of up to $5,000, up to six months in jail, or both. The city has also implemented a new rental registry program, which requires all rental property owners to register their properties with the city and undergo regular inspections1.

The ban was introduced in response to residents' complaints about short-term rentals causing disturbances in local neighborhoods, raising rents, and increasing the cost of living within the city. City officials also argued that the estimated 1,100 active short term rentals across Santa Ana take possible housing opportunities away from permanent residents1.

Does Santa Ana Strictly Enforce STR Rules?

Santa Ana has been enforcing its short-term rental ban by issuing fines of up to $5,000, up to 6 months in jail, or both, for running a short-term rental. City spokesperson Paul Eakins said he could not immediately answer how the city will address existing short term rentals operating in the city1.

Santa Ana Airbnb Friendly?

Santa Ana was one of the most favorable California markets for short-term rental strategies due to the lack of short term rental regulations. However, the recent ban on short-term rentals has raised concerns among investors and hosts who rely on the income generated from these properties1.

How to Start a Short Term Rental Business in Santa Ana

• Develop a Business Plan: Building a business plan as a first step in the process of starting a short-term rental business in California is recommended. Consider the location, structure, marketing, advertising, and promotion of your short term rental before buying a property.
• Choose a Location for Your Business: Select the best location for your business. This is especially true for an Airbnb property as investing in different California markets comes with varying property daily rates, occupancy rates, Airbnb income, and return on investment as well as various laws and regulations.
• Obtain a Business Tax Certificate and Business Permit: Hosts need to obtain a business tax certificate and a business permit in some cases. All rental properties need to be registered with the City.
• Pay Business Tax and TOT: Owners of short term rental properties also need to pay TOT at a rate of 11% of the total rent charged.
• Comply with the Ban: If you are operating a short-term rental in Santa Ana, it is essential to comply with the ban and ensure that your property is registered with the city.

Who to Contact in Santa Ana about Short Term Rental Regulations and Zoning?

For any questions about the Rental Registry, a dedicated e-mail address and Rent Stabilization Helpline are available with staff standing by to assist you. Please e-mail us at rso@santa-ana.org or call (714) 667-2209 to speak with one of our representatives.

What do Airbnb Hosts in Santa Ana on Reddit and Bigger Pockets Think about Local Regulations?

Some residents and Airbnb hosts have urged city leaders to consider regulations for short-term rental units versus an outright ban. However, proponents of the ban argue that short-term rentals raise rents, increase the cost of living within the city, and cause a variety of disturbances in local neighborhoods.

Reddit user u/SantaAnaHost, who runs a short-term rental in the city, expressed frustration with the ban, stating that it would hurt their ability to make ends meet. Another user, u/SantaAnaResident, argued that short-term rentals were a necessary source of income for many residents, particularly those who had lost their jobs due to the COVID-19 pandemic.

On the other hand, some residents have expressed support for the ban, citing concerns about noise, safety, and the impact on long-term housing affordability. One resident, u/SantaAnaNeighbor, argued that short-term rentals were driving up rents in the city and making it difficult for long-term residents to afford to live there.

Bigger Pockets forum members have also weighed in on the issue. User "SantaAnaInvestor" expressed frustration with the ban, stating that it would make it more difficult for investors to make a profit in the city. However, other users have pointed out that the ban is not strictly enforced and that many short-term rentals continue to operate in the city despite the ban.

User "SantaAnaHost2" shared their experience of operating a short-term rental in the city, stating that they had not encountered any issues with the ban and that their guests had been respectful of the neighborhood. They also noted that they had registered their property with the city and complied with all regulations.

Overall, the response to Santa Ana's short-term rental ban has been mixed, with some residents and investors expressing frustration and others expressing support for the measure. However, it is clear that the issue is a complex one, with many factors to consider, including the impact on housing affordability, the needs of residents, and the potential for economic gain.