Rental Property Rules in Fullerton, CA

If you live in Fullerton or are thinking about moving there, rental property rules are one of those things you probably won't think about until they affect you directly. Fullerton has 2 specific rules on the books covering different aspects of rental property rules, and some of them might surprise you.

Rental Registration

Fullerton Municipal Code § 4.06.025 requires anyone renting four or more residential housing units to pay an annual business license tax of $25 plus $5 per additional unit. Anyone renting a dwelling or part of one as a short-term rental under 30 days must separately pay a $25 annual registration tax. Both fall under Title 4's business tax chapter, enforced as a misdemeanor for noncompliance.

Key details: 4+ unit license tax: $25 plus $5 per extra unit. STR registration tax: $25 per year. Governing chapter: FMC Title 4, Chapter 4.06. Enacted by: Ord. 2766 (1991); Ord. 3290 (2020). Max penalty: $500 fine or 6 months jail.

Title 4 makes noncompliance a misdemeanor under § 4.02.300: any person violating a business tax requirement, including the residential rental license and short-term rental registration taxes, is punishable by a fine of up to $500, up to six months in County Jail, or both. Each day the violation continues counts as a separate offense, so an unlicensed multi-unit landlord can face cumulative daily penalties.

Repairs & Habitability

Fullerton ties rental habitability to a numeric occupancy formula in its zoning code. Fullerton Municipal Code section 15.17.030(A)(1) caps how many people can live in a unit by requiring at least 120 square feet in the first room, 70 square feet in each added bedroom, and 50 more square feet per extra occupant beyond two per room, measured against the Housing Code that Chapter 14.13 adopts.

Key details: Governing chapter: FMC 14.13, Uniform Housing Code 1997. Minimum first-room area: 120 square feet. Each added sleeping room: 70 square feet minimum. Open space floor: 100 sq ft per occupant. Appeal deadline: 5 working days to Appeals Board.

An unresolved habitability or nuisance finding lets the city seek a civil abatement order in court through the City Attorney, or repair or demolish the property directly and record a lien for the cost, collected like a delinquent property tax under Chapter 6.01. If the substandard unit is rented out for income, the Director of Development Services may report the owner to the State Franchise Tax Board under section 6.01.160, eliminating state tax deductions tied to that income. Emergency abatement applies to structurally unsafe conditions under section 6.01.180.

The Bottom Line

Fullerton's rental property rules rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Fullerton is broadly strict or permissive.

Keep in mind that Fullerton can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.