Is it the end of the Short-Term rentals in LA as we know it? (Airbnb, etc...)
The City of Los Angeles now has a policy that went into affect July 1, 2019, that outlaws short term rentals, and will issue fines to owners when reported. The city's new ordinance is as follows:
Hosts must register with the city planning department and pay an $89 fee. According to the city planning department, enforcement will begin November 1, 2019. (We are on record with this office for not allowing these type of rentals)
Only the host’s 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 cannot home-share for more than 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 need to be registered with the city 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 a $5,660 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 as well as storage sheds, trailers, yurts, and tents.
Hosts are responsible for providing a Code of Conduct to all guests with rules about amplified sound and “evening outdoor congregations.The Home-Sharing Ordinance prohibits any listing of a short-term rental without a valid home-sharing registration number (or pending status). In situations where a listing without a registration number is identified, an initial notice of violation will be issued. The non-permitted activity must cease within a specified time or a citation with fines may be applied. Hosting platforms are also required to provide information to assist in the enforcement and removal of illegal listings. Additionally, both hosting platforms and hosts will be asked to maintain and provide written logs of home-sharing activity. If you currently own an investment property in the City of Los Angeles, which is not your principal residence, you can no longer legally use it for short-term rental.
Solutions: You can consider renting it out to a year-round tenant
You can sell the property and look at other investment opportunities.
Call us to discuss your options