A Short-Term Rental Guide for Prefab ADUs in
Orange County, California

A Short-Term Rental Guide for Prefab ADUs in
Orange County, California

Learn about local zoning guidelines, financing options, and getting started with building a custom ADU in Orange County, CA.

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Orange County, home to iconic destinations like Disneyland and stunning coastal cities such as Laguna Beach and Newport Beach, is a thriving area in Southern California. With its perfect mix of beach living, upscale shopping, and family-friendly attractions, the region attracts millions of visitors each year. Conveniently located between Los Angeles and San Diego, Orange County is a prime spot for short-term rentals, offering guests a blend of relaxation, adventure, and Southern California charm.

Ready to make money with your ADU in Orange County, California?

Unlock the potential of your property with Ikkonic's Modular ADUs and Homes, designed specifically for California's rental market. Whether you're a homeowner looking to maximize your space or an investor seeking lucrative opportunities, our modular units offer a flexible, efficient solution. With California’s high demand for rental properties, adding a Modular ADU or Home to your property is a smart investment that will help you make money with your ADU and generate a steady stream of recurring revenue.


Ikkonic's modular units are built off-site, ensuring faster construction times and minimizing disruption to your property. These homes are not only stylish and modern but also energy-efficient, meeting California’s strict building codes. The rental market is robust and demand for quality housing is high, adding a Modular ADU or Home can significantly boost your rental income potential. By choosing a modular approach, you benefit from cost-effective construction without compromising on quality or design.


Transform your backyard or unused land into a profitable rental property with Ikkonic.com's innovative modular solutions. Start earning rental income quickly and easily, while also increasing your property’s overall value. Explore the possibilities with Ikkonic.com and turn your property into a thriving income-generating asset.

Short-Term Rental RegulationsWho’s RentingTop Rated AmenitiesMost Popular Rental SizeA Look at the NumbersRent Revenue By SizeRent Revenue by CityRenting Your ADU for Short-Term Rentals

Short-Term Rental Regulations

in Orange County, CA

Short-Term Rental Regulations

If you're considering operating a Short-Term Rental (STR) in Orange County, CA, it’s important to understand the permit requirements and regulations enforced by the county and specific cities within the county. Here’s a simple guide to help you navigate the rules:
If you're considering operating a Short-Term Rental (STR) in Orange County, CA, it’s important to understand the permit requirements and regulations enforced by the county and specific cities within the province. Here’s a simple guide to help you navigate the rules:
Orange County's Regulations

Ordinances/Regulations

  • Permit Required: STRs in Orange County typically require a permit, especially if located within city limits like Anaheim, Newport Beach, or Laguna Beach. Each city has different requirements, so be sure to check with the local planning department.
  • License Tiers: Orange County and its cities have different license types depending on the type of short-term rental. Examples include:
    • Primary Residence Rentals: Homeowners in some cities, such as Anaheim, may be allowed to rent part of their primary residence for short-term stays. However, regulations vary significantly across cities.
    • Whole-Home Rentals: Whole-home rentals are often restricted. Cities like Newport Beach have caps on the number of STRs allowed and require special permits for whole-home rentals.

Zoning Restrictions

Occupancy Limits

  • Limits Based on Property Type: Occupancy limits for STRs are based on the property’s size and type. For example, in cities like Newport Beach, occupancy limits are often two guests per bedroom, with restrictions based on the size of the rental.

Parking

  • Parking Requirements: On-site parking requirements for STRs vary depending on the city and property type. Some cities, like Laguna Beach, have specific requirements for STR hosts to provide adequate parking for guests.

Noise Ordinance

  • Noise Restrictions: Cities within Orange County enforce noise ordinances to maintain neighborhood peace. Most cities have quiet hours between 10 PM and 7 AM, with fines for violations.

Transient Occupancy Tax (TOT)

To be on the safe side, it's best to contact Orange County's Planning Department directly for the most up-to-date info. You might also want to chat with a lawyer familiar with landlord-tenant law in California, just to be sure you're in the clear.

