Is Airbnb legal in Los Angeles?

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Los Angeles, United States Airbnb Rules & Regulations

Last updated on: 13th August, 2024

Don’t worry, Airbnb is legal in Los Angeles!
Here are some statistics! As of 13th August, 2024, there are 13,071 listings available in Los Angeles from Airbnb alone. Sophia manages 84 listings, while Luxxx and The Line Collection operates 66 and 55 respectively. Out of 13,071 listings, 50% of listings have short-term rental licenses. Most listings have local permit to operate as a short-term rental. Keep reading this to learn more about short-term rental rules.
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Map
Occupancy Rate

68%

$190

Daily Rate

$46K

Revenue (2023)

13,071

Number of Listings

Short-term Rental Regulation & Rules in Los Angeles

In Los Angeles, Airbnb and other short-term rental platforms are regulated under the Home-Sharing Ordinance, which came into effect on November 1, 2019. This ordinance outlines specific requirements to ensure legal compliance and the balance between short-term rentals and the residential housing market.

Key Requirements for Hosts:

  1. Primary Residence:

    • Hosts must only list their primary residence, where they live for at least six months annually. Non-residential properties are not eligible for short-term rental registration.
  2. Registration:

    • Hosts must register with the city, obtaining a Home-Sharing Permit for a fee and display a unique registration number on listings.
    • The fee for regular permits increased to $192 as of July 1, 2023. Extended permits, which allow for more than the standard hosting quota, cost $1,030.
  3. Annual Hosting Cap:

    • A 120-day cap is imposed on hosting per calendar year. Exceeding this requires an Extended Home-Sharing permit, subject to additional requirements like a public hearing.
  4. Transient Occupancy Tax (TOT):

    • Hosts must collect a 14% TOT on stays 30 days or less. This tax is collected by platforms like Airbnb but hosts still need to file monthly tax returns.
  5. Record Maintenance:

    • Hosts must maintain logs of rental activity and furnish them upon city request.
  6. Safety and Compliance:

    • Properties must have fire extinguishers, smoke detectors, and clear emergency exits. Hosts should provide safety information to guests, and platforms need to ensure compliance with these safety standards.

Operational Limitations:

  • Short-term renting of Accessory Dwelling Units (ADUs) is restricted unless they were established before January 1, 2017, and not needed for affordable housing.

Enforcement and Penalties:

  • Citations and fines can be issued for non-compliance, potentially leading to legal actions.

Impact on Housing:

  • The regulations aim to mitigate the adverse effects of short-term rentals on the housing stock and affordability, maintaining a balance between tourism and residential needs.

Hosts are advised to consult the Los Angeles City Planning guidelines and maintain compliance to avoid penalties. Assistance and detailed resources are available through the City Planning's online portal and help lines.

Airbnb Statistics in Los Angeles! 🚀

Currently, there are 13,071 Airbnb listings in Los Angeles, with 39% of entire houses earning up to $3,555 a month. The Average Occupancy Rate in Los Angeles is 68% and the average daily rate is $190. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Los Angeles can make up to $59,280 each year.
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