Shawn Lavi, CPA, is the principal and the author of this page. Elias Lavi is co-owner and founder.
Laguna Beach limits short-term lodging by zone, caps the number of units, and added new licensing rules in 2025. Whether a property can rent short term affects what it earns, how its losses are treated, and what a buyer will pay. We work with Laguna Beach owners remotely, by Zoom, phone, and secure upload, from our only office at 7707 Sunset Blvd in Los Angeles. We have no office in Laguna Beach.
Shawn Lavi, CPA or Elias Lavi, CPA reviews your file.
Where short-term lodging is allowed
Short-term lodging is no longer allowed in the R-1, R-2, and R-3 residential districts. Units that already held permits there are legal nonconforming and may keep operating. That use runs with the land, not the owner, so the right goes with the property when it sells.
New short-term lodging is allowed in certain commercial and downtown districts with an Administrative Use Permit, and in the SLV district with a Conditional Use Permit. Conversions are capped at 20% of the units in commercial and mixed-use districts, and at 300 units citywide. The city also allows 165 additional home-share units in single-family, duplex, and triplex homes in those districts.
The 2025 licensing rules
Chapter 5.84 of the Municipal Code took effect July 1, 2025, and enforcement began October 1, 2025. Operators need a Short-Term Lodging Unit License, a City business license renewed every year, a use permit, and TOT registration. The unit license usually runs up to three years.
12% TOT plus 2% TMD
Short-term rental revenue owes 14% in total: a 12% transient occupancy tax and a 2% Laguna Beach Tourism Marketing District assessment. Operators file quarterly returns, even with no rentals. If a platform collects the payment, it must collect and remit both.
We reconcile platform payouts, what was remitted for you, and your gross rents, so your Schedule E and city returns match.
Orange County appeals
The regular window to appeal a Laguna Beach assessment with Orange County runs July 2 through November 30.
Laguna Beach FAQs
Can I start a short-term rental in my Laguna Beach house in an R-1 zone?
No. New short-term lodging is not allowed in R-1, R-2, or R-3. Only units permitted before the change may continue.
If I buy a home with a legacy Laguna Beach STR permit, does it stay?
The nonconforming use runs with the land, not the owner, so it can continue under the city's rules.
What taxes do Laguna Beach short-term rentals collect?
14% in total: 12% transient occupancy tax and a 2% tourism marketing district assessment. Returns are quarterly.
Book a free 30-minute New Client Introduction
Tell us about the property and how it is permitted. We will show you how the rules change the tax side.
Book a free 30-minute New Client Introduction
General information only, not advice for your situation. Rules and rates change, so we confirm them before you act.