Lake Forest, CA Short-Term Rentals: Permit Requirements (2026)

The City of Lake Forest adopted its short-term rental ordinance in August 2017, codified in Chapter 5.24 of the Lake Forest Municipal Code. Under that ordinance, a Short-Term Rental (STR) provides short-term lodging for compensation for fewer than 30 days, and the City states plainly that 'STRs are not permitted in Lake Forest and are a prohibited use in all residential areas.' Because traditional STRs are prohibited, the City does not issue a conventional STR operating permit for non-owner-occupied vacation rentals. The single legal pathway is a Limited Home Rental: the rental of an owner's entire primary residence (not a single bedroom) for up to three rental periods per calendar year, each fewer than 30 consecutive days, and no more than 90 days total in a year. A Limited Home Rental must be registered with the City and is subject to Transient Occupancy Tax. This is a stricter stance than statewide California law, which permits STRs subject to local rules, and it differs from unincorporated Orange County (e.g., Trabuco Canyon), which is governed by County rather than City regulations. Questions on the ordinance go to the City at 949-461-3460. Violations are a misdemeanor carrying fines up to $1,000 per violation.