Overview: Short-Term Rentals Status

Short-term rentals are completely PROHIBITED in all residential zones of Garden Grove, California. This is one of the strictest STR policies in Orange County, with no exceptions for owner-occupied properties or permits available for residential areas.

The City of Garden Grove has taken an uncompromising stance against short-term vacation rentals, defining them identically to hotels or motels - commercial operations that rent to transients for less than 30 consecutive days. Under the city's permissive zoning code, any use not explicitly permitted is prohibited, and STRs are not listed as allowed uses in residential zones.

Starting a Short-Term Rental Business

Residential Properties

You cannot legally operate a short-term rental in Garden Grove's residential zones. The city's Land Use Code operates under a permissive framework where only explicitly permitted uses are allowed. Since STRs are not listed as permitted uses in residential areas, they are automatically prohibited.

Commercial Properties Only

The only legal path for short-term rentals in Garden Grove is through commercial zones with a Conditional Use Permit (CUP). This severely limits opportunities and requires:

1. Property Location: Must be in a commercially-zoned area
2. Conditional Use Permit: Required from the Planning Division
3. Business License: Standard city business license
4. Compliance Standards: Meeting all building, safety, and habitability requirements
5. Public Process: CUP applications involve public hearings and community review

Required Documents, Permits, and Licenses

For the limited commercial STR opportunities:

Commercial Zone STR Requirements:

• Conditional Use Permit (CUP) from Planning Division
• City of Garden Grove Business License
• Building and Safety Compliance Certificate
• Fire Safety Inspection and Approval
• Parking and Access Compliance Documentation
• Transient Occupancy Tax Registration

Documentation Process:

1. Verify commercial zoning status
2. Submit CUP application with detailed operating plan
3. Undergo public hearing process
4. Obtain all required inspections
5. Secure business license
6. Register for tax collection

Specific Regulations and Restrictions

City-Level Regulations

Residential Zones (Comprehensive Ban):

• All single-family residential zones: Prohibited under Municipal Code 9.32.020(E)(1)
• All multi-family residential zones: Prohibited under Municipal Code 9.32.020(E)(1)
• No grandfather clauses or existing operation protections
• No owner-occupied exceptions

Commercial Zones (Conditional Permission):

• Conditional Use Permit required
• Must demonstrate neighborhood compatibility
• Subject to ongoing compliance monitoring
• Transferable only with new CUP approval

Enforcement and Penalties

Criminal Penalties:

• Misdemeanor charges for violations
• Up to $1,000 per day in fines per violation
• Up to 6 months in jail
• Each day constitutes a separate offense

Enhanced Enforcement:

• Dedicated Short Term Rental Hotline: (657) 206-1194
• Online complaint system available
• Proactive monitoring of rental platforms
• Prohibition on advertising illegal rentals

County and State Regulations

Orange County: No overriding county regulations; city rules govern

California State Requirements (for legal operations only):

• Transient Occupancy Tax collection and remittance
• Income tax reporting on rental income
• Business income reporting requirements
• Potential sales tax obligations on ancillary services

Contact Information

Code Enforcement Division (Primary STR Authority):

• Phone: (714) 741-5351
• Email: codeenforcement@ggcity.org
• Address: 11222 Acacia Parkway, Garden Grove, CA 92840

Short-Term Rental Hotline:

• Phone: (657) 206-1194

Planning Division (For CUP inquiries):

• Phone: (714) 741-5000
• Email: info@ggcity.org

General City Information:

• Main Phone: (714) 741-5000
• Website: ggcity.org
• Address: Garden Grove City Hall, 11222 Acacia Parkway, Garden Grove, CA 92840

Business License Division:

• Contact through main city number for commercial STR licensing

Source Documentation

Primary Sources:

• City of Garden Grove Official Website: ggcity.org/code-enforcement/short-term-vacation-rental
• Detailed Terms Page: ggcity.org/code-enforcement/short-term-vacation-rental-detailed-terms
• Orange County REALTORS® STR Guide: www.ocrealtors.org/community-information/Short-Term-Rentals
• Orange County Lawyers STR Analysis: www.orangecountylawyers.com/blog/airbnb-vrbo-in-orange-county-ca-cities-that-allow-or-deny/

Municipal Code References:

• Single-family residential: 9.32.020(E)(1) – Illegal Hotel/Motel Use
• Multi-family residential: 9.32.020(E)(1) – Illegal Hotel/Motel Use
• Commercial use restrictions: 9.08.020.040(A)(4) and 9.12.020.040(A)(4)

Investment Recommendations

For STR Investors: Garden Grove presents extremely limited opportunities due to its comprehensive residential ban. Consider:

1. Commercial Property Investment: Research commercially-zoned properties near tourist attractions, but expect significant permitting costs and timeline
2. Alternative Markets: Explore nearby cities with more permissive STR policies such as Huntington Beach or Newport Beach
3. Long-term Rental Strategy: Consider traditional long-term rentals (31+ days) which are permitted in residential zones
4. Legal Compliance: Any STR investment must strictly comply with commercial zoning and CUP requirements to avoid severe penalties

Risk Assessment: The city's aggressive enforcement, substantial daily penalties, and criminal charges make unauthorized STR operations in residential areas extremely high-risk investments with potential for significant financial and legal consequences.