Los Angeles Develops Rules to Clamp Down on Short Term Rentals

[Eric Carr]

The LA City Council proposes rules, which have yet to be signed by the mayor, to restrict and regulate AirBnB type short term rentals throughout the entire city. The rules set limits on the number of days a primary home can be rented and bans, RSO (rent stabilized) units, trailers, RV's, sheds, and other structures from being used for vacation rentals. It also places rules on what kind of property can be rented on the short term market and under which circumstances. I know that short term rental platforms have made it possible for people to afford a home - a small multi family building, like a duplex, while living in one unit and renting another to vacationers. 

Below are some of the rules, what do you all think? Is this a good step, will other cities follow?

• Hosts will have to register with the city planning department and pay an $89 fee each year.
• Only a primary residence can be rented out, defined as the place where a host lives for at least six months per year.
• Renters can’t home-share without prior written approval of their landlord.
• Stabilized (aka “rent-controlled”) units are not eligible for home-sharing, even if you own your own RSO unit.
• Hosts may not register for or operate more than one home-sharing rental unit at a time in the city.
• Hosts can not home-share for more then 120 days in a calendar year, unless they have registered with the city for “extended home-sharing.”
• The “extended home-sharing” option allows hosts to rent out residences for an unlimited number of days. To get approval from the city, hosts have to pay an $850 fee. To qualify, they’ll have to have been registered for at least six months or hosted for at least 60 days. Hosts who have received a citation in the past three years will be disqualified, unless they pay an $8,500 fee to have their case reviewed.
• Non-residential buildings and temporary structures are not eligible for home-sharing; that includes vehicles parked on the property, storage sheds, trailers, and tents