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Everything You Need To Know About L.A.'s Short-Term Rental Rules

PMI Golden State - Monday, September 16, 2019
Property Management Blog

On July 1, 2019, Los Angeles opened the registration portal for its Home-Sharing Ordinance (CF 14-165-S2), the new law regulating short-term rentals within the city.

Why did Los Angeles create the Home-Sharing Ordinance?
It’s important to look at why the city put this rule into place. The bottom line is it wanted a cut of a growing industry. By enacting the Home-Sharing Ordinance, the city was able to create fees for people who rent our rooms on sites like AirBNB, VRBO and the like.

Who is affected by the Home-Sharing Ordinance?
As of right now, the city regulations only apply to short-term rentals at your primary residence, meaning the place that you live in for six or more months out of the year.

Within your home, you can only rent out spaces that are there for what the city calls “residential uses”. That means you can’t rent out garages, storage rooms, attics, recreation rooms, or temporary structures. It also means you can’t rent out your driveway so someone can park their car or RV there.

Los Angeles is still working on regulations for properties that are not considered primary residences but still operate as short-term rentals.

Places like hotels, motels, licensed bed & breakfasts, Transient Occupancy Residential Structures, and listings that only accept stays for 30+ nights a year must apply to the city for an exemption from the Home-Sharing Ordinance.

What do I need to do to register with Los Angeles’ Home-Sharing Ordinance?
The city has given people who operate short-term rentals until November 1, 2019 to register their rental property. You can register with the city online by clicking here.

To register you will need to provide a photo ID and proof of residence at the address you are registering. The address cannot be a part of the City’s Rent Stabilization Ordinance (RSO) and it must be in a building that’s designated by the city for residential use.

If you’re renting out a part of a unit that you rent from someone else, then you need to have notarized approval from your landlord allowing you to host.

Once you’re registered, you’ll receive a registration number from the city. That number must be listed on all of your rental postings moving forward.

What will the Home-Sharing Ordinance cost me?
Registrants who plan to rent out their location for fewer than 120 days will have to pay an annual fee of $89.

If you plan to rent out your location for longer, then you need to fill out an extended home-sharing application. That will cost you $850 annually. If it needs further review, the application fee can reach up to $5,660.

One Final Thought
It’s important to remember that this is the city’s first try at regulating the short-term rental industry. It is possible that things will change in the coming years as the system is refined. It’s important that you keep an eye out for changes to see how they can and will affect you.