Laguna Woods City Council Considers Response to Orange County Grand Jury on Short Term Rentals

Laguna Woods City Council is poised to address the growing issue of short-term rentals following a recent report from the Orange County Grand Jury. During the council meeting on July 16, 2025, city officials discussed the implications of the report, which focuses on long-term solutions to the challenges posed by vacation rentals, such as those listed on platforms like Airbnb and Vrbo.

This year, the Grand Jury's report specifically targets short-term rentals, prompting the council to consider a response despite the lack of a legal obligation to do so. The city staff has prepared a proposed response, reflecting the council's interest in engaging with the findings. The report highlights that while Laguna Woods does not outright ban short-term rentals, the municipal code exists in a "gray area," allowing for limited rentals primarily at the Towers, which operates similarly to a hotel.

The council noted that most residential communities within Laguna Woods, including Laguna Woods Village, prohibit rentals of less than 30 days. This effectively limits the prevalence of short-term rentals in the area, although some unpermitted rentals may still occur. The discussion emphasized the importance of ensuring compliance with the transient occupancy tax, which is often overlooked by unregistered rentals.

As the council prepares to respond to the Grand Jury's findings, they are also considering public input on the matter. The outcome of this discussion could shape future regulations surrounding short-term rentals in Laguna Woods, balancing community interests with the evolving landscape of vacation rentals. The council's next steps will be crucial in determining how the city addresses this pressing issue.