Who is Renting

in Orange County, CA

Traveling Families

Love the comfortable, safe, and spacious accommodations

Couples & Friends

Enjoy the charming, well-located rentals for exploring Alameda and nearby attractions

Business Travelers

Appreciate the comfortable accommodations with nice kitchens and bathrooms, perfect for unwinding after work

Top Rated Amenities in Orange County, CA
*According to data provided by Airbnb from actual renters

Highly Important

Pool
Close to Disneyland

Somewhat Important

Comfortable Beds
Responsive Host
Entertainment Options
Arcade or Game Room

Nice to Haves

Practical Amenities
Family Friendly
Spa or Hot Tub

4 Bedrooms

29%

3 Bedrooms

33%

2 Bedrooms

9%

A Look at the Numbers

in Orange County, CA
Construction Cost by Build Quality in Orange County, CA
Data provided by Construction Industry Research Board (CIRB.org)
Cost per sf
Budget
$225 - $300
Cost per sf
Mid Level
$325 - $400
Cost per sf
Premium
$450 - $750
Avg Value of Single-Family Homes
$1,100,000
Avg Value of Homes with Detached ADUs
$1.32M - $1.43M
Typical Construction Times in Orange County, CA
Data provided by Construction Industry Research Board (CIRB.org)
Avg Construction Time for a Single Family Home
36 - 52 weeks
Avg Construction Time for an ADU
20 - 32 weeks
Avg Time for a Permit
4 to 8 weeks

Rent Revenue By Size

in Orange County, CA
Avg. Monthly Rental Income
*According to data provided by Airbnb from actual renters
Studio
$4,440
1 Bedroom
$5,296
2 Bedroom
$7,164
3 Bedroom
$10,239
Want to Finance?
Assumption: The data below is based on a 30 YR HELOC, with a fully amortized payment schedule, and a 10% down payment.
 To adjust different financial scenarios, user our ROI calculator below
Purchase Price
Down Pay
Total Financed
$205,839
$20,584
$185,255
$347,272
$34,727
$312,545
$486,059
$48,606
$437,453
$1,135,714
$113,571
$1,022,143

7% Interest Rate

Monthly Payment
Monthly Cashflow
$778
$1,061
$1,436
$765
$2,390
$701
$5,388
$(1,517)
Annual ROI
$38,487
186.97%
$38,602
111.16%
$51,042
105.01%
$41,262
36.33%
Avg. Monthly Rental Income
*According to data provided by Airbnb from actual renters
Studio
$4,440
2 Bedroom
$7,164
Want to Finance?
Assumption: The data below is based on a 30 YR HELOC, with a fully amortized payment schedule, and a 10% down payment.
 To adjust different financial scenarios, user our ROI calculator below

7% Interest Rate

Purchase Price
Down Pay
Total Financed
$240,000
$24,000
$216,000
$420,000
$42,000
$378,000
Monthly Payment
Monthly Cashflow
$1,440
$376
$2,515
$205
Annual ROI
$38,487
186.97%
$51,042
105.01%

Rent Revenue by City

in Orange County, CA

Rent Revenue

By Top Performing Cities

Newport Beach

Avg Annual Revenue
$100,003
Avg Occupancy
71%
Avg Daily Rate
$430
Listings
535

Laguna Beach

Avg Annual Revenue
$88,041
Avg Occupancy
72%
Avg Daily Rate
$396
Listings
65

Sunset Beach

Avg Annual Revenue
$103,902
Avg Occupancy
69%
Avg Daily Rate
$489
Listings
34

Mission Viejo

Avg Annual Revenue
$83,701
Avg Occupancy
74%
Avg Daily Rate
$353
Listings
28

Ready to make money with your ADU?
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Renting Your ADU for Short-Term Rentals

in Orange County, CA
Step-by-Step Guide: Renting Your Accessory Dwelling Unit (ADU) for Short-Term Rentals in Orange County, CA

If you're ready to make money with your ADU in Orange County, CA renting it out as a short-term rental on platforms like Airbnb or VRBO, here's a friendly guide to help you get started, even if you're new to this!

