What are the New Rules for Short-Term Rentals?

Listen to the AirTalk Podcast with guest David Ambroz, member and past president of the Los Angeles City Planning Commission

The Home-Sharing law barring Los Angeles residents from renting out their second homes or investment properties went into effect on Monday. The law came after a wave of complaints that short-term rentals were turning apartment buildings into hotels and pinching the city’s already tight housing supply.

Only primary residencescan be used as short-term rentals for tourists (usually at rates cheaper than hotels). However, hosts must register with the city, pay lodging taxes, keep records for city inspection, and make sure they have working smoke detectors, fire extinguishers, and information on emergency edits.

Hosts have to pay an $89 annual fee to the city and can register only one property in the city, which must match the address on their driver’s license or other approved ID. Those who own second homes or investment properties can rent only to long-term residents.

A host who rents multiple rooms in their primary residence can only rent to one set of guests at a time. Additionally, hosts can only rent out for stays up to 120 days annually. However, there are ways around this cap. Read more here.

Short-term rentals of any kind are no longer allowed in rent-controlled buildings, such as rent stabilized apartment buildings.

The rules also impose new requirements on vacation rental sites like Airbnb and HomeAway. They cannot process any booking from a host who has not registered with the city or who has exceed the annual limit. If the platforms do so, they could be hit with fines of $1,000 per day. The websites must also hand over host information to the city although Airbnb has stated it would not provide names and addresses unless it gets a subpoena.

Once a host registers with the city, the host will be given a home-sharing registration number to post on all listings or advertisements. Officials with the Los Angeles Department of City Planning has stated the city will work with a third party to monitor listings in violation of the new rules. Read more here.

If you were an AirBnb or HomeAway host and now need assistance renting out your investment properties for long-term tenants, please get in touch with Home Rentals LA to find a renter.