In 2019, Los Angeles became another city with strict short-term rental regulations. The Los Angeles City Council introduced the Home-Sharing Ordinance to regulate rentals. Now, hosts can accept guests in the primary residence only and must register their property with the city, among other rules.
The ordinance has greatly affected rentals through Airbnb and similar platforms, resulting in a sharp decline in listings. A 78% decrease* was seen from 2019 to 2022, right after the law came into force.
Hosts keep complaining. Unexplained blocking of properties on Airbnb and delays with issuing permits happen too often. Dino58, an Airbnb host, shares his concerns:
“I have had zero violations over the course of the past 5 years since the inception of this program yet still I go through the renewal process of my license with absolute dread and a total and complete nervous wreck at the hands of a City that simply could care less. Note, that they will, however, block your ability to book any business in the most timely of manners and with extreme precision should you lapse in any way.”
If you don’t want to get blocked or fined, read our Airbnb rules for Los Angeles. Learn about Los Angeles County Airbnb regulations, home-sharing permit registration, penalties, and how to rent out LA property lawfully.
Short-term rental regulations in Los Angeles: What are they about?
Airbnb regulations in Los Angeles are mainly about the Home-Sharing Ordinance. Adopted on December 11, 2018, by the Los Angeles City Council, this act regulates what properties you can rent in LA and under what conditions. It turns short-term rentals into what they always had to be — home-sharing.
The ordinance came into force on November 1, 2019, and now requires all hosts who want to rent their properties short-term to register with the city and get an official registration number.
Home-sharing requirements
Here are the main requirements to comply with LA County Airbnb regulations for short-term rentals.
- Hosts must register their property with the city planning department and pay a $199 registration fee.
- Hosts must include their valid home-sharing registration number in all property listings.
- Hosts can rent their properties for no more than 120 days during a calendar year unless they get an extended home-sharing permit.
- Hosts can only register one home-sharing rental unit at a time.
- The property must be the host’s primary residence, and you must live there for at least six months of the year.
- The property must not be subject to the RSO (Rent Stabilization Ordinance), which regulates rentals in units constructed before 1978. To check whether your apartment falls under the RSO, browse the address on this website.
- The area used for home-sharing must be residential. You cannot rent a parked vehicle, trailer, storage shed, temporary structure, or anything else that is not built for residential use.
- Renters must get a landlord’s prior approval to share their home.
- The property must not have any pending citations from the Police or Fire Departments, the Housing and Community Investment Department, or the Department of Building and Safety.
- Hosts must receive a Transient Occupancy (Tax) Registration Certificate from the Office of Finance or list solely on hosting platforms that cooperate with the city.
Summarizing the listed Los Angeles Airbnb laws, the key requirements are official registration, a 120-day limit for short-term rentals, primary residence requirements, and more scrupulous record-keeping. If you follow them, you should have no trouble with short-term rentals in LA.
Who must and don’t have to register
If you are reading this article, your main question is probably “Can I Airbnb my apartment in Los Angeles?” It depends on the type of apartment and rental.
The Airbnb Los Angeles laws don’t apply to everyone. So before you rush to register your property with the city, make sure you have to do it.
You must register if:
- You rent your primary residence short-term
- You have no active registrations for STR
- You rent an accessory dwelling unit (ADU) with a certificate of occupancy issued by LADBS before January 1, 2017.
You are exempt from registration if:
- You are a non-primary resident
- You own multiple units and don’t live in any of them
- You host guests at a hotel, motel, B&B, or transient occupancy residential structure
Note that if you rent a property short-term without obeying Airbnb restrictions for Los Angeles, you may be fined.
Hosts may need to pay 2x the average nightly rate, up to $2,000, if they do not comply with Airbnb’s new restrictions.
The Home-Sharing Ordinance applies to anyone doing short-term rentals, through Airbnb or any other channel.
Is Airbnb legal in Los Angeles?
Yes, Airbnb and other short-term rental platforms are legal in LA. Airbnb regulations in California and Los Angeles do not prohibit renting an apartment or room short-term. They just make it more difficult and introduce strict rules.
Therefore, you can still rent your property through Airbnb, if it’s your primary residence, you don’t exceed 120 nights per year, and have an official registration with the city.
Number of days allowed: Standard vs. extended home-sharing
How many days can you Airbnb your primary residence depends on the type of permit. You can have 120 days with the basic standard registration or enjoy unlimited rentals with extended home-sharing.
To get the extended type of home-sharing registration, you must submit a request and meet some additional requirements as a host, including:
- Have a valid home-sharing registration for at least 6 months or host guests for 60 days minimum.
- Get proof that owners or occupants of adjacent properties have been informed by mail about the extended home-sharing application.
- Have no suspended or revoked home-sharing registration within the past two years.
- Receive no more than one citation during the past three years.
Extended home-sharing is a great solution for people who view short-term rental as a steady source of income. It takes extra effort but allows you to rent our property for as many days as you want.
