AIRBNB & SHORT-TERM RENTAL RULES

Orange

,
California

Can you run an Airbnb or do rental arbitrage here? What the city requires: permits, taxes, safety rules and enforcement.

Updated
Oct 6, 2026
||
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ARBITRAGE VERDICT

Red light: the 125-permit cap is full and applications are closed

The City of Orange limits short-term rental permits to 125, and its page says that number has been reached and the application process is closed.[1] Only an individual or a personal trust that owns the property can hold a permit, and a permit can't be transferred.[1, 2] The city keeps a waiting list by email.[1]

Our verdict, based on the sources at the end of this guide.

AT A GLANCE
Non-owner-occupied
Allowed
Only for owners, and the city has stopped taking applications[1]
Who holds the permit
The owner
An individual or personal trust, never an LLC or corporation[2]
City permit
$491 a year
Plus a business license, $245 at renewal[3]
Permit cap
125, and it is full
The city says the maximum has been reached and applications are closed[1]
Lodging taxes
10%
City transient occupancy tax on the rent[4]
Stays of 30+ days
No permit
The code covers rentals of fewer than 30 consecutive calendar days[2]

Orange limits short-term rental permits to 125, and the city says that limit has been reached and applications are closed.[1] The permit goes only to an individual or a personal trust that owns the property, and it can't be transferred.[1, 2] Rentals are allowed only in zones that allow homes, and every booking needs a two-night minimum.[2] Owners can join the waiting list by email.[1]

01

Key requirements

Permit cap

The maximum number of active permits is set by City Council resolution, and permits are issued first come, first served with priority set by the Council.[2] The city's page says the maximum is 125, that number has been reached and the application process is closed.[1] Owners can join the waiting list by email.[1]

Who can hold a permit

A permit is issued only for a property owned by an individual or a personal trust, never to a corporation, a limited liability company or any business trust.[2] One individual or trust can hold no more than two permits.[2] The permit is personal to the owner on the application and doesn't run with the land, and the city says it can't be transferred.[1, 2]

If you operate for an owner

The code defines a short term rental as a rental by the owner, so the owner is the one who must hold the permit.[2] The owner must give each adult occupant the name and phone number of a property manager who can physically respond within 30 minutes, and that can be the owner or another responsible person.[2] California's real estate law covers anyone who, for pay, rents or offers to rent property for another or collects its rents, so managing a rental for an owner for pay may need a state real estate license.[5]

Zones and spacing

Rentals are allowed only in zones that allow residential uses under Table 17.13.030, and the city's criteria exclude mobile home zones.[2, 6] No permitted rental can be within 300 feet of another, measured from the closest property line by linear block frontage.[2] Existing rentals that keep a continuous permit, and room or accessory-structure rentals at owner-occupied homes, are exempt from that spacing rule.[2]

Fees and renewal

The city lists a $491 permit and a $283 business license, which includes a non-refundable $83 application fee.[1, 7] A permit expires one year after it's issued, and renewal costs $491 for the permit and $245 for the business license, plus proof of Good Neighbor Policy notice and a location diagram.[2, 3]

02

Operational and safety standards

Stays and occupancy

Every booking needs a stay of at least two nights.[2] Occupancy is two persons per bedroom plus two more, and children under two don't count.[2]

Property manager

Give each adult occupant the name and phone number of a property manager who can physically respond within 30 minutes.[2] The city also runs a 24/7 hotline for complaints.[1]

Good neighbor policy

Notify each adjacent and facing property owner and each adult resident there, and give them the rules and the current manager contact information.[2] Every occupant over 14 must receive and sign the city's list of rules, and a copy must be posted in the unit.[2]

Parking and quiet time

Required off-street parking follows the city's residential parking table, and occupants' vehicles can park only in an approved driveway or garage.[2] Quiet time is 10 p.m. to 9 a.m.[2]

Insurance and inspections

The owner must carry at least $1,000,000 in general aggregate liability insurance, or show that bookings run solely through a platform with equal or greater coverage.[2] The city can run random inspections, including before a permit is issued or renewed.[2]

03

Tax obligations

City transient occupancy tax

The city charges a transient occupancy tax of 10% of the rent, and its definition of hotel includes a short-term rental.[4] Every short term rental occupancy must pay it.[2]

Filing and late penalties

The tax code has operators file returns quarterly, or on a shorter period the Tax Administrator sets.[4] The city's owners page says to remit monthly by the last day of the following month, with a 10% penalty plus 0.5% interest per month if late.[3] The city won't renew a permit or business license while tax is unreported or unpaid.[3]

