City of Dana Point Ordinance Allows Short Term Rentals with Permit

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Slides Presented to City Council - 1/16/2018 

Map of Permitted Short Term Rentals

At this time, the City of Dana Point is not issuing any new Short Term Rental Permits.  For more information, please see City Council Meeting Minutes from November 15, 2016 (Item #18) or contact Ted Harris at tharris@danapoint.org.  

On April 2, 2013, the Dana Point City Council approved a new ordinance allowing short term vacation rentals in Dana Point with short term rental permits. The ordinance requires property owners who lease to short term tenants for 30 days or less to apply for a permit by January 15, 2014.

Prior to the approved ordinance, short term rentals were not allowed. The ordinance allows short term rental use after approval and issuance of a short term rental permit, which includes operating standards to promote neighborhood compatibility. Each transient renter staying 30 days or less is subject to pay a Transient Occupancy Tax (TOT) of 10% of the rent payment. The ordinance requires property owners, or managers on behalf of property owners, to collect the 10% and send the tax payment to the City at the end of each quarter.

Many of the City’s HOAs do not allow short term rentals. Short term rental permits will not be issued in neighborhoods in which they are prohibited by CC&Rs.

The process for obtaining a short term rental permit includes completion of an application, payment of the $150 permit fee and a safety inspection prior to issuance of the permit. An agent is authorized to represent a property owner for a short term rental permit, but the permit application must be signed and notarized by the owner. The owner’s agent may coordinate inspection, manage the short term rental and remit quarterly TOT payments on behalf of the owner.

For more information about renting residential property for 30 days or less, please refer to the Frequently Asked Questions sheet, forms and other information available below.

Short Term Rental Permit Information Sheets and Forms

• Frequently Asked Questions Information Sheet
• Short Term Rental Permit Application
• Inspection Checklist
• Short Term Permit Ordinance 13-01

If you have questions that are not covered in this information, please contact the Community Development Department at (949) 248-3564.