Overview: Are Short-Term Rentals Allowed in Costa Mesa?

No, short-term rentals are explicitly prohibited in Costa Mesa, California.

The City Council adopted Ordinance 2021-17 on November 2, 2021, which prohibits all short-term rentals (STRs) throughout the City of Costa Mesa. A short-term rental is defined as the rental of a residential dwelling unit (or portion thereof) to paying occupants for less than 30 days. This prohibition is comprehensive and applies citywide, making Costa Mesa an off-limits market for traditional STR investment strategies.

How to Start a Short-Term Rental Business in This Market

STRs are not permitted in Costa Mesa, so starting an STR business is not legally possible. However, there are limited alternatives:

Legal Alternatives:

• Home Sharing: Owner-occupied home sharing may be allowed, where the property owner resides on-site and rents out portions of their primary residence
• Long-term rentals: Properties can be rented for 30 days or longer, which falls outside STR regulations
• Accessory Dwelling Units (ADUs): While ADUs are permitted, they cannot be used as short-term rentals (less than 31 days) due to land use restrictions

Market Strategy:

Given the prohibition, potential investors should consider:

• Purchasing properties for traditional long-term rental income
• Exploring adjacent markets like Newport Beach or Huntington Beach where STRs may be permitted
• Investigating hotel or hospitality development opportunities

Required Documents, Permits, Licenses, and Guidelines

Since STRs are prohibited, no permits or licenses are issued for STR operations in Costa Mesa. However, the city maintains detailed information for compliance and reporting:

For Property Owners:

• No STR permits are available or issued
• Home sharing operations should ensure compliance with zoning and residential use requirements
• ADU owners must adhere to minimum 31-day rental periods

For Reporting Violations:

• Property owners operating illegal STRs should expect enforcement action
• Residents can report violations through official channels

Specific Regulations for Short-Term Rentals

City-Level Regulations (Costa Mesa):

• Complete Prohibition: Ordinance 2021-17 prohibits all non-hosted short-term rentals
• Home Sharing Exception: Owner-occupied home sharing may be permitted but is subject to restrictions
• ADU Restrictions: Accessory Dwelling Units cannot be rented for less than 31 days
• Enforcement: The city operates primarily on a complaint-driven enforcement model

Penalties for Violations:

• Fines: Up to $1,000 per day for verified violations
• Additional Enforcement: Criminal charges and nuisance abatement actions may be pursued
• Platform Compliance: Online advertising platforms are expected to remove illegal listings

Recent Policy Developments:

• January 2025: The City Council considered but rejected a temporary exception for LA fire victims, maintaining the comprehensive prohibition
• The council discussed potential time-limited and geographic-specific exceptions but ultimately preserved the existing ordinance

County-Level Regulations:

• Orange County does not have county-wide STR regulations
• Each city within Orange County has its own ordinances
• Costa Mesa's prohibition aligns with several other Orange County cities (Irvine, Garden Grove, Laguna Niguel, Lake Forest, Villa Park, Westminster, Yorba Linda)

State-Level Regulations:

• California state law does not prohibit STRs at the state level
• Local municipalities maintain authority over land use and zoning decisions
• State housing laws (SB 477, SB 1211, AB 2533, AB 1033) have influenced local ADU regulations but do not override local STR prohibitions

Contact Information

Primary Contact:

City of Costa Mesa

• Address: 77 Fair Drive, Costa Mesa, CA 92626
• Phone: (714) 754-5000
• Website: www.costamesaca.gov
• City Hall Hours: Monday-Friday, 8 a.m. to 5 p.m. (alternating Fridays closed)

Code Enforcement:

Community Improvement Division

• Phone: (714) 754-5638
• Online Reporting: MYCOSTAMESA portal at www.costamesaca.gov/community/costa-mesa-311-report-issues

Municipal Code and Ordinances:

• Full municipal code available at: www.costamesaca.gov/community/municipal-code
• Specific ordinance documentation available through city clerk

Additional Resources:

• City Council meetings: Available at www.costamesaca.gov/government/city-transparency/public-meeting-information
• Public records requests: Available through city clerk's office

Important Considerations for Investors

Market Limitations:

• Costa Mesa represents a zero-opportunity market for STR investment
• The city's firm stance suggests minimal likelihood of policy reversal in the near term
• The 2025 council discussion about LA fire relief showed openness to temporary exceptions but ultimately maintained the prohibition

Investment Alternatives:

• Long-term rental properties: Legal and potentially profitable given the housing shortage
• Hospitality development: Hotel and extended-stay properties may be viable alternatives
• Adjacent markets: Newport Beach, Huntington Beach, and other Orange County cities with different regulations

Risk Assessment:

• Operating an illegal STR in Costa Mesa carries significant financial and legal risks
• The city's enforcement capabilities include substantial fines and criminal prosecution
• Online platforms have been cooperative in removing illegal listings when notified

Links to Source Pages

1. Costa Mesa Short-Term Rentals Information
2. Costa Mesa Ordinance 2021-17
3. MYCOSTAMESA Online Complaint Portal
4. Orange County REALTORS STR Guidelines
5. Costa Mesa Municipal Code

Conclusion

Costa Mesa, California maintains one of the most restrictive short-term rental environments in Orange County, with a comprehensive prohibition on non-hosted STRs. While the city allows for home sharing by owner-occupants, the market is essentially closed to traditional STR investment. Potential investors should consider adjacent markets or alternative investment strategies within Costa Mesa's legal framework. The city's firm position, reinforced by council action in 2025, suggests this prohibition will remain in place, making compliance essential for any property-related investment in the city.