Los Angeles Cracks Down on Airbnb Hosts

Posted by Ben Nicolas on Friday, December 14th, 2018 at 1:34pm.

This Tuesday, December 11, Los Angeles City Council unanimously passed a long-awaited and much discussed ordinance regulating short-term rentals, also known as home-sharing. Slated to go into effect on July 1, 2019, the ordinance bans rent-controlled units and non-primary residences from participating in home-sharing. The regulations will apply to the entire city of Los Angeles, including Venice, one of the city’s most popular vacation destinations. This is the city’s first attempt to legalize and simultaneously crack down on short-term rentals, which many critics say contribute to the housing crisis. Many who host on Airbnb have been vocal about how much they rely on the extra income to stay in their homes.

 What you need to know:

  • Hosts will have to register with the city with an application and an annual fee of $89.
  • Hosts will be limited to renting their residences for 120 days per year.
  • If a host wants to rent their property for more than the 120 day limit, they can file for special approval for “extended home-sharing” from the city planning department and pay an extra $850 fee.
  • To qualify for “extended,” hosts will need to have been registered for at least 6 months or have hosted for at least 60 days. If they have received a citation in the past 3 years, they will be disqualified, but may pay a hefty $5660 fee for a discretionary review.
  • Temporary and non-residential structures, like tents, trailers, parked vehicles, and RVs, are not allowed to be included on platforms.
  • Renters may not participate without prior written approval from their landlord.
  • Units subject to Rent Stabilization Ordinance (rent controlled) are banned from participating, even if you own the building.
  • No more than two guests are allowed per (bed)room and that guests may not utilize "sound amplifying equipment," to address concerns that “party houses” may disturb neighbors.

The city allegedly plans to create a task force to help enforce and regulate the new rules; Members of City Council also requested a 24-hour hotline as a resource for complainants, guests, and hosts. For full text of the regulations click here.

Do you own a non-primary residence in Los Angeles and use it as a short-term rental? Don’t want to deal with new fees, potential fines and city regulations? Want to sell while the market is hot? Get in touch with IET Real Estate today!

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