LA Passes AirBnb Restrictions

LA City Council votes unanimously to implement AirBnb restrictions.

Los Angeles AirBnB Restrictions

After a four-year effort, the L.A. City Council voted unanimously to create the first set of rules governing Airbnb and other short-term rental companies. The first impact would be a 120 day cap; limiting the days an operator could rent out their unit. Los Angeles AirBnB Restrictions

Additionally, AirBnb would only be allowed if it was the operator’s primary residence. This would eliminate an investor buying a property soley for the purpose of putting the property on AirBnb.

The rules would also bar people from offering up an apartment for short stays, if it is covered by rent stabilization rules. In Los Angeles, this essentially means any Duplex, Triplex or more units where rent control laws apply. In these types of buildings, AirBnb would completely banned when the rules become law.

There are additional amendments that will be considered before the details become final. One that would allow a property owner to petition to exceed the 120 cap through a process that would include notification of neighbors. One issue that would be considered in this petition process is if the operator has any nuisance violations.

It is estimated that of the potential 23,000 homes and units available for rent in Los Angeles, as many as 10,000 are used primarily for short-term rentals. In 2016, this added up to 456,000 nights booked on Airbnb alone.  Under the existing framework, estimates put Los Angeles’ tax revenue at $52 million in the coming year. This will surely drop with implementation of the new rules.

Neighborhood groups and the hotel industry have long called for short-term rentals rules on the basis that the industry disrupts neighborhoods as de-facto hotels are running wild. Additionally, much needed apartments were being taken off the market when there is already a shortage of housing for low and middle-income Angelenos. Los Angeles AirBnB Restrictions

Airbnb, says any restrictions on short-term rentals would limit residents ability to earn extra income when living costs are skyrocketing.

The proposals must go before planning commissioners for further analysis. Then a final vote with the city council and if passed it would become law. It is expected this could take up to four months.


Dino, writer of anything interesting and Real Estate for Happening in DTLA.

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