Overview: Are Short-Term Rentals Allowed in Placentia, CA?

Short-term rentals are currently permitted in Placentia, California under specific regulations established by Ordinance No. O-2019-06. However, there is a critical development that affects new STR operations: the City Council has implemented a moratorium on new STR permits through September 1, 2026, or until new zoning regulations are adopted, whichever comes first.

This means existing permitted STRs can continue to operate, but no new permits will be issued during the moratorium period. The city is using this time to study and develop stricter regulations to address concerns about noise, traffic, parking, and preservation of residential character.

How to Start a Short-Term Rental Business in Placentia

Current Status and Timeline

Given the moratorium, new STR applications are not being accepted until September 1, 2026. However, for investors looking to enter this market when the moratorium lifts, here's the process that was previously in place:

Step-by-Step Registration Process

1. Initial Registration

   • Register in person at Placentia City Hall
   • Complete the TOT Registration form and Short-Term Contact Information form
   • Pay the non-refundable registration fee of $477.42

2. Insurance Requirements

   • Provide proof of General Commercial Liability Insurance

3. Application Review

   • The city reviews applications for compliance
   • Approval letter will be sent with assigned STR number

4. Business License Application

   • Bring approval letter to City Hall
   • Apply for business license (separate fee applies)
   • Must obtain business license before operating

5. HOA Pre-Approval

   • Properties within Homeowners Associations require prior HOA approval before registration

Required Documents, Permits, Licenses, and Guidelines

Essential Documents and Permits

1. Short-Term Rental Registration (Fee: $477.42)

   • Registration form with property details
   • Property must be in permitted zones
   • Valid for one year, requires annual renewal

2. Business License

   • Required for all STR operations
   • Must be renewed annually
   • Separate application process and fee

3. Transient Occupancy Tax (TOT) Registration

   • 10% tax on nightly rates
   • Quarterly remittance required
   • Forms provided upon registration

4. Insurance Requirements

   • Proof of General Commercial Liability Insurance required

Supporting Documentation

• Short-Term Rental Contact Information form
• Good Neighbor Brochure acknowledgment
• Property compliance verification
• HOA approval documentation (if applicable)

Specific Regulations for Short-Term Rentals

Zoning Requirements

STRs are permitted in the following zones:

• Residential Agricultural (R-RA)
• Single-Family Residential (R-1)
• Low-Medium Density Multiple Family (R-2)
• Medium Density Multiple-Family (R-G)
• High Density Multiple-Family (R-3)
• Residential Planned Community (RPC)
• Planned Unit Development (PUD)
• Specific Plans 6, 7, 8, and 10
• Transit Oriented Development Packing House District (TOD)
• Old Town Placentia Revitalization Plan (OT)

Key Operational Requirements

Local Contact Person

• Must be available 24/7, 7 days per week
• Respond within 1 hour to address complaints
• Designated responsible person for property

Occupancy Limits

• Maximum 2 guests per bedroom during overnight hours (11 PM - 6 AM)
• Children under 6 exempt from bedroom count
• No additional occupants allowed during overnight hours

Minimum Stay Requirements

• Minimum one night, two consecutive days
• No overlapping leases or rentals
• Exception for Master Association-managed properties in Country Clubs

Parking Regulations

• Maximum one vehicle per bedroom on premises
• All vehicles must park in approved driveways or garages
• No parking on unauthorized streets

Property Use Restrictions

• Residential lodging only
• No weddings, receptions, commercial functions, or conferences
• No renting of vehicles, tents, or portable structures

Safety and Compliance

• Must comply with all fire, building, and health safety laws
• City reserves right to inspect upon request
• Property appearance must maintain residential character

Noise Regulations

• No sound amplification devices (indoor or outdoor)
• Must comply with Chapter 10.32 Noise regulations
• No continuous loud, unnecessary, or unusual noise

Advertising Requirements

• All listings must include STR permit number
• Must display maximum occupancy limits
• Unique permit required per property (no multiple rentals under one permit)
• Hosting platforms must provide regulatory notices

Accessory Dwelling Unit (ADU) Restrictions

• ADUs and JADUs cannot be used as separate short-term rentals
• STRs not permitted on properties with ADUs or JADUs
• Same limitations apply as to primary residence

Concentration Limits

• City reserves right to deny permits if overconcentration exists within 300-foot radius
• Staff reports indicate consideration of citywide cap at 0.5% of total homes (approximately 85 units)

Revocation and Enforcement

• Three violations within 12 months result in revocation of all permits
• Citations for advertising violations
• TOT non-compliance results in permit revocation

Tax Obligations

Transient Occupancy Tax (TOT)

• Rate: 10% of nightly rate per rental night
• Payment Schedule: Quarterly remittance
• Due Dates: 30th day following March 31, June 30, September 30, December 31
• Penalties: Permit revocation for non-compliance

Reporting Requirements

• Quarterly TOT reporting forms required
• Separate exemption forms for government employees and 30-day non-transient stays

Contact Information

City of Placentia - Main Contact

Address: 401 E Chapman Avenue Placentia, CA 92870

Phone: (714) 993-8117

Hours of Operation: Monday - Thursday: 7:30 AM - 6:00 PM

Short-Term Rental Complaint Hotline

24/7 Hotline: 1-800-766-8421

Online Complaint Portal: str.avenuinsights.com/community-complaints

Additional Contact Information

Alternative Hotline (from guidelines): 714-909-1011

Online Tips Form: safe.hostcompliance.com/placentia-ca/tips

Source Links and Reference Materials

Primary City Documents

• Placentia STR Main Page
• Short-Term Residential Rental Guidelines
• Short-Term Residential Ordinance
• Good Neighbor Brochure

Registration and Tax Forms

• Short-Term Rental Contact Information
• Short-Term Rental Registration Form
• Transient Occupancy Tax Reporting Form

Legal Documents

• Ordinance No. O-2025-10 (Moratorium Extension)
• Placentia Municipal Code

News and Updates

• Voice of OC - Placentia STR Ban Article
• OC REALTORS - City STR Information

Current Market Status and Future Considerations

As of October 2025, Placentia has approximately 71 active short-term rentals. The city projects potential annual TOT revenue of up to $235,000 from STRs under the proposed cap system. The moratorium allows city staff time to develop comprehensive regulations addressing:

• Guest limitations
• Annual permit reviews and site inspections
• Permit caps (proposed at 0.5% of housing stock)
• Enhanced enforcement mechanisms
• Stricter penalty structures

Important Note for Investors: Given the moratorium extending through September 2026, new STR investments in Placentia should be planned for post-moratorium implementation. Existing permitted properties continue to operate under the 2019 ordinance framework, but all new operations must wait for updated regulations and permit availability.

This guide represents the current regulatory environment as of October 2025. Investors should monitor city council meetings and updates for changes to STR regulations and the timeline for accepting new permit applications.