A Guide to Short Term Rentals in Anaheim (Airbnb)

by Ruben Sanchez

Is Airbnb Legal in Anaheim? A Comprehensive Guide

Yes, Airbnb is legal in Anaheim. The recent legislation reversed a 2016 restriction on short‑term rentals (STRs), phasing out the limitations that once made it difficult to regulate a market with decades of ongoing STR operations. Today, existing STRs can continue operating, as long as they comply with strict operational and community standards, while entirely new short‑term rentals are not permitted, except in limited relocation cases.

What’s Behind the Legality of Airbnb in Anaheim?

Reversal of the 2016 Ban
Background: In 2016, Anaheim imposed severe restrictions on STRs. The ban proved hard to enforce given the long history of short‑term rental operations.
Current Policy: New legislation now allows the 235 permitted STRs to continue operating under strict guidelines, but it prohibits the establishment of entirely new STRs in residential zones.

Key Operational Rules Under Anaheim Airbnb Regulations

Good Neighbor Policies:

STR owners must provide a local contact available 24/7 who can respond to any complaints within 45 minutes.
Operators must furnish neighbors with updated contact information.

Minimum Rental Duration:

Units must be rented for at least three consecutive nights.

Guest Requirements:

Renters must be at least 21 years old.
Guests are expected to keep quiet during designated hours, 10 PM to 9 AM.

Current Market Snapshot

According to recent data:

Listings:

There are currently 1,257 Airbnb listings in Anaheim.

Property Types:

6.4% of entire houses can earn up to $4,508 a month.
18% of listings are managed by professionals.
49% are managed independently.
12.2% consist of private rooms.

Income Potential:

A typical 2‑bedroom apartment in Anaheim can generate up to $31,500 per year, based on data from Airbtics.

Fees, Taxes, and Compliance

Financial Requirements:

Business License Fee: $260
Short‑Term Rental Permit Fee: $250
Transient Occupancy Tax (TOT): Each stay is subject to a 10% tax.

Compliance Essentials:

Permit Necessity: Any owner or agent renting a dwelling for less than 30 consecutive days must secure a valid STR permit.
Ongoing Obligations: Operators must ensure that their property complies with fire, building, and safety codes. The listing must clearly display the city‑issued permit number.

Pros and Cons of Running an Airbnb in Anaheim

Pros

Flexibility:

Rent out your property for as many or as few days as you choose.
Enjoy the freedom to adjust rental durations based on market conditions.

Privacy and Comfort:

Short‑term rentals offer a homier environment compared to hotels, making them ideal for families and travelers seeking more space.

Higher Income Potential:

In many cases, short‑term rentals can generate more revenue than traditional long‑term leases.

Tax Advantages and Deductions:

Numerous tax deductions, such as cleaning, maintenance, and management fees, can help offset expenses.

Less Wear and Tear:

With regular turnover, you can address minor repairs promptly.

Social Benefits:

Hosting provides opportunities to meet interesting people and forge lasting connections.

Cons

Income Variability:

Unlike long‑term rentals, income can fluctuate significantly, leading to potential periods of low occupancy.

Higher Operational Costs:

Owners are responsible for utilities, frequent cleaning, and regular maintenance.

Increased Risk:

A higher volume of guests may raise the likelihood of property damage or security issues.

Time and Effort:

Managing an Airbnb involves tasks such as rent collection, scheduling, guest communications, and handling unexpected issues, often on a weekly basis.

HOA Restrictions:

In some neighborhoods, homeowners’ associations can impose additional restrictions, complicating the rental process and potentially leading to disputes.

Conclusion

Airbnb is indeed legal in Anaheim, but with important caveats. While existing STRs continue to operate under a framework that emphasizes community protection and strict operational standards, new short‑term rentals remain largely prohibited in residential zones. For prospective or current Airbnb hosts, understanding these rules, keeping up with fee requirements, and adhering to good neighbor practices are essential for long‑term success.

If you’re thinking about starting an Airbnb or optimizing your existing listing, consider leveraging tools like the Airbtics dashboard to gain insights into local market performance, target neighborhoods, and demand for specific amenities. Additionally, joining active Airbnb host communities on Facebook can provide practical tips and peer support.

This guide is for informational purposes only. For the most current regulations and personalized advice, contact Anaheim’s official resources or a local legal professional.

Anaheim STR Application LINK.

Click HERE to see which cities do and do NOT allow short term rentals in Orange County. short-term

Ruben Sanchez

REALTOR® | Team Lead

(714) 656-6325

ruben@trxg.net

DRE 02091617

ΓEA⅃ Brokerage