New Los Angeles Airbnb Regulations Will Limit Short-Term Rentals
On July 1, 2019, new regulations governing Los Angeles Airbnb properties officially went into effect. The regulations were put into place by an ordinance that was adopted by the Los Angeles City Council in December of 2018.
The new regulations are anticipated to have a significant impact on the availability of Airbnb rentals as well as the overall real estate market, particularly in low-cost markets. Some of the most notable new restrictions on Los Angeles Airbnb properties are as follows:
- On primary residences may be used as Airbnb properties. This requirements provides that the host must live in the property for at least six months out of the year, effectively eliminating the ability to list investment properties on Airbnb.
- Properties are limited to being rented for no more than 120 days per year.
- Hosts must register their property with the Department of City Planning and pay an $89 fee.
- Renters may not list their properties on Airbnb without written landlord approval.
- Rent-controlled units may not be listed on Airbnb.
- Non-residential structures, e.g. tents, vehicles, sheds, etc., may not be listed.
These new rules were passed after much deliberation, with the proposal going through multiple revisions and deliberation over a period of approximately three years. Now, enforcement of these regulations will begin on November 1, 2019. While it is difficult to determine precisely what their impact will be, many advocates claim that these regulations will worsen Los Angeles’s housing shortage. Others, particularly in Venice, claim that the regulations violate the Coastal Act, which purportedly requires authorization from cities in the coastal zone before enforcing new regulations, according to an LA Times article.
Ultimately, time will tell how these regulations will impact the real estate market, but for now it is safe to assume that investors should be keenly aware that short-term rentals may no longer be a viable option.
For more information on how Esquire Real Estate Brokerage, Inc. can help you in the Los Angeles real estate market, feel free to give us a call at 213-973-9439 or send us an email at email@example.com.