La Palma, California Short Term Rental Regulations Guide for Airbnb hosts

Overview

Short-term rentals ARE ALLOWED in La Palma, CA. The City of La Palma has established a comprehensive regulatory framework for short-term rentals (STRs) that permits this activity in residential zones, subject to specific requirements, permits, and ongoing compliance obligations. The City Council adopted Ordinance 2022-06 on August 2, 2022, which amended the Municipal Code to allow and regulate STRs through a Special Permit process while implementing strict standards to protect neighborhood character and ensure public safety.

Starting a Short-Term Rental Business in La Palma

Step-by-Step Process

Phase 1: Pre-Application Planning

Verify your property zoning: STRs are allowed in R-1 (Single-Family) and R-3 (Multiple-Family Residential) zoning districts with a Special Permit
Determine if you meet the "primary residence" requirement (minimum 265 days per year)
Confirm sufficient parking (1 off-street space per bedroom)
Assess maximum occupancy capacity (2 persons per bedroom, max 10 total)

Phase 2: Application Submission

Submit Short-Term Rental Special Business Permit Application to Community Development Department
Pay initial permit fee of $659.00
Complete all required documentation (see "Required Documents" section)
Submit notification package for 300-foot radius notification
Submit TOT Registration Form to Finance Department

Phase 3: Review and Approval

Community Development Department and Finance Department investigate application
Review by Special Business Permit Subcommittee
Potential conditions imposed on operation
Annual permit renewal required

Phase 4: Ongoing Compliance

Post permits and compliance information on-site
Collect and remit 8% TOT quarterly
Maintain records for 4 years
Ensure local contact availability 24/7

Required Documents, Permits, Licenses, and Guidelines

Essential Permits and Licenses

1. Short-Term Rental Special Business Permit

Authority: Community Development Department
Cost: $659.00 (as of current fee schedule)
Duration: Valid for one year
Renewal: Required annually with full application

2. City Business License

Authority: Community Development Department
Requirement: Must be obtained alongside STR permit
Posting: Must be displayed inside the STR property

3. Transient Occupancy Registration Certificate

Authority: Finance Department
Requirement: Mandatory for all STR operators
Posting: Must be displayed conspicuously on premises

Required Documentation

Application Package Contents:

Site plan showing parking locations (off-street and on-street)
Floor plan with bedroom dimensions and safety equipment locations
Proof of primary residence (if claiming primary residence exception)
Local contact information and 24/7 availability confirmation
Two sets of printed address labels for 300-foot notification radius
Certified list of property owners within 300-foot radius
Certified list of tenants and business owners on subject property
Assessor Parcel Numbers (APN) on all mailing labels
Assessor maps showing 300-foot radius area

Safety Compliance Documentation:

Smoke alarm locations and specifications
Carbon monoxide alarm placement
Fire extinguisher locations
Landline telephone service or VoIP with battery backup
Alert OC registration confirmation

Ongoing Required Forms:

TOT Registration Form (Finance Department)
TOT Return Form (quarterly filing)
Annual permit renewal application

Specific Regulations by Jurisdiction

City of La Palma - Municipal Code Requirements

Zoning Compliance:

STRs allowed in R-1 and R-3 zones with Special Permit "S"
Accessory Dwelling Units (ADUs) and Junior ADUs are prohibited from STR use
Maximum of 2 STR permits per individual/entity within the city
Permits are non-transferable and tied to specific address

Occupancy Standards:

Maximum 2 short-term renters per bedroom
Maximum 10 total short-term renters (including children over 3)
Daytime guests allowed 8:00 AM - 9:00 PM (maximum 50% of overnight renters)
Total occupancy during daytime hours cannot exceed combined overnight + daytime limits

Parking Requirements:

1 off-street parking space required per bedroom
Legal on-street parking may count toward minimum (1 space maximum)
Garage/driveway must be available for renter use if used for compliance
No parking in required front or street-side setbacks
No encroachment into public right-of-way

Operational Standards:

Quiet Hours: 9:00 PM to 8:00 AM (strictly enforced)
No Outdoor Amplified Sound at any time
Events Prohibited: Weddings, receptions, corporate events, etc.
Recreational fires/firepits allowed (natural gas/propane only, no wood burning)
All video surveillance must be disclosed to renters

Life Safety Requirements:

Landline telephone or VoIP with battery backup
Alert OC registration mandatory
All safety equipment must meet current codes
Property must be available for inspection by city personnel

Advertising and Listing Requirements: All advertisements must include:

Maximum number of short-term renters
Maximum number of daytime guests
Number of dedicated parking spaces
Quiet hours notification (9:00 PM - 8:00 AM)
Outdoor amplified sound prohibition
Valid STR Special Business Permit Number

Neighbor Notification:

City provides mailed notice to properties within 300 feet
Includes permit issuance, local contact information, and regulations
Notice includes Assessor Parcel Numbers for identification

Orange County Regulations

Note: No specific Orange County STR regulations were provided in the source materials. La Palma's municipal code provides the complete regulatory framework.

State of California Regulations

California Government Code 25132:

Establishes maximum fines for STR violations
La Palma implements fines to maximum allowable limits
Allows for permit revocation after repeated violations

California Building and Fire Codes:

STRs must comply with current adopted versions
All life safety equipment must meet state standards
Regular inspections may be required

Transient Occupancy Tax (TOT):

State allows cities to levy TOT on STRs
La Palma rate: 8% of gross rental receipts
Hosts or hosting platforms responsible for collection/remittance

Contact Information

Primary Authorities

Community Development Department

Function: Short-Term Rental Special Business Permits, Business Licenses
Address: City of La Palma, 7822 Walker Street, La Palma, CA 90623
Phone: (714) 690-3300
Email: Contact through main city number
Website: www.lapalmaca.gov
Contact: Scott Hutter, Planning Manager; Marion Cubero, Code Enforcement/Business License Officer

Finance Department

Function: Transient Occupancy Tax Registration, Collections
Address: City of La Palma, 7822 Walker Street, La Palma, CA 90623
Phone: (714) 690-3300
Email: Contact through main city number
Website: www.lapalmaca.gov
Function: TOT Registration Certificate, quarterly reporting, tax collection

City Hall Main Contact

Address: 7822 Walker Street, La Palma, CA 90623
Phone: (714) 690-3300
Website: www.lapalmaca.gov
Hours: Monday-Thursday, 7:30 AM - 5:30 PM; Closed Fridays

Special Permit Review Authority

Primary Review: Special Business Permit Subcommittee
Appeal Authority: City Manager
Final Appeal: City Council

Source References

Primary Ordinance Documents:

Supporting Documentation:

STR Application Package (Attachment 2 to ordinances)
Business License Application Form
TOT Registration and Return Forms
Short-Term Rentals Q&A Handout
Fee Schedule Resolution

Important Note for Investors: La Palma maintains strict oversight of STR operations with significant penalties for non-compliance. The city actively monitors online listings and has established a clear enforcement framework. Investors should carefully review all requirements and ensure full compliance before operating, as violations can result in permit revocation and substantial financial penalties.

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