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:

• La Palma Short-Term Rental Ordinance 2022-06
• Short-Term Rental 1-Year Review Report
• Municipal Code Chapter 44 - Zoning

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.