Los Angeles, California


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City Ordinance for Short Term Rentals in Los Angeles

Navigating the rules around short term and vacation rentals in Los Angeles

Los Angeles is a city struggling with balancing the needs of its workers, neighborhoods, and the short-term rental market.  Renting out for short term rentals is illegal in almost the entire city, although the rule is seldom enforced.  Currently, there is a contentious and polarized environment in the city around short term housing.  On one hand, short-term housing can provide much needed income for Los Angeles hosts that allows them to stay in their homes, but on the other hand, neighborhoods complain of a shortage of affordable renting, disruptive visitors, and loss of neighborhood character, and hotel owners and workers worry about loss of income and jobs.



Main Takeaways:

  • Currently, short term rentals are prohibited in most of the city.
  • New legislation would legalize short-term housing but regulate the number of days that residences could be rented over the course of a year and would bar those who live in rent-control houses from participating in the industry.
  • Hosts will have to register with the City under the new legislation.
  • Keep Neighborhoods First and Los Angeles Short Term Rental Organization (LASTRA) are two groups which are actively involved in the issue.
  • Cities like Beverly Hills, Pasadena, and Manhattan Beach are in the L.A. area, but are separate cities, and therefore, they have rules separate from L.A. proper.



Main Body of Research

Short-term rentals have largely been unregulated in the City of Los Angeles.  However, in 2015, with the growth of AirBnb, HomeAway, and the house-sharing industry, new challenges arose in the City, leading to pressure to address issues arising from the increase of STRs. Over the past year, the proposed ordinance has undergone various changes; however, the current proposed law would prohibit short-term rentals of second homes or investment properties, bar home sharing in rent-stabilized units, and limit the number of days that people could rent out their homes to 180 days a year.

Keep Neighborhoods First (http://www.keepneighborhoodsfirst.org/) has been an organization very active and vocal in their opposition to short term rentals.  They argue that short-term rentals artificially increase rents, decreases the amount of housing stock for long-term rentals, reduces neighborhood diversity, and that short-term rentals attract unruly guests. Other groups that strongly support regulation of short-term rentals are the California Hotel and Lodging Association, the Coalition of Economic Survival, the Venice Community Housing Corporation, and unionized hotel workers.

The Los Angeles Short Term Housing Association (LASTRA, http://www.la-stra.org/advocates for reasonable, fair regulation.  They argue that there is an affordable housing problem in L.A, but that it is not due to the short-term housing industry.  In addition, they are for the regulation of the problem of “party houses” and cite that these are a few bad apples.



Is my rental legal?

Currently, short term rentals are illegal in most of the City.  

Click here to see a map (at the bottom of the page) that we made a while back that lays out all of the legislation in each major city and the procedures they need to take to ensure their STR is legal. Legislation may have changed though since we posted this map, so double check and make sure that the legislation is still up to date!



Resources:

Los Angeles City Council contact information: 200 N Spring St., Los Angeles, CA 90012, 213-473-3231, https://www.lacity.org/city-government/city-council
Keep Neighborhoods First: keepneighborhoodsfirst@gmail.com
Los Angeles Short-Term Rental Association (LASTRA): 106 ½ Judge John Aiso St, Suite 500, Los Angeles, CA 90012, 213-805-7466


Sources:

City of Los Angeles. (n.d.). Department of Planning Recommendation Report.  Retrieved from https://planning.lacity.org/ordinances/docs/HomeSharing/StaffRept.pdf

Huang, J. (2017, J.). Airbnb, short-term rental restrictions draw hundreds to LA Council Debate.  Retrieved from http://www.scpr.org/news/2017/06/14/72809/la-debates-airbnb/

LASTRA Advocates Fair Short Term Rental Regulations & Responsible Property Management. (n.d.). LATRA. Retrieved from http://www.la-stra.org/

The Problem with Commercialized Short-Term Rentals. (n.d.). Keep Neighborhoods First.  Retrieved from http://www.keepneighborhoodsfirst.org/strproblem