Los Angeles Airbnb Bans & Short-Term Rental Regulations

Los Angeles's iconic neighborhoods and bustling tourism make the city a hotspot for short-term rentals. However, evolving regulations have significantly changed the landscape for both hosts and renters. With new rules targeting everything from rental caps to mandatory registration, Los Angeles homeowners now face stricter limits on how they can rent their properties.

In this article, we’ll dive into the latest regulations impacting short-term rentals, explaining what hosts and travelers need to know to navigate this complex market.

Are Airbnbs Banned in Los Angeles?

Airbnb, Vrbo, and other short-term rental (STR) platforms are not banned in Los Angeles. However, new restrictions have made renting and hosting these properties very costly, time-consuming, and complex. 

To rent or host one of these properties in LA, a host needs to register their property annually, pay multiple fees, get police permits, and much more. The rental also needs to be the host’s primary residence.

Even though the practice of short-term renting is not gone in LA, it is much harder to manage and rent now than just a few years ago. However, there are alternatives to this complex process. 

Alternatives to Airbnb and Vrbo

With STR restrictions active in LA, a platform like Furnished Finder is a great alternative. Choosing Furnished Finder over Airbnb or Vrbo offers several distinct benefits. Here are some key advantages:

1. Longer Stays and More Stability

Furnished Finder specializes in mid- and long-term rentals, typically catering to traveling professionals like nurses and corporate workers. With this focus on stays of 30 days or more, hosts can avoid the challenges and penalties associated with exceeding STR caps​.

2. No Booking Fees

Unlike platforms such as Airbnb and Vrbo, Furnished Finder operates on a model that doesn't charge booking fees to renters. The platform only requires a one-time annual fee for hosts, whereas platforms like Airbnb take a percentage of each booking. This makes Furnished Finder a more cost-effective option for LA hosts who want to maximize their earnings and renters who want to keep tight budgets, particularly in a competitive market​.

3. Steadier, Reliable Income for Hosts

With longer-term stays, hosts are more likely to secure steady income without the frequent turnover associated with short-term bookings. This is ideal in a city like Los Angeles, where finding consistent renters can reduce vacancies and maintenance costs. Hosts don't have to worry about cleaning, preparing, and re-listing the property as frequently, which also reduces operational headaches​.

4. No Transient Occupancy Tax

Los Angeles STR hosts are required to register for a Transient Occupancy Tax (TOT) certificate and collect this tax from guests. Since Furnished Finder’s typical stays are longer than 30 days, they fall outside of the STR definition and are exempt from this tax, saving money for both hosts and renters​.

5. Attracts Professional Tenants

Furnished Finder is popular with traveling nurses, doctors, and other professionals who are often looking for housing near major hospitals or business districts. In LA, where the healthcare and entertainment industries are booming, this allows hosts to target a reliable tenant pool with stable employment. This reduces risks associated with non-payment or property damage​.

6. Greater Legal Compliance

Furnished Finder's business model doesn't encourage short-term, high-turnover stays that are often scrutinized. LA has some highly complex rules when renting for fewer than 30 days, but with Furnished Finder, these regulations are far less of an issue. This helps hosts avoid potential fines and legal complications under Los Angeles's stringent STR laws.

New Short-Term Rental Rules and Regulations

Los Angeles has introduced several new restrictions aimed at regulating short-term rentals. Here are some of these rules:

Primary Residence Requirement

STRs are limited to an operator's primary residence, meaning hosts must live at the property for at least six months per year. This restriction excludes vacation homes, accessory dwelling units (ADUs), and rent-stabilized properties from being used as short-term rentals​.

Annual Registration and Fees

Hosts must register their STRs annually with the city or county, depending on their location. In unincorporated areas of LA County, the registration fee is $914 per year, which helps cover enforcement costs​.

Rental Caps and Booking Restrictions

In Los Angeles, hosts can rent out their property for a maximum of 120 days per year. To extend beyond that, they must obtain additional permits. For certain areas, hosted stays (where the host is present) are limited to 90 days annually​.

Police Permits

A new law set to take effect in 2024 will require STR operators in the city to obtain a police permit. This regulation is intended to address concerns about parties and illegal activities in STR properties​.

Enforcement and Fines

Violations of these regulations, such as exceeding the rental cap or failing to register, can result in fines of up to $1,000 per day. STR platforms like Airbnb must ensure their hosts are compliant, or they face similar penalties​.

These measures aim to balance the benefits of tourism with the preservation of affordable housing and neighborhood quality of life.

How to Stay Up to Date

These regulations can be complicated, and finding out if they change can be difficult. To stay up-to-date on the rules of short-term rentals, here are a few reliable resources:

Los Angeles City Planning Department Website

The city’s official website provides detailed information on local short-term rental ordinances, registration requirements, and updates on regulations. (Los Angeles City Planning)

Los Angeles County Treasurer and Tax Collector (TTC)

For hosts operating in unincorporated areas of LA County, the TTC provides information on registration, fees, and lodging tax requirements. The official county website often posts updates and new policies for STRs. (L.A. County TTC)

Better Neighbors LA

This local advocacy group tracks short-term rental impacts and policy changes in Los Angeles. They provide resources for tenants, homeowners, and community members affected by STR regulations. (Better Neighbors LA)

Staying informed through these sources will help you navigate Los Angeles’s evolving STR landscape.