1. Understand the Local Regulations

Before listing your ADU, it's essential to understand the rules:

‍

  • Check Zoning and Permits: Orange County has specific regulations for short-term rentals. Make sure your ADU is in a zone that allows short-term rentals.
  • Obtain a Short-Term Rental Permit: In Orange County, you need a permit to operate a short-term rental. This includes your ADU if you plan to rent it out for less than 30 days at a time.‍
  • Know the Occupancy Limits: Understand the maximum number of guests allowed in your ADU according to local laws.
2. Prepare Your ADU

Your ADU should be ready to impress potential guests:

‍

  • Furnish and Decorate: Make sure your ADU is fully furnished and comfortable. Add some personal touches like local art or a cozy throw blanket.
  • Stock Up on Essentials: Provide basic amenities such as towels, toiletries, kitchenware, and cleaning supplies.
  • Ensure Safety: Install smoke detectors, carbon monoxide detectors, and provide a fire extinguisher. Ensure all locks and windows work properly.‍
  • Wi-Fi and Entertainment: High-speed internet is essential. Consider adding a smart TV or other entertainment options to make your guests’ stay enjoyable.
3. Take Great Photos

First impressions matter:

‍

  • Use Good Lighting: Take photos during the day when natural light is abundant.
  • Highlight Key Features: Showcase unique features like a beautiful patio, modern kitchen, or a cozy bedroom.‍
  • Consider Hiring a Professional Photographer: If budget allows, a pro can make your ADU look even more appealing.
4. List Your ADU on Short-Term Rental Platforms

Now that your ADU is ready, it’s time to list it:

‍

  • Choose a Platform: Popular options include Airbnb and VRBO. You can list on both to maximize your exposure.
  • Create a Catchy Title: Think of a title that highlights the best feature of your ADU, like “Cozy Garden Retreat in the Heart of Orange County.”
  • Write a Detailed Description: Describe your space accurately. Include details about the neighborhood, nearby attractions, and what makes your ADU special.‍
  • Set Your Pricing: Research similar listings in your area to set a competitive price. Don’t forget to factor in cleaning fees and any additional guest fees.
5. Set House Rules

Clear rules make for smoother stays:

‍

  • Establish Check-In and Check-Out Times: Standard times are 3:00 PM for check-in and 11:00 AM for check-out, but you can adjust to what works best for you.
  • Outline Noise Restrictions: If you have neighbors close by, consider setting quiet hours.
  • Pet Policy: Decide whether you’ll allow pets and under what conditions.‍
  • Smoking Policy: Be clear if smoking is not allowed inside your ADU.
6. Manage Bookings and Communication

Good communication is key to great reviews:

‍

  • Respond Quickly: Promptly reply to booking inquiries and messages from guests.
  • Use Automated Tools: Platforms like Airbnb offer tools to send automated check-in instructions and reminders.‍
  • Be a Helpful Host: Provide recommendations for local restaurants, attractions, and transportation options.
7. Clean and Maintain Your ADU

A clean space leads to happy guests:

‍

  • Hire a Cleaning Service: If managing cleaning yourself is too much, consider hiring a professional service to clean between guests.‍
  • Regular Maintenance: Keep up with regular maintenance tasks like checking the plumbing, replacing light bulbs, and tending to the garden if you have one.
8. Collect Reviews and Improve

Positive reviews will attract more guests:

‍

  • Ask for Reviews: After each stay, politely ask your guests to leave a review.
  • Learn from Feedback: If a guest points out an issue, address it promptly to avoid future complaints.‍
  • Update Your Listing: Keep your listing fresh by updating photos, changing the description, or adjusting prices based on seasonal demand.
9. Handle Finances and Taxes

Keep track of your earnings and obligations:

‍

  • Track Your Income: Use a spreadsheet or financial software to track your rental income.
  • Set Aside Money for Taxes: Short-term rental income is taxable, so be sure to set aside money to cover your tax obligations.‍
  • Consider Professional Help: If you’re unsure about tax filings, consult with an accountant familiar with short-term rental income.
10. Enjoy the Experience!
Renting out your ADU can be a rewarding experience, both financially and personally. Enjoy the process of hosting guests from all over the world and making their stay in Orange County special.