Stays of 30 days or more

A guest is a transient until 30 days have passed, unless the operator and guest have a written agreement for a longer stay.[4] The permit rules cover only rentals of fewer than 30 consecutive calendar days.[2]

Ballot measure

A measure on the Nov 3, 2026 ballot would raise the city's rate from 10% to 14% for hotels with 11 or more accommodations and apply the tax to online and other travel companies.[8] The proposed text keeps 10% for hotels with 10 accommodations or fewer.[8] It's only a proposal, and it passes only with a majority of the votes cast.[8]

04

Enforcement

Minor and major offenses

Minor offenses include a manager response of 30 to 60 minutes, exceeding occupancy by up to two persons and failing to resolve a quiet-time noise complaint within 30 minutes.[2] Major offenses include a manager response of 60 minutes or more, exceeding occupancy by more than two persons, a rental of fewer than two nights and breaking the Good Neighbor Policy.[2]

Fines

The code leaves fine amounts to City Council resolution.[2] The master fee schedule effective June 1, 2026 sets minor fines at $250, $500 and $1,000 for the first, second and third or later offense in 12 months, and major fines at $1,000 and $1,500 for the first and second.[7]

Revocation

A major offense on the third or later violation in 12 months at the same property means the permit is revoked.[2] The owner can ask for a meeting with the City Manager within 30 days of the notice, and the decision is final and can't be appealed.[2] A revoked owner can't apply for another permit for 12 months, and the same property is ineligible for 12 months.[2]

Running without a permit

No one may run a short term rental business without a permit, and any violation of the chapter is a public nuisance the city can abate.[2] Neighbors can report a suspected illegal rental by email or through the city's 24/7 hotline.[1]

Booking platforms

Platforms must require the city business license number in every listing and report the number of Orange listings and rented nights each quarter.[2] A platform that stays in violation after notice owes $200 a day per listing for the first 10 days and $500 a day after that.[2]

Bottom line for arbitrage

Not STR Friendly
|Our take

Skip Orange for now. The permit cap is full, and only the owner can hold a permit.

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        Sources

        The bracketed numbers in this guide point here. All sources checked
        Oct 6, 2026
        .
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        General information, not legal advice. Rules change often, so confirm with the city before you sign a lease.
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        More guides in this state

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        Not STR Friendly
        Short Term Rentals | City of Orange Finance Department | https://www.cityoforange.org/our-city/departments/finance/short-term-rentals Orange Municipal Code Chapter 5.94, Short Term Rental Businesses | City of Orange (eCode360) | https://ecode360.com/43561061 Short Term Rentals Owners Portal | City of Orange Finance Department | https://www.cityoforange.org/our-city/departments/finance/short-term-rentals/short-term-rentals-owners-portal Orange Municipal Code Chapter 5.16, Uniform Transient Occupancy Tax | City of Orange (eCode360) | https://ecode360.com/43558898 Real Estate Law, as amended and in effect January 1, 2026 (Business and Professions Code 10131) | California Department of Real Estate | https://www.dre.ca.gov/files/pdf/relaw/relaw.pdf Criteria for Short Term Rentals | City of Orange | https://www.cityoforange.org/home/showpublisheddocument/2552/637774998395370000 Master Fee Schedule, effective June 1, 2026 | City of Orange | https://www.cityoforange.org/home/showpublisheddocument/6745/639177227327235462 Resolution No. 11705, amending the November 3, 2026 transient occupancy tax measure | City of Orange | https://www.cityoforange.org/home/showpublisheddocument/6813/639179128521619285
        Rentals are allowed in zones that allow residential uses[2] The property manager can be someone other than the owner[2] The city runs a waiting list by email for the next opening[1] The city tax is 10% of the rent[4]
        The 125-permit cap is full and applications are closed[1] Only an individual or personal trust that owns the property can hold a permit[2] Permits can't be transferred and don't run with the land[1, 2] A major offense on the third or later violation in 12 months revokes the permit, with a 12-month wait to reapply[2]
        Ask your landlord whether the property already holds a current city permit, since new applications are closed.[1] If it doesn't, the owner can join the waiting list by email.[1] Get the owner's written agreement to stay on the permit and to name you as the property manager who can reach the unit within 30 minutes.[2] Budget $491 for the permit, a business license, $1,000,000 in liability coverage and 10% tax.[1, 2, 4]
        Oct 6, 2026
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