Short-term rentals in Laguna Beach, explained properly.

The Chapter 25.23 application lists the owner, operator and local contact, the address, availability dates and advertised minimum stay, bedroom count and occupancy, parking, a site and floor plan, acknowledgement of the Good Neighbor brochure, a Fire Department safety inspection, proof of $500,000 liability insurance eligibility, an estimated daily rate, the fee and public notification materials from an independent vendor (Sec. 25.23.030(G)). The Chapter 5.84 license application adds a nuisance response plan, a Transient Occupancy Registration Certificate, a $1,500 surety bond, the fee and a declaration of 200-foot neighbor notice (Sec. 5.84.040(A)). The license administrator is the finance director or a designated City employee (Sec. 5.84.020). The Planning Commission can review a permit after written complaints (Sec. 25.23.040(S)).

Sec. 5.84.050 says all fees in Chapter 5.84, including license and renewal application fees and the fee for amending a nuisance response plan, are set by City Council resolution. Sec. 25.23.030(G)(13) says the use permit application fee is set by City Council resolution, and waives it for home share units. Appeals also carry a fee set by resolution (Sec. 5.84.110). The fee schedule and its effective date haven't been reviewed yet, so no amount is shown.

Sec. 5.84.040(A)(5) requires a written declaration that, at least 30 days before issuance, occupants of all residences and businesses within 200 feet were notified in writing, in a City pre-approved form, of the proposed use and the owner's contact information. Sec. 5.84.080 requires proof that the nuisance response plan was mailed by first class mail to the owner or occupant of every property within a 200-foot radius, both before occupancy and after an amended plan is approved. The owner must also give notice of issuance to anyone who files a written request (Sec. 5.84.040(B)).

Sec. 5.84.040(A)(3) requires a $1,500 bond with the application. Sec. 5.84.120 requires a surety licensed in California with an A.M. Best Financial Strength Rating of at least A-, naming the City as obligee, conditioned on payment of administrative fines assessed against the licensee or any occupant. Sec. 5.84.130 returns the bond within 30 days after the owner gives notice of ceasing the use and the City confirms no enforcement actions are pending.

Sec. 5.84.110: any party may file a written request for a hearing before the city manager or designee within 10 days after the license administrator's decision, with the appeal fee set by City Council resolution. The hearing opens within 45 days of the request, and the city manager decides within 10 days of the hearing. Chapter 25.23 permit revocations follow Sec. 25.05.075, which we haven't reviewed.

Sec. 25.23.040(A). The code includes a table of maximum overnight and daytime occupants by bedroom count. Each license states the maximum number of overnight occupants and vehicles, set under Sec. 25.23.040 (Sec. 5.84.060), and the owner must limit occupancy to that number (Sec. 5.84.100(E)). The lease must state the maximum overnight occupants and day-use visitors (Sec. 5.84.100(G)(1)).

Sec. 25.23.040(B): each newly constructed short-term lodging unit must provide the minimum off-street parking in Sec. 25.52.012(G) for a single-family or two-family, or a multi-family, dwelling. An existing unit that is converted and is already nonconforming on parking may convert if the same number of spaces continues; an existing unit with no off-street parking may convert without adding any. The maximum number of vehicles is the number of on-site spaces. No vehicles of overnight or daytime occupants may be parked on a street serving residential homes. Each license states the maximum vehicles (Sec. 5.84.060), and the lease must say on-street parking is extremely limited in some areas (Sec. 5.84.100(G)(3)).

Sec. 25.23.040(E)-(F): the operator designates the local contact while the unit is rented and gives the City the contact's name, address and telephone number, updating it within 24 hours of a change. Under Sec. 5.84.070(A)(2), the nuisance response plan names the people responsible for responding, no more than three in total and only one for any given hours, days or weeks; a return call to the complainant within 60 minutes counts as prompt. The owner or agent must also call the primary adult occupant within 60 minutes, keep a record of each complaint and response, verify the issue was resolved, escalate if it persists, and notify the City within 48 hours of an incident that needed more than an initial phone call (Sec. 5.84.070(A)(4)).

Sec. 25.23.040(D) covers any radio, musical instrument, loudspeaker, karaoke machine, sound amplifier or other device that produces or reproduces sound. Sec. 25.23.040(C) also requires guests to comply with the Laguna Beach Noise Ordinance, and the lease must say amplified sound is subject to Chapter 7.25 (Sec. 5.84.100(G)(7)).

