In December, Los Angeles passed a set of rules to regulate home sharing to rein in the use of vacation rental marketplaces like Airbnb and HomeAway amid the growing housing crisis. Those rules took effect on July 1 and, since we housesellers know many homeowners are invested in this topic, we thought we would give a quick rundown of what you need to know. Probably the most significant change to how things were done is that hosts must now register and pay an $89 fee to the city. Hosts can only register one property with the city at a time and the property must be their primary residence (where they live at least six months out of the year). Rentals are limited to a 120-day annual cap, and rent-stabilized units are no longer allowed to be used for home-sharing even if the host owns the unit.

Some other key points are:

A host who rents rooms in their primary residence can create separate listings but can rent to only one set of guests at a time

Renters can’t home-share without prior written approval of their landlord

Those who own second homes or investment properties can rent only to long-term residents 

No longer will spaces in nonresidential buildings or temporary structures be allowed, such as an Airstream or RV parked in a driveway or a backyard storage shed

To counter complaints of rowdy Airbnb party houses, a code of conduct was established, prohibiting amplified sound after 10 pm and banning evening outdoor gatherings of more than eight adults

Hosts must tell guests about any restrictions like those above and they could be held responsible for nuisance violations committed by guests

There is an “extended home-sharing” option that 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 and be registered with the city for at least six months or hosted for at least 60 days

One reason this has been such a hot button topic is that, according to the LA Times, Los Angeles welcomed a record-breaking number of tourists last year, with 50 million people visiting LA in 2018. This has fueled the rise in home owners willing to enter the lucrative home sharing scene and the city plans to work with a third party to monitor listings in violation of the new rules. For the complete list of rules and regulations, please visit this LA City Planning FAQ on home sharing.