Take the next step in your ADU rental journey

Ikkonic simplifies the process with prefab, turn-key ADUs that are both stylish and efficient. Designed with precision and crafted using high-quality materials, our ADUs offer unmatched value. 

When you choose Ikkonic, you're partnering with a team dedicated to making your experience seamless. Start by submitting your property details and discover if Ikkonic is the right fit for you—getting started is free and comes with no obligations.

Benefits

of Prefab ADUs

Build smart,
build modular

01

Reliable Timeline & Transparent Costs

Enjoy peace of mind with a clear and consistent schedule, and no hidden fees or unexpected expenses.

02

Premium Materials & Superior Craftsmanship

Benefit from high-quality materials and exceptional workmanship, ensuring durability and aesthetic appeal.

03

Comprehensive Process Management

Easily track and manage every step of your project with our user-friendly platform, keeping you informed and in control.

04

Trustworthy & Competent Team

Rely on our experienced and dependable professionals dedicated to delivering top-notch results with integrity and expertise.

Traditional vs Modular
Construction Process
As little as 6 Months

Simple, Predictable, and Transparent Construction Process

We provide upfront, fixed pricing.
No change orders ever.‍

Considerable savings on construction costs.
No architecture or design fees.

Up to
50%

Cut overall project time in half with our pre-designed models.

You do this

Configure

Step 01

Customize your ikkonic Home or ADU with our easy to use configurator. Choose your model, finish package, and add on options. A custom design with no stress.

We both do this

Review & Approve

Step 02

Meet with your project expert to ensure you're happy with the design. Confirm feasibility & sitework requirements and approve your proposal.

1 Hour

Pay $250 Reservation Fee

We do this

Site Analysis

Step 03

We’ll perform a feasibility analysis of your property. Ensuring our models can be installed at your site and the site work estimate is accurate before final contract.

2-3 weeks

You do this

Contract & Schedule

Step 04

Choose a production slot from our schedule. We’ll advise on how long obtaining local permits should take, so you choose the best available option. Sign your contract and pay your deposit.

1 Day

Pay 50% Deposit

We do this

Obtain Local Permits

Step 05

We take care of all the necessary permits for the project. Our experienced team of experts keeps you updated every step of the way.

3-6 Months

*Can vary significantly based on your property location
We do this

Production

Step 06

We manufacture on schedule, regardless of permit or local delays that may occur, eliminating the risk of your ikkonic model not being ready when you are!

Schedule

Milestone

2-3 Weeks

Framing

1-2 Weeks

Mechanicals

1-2 Weeks

Fit & Finish

Pay balance upon completion

We do this

Delivery & Install

Step 07

Your beautiful ikkonic home is delivered and installed as soon as the local site work is completed.

1-5 Days

You do this

Move in

Step 08

Welcome home.
Ready to get started?
Try our Free design tool

Relax and Enjoy

We’ve Got You Covered

Turnkey Services

ikkonic makes building and installing our premium ADUs effortless with a wide range of pre-approved plans to choose from. 

Timeless Design

Our models feature mid century charm and elegance, with custom curated interiors and premium energy efficient building materials that are best in class.

Quality Guaranteed

Each model goes through a 140 point quality control checklist to ensure every build is perfect. Backed by an industry leading 10 yr warranty to protect your investment.

Value Add

Our ADUs add 20-30% to your home's value. An investment that will pay dividends for many years to come.