Sec. 5.84.100(C) requires the primary overnight and daytime occupant to be an adult 18 years of age or older, reachable by telephone at all times. Sec. 25.23.020 defines the responsible person as an occupant at least 21 years of age who is legally responsible for all occupants and guests following the rules, and Sec. 25.23.040(E) refers to the responsible person renting the unit. The two chapters give different ages, so the rule is flagged for review.

Sec. 5.84.100(B) requires the City license number in the form "Laguna Beach License No. __________" in a readable font size. Sec. 25.23.040(I) requires all advertising (print, online and other) to include the City business license number and the Administrative Use Permit or Conditional Use Permit number. Sec. 25.23.040(H) prohibits on-site advertising signs for leasing the unit as a vacation rental.

Sec. 5.84.100(G) lists the terms every lease or rental agreement must include and post inside the unit: maximum overnight occupants and day visitors, maximum vehicles, limited on-street parking, trash day and rules, possible citation or eviction, noise ordinance and loud-party warnings, the name and 24-hour number of the manager or local contact, the Good Neighbor Brochure, that the property is part of the Short-Term Lodging Unit Program, and a copy of the chapter. Sec. 5.84.100(I) requires the nuisance response plan to be posted in a conspicuous place in the property. Sec. 25.23.040(L) requires the permit resolution to be displayed near the main entrance and the permit conditions to be posted on the exterior in plain view, on 8.5 x 11 inch paper in plastic with print no smaller than 12 point.

Sec. 5.84.100(D): the owner must get the primary adult occupant's name, address and driver's license number or a copy of the passport before occupancy and have that adult sign an acknowledgement of legal responsibility for compliance by all occupants and guests; the responsible party named in the nuisance response plan provides it on request of a police officer or authorized City employee. Sec. 25.23.040(O): the owner or operator keeps records of dates of stay, rent paid and similar use and occupancy and provides them to the Director of Finance when the quarterly transient occupancy tax is paid. The owner must also give the license administrator written annual confirmation of compliance with the performance standards and nuisance response plan (Sec. 5.84.100(J)).

Sec. 25.23.040(G): refuse may be stored in public view only in proper containers for collection by the City's authorized waste hauler on scheduled collection days. The operator must use reasonable prudent business practices to comply with Chapter 7.16 (Solid Waste Collection and Disposal) and provide an appropriate number and type of receptacles. The lease must state the trash pick-up day and rules (Sec. 5.84.100(G)(4)).

Sec. 25.23.040(J) prohibits commercial activities and events such as weddings, receptions and large parties. Sec. 25.23.040(K): three or more confirmed violations of large or unruly gatherings result in an automatic hearing for revocation of the use permit. Sec. 5.84.100(G)(8) requires the lease to prohibit illegal loud parties and to notify the guest of the City's right to recover special enforcement costs.

Sec. 5.84.140 requires a facilitator to hold a City business license if Chapter 5.08 requires one, to provide a mandatory field for the license number (no longer than 15 characters) and show it on the listing, and to tell owners that a unit is legal only with a Chapter 5.84 license, a City business license and a use permit. On written request it must disclose each listing, license, host and listing ID, responsible persons, address, stay dates and lengths and price paid. A platform that collects rent and taxes must collect and at least quarterly remit transient occupancy tax, and the Laguna Beach Tourism Marketing District assessment if it is renewed and applies. If the City gives notice of a listing without a valid license, the platform must remove it within 14 business days. Sec. 25.23.070 also says a platform may not complete a booking for a unit not on the City's registry of approved short-term lodging units when it receives its fee. The state facilitator act described above applies in a city that adopts it by ordinance.

Sec. 25.23.040(N) requires the certificate before renting and payment of the transient occupancy tax as Chapter 5.05 requires, and a quarterly return from every permit holder whether or not the unit was rented or tax was collected. Sec. 5.84.160 adds a quarterly report of the tax collected and, if not collected through a platform, the Laguna Beach Tourism Marketing District assessment for each rented night, remitted with the tax. The tax rate and the district assessment rate are in sources we haven't reviewed yet, so no rate or combined total is shown.

Sec. 5.84.150(B) lets the City issue an administrative citation under Chapter 1.15 to the owner, occupant, hosting platform or operator for each day of a violation of Chapter 5.84, at $1,000 for the first, $3,000 for a second within 12 months and $5,000 for a third or later within 12 months, which may also trigger suspension or revocation. Sec. 5.84.150(A) makes a violation of Chapter 5.84 a misdemeanor and lists renting or advertising without a license or license number among the violations. An owner who rented without a valid license owes back transient occupancy tax and district assessments plus the fines (Sec. 5.84.150(C)). Sec. 25.23.080(C): administrative citations to the owner, hosting platform or operator at $1,000 per violation for each day; Sec. 25.23.080(D): a violation is a misdemeanor and each day is a separate offense; Sec. 25.23.080(G): advertising a short-term rental without an approved permit is a violation.

