Anaheim / Disneyland

[Todd Tran]

Hi, anyone familiar with Anaheim/Disneyland area for STR? I saw it on a list of top 25 STR markets: https://www.fastcompany.com/91031733/housing-market-best-air... 

Is the city issuing new permits? I know the prices are high there but as long as rental prices are high too, that's ok with me. 

[Alan Curry]

I was doing some research on Anaheim a few months back. I looked at the city's sites about rentals and I didn't see anything that would benefit new STRs. I hope there might be a chance for new STRs, but I am not holding my breath.

[Ryan Moyer]

When I did my early high level due diligence it looked to me like they weren't issuing any new permits, but I would love to be wrong on that.

I do know, having just stayed there in an airbnb, that even for existing permits the rules are extremely strict.  I'm guessing the city is extremely punitive to rule violations because most of the places we looked at had rules about not being outside after 10pm.  Not just "be quiet when outside after 10pm".  Literally "you can't be outside in the pool area after 10pm".  I'm guessing that's because too many people didn't follow through on the "keep quiet after 10pm" rule and they ended up with fines etc.

[Todd Tran]

Thanks Alan and Ryan. I did some further research on the city's website and called them and Anaheim is not issuing any new STR permits at this time. Just north of Anaheim is Fullerton and it seems they may be issuing new permits (at least it doesn't say on the website they are not issuing).

[Allen Duan]

Hey Todd, that's right. Anaheim is a no go for new STRs. A while back the hotels lobbied really hard to prohibit STRs for obvious reasons. 

We used to have STRs in Fullerton before their ordinance was established. They do have an allowance for STRs now, but last I heard they may be at the cap. 

My advice, if you want to invest in STRs, is to go to vacation destinations, think National Parks, beach towns, etc, where the laws are STR friendly. This will ensure you have no problems running your STR for years to come.

[Todd Tran]

Thanks, Allen! Super helpful.