Overview: Are Short-Term Rentals Allowed?

Yes, short-term rentals are allowed in Dana Point, CA. The City adopted STR regulations in 2023 and operates a permit-based system. STRs are permitted in both the Coastal Zone and areas outside the Coastal Zone, with specific caps and requirements that vary by location type.

How to Start a Short-Term Rental Business in Dana Point

Step 1: Determine Property Eligibility

• Coastal Zone Properties: Subject to a 115-permit cap covering Non-Primary, Multi-Family, and Mixed-Use STRs
• Non-Coastal Zone Properties: Subject to a total cap of 115 permits with a 60-permit sub-cap for Non-Primary STRs
• Primary STRs and Home Stays: Not subject to caps but impact available cap space

Step 2: Secure Required Approvals

• For Coastal Zone Properties: Obtain written approval from your Homeowners Association (HOA). The City requires a letter from the HOA confirming STRs are permitted within the community
• Property Type Considerations: Multi-Family Homestays, Mixed-Use Parcel STRs, and Primary STRs receive prioritization for permit issuance

Step 3: Submit Permit Application

• Complete and submit the STR Permit Application
• Schedule and pass required inspection using the STR Inspection Checklist
• Pay applicable fees (refer to Service Fees schedule)

Step 4: Comply with Operational Requirements

• Implement noise restrictions (quiet hours 10:00 PM to 7:00 AM)
• Enforce parking limits (maximum 2 spaces per unit unless otherwise approved)
• Maintain occupancy limits (2 persons per bedroom plus 2 additional persons; daytime maximum 2.5x overnight occupancy, not exceeding 20 people)
• Manage trash storage and collection requirements

Required Documents, Permits, Licenses, and Guidelines

Primary Permits and Applications

• STR Permit Application (Required)
• STR Inspection Checklist (Required)
• HOA Approval Letter (Required for Coastal Zone properties)
• Business Registration (May be required)
• Certificate of Occupancy (If applicable)

Compliance Documents

• Coastal Zone STR Regulations (For properties in Coastal Zone)
• Outside Coastal Zone STR Regulations (For properties outside Coastal Zone)
• Good Neighbor Brochure (Guest communication requirement)

Special Permits (HOA Context)

• HOA CDP Application Prohibiting STRs (For HOAs seeking legal defensibility for STR prohibitions)

Specific Regulations

Coastal Zone STR Program

• Cap: Maximum 115 permits for Non-Primary, Multi-Family, and Mixed-Use Parcel STRs
• No Cap: Home Stay and Primary STRs are permitted without cap restrictions
• Cap Adjustment: Each Home Stay and Primary STR permit issued reduces the 115-cap by one
• HOA Requirement: Written HOA approval required before permit issuance

Outside Coastal Zone STR Program

• Total Cap: 115 permits for all STR types
• Non-Primary Sub-Cap: Maximum 60 Non-Primary STRs
• Priority System: Primary STRs and Home Stay STRs receive priority issuance

Operational Requirements (All Zones)

• Quiet Hours: No outside noise 10:00 PM to 7:00 AM
• Parking: Maximum 2 spaces per unit (driveway/garage before street parking)
• Occupancy Limits:
  • Overnight: 2 persons per bedroom + 2 additional persons
  • Daytime: 2.5x overnight occupancy (maximum 20 people)
• Trash Management: No visible trash storage from street/sidewalk; owner must provide containers and manage collection

Permit Prioritization Hierarchy

1. Primary STRs and Home Stay STRs
2. Multi-Family Homestays
3. Mixed-Use Parcel STRs
4. Non-Primary STRs

Recent Regulatory Changes (2025)

• City staff now authorized to approve certain permits without City Council approval
• Primary, homestay, and multi-family homestay rentals outside coastal zone can receive expedited approval
• Enhanced enforcement through Deckard Technologies contract to identify unpermitted rentals

Contact Information

Primary STR Contact

• Email: str@danapoint.org
• Purpose: STR permit inquiries, interested parties list

General City Contact

• Address: 33282 Golden Lantern, Dana Point, CA 92629
• Phone: (949) 248-3500
• Operating Hours: Available on City website

STR Complaint Reporting

• Online: Submit an STR Complaint via City website
• 24-Hour Hotline: Available for noise/disturbance complaints

Interactive Resources

• Permitted STR Map: View interactive map of permitted STRs
• Owner/Manager Contact List: Available for reporting issues

Links to Source Pages

Primary Regulatory Documents

• STR Permit Application (PDF)
• STR Inspection Checklist (PDF)
• Coastal Zone STR Regulations (PDF)
• Outside Coastal Zone STR Regulations (PDF)

Educational Resources

• Good Neighbor Brochure (PDF)
• HOA CDP Application Prohibiting STRs (PDF)
• STR Owner/Manager Contact List (PDF)

Interactive Tools and Information

• Permitted STR Map
• Submit an STR Complaint

Video Resources

• March 1, 2023 STR Application Workshop
• February 28, 2023 HOA Webinar

Key Municipal Links

• City of Dana Point STR Homepage
• Municipal Code
• Service Fees

Financial Considerations

Transient Occupancy Tax (TOT)

• Revenue Impact: STRs contribute significantly to Dana Point's bed tax revenue, which exceeded $16 million in 2024
• Collection: Bed tax is collected through booking platforms and remitted to the city
• Enforcement: City has contracted with Deckard Technologies to identify unpermitted rentals and ensure proper TOT collection

Permit Economics

• Waitlist System: When caps are met, applications are automatically placed on a waitlist
• Prioritization: Lower-risk STR types (Primary, Home Stay) receive priority, potentially improving investment returns
• Enforcement Costs: Investment in compliance infrastructure is essential given increased enforcement activities

This guide provides a comprehensive overview for STR investors considering Dana Point as a market, emphasizing the City's structured approach to balancing tourism benefits with neighborhood preservation.