🎯 STRisker: Bulletin - Orange County, CA

STRs Under the Microscope: OC Cities Reassess Rules Before Global Events Hit


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https://www.ocgov.com/

STRs Under the Microscope: OC Cities Reassess Rules Before Global Events Hit

OC City bayside residences. Image from iStock

Orange County cities are once again tightening the screws on short-term rentals, and with good reason: the 2026 FIFA World Cup and 2028 Olympics are around the corner. Local officials want to be ready for the flood of tourists—and problems—they could bring.

In the spotlight this month are Seal Beach and Fullerton, both taking action to deal with mounting concerns over unpermitted listings, rowdy guests, and neighborhood disruptions.

Seal Beach is currently exploring stricter controls on where STRs can be advertised and hosted—especially near schools. Prompted by resident fears that STRs might attract inappropriate or even dangerous guests, city council members have asked staff to research how other cities have managed school-zone restrictions. The idea: keep families safe while still allowing responsible hosts to operate.

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At the same May 27 meeting, councilmembers like Joe Kalmick and Nathan Steele debated how to deal with the STR divide. Kalmick emphasized law enforcement involvement to track repeat offenders, while Steele—himself an STR host—pushed for a more balanced view, praising STRs that uplift property values and foster tourism.

Meanwhile, Fullerton has hit the pause button—approving a 45-day moratorium on new short-term rentals. With nearly 200 unpermitted units operating under the radar, officials say it’s time to reevaluate the city’s existing ordinance and figure out how to bring order to the chaos.

Adding momentum to these moves is a new report from the Orange County Grand Jury which recommends all cities revisit their STR rules. Their findings point to weak tax collection systems and limited enforcement, especially when cities rely on hosts to voluntarily report earnings. The Grand Jury is calling for stronger oversight and better planning ahead of major global events that will send demand skyrocketing.

Read full report here

As the STR landscape in Orange County evolves, cities are realizing it’s not about banning rentals entirely. It’s about being smart, fair, and prepared. Whether that means tweaking zoning, stepping up enforcement, or rewriting tax rules, one thing is clear: local governments are no longer willing to let short-term rentals run unchecked.

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Stay updated and informed, visit the county's official website at https://www.cityoforange.org/

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