Los Angeles Vacation Rentals - Public Hearing 5/21/16

[Geo Tan]

Hello Bigger Pockets family,

I just wanted to share with any bigger pocket members in the area that there will be a public hearing on May 21st at at the Deaton Auditorium in Downtown LA at 10AM regarding vacation rentals.

I have been looking into vacation rentals as a potential venture in the LA area since the numbers look very appealing and I know a few friends who thrive on that industry in LA already. It seems like one of the better ways to see actual cash flow from LA properties in my opinion and have seen many people prove it. Unfortunately as I was researching I came upon the following links:

News article:

http://www.scpr.org/news/2016/04/15/59666/airbnb-s...

Notice of hearing:

http://planning.lacity.org/ordinances/docs/HomeSha...

I'll most likely attend to listen in on how the hearing goes along with maybe speaking up myself if I have anything to add. I just figured this may be useful information to current bigger pocket members who are planning on pursuing vacation rentals in LA using AirBnB, VRBO, etc.

From what I read on the article, it seems like the city is trying to pass these several actions into play immediately:

1. Require third party sites like AirBnB and VRBO to give out information on all listed properties

2. Limit the vacation rental days to 3 months (90 days) per year

3. Fine hosts who rent out longer than 3 months ranging from $200 to $2000 per day

4. Require hosts to obtain the hotel license with 15% tax

That's what I got out of the article anyways.

Just figured I'd update people who didn't know and if anyone knows more about this ordeal please do enlighten me and anyone else who may be interested.

Thanks!