After trying to hash out how to handle the ever-increasing rise in short-term vacation rentals like those offered by Airbnb, HomeAway and VRBO (Vacation Rentals By Owner) since 2015, the Los Angeles City Council voted unanimously in December to approve a new set of rules regarding such short-term rentals. The law is set to go into effect in July and officially legalizes short-term rentals in Los Angeles for the first time, but places a few significant restrictions on hosts. 

The primary regulation under the new rules states that hosts will only be allowed to rent out their primary residences, and this is defined as the place where a host lives for more than six months of the year. Homeowners will not be allowed to rent out a second property or vacation home on a home-share site, and multi-family apartment building landlords would not be able to rent out individual units on a short-term basis unless they live there. The law also bars residents from renting out any home or apartment that is is under rent stabilization rules or is considered affordable housing. 

The number of days a host can rent out their home will be limited to 120 days a year unless they get special approval from the city and pay extra fees. The cost to register a short-term rental with the city will be $89 a year and under the new regulations, home-sharing platforms will be fined $1,000 a day for processing any booking from a host who is unregistered with the city or exceeds the annual 120-day limit. This will affect hot spots for vacation rentals such as Venice, but not Santa Monica as it has its own home-sharing rules. We housesellers would like to direct you to this link for a more comprehensive rundown on the new law.