Can I rent out my ADU short-term in Santa Ana?

Hello,

Thank you for reaching out with your question about short-term rentals for ADUs in Santa Ana. Navigating the complexities of local zoning laws and regulations can indeed be challenging, but I’m here to help guide you through the process so you can make informed decisions.

### Short-Term Rental Regulations in Santa Ana

In Santa Ana, like many other Californian cities, short-term rentals (STRs) are subject to specific regulations. It's important to note that these regulations can change, so staying updated with current ordinances is crucial. As of the latest updates, here are some key considerations:

1. **Permissibility of Short-Term Rentals**:
- Santa Ana generally allows short-term rentals, but there are specific rules that apply to ADUs. The city has been increasingly regulating STRs due to concerns about housing availability and neighborhood impacts.
- Typically, ADUs rented short-term must comply with the same regulations as other properties, including being registered with the city.

2. **Permits and Licenses**:
- You will need a Transient Occupancy Registration Certificate from the city of Santa Ana. This certificate allows you to legally rent out your property for short periods.
- There's also a Transient Occupancy Tax (TOT) that you must collect from your guests and remit to the city. As of 2023, the TOT rate in Santa Ana is 10%.
- Registration costs can vary, but typically expect to pay around $100-$150 for application and registration fees.

3. **Zoning and Duration Restrictions**:
- Santa Ana may impose restrictions on the number of days an ADU can be rented short-term. Although specific day limits might change, it’s common for cities to limit rentals to a maximum of 90 days per year unless you live on the property.
- Ensure your property meets all zoning requirements for STRs and confirm that the ADU is up to code according to the California Building Standards.

4. **Budget-Friendly Compliance**:
- To keep costs down, ensure you’re familiar with all necessary regulations before making any changes or improvements. Engage with local officials or a knowledgeable attorney to ensure compliance.
- Use online platforms that are already compliant with local laws, as they often assist with tax collection and provide insurance options.

### Steps to Get Started

1. **Research and Confirm Current Regulations**:
- Visit the Santa Ana city website or contact the Planning and Building Agency for the most recent regulations. This is crucial as city ordinances can change.

2. **Apply for Necessary Permits**:
- Obtain the Transient Occupancy Registration Certificate and ensure you’re registered for the TOT. The application process might take a few weeks, so plan accordingly.

3. **Prepare Your ADU**:
- Ensure the ADU meets all safety and building codes. Consider an inspection if it hasn’t been done recently.
- Make any necessary improvements to comply with STR standards, such as installing smoke detectors or improving accessibility.

4. **Consider Insurance**:
- Verify that your homeowner’s insurance covers short-term rentals. You might need to purchase additional coverage or a rider to protect against liabilities.

5. **Market Your Rental**:
- Once compliant, list your ADU on platforms like Airbnb or VRBO, which have broad reach and built-in compliance tools.

### Legal References

- **SB-9 and AB-68**: While these laws primarily focus on easing the process for building ADUs, they reflect the state’s broader efforts to increase housing stock. They don’t directly address short-term rentals but are indicative of the regulatory environment supporting ADU development.

### Common Mistakes to Avoid

- **Ignoring Registration**: Failing to register or pay TOT can lead to fines or legal action.
- **Assuming Exemptions**: Some homeowners mistakenly believe they are exempt from regulations if they live on the property. Always verify with local ordinances.

### Moving Forward

If you’re keen on ensuring everything is by the book, consider consulting with a local real estate attorney or an ADU specialist. They can provide personalized advice and help navigate any uncertainties.

Additionally, joining local homeowner associations or forums can offer valuable insights and updates from fellow homeowners who have gone through similar processes.

Good luck with your venture, and feel free to reach out with any more questions!

Warm regards,

[Your Name]
Experienced ADU Consultant