Thinking of Renting Out Property in Irvine? Here’s What You Need to Know (2025 Edition)
If you decide to rent out a home or condo in Irvine, you have to make a few important decisions first. For instance, how involved do you want to be in the day-to-day management of your rental? Are you going to manage it yourself or hire local property managers in Irvine? Are you planning on making this a personal investment or business venture?
Figuring out your answers to these questions will help you determine the best path forward for business and tax classifications, rental management practices, and staying compliant with local laws. In this article, we’ll cover the most important considerations for renting out a property in Irvine.
Table of Contents
Business License Information
Even though California doesn’t require a statewide business license for rental property, the City of Irvine does require a local business license if you’re renting out property as more than just a casual or “supplemental income” arrangement. In other words, if your rental is treated like a business, this license is mandatory.
Business licenses must be renewed annually by February 28th each year.
Even landlords who don’t live in Irvine but own property there are required to get a license.
This process isn’t complicated, but it is important. Especially because failing to register your rental business with the city can result in late fees and penalties.
If you’re unsure whether you need a business license, we recommend getting in touch with the city of Irvine.
Do I need a real estate license?
If you own a rental property in Irvine, you don’t need a real estate license to manage it yourself. California law allows property owners to lease, market, and maintain their own rental properties without any special licensing. That means if you’re comfortable handling tenant screening, maintenance calls, and legal compliance, you can absolutely self-manage.
Where licensing comes into play is when you pay someone else to manage your property. In California, anyone you hire to market your property, negotiate leases, collect rent, or oversee operations in exchange for payment must hold a real estate broker’s license (or be a licensed salesperson working under a broker). This rule is designed to protect property owners and tenants, ensuring that anyone handling your money or contracts meets professional and ethical standards.
If you hire a friend or “handyman” to occasionally check on your property or do repairs, that’s fine. On the other hand, if they’re collecting rent or showing units for pay, they need a license. This is why most landlords choose to work with a professional property management company like Good Life Property Management. We’re fully licensed, insured, and trained to handle all the details (marketing, screening, leasing, and maintenance) while keeping you compliant with California law.
Short-Term Rentals Restrictions
Irvine has one of the strictest short-term rental bans in California.
In Irvine, any rental of fewer than 31 days in a residential zone is completely prohibited. That means no Airbnb, no VRBO, no vacation rentals of any kind in residential areas. Even advertising a short-term rental listing is illegal, and the city actively monitors platforms to enforce these rules.
Irvine has even partnered with tech companies to track illegal listings and block booking transactions through sites like Airbnb and VRBO.
The penalties are steep: fines can start at $100 per day and go up to $500 per day, with repeat violations possibly leading to misdemeanor charges. The city also has a dedicated hotline and online reporting system, making enforcement strict and efficient.
Security deposit laws
As of July 1, 2024, California’s AB 12 law officially caps residential security deposits at one month’s rent. This applies to both furnished and unfurnished units. For years, landlords could collect up to two months’ rent for unfurnished units and three months for furnished ones. Now, it’s a simple, flat limit: one month’s rent for nearly every tenancy.
There is one narrow exception: if you’re considered a “small landlord”, meaning you’re a natural person (or part of an LLC entirely made up of natural persons) and own no more than two rental properties totaling four units or fewer, you’re allowed to collect up to two months’ rent as a deposit. However, if your tenant is a service member, the cap is always one month’s rent, regardless of your landlord status.
The law applies to new leases starting on or after July 1, 2024. Existing leases remain under the old rules until they’re renewed. Also, remember that just calling a charge something else doesn’t bypass the cap. Pet deposits, cleaning fees, key fees, and even “last month’s rent” all count toward the total deposit amount.
At Good Life Property Management, we’ve already updated our lease templates and onboarding processes to ensure your properties are fully compliant while protecting your investment.
Credit Agency Rental Payment Reporting
Starting April 1, 2025, California landlords are required to offer tenants the option to report their on-time rent payments to a credit bureau. This change, introduced through Assembly Bill 2747 (AB 2747), gives renters a chance to build or strengthen their credit simply by paying rent on time – something that historically hasn’t helped their credit scores.
The rule primarily affects larger landlords and corporate property owners. If you own 16 or more rental units on a single parcel, or if your smaller portfolio is corporate-owned (or part of an LLC with a corporate member), you’re required to comply. Smaller, non-corporate landlords are generally exempt.
Here’s what’s required if you fall under AB 2747:
- Offer rent reporting at lease signing for all new leases starting April 1, 2025, and once annually thereafter.
- Include clear details in the notice, such as which credit bureaus are used, how tenants can opt in or out, and their right to unenroll at any time (with a six-month wait to re-enroll).
- You may charge for the service, but the fee is capped at $10 per month or the actual cost of reporting—whichever is lower.
For tenants, this law is a win, as it provides a pathway to improve credit scores with something they already pay for each month. For landlords, it’s one more compliance item to manage, especially in a high-regulation market like Irvine. At Good Life Property Management, we’ve updated our leases and systems to ensure all required notices and services are handled smoothly so you can stay compliant without extra hassle.
Rental Increase Limits
Starting April 1, 2025, California landlords are required to offer tenants the option to report their on-time rent payments to a credit bureau. This change, introduced through Assembly Bill 2747 (AB 2747), gives renters a chance to build or strengthen their credit simply by paying rent on time.
For tenants, this law is a win, as it provides a pathway to improve credit scores with something they already pay for each month. For landlords, it’s one more compliance item to manage, especially in a high-regulation market like Irvine. At Good Life Property Management, we’ll take care of the reporting for you.
Why Hiring Good Life Property Management Makes Sense
By choosing us, you get an expert team that:
- Handles licensing and ensures you’re in compliance.
- Markets your property, screens tenants, and handles maintenance—all legally and professionally.
- Keeps up with Irvine’s rental rules, legal updates, and inspections.
This frees you up and protects you—because local laws and paperwork change, and navigating them alone can be tricky.
The Bottom Line
Renting in Irvine is a great opportunity, but it’s wrapped in a web of local rules—from licensing and deposit limits to short-term rental bans and required rent reporting. Whether you’re renting one home or starting a portfolio, I’m here to help you navigate all of it.
Steve Welty
Subscribe to Our Orange County Landlord Newsletter
Get in touch with us:
Orange County Property Management Blogs
The Ultimate Formula for Pricing Your Rental
Learn the ultimate formula for pricing your rental property. Maximize profit and minimize vacancies with our Max Rent Pricing strategy—simple, effective, and proven!
How to Find Tenants – Property Manager’s Ultimate Guide
Finding good tenants is one of the most important parts of owning a rental property. If you know how to find tenants the right way, you will be able to
Guide to Tenant Screening for Property Owners
Screening tenants is one of the most important tasks for landlords and property managers. Learn the ins and outs of tenant screening.