In the City of Newport Beach, short term rentals are the rental of a dwelling unit for a period of 30 days or less. The short term rentals sector in Newport Beach has grown significantly in recent years due to the increased usage of online hosting platforms like Airbnb, Homeaway, VRBO, and others. The following is a complete guideline for Newport Beach’s short term rental regulations so that anyone can be a responsible host. This rundown should give you a good start in understanding your local laws.
Short Term Rental Operating Licenses
Short term rentals are permitted in Newport Beach but restricted to particular residential areas. To operate an STR, property owners must acquire a Business License and a Short Term Lodging Permit from the City. Property owners can apply for a Business License online. However, they must download and mail in the Short Term Lodging Permit. This Lodging Permit takes around 15 business days to process.
Each Short Term Lodging Permit contains a set of short term rental regulations that property owners or agents must follow. Moreover, a permit can also be conditioned to address any problems or concerns specific to the property.
Homeowners Association (HOA) Rules
Your property may be permitted under the City’s Short Term Lodging Ordinance, but your HOA (Homeowners Association) may prohibit it. Before advertising or applying for permits and licenses, the owner’s responsibility as a member of the association is to check their CC&Rs. They must then follow up with the HOA. If the owner’s HOA does not allow short term rentals, the City will not issue refunds on any permits or licenses.
Zoning Ordinance
Any owner or agent that wishes to rent a residential property is allowed to operate in the following residential zones:
- R-1.5
- R-2
- RM Zone
Please note that short term rentals are prohibited in all R-1 Zones.
The City has an Interactive Map Dashboard and addresses search to see if owners or agents can use property within Newport Beach for short term rentals by entering its address. Property owners can filter the map by Council District, Neighborhood, or Permitted Number of Occupants.
Transient Occupancy Tax (TOT)
Transient Occupancy Tax is tax owing to the City of Newport Beach by all short term lodging permit holders. The Transient Occupancy Tax is equal to 10% of the total lease amount. You can learn more about Transient Occupancy Taxes Here.
Other Regulations
As a responsible host, you must comprehend and abide by other vacation rental rules and regulations that bind you. These include leases, community rules, HOA rules, or other guidelines. Feel free to reach out to your landlord, housing authority, or community council to find out more. To get more information about other regulations, you can also visit Newport Beach’s official website or contact us.