Registration requirements and process
If you fall under the Home-Sharing Ordinance, prepare proof of identification and residence to register your property. You can find detailed information about the documents in these guidelines.
Overall, hosts must provide identification of the home-sharing address, a valid federal or state-issued photo identification (ID), and primary residence documentation with the host’s full name and address.
Once you gather the documents, the registration process for an Airbnb permit in Los Angeles is pretty simple.
- Go to the Online Registration Portal and fill out the form.
- Make sure you meet all the requirements once again.
- Pay the registration fee.
- Provide the requested documents.
- Wait for approval and receive the registration number.
You will receive the pending registration number right after submitting an application and can add it to home-sharing listings. Once the application is approved, you will get a final registration number and must update the information.
The same portal is also used to apply for an extended home-sharing registration and renew your existing registration. You must get a new home-sharing permit for Los Angeles every year. It’s better to apply for it 30 days before expiration since the renewal takes time.
Cost of registration and renewal
In 2024, home-sharing application fees were updated several times. Based on the most recent information published on the Los Angeles City Planning website, from June 30, 2024, the Regular Home-Sharing application fee is $199 both for new applications and renewals. The Extended Home-Sharing application fee is $1066 for all applications.
Required permits and licenses
Los Angeles Airbnb laws require hosts to have the standard (for 120 days per year) or extended home-sharing permit (for an unlimited number of days). There are no additional state-level California Airbnb laws asking for a permit or license.
Tax and legal obligations
Renting a room through Airbnb may seem casual, but it comes with taxes and legal consequences. You must know the rules to avoid lawsuits or debt-related claims.
Taxes on short-term rentals in LA
Hosts and property managers renting in Los Angeles should mind a 14% transient occupancy tax (TOT). This tax is charged from the price paid by guests for renting a property for 30 days or less.
If you rent a property through Airbnb or similar platforms like Vrbo, you don’t have to worry about paying the TOT. STR platforms collect the tax on your behalf and remit the payment. However, you will still need to submit monthly returns to the Office of Finance and keep the documentation in order.
If you find guests through platforms that don’t manage TOT, you will have to handle taxes yourself. Be sure to register with the city and get a Transient Occupancy Registration Certificate before collecting taxes from guests. We also recommend consulting with a tax advisor who will evaluate your case and help manage taxes.
Legal accountability
Let’s clarify who holds the responsibility.
Hosts are the main ones responsible for non-registered short-term rentals and record-keeping. Hosting platforms are obliged to share information that helps the city enforce the law and remove illegal listings. Guests hold no responsibility besides following the rules of the property, like no noise after 10 p.m.
Registering the property according to LA Airbnb laws, hosts must choose a legal entity which will affect taxes and liability.
A sole proprietorship is the simplest option, but it has no liability protection. Contrarily, a Limited Liability Company (LLC) provides personal liability protection while being more challenging to manage.
You can also choose a general or limited partnership if you do home rentals with a friend or companion. There are many options, and the choice depends on who owns the property and how much effort you are ready to put into managing it.
Fines and penalties in LA
The Home-Sharing Ordinance prohibits STR listings without a valid or pending registration number. When the city detects an unregistered listing, the host gets an initial notice of violation. They must fix the violation within the specified time, or the fines may be applied. According to the recent document published by the city of Los Angeles, the daily fines as of September 1, 2024, are the following:
- Hosting platform — $1,211.33
- Primary residence owner and/or host for advertising a property for short-term rentals — $605.73
- Primary residence owner and/or host for each day of home-sharing activity beyond the 120-day limit — $2,422.89
How to start an Airbnb in California lawfully
Can you Airbnb your apartment in California? Yes. How to do it properly? Here are the main steps for guidance.
- Learn the rules for short-term rentals in LA, and make sure you follow the requirements for home-sharing.
- Register your property using the city online portal and get a registration number.
- Choose platforms where you want to offer your property and create listings. Be sure to include your unique registration number in every listing.
- Clarify whether the STR platform pays a transient occupancy tax or you must do it yourself.
- Get short-term rental insurance to protect your property against potential damage and minimize financial risks for guests. The damage protection services by Truvi (formerly Superhog) offers protection of up to $5,000,000 and a quick claim resolution process.
You must also renew your home-sharing rental permit every year and keep a record of who lived on your property to avoid possible claims. Truvi can help with guest verification and gathering ID details with guest screening and guest verification features.
Overview of Airbnb laws in other US cities
Los Angeles and California Airbnb laws are just another stage in a series of legislations that limit Airbnb in the US and globally. City councils are forced to manage short-term rentals to handle housing problems and growing property prices.
We cover the most recent regulations in our blog, where you can learn more about:
- San Francisco Airbnb Rules
- Las Vegas Airbnb Laws
- San Diego Short Term Rentals Laws
- New York Airbnb Rules
- STR Regulations Global Overview
- Dallas Airbnb rules
- Chicago Airbnb rules