August 2024 Anaheim.net/STR
Short-Term Rentals
• What: Anaheim’s policy on short-term rentals, or STRs, operating in the city • Adopted: June 19, 2019, effective July 19, 2019
• Policy history: June 2019 decision reversed August 2016 ban and phase-out of STRs, allowing majority of permitted STRs to continue operating in Anaheim • Why: ended drawn-out process between city and STR owners over hardship applications and recouping of STR investment costs
• STRs in Anaheim: 222 active (19 eligible for relocation), as of August 2024 • Key provisions:
o Allows 241 permitted STRs to operate in
Anaheim
o STRs must comply with good neighbor rules or
risk losing permits
o STRs in communities where homeowner associations have banned them are required to close by December 2022
o Permitted STRs closing under homeowner association bans could seek to relocate elsewhere in the city
o Prohibits opening of new STRs (other than relocations as noted above) o 39 STRs opted to shut down by August 2019, leaving 241 permitted STRs in Anaheim
o Permitted STRs that keep operating will continue to pay city transient occupancy tax
• STR rules:
o STR owners and operators must have a local contact who can respond around the clock, within 45 minutes, to reported violations and complaints o STR owners and operators must supply contact information to neighbors o Guests renting an STR in Anaheim must be 21 or older
o Guests must adhere to quiet time from 10 p.m. to 9 a.m.
August 2024 Anaheim.net/STR
Short-Term Rentals
Occupancy: The number of short-term rental guests is limited by the number of rooms at a property
• Violation citations: can be issued to owners, operators and guests without warning
• Violations types: major and minor
o Two major violations within 12 months are grounds to revoke a permit o 10 minor violations within 12 months are grounds to revoke a permit o Owners, operators and renters all subject to fines
• Enforcement: Anaheim Code Enforcement, with support from Anaheim Police where needed
o Code Enforcement Officers work from 8 p.m. to 2 a.m. seven days a week o Officers respond to complaints, work open cases, search online for unpermitted STRs
Bedrooms Occupancy
Studio 2
1 4
2 7
3 9
4 11
5 13
6 15
7 17
8 19
August 2024 Anaheim.net/STR
Short-Term Rentals
Fines:
• Tax: Short-term rentals pay Anaheim’s transient
occupancy tax, equal to 15 percent of their gross
rental revenue
• Annual STR transient-occupancy tax: approximately $5.5 million in 2023.
Owner/
Operator
First
offense
Second
offense
within 12 months
Third
offense
within 12 months
Minor $200 $400 $1,000
Major $1,000 $1,500 $2,500
Guest
Each offense
Minor $200
Major $500
August 2024 Anaheim.net/STR
STR Policy Timeline
February 2013: City Council requests a review to address STR policies for residents and owners
December 2013: A City Council workshop is held on a program framework to ensure compatibility between neighborhoods and STRs, with input from residents and the Anaheim Rental Alliance
May 13, 2014: City Council adopts first STR ordinance requiring owners to register, obtain a permit
Aug. 4, 2015: The City Council hears resident comments on STRs Sept. 15, 2015: The City Council adopts a 45-day moratorium on new STR permits
Feb. 23, 2016: The City Council holds a workshop to hear recommendations to address immediate and long-term concerns about STRs and receive input from the community and owners
June 29, 2016: The City Council holds a special meeting and votes 5-0 to impose tighter regulations and votes 3-2 to ban and phase out STRs over 18 months
July 12, 2016: The City Council by second reading formally adopts:
o Tighter regulations on existing STRs and a ban on new ones o An 18-month phase out period for existing STRs
July 13 to Aug. 12, 2016: Public invited to submit comments on a home sharing pilot program
Aug. 11, 2016: New ordinances take effect banning new STRs and imposing 18-month phase-out of existing ones
August 2024 Anaheim.net/STR
STR Policy Timeline
Nov. 1, 2016: City Council hears a conceptual review of a home sharing pilot program with potential policy consideration at a later date Nov. 9, 2016: Hardship applications available
Jan. 10, 2017:
o Adoption of 45-day extension for filing of hardship applications to allow applicants more time to meet city documentation requirements o Clarification of Code Enforcement property access rules; replaced immediate, unannounced investigatory access with requirement that owners or representatives respond within 45 minutes of a Code Enforcement inquiry April 25, 2017: City Council votes 4-3 to settle owners litigation and adopt hardship changes and minor regulatory updates
June 2017: Hardship applications due
September 2017: Extended hardship application deadline Feb. 11, 2018: Last day to legally operate an STR in Anaheim unless a hardship extension is granted
June 5, 2019: first Council vote updating STR policy, allowing majority of STRs to continue operating
June 19, 2019: final Council vote updating STR policy, allowing majority of STRs to continue operating
July 19, 2019: updated STR policy takes effect