One of the questions I get asked a lot from guests who come to our open houses is; “what are the rules for Airbnb in this area?" It always helps to know the answer, or where to find it in the fast-paced real estate market of Los Angeles. Covid-19 may not be going anywhere anytime soon, but neither is one of the fastest trends in income property investing. This article Airbnb rules of Los Angeles will outline some of the basics for Los Angeles County’s short and long-term Airbnb rental regulations, Los Angeles County Airbnb night limits for hosting, and Los Angeles County Airbnb occupancy taxes.
When deciding whether to become an Airbnb host, it’s important for you to understand the laws in your city. As a real estate brokerage we do not provide legal advice, but we want to provide some useful links that may help you better understand laws and regulations in Los Angeles. This list is not exhaustive, but it should give you a good start in understanding your local laws. We’ll continue to update this information as more becomes available. If you have questions, contact the Department of City Planning or other city agencies directly, or consult a local lawyer or tax professional.
Based on Home Sharing Ordinance (CF 14-1635-S2), home-sharing is permitted in Los Angeles if your listing is your primary residence. Hosts are required to register with the city and post their permit number on their listing or claim a valid reason for exemption, in order to comply with the ordinance. Listings without a permit number or exemption posted will be blocked from hosting short-term stays (less than 30 nights at a time) in Los Angeles.
You can learn more about what’s required for your short-term listing regulations in the sections below.
If you plan to host your primary residence for more than 120 days per calendar year, you’ll need to apply for extended home-sharing. Extended home-sharing registration is a 4-step process:
- Apply for regular home-sharing: You’ll need your home-sharing registration number (pending or final) in order to apply for extended home-sharing. Your home-sharing registration will be checked to confirm extended home-sharing eligibility. You will receive an email at the email address associated with your registration containing a secure link to continue to step 2.
- Data validation and upload of proof of number of days hosted (if required): You will have an opportunity to update certain registration details and upload proof of hosting for 60 days (if required). You will receive an email confirming your registration.
- Neighborhood notification: The city will review your registration and if you qualify, you will be emailed a mailing notification and mailing labels. You will be required to mail the notification using the city’s contractor. Details on how to complete this step are available on the city’s site. Note that you will only have to complete this step after your application is approved.
- Upload proof of mailing and pay registration fee: You will return to the portal using a secure link to upload the proof of mailing and pay the extended home-sharing registration fee of $850.
LOS ANGELES COUNTY NIGHT LIMITS FOR HOSTING
Local laws in Los Angeles require that you only host guests in your place for a maximum of 120 nights per calendar year unless you’ve received an extended home-sharing permit. If you use the same registration number for multiple listings, like an entire home and a private room at the same address, you can only host guests for a maximum of 120 nights across both listings All nights booked for a listing after a valid Home-Sharing Registration Number or Pending Number has been issued (whichever is earlier) in a calendar year count towards the 120-night limit. Once you reach your city’s 120-night limit, you won’t be able to accept short-term reservations for the rest of the calendar year. The verdict is out for ADUs and we’ll update this article as the rules and regulations continue to develop.
LOS ANGELES COUNTY OCCUPANCY TAXES
The City of Los Angeles imposes a 14% transient occupancy tax on the listing price (including cleaning fees) for stays of 30 nights or less. Airbnb collects and remits the City transient occupancy tax. However, hosts are still required to file monthly returns to the Office of Finance and should take a deduction for tax collected and remitted by Airbnb (and any other applicable platform). For more information about the City’s transient occupancy tax, visit the City’s FAQ page. In addition, Los Angeles County applies a transient occupancy tax on any unincorporated areas within the county, which applies to broad categories of transient use. “Transient use” is defined as a guest stay of 30 days or less. Airbnb currently does not collect the County transient occupancy tax. More information about the County transient occupancy tax is available on the County’s FAQ page.
Please reach out to me with any further questions on this article or industry proven ways to add value to your home or income property.
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