Orange City Council to restrict short-term rentals

The Orange City Council passed a first reading of an ordinance restricting the number of short-term rentals in the city, as well as increasing the cost of their operation through permit fees and potential fines. DANIEL PEARSON, Staff Photographer

Christina Argento, a 25-year Orange resident, hosted a Chapman University alumnus in her guest house for almost five years. She said the student left her family with more than $6,000 worth of damages to the one-bedroom rental.

“He never went to school, did not have a job, smoked pot all day and barely left the house,” Argento told The Panther. “In the end, we were just glad he was gone and fixed the house ourselves.” 

In order to gain a greater sense of control over the guest house, Argento — who lives on the same property — is in the middle of converting the long-term rental to a short-term rental, like those featured on Airbnb.

However, the Orange City Council passed a first reading April 13 to tighten restrictions on short-term rentals — defined as less than 30 days — making it more difficult for people like Argento to lease an extra property without being tethered to a contract for long periods of time. A second reading will be held at a future city council meeting, where the district chairs will cast a final vote to determine whether to impose short-term rental limitations.

The staff report outlines restrictions for short-term rentals, including a maximum of 125 properties in the city — with a priority for locally owned properties. Other changes include requiring a permit and business license to operate, potential fines for major and minor violations, occupancy restrictions, quiet hours and parking requirements.

Laura Espinoza, an Orange resident who lives next to an Airbnb, gave a public comment at the April 13 meeting, where she teared up in front of the council members pleading for help. She said she’s experienced huge issues living next door to a short-term rental, mentioning the owner has been no help with noise, partying and alleged drug use.

“I want my home back,” Espinoza said at the meeting. “I want to be able to have my grandchildren come and not worry about them smelling the drugs. It’s bad.” 

The ordinance violation fines range from $250 to $1000 — the most severe punishment being revocation of the short-term rental permit. Additionally, the property managers must be available to respond to any issues within 30 minutes of a complaint. However, Orange Mayor pro tem Kim Nichols owns a short-term rental herself outside Orange, and she argued that 30 minutes may not be enough time to respond, especially in the middle of the night.

Dori Zaki, an Orange resident who owns an Airbnb in the city, has been renting to Chapman University students and families for more than 10 years. Zaki is classified as a “super host” on the platform as a result of her popular ratings, which she attributes to the strict rules guests must follow to maintain the property.

“We only approve to rent to small families, couples, and individuals who have valid reasons for visiting Orange: (sic) most of them come to visit family who live here, but some are visiting for work, medical reasons or visiting local schools such as Chapman University,” Zaki wrote in a public comment to the Orange City Council April 8. “These visitors we accept must have positive reviews, more than (three) types of identification and must agree to not smoke, not to bring pets (and not to) host gatherings anywhere on the property.”

Additionally, Zaki wrote that her and her family live right around the corner in order to quickly address any issues that may occur, but they have never had a complaint. Zaki also said the family is willing to comply with any restrictions necessary to continue business.

Although the council had discussed banning all short-term rentals in the past, council member Chip Monaco is the only council member who supports prohibiting short-term rentals altogether. Former District 3 council member Mike Alvarez also voiced support for prohibiting short term rentals before his resignation March 8.

The ordinance will generate revenue by requiring short-term rentals to obtain a business license and permit and pay fees, but it will also cost the city $24,438 from its general fund, according to a staff report.

Joy Manion, a junior public relations and advertising major at Chapman, stayed in an Airbnb in Orange two years ago. She said she understood the reasoning behind cities placing more restrictions, but also told The Panther she feels badly for the property owners who will be affected by the changes.

“I understand why cities would want to place more restrictions on Airbnbs, especially during the pandemic, as a way of regulating Airbnb business,” Manion said. “It does kind of surprise me, though, that they would want to increase restrictions, since you’d think they would want more people to visit Orange County to boost tourism within the cities.”

Other Orange County cities have also been debating the regulation of short-term rentals. Garden Grove, Yorba Linda and Irvine prohibit the properties in residential zones. Buena Park, Fullerton, Huntington Beach, Anaheim and Newport Beach have adopted ordinances that allow short-term rentals with restrictions, and San Clemente restricts short-term rentals to specified locations in the city.