Homes Being Used As A Vacation Rental Are A Growing Trend
With the growing popularity of websites like Airbnb, HomeAway, and VRBO, I’m consulting with more and more Orange County homeowners regarding the myriad of rules and regulations that typically govern short-term vacation rentals. Although, this trend is no surprise as many cities in Orange County, such as, Newport Beach, Dana Point, Huntington Beach, Laguna Beach, Seal Beach, and San Clemente, have laws that deal specifically with short-term vacation rentals.
Therefore, before a homeowner decides to list their property as a short-term vacation rental, they’ll need to determine:
Whether the property qualifies as a short-term vacation rental?
It might be the case that your property does not qualify as a short-term vacation rental. Therefore, before you subject yourself to potential fines, etc., you’ll need to confirm this!
Whether the property needs to be registered with the city?
Even if your property qualifies as a short-term vacation rental, you may need to register your property with the city. Since failing to do this may result in various consequences, this is a critical step.
Whether short-term vacation rentals are permitted by a community’s applicable CC&Rs (assuming that the home is regulated by an HOA)?
And, lastly, even if your home does qualify as a short-term vacation rental and you are able to register it with the city, you’ll need to verify that such rental arrangements are permitted by your CC&Rs (that assumes, of course that you live in a planned community governed by a homeowner’s association).
What muddies these waters even further is that the answers to these questions might change depending on where the property is located as each city will often have its own unique set of rules, regulations, and procedures. Therefore, before you decide to list your home as a short-term vacation rental, you should speak with an Orange County real estate attorney.
After graduating Phi Beta Kappa from Berkeley and attending law school at UCLA, Michael Kushner started practicing law in Orange County. Now, over 15 years later, Mr. Kushner is a top rated real estate attorney in Orange County, a frequent lecturer on a variety of residential and commercial real estate related matters, and one of the most highly regarded attorneys featured on Bill Handel’s (KFI AM 640) handelonthelaw.com.
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