Sec. 5.84.090(C): a license may be suspended, modified or revoked for a violation of Chapter 5.84, of any other law on the premises, or for another condition injurious to public health and safety, with proceedings started by the city manager or city attorney and heard under Sec. 5.84.110. Sec. 5.84.090(B)(3): a license is denied if one issued to the owner or for the property was suspended or revoked in the prior three years. Sec. 5.84.150(E) and Sec. 25.23.080(F): after revocation the owner waits at least three years before applying for a new license or permit, and the Chapter 5.84 wait applies to any property the owner has in the city. Sec. 25.23.080(A)-(B): the Director of Community Development may add conditions after a violation and start revocation after a second violation. The Planning Commission may hold a hearing after written complaints (Sec. 25.23.040(S)).

Sec. 25.23.090 refers to LCP amendment No. LCP-5-LGB-19-0074-1. The report covers new housing and hotel units added (including lower and higher cost hotels and affordable and higher cost housing), the total dwelling units in the permitted districts and the number of short-term lodging permits issued, and the housing types and locations of the permits issued, including home share units. If the report identifies evidence that short-term lodging is contributing to a loss of lower cost hotel room stock or affordable housing stock, the City must submit an amendment to the short-term lodging ordinance or other parts of its Local Coastal Program. We haven't reviewed whether or when the report was filed. See also the California coastal zone rule inherited from the state layer.

California Revenue and Taxation Code section 7280 lets the legislative body of any city, county, or city and county levy a tax on the privilege of occupying a room or other living space in a hotel, inn, tourist home or house, motel or other lodging, unless the stay is longer than 30 days. A county's tax applies only in its unincorporated areas. The rate, registration and filing rules are set by each city or county, so the local tax is shown in the city's own section of this page.

Government Code sections 50990 to 50996 (Senate Bill 346, 2025) apply only in a city or county that adopts an ordinance making them apply. Where they apply, a booking platform must, on the local agency's request, report the physical address with nine-digit ZIP code of each short-term rental it facilitated (no more often than every 3 months, or monthly if the local tax is remitted monthly), and must include in each listing any applicable local license number and any transient occupancy tax certification issued by the local agency. The local agency may fine a platform that does not report. The act does not stop a city or county from regulating short-term rentals, platforms or tax collection in other ways.

Government Code section 66333(g) requires a city's junior accessory dwelling unit ordinance to require that a rental of a junior ADU be for a term longer than 30 days (as amended by Assembly Bill 1154, in force January 1, 2026). Section 66323(e) requires a city to require that a rental of an ADU created under that section (the ministerial, by-right approvals) be for a term longer than 30 days. For other ADUs on a lot with a single-family home, section 66315 bars standards beyond section 66314, including owner occupancy, except that a city may require that the property be used for rentals of terms 30 days or longer. Cities can be stricter in their own codes; see the city section.

Civil Code section 4741 says an owner in a common interest development is not subject to a governing-document provision that prohibits, has the effect of prohibiting, or unreasonably restricts renting or leasing a separate interest, ADU or junior ADU, and an association may not cap rentals below 25 percent of the separate interests. The same section says it does not prohibit an association from adopting and enforcing a provision that prohibits transient or short-term rental of a separate property interest for 30 days or less. Check your association's governing documents.

Civil Code section 1940 applies the chapter on hiring of real property (Civil Code sections 1940 to 1954.071) to tenants, lessees, boarders, lodgers and others who hire dwelling units, but excludes a person in transient occupancy in a hotel, motel, residence club or other facility when the stay is or would be subject to a transient occupancy tax under Revenue and Taxation Code section 7280 (stays of 30 days or less). Stays longer than that are not covered by this exclusion.

In a December 6, 2016 letter to coastal cities and counties, the California Coastal Commission said that regulating short-term or vacation rentals in the coastal zone must happen within the local coastal program or under a coastal development permit, because it changes the intensity of use and access to the shoreline and so counts as development under the Coastal Act. The Commission said it does not believe outright bans adopted outside that process are legally enforceable in the coastal zone, that it has not historically supported blanket bans, and that it has supported limits such as caps on numbers by area, limits on days, occupancy limits, 24-hour response, parking, noise and signage rules and payment of transient occupancy tax. This applies only to places inside the coastal zone.