Use our Online Configurator to Create a Design You Love

No design skills necessary, build and price your model in minutes.

Customize Yours
ikkon 2.2
ikkon S

Frequently asked questions

Accessory Dwelling Units (ADU’s)

Do I need to have a primary residence before adding an ADU?
In most cases yes. An ADU is meant to be an add on to your existing home or multi-family dwelling. Some jurisdictions will allow you to build an ADU prior to building the primary residence, if building plans for the primary residence have been approved.
Do all ADU’s require a building permit?
In California the answer is yes. Many states now offer accelerated review processes, and even financial assistance to minimize the administrative hurdle to getting your project approved. Ikkonic’s team will handle all these entitlements as part of the standard purchase of your ADU.
Who pays for the building permits?
Building Permit fees are the clients responsibility. Each locale around the country will have unique building fees based on a variety of factors. Our permit team will present these fees to you as part of the contract process. Rest assured, there will be no surprises, as we capture and relay these costs as soon as there is enough information available about your project.
What do I need to do to prepare for delivery of my ADU?
Sit back and relax, and enjoy the show! Our expert logisticians handle all the red tape and jump through every necessary hoop to make sure your delivery is handled with care and precision. No two deliveries are alike, and our team is battle tested to ensure a seamless process.
Can I finance my ADU the same way I finance a home purchase?

Financing your ADU is much more like financing an addition to your home. Keep in mind, this is an add on structure that can not be leveraged individually. From the lender's perspective, you have or will be adding value to your real estate, and the loan ratios now need to be recalculated to make sure the lender is comfortable with the amount of debt versus the new value after the ADU is complete and installed.

We have great relationships with lenders that will assist in the loan process. They offer products like:

‍

  • Home Equity Lines of Credit
  • Remodel/Addition Loans
  • Personal Loans (Unsecured)
  • Revolving Credit Loans (Credit Cards)
  • Equity Partnership Loans
  • State and Federal Grants

 Single Family Residences (SFR’s)

How do I know if the land I own or may be purchasing is ok to build a home on?
All Single Family home purchases require a feasibility study prior to completing the purchase. We charge a small fee for this service to make sure things like zoning, setback restrictions, easements or floodplain issues won't impact your ability to obtain a building permit. If you move forward with us after the study is completed, the fee is credited back to your overall purchase price.
How long does it take to get a building permit?
The time it takes to obtain a building permit will vary by location. Many of the time delays in a typical home building process have been mitigated by your selection of a pre-designed model that has been partially reviewed and approved in advance. Your site conditions however must be reviewed to ensure your foundation systems meet local building code. 3-6 months is typical in many jurisdictions. Our team is expertly qualified to push this process as quickly as possible, and with all our resources in house we are well positioned to move through the process efficiently.
Is there anything that can be done to make the permit process go faster?
Many jurisdictions do have a fast track process available. This typically comes with an additional fee that is paid to a “Permit Expeditor”. These are consultants that have strong relationships with local planning and Building departments, and are highly effective in most cases to speed up the process, sometimes by as much as 50%. Results will vary based on the specific circumstances of your project.
How long will it take to install my ikkonic home?
Your home will be delivered and installed in as little as a week, and no more than 2 weeks. This of course does not consider rare acts like extreme weather conditions or natural disasters. If you keep in mind that the home has been completely built and inspected in our factories, and the only work to be done on site is unwrapping, setting and connecting your modules to each other, you can understand how quickly this occurs. Your project manager will carefully walk you through the installation process, as it is truly an exciting day to see your new home arrive!
Is financing an ikkonic modular home the same as financing a typical home construction?
The process is the same. Our lenders will review all the typical components of the project; land cost, construction cost, and final value of the completed home. Where the nuance comes in is the draw schedule for construction. Because we purchase all the materials for the home in advance of beginning production of the project, upfront deposits are much higher than site construction. We work with lenders that understand this process and help you understand the cash requirements well in advance of approving the loan.