Last updated on June 21st, 2023
Best places to Airbnb in Los Angeles
There’s no denying that California is one of the most visited states in the USA. In 2022, a whopping 259.8 million tourist arrivals were recorded by Visit California. It’s even expected to increase in the next few years!
Cali’s booming economy makes a perfect start for Airbnb property investment. Particularly in Los Angeles where more tourist arrivals are anticipated, rental properties are consistently in high demand.
So if you’re looking for the best places to Airbnb in Los Angeles, you’re on the right track.
In this article, we’ll feature the Airbnb rules in Los Angeles and LA investment properties. Bonus: We’ll also reveal the best areas for Airbnb business near LA – continue reading to learn more!
Is Airbnb allowed in Los Angeles?
Yes, Airbnb is legal in Los Angeles. Airbnb confirms that hosts are required to register with their local city council and publish their permit number on their listing. Here are some notes that you can take note of to be an Airbnb host in Los Angeles:
- Home sharing is allowed in Los Angeles if it’s your primary residence. Second homes and vacation rentals (long-term stays) are NOT eligible to apply for home sharing.
- Listings without a permit number or exemption will be blocked for hosting short-term rentals in Los Angeles.
- Hosting for more than 120 days per calendar year is allowed, but you will need to apply for extended home-sharing.
- A notarized written approval from your landlord needs to be submitted for home-sharing applications. This is for hosts who are planning to lease a unit for the sole purpose of Airbnb.
Starting an Airbnb business in LA has several rewards, but there are also risks to consider. The major risk is if you unknowingly violate local laws, you will be fined by the city council. The worse part is if you receive a lawsuit!
LAist recently discovered that there are several hosts who violate LA’s home-sharing law. And because of this, the city council has fined over $300 million in 2021 due to violations.
Abiding by local laws and regulations is certainly important. It’s highly recommended to visit your local city hall and go through local government websites to gain more knowledge. If possible, you can also reach out to local real estate agents to inquire about your local regulations for short-term rentals.
Is Airbnb Investment Profitable in LA?
Airbnb investment in LA is certainly profitable as long as you target the right market.
Airbtics’ discovery tool confirms that the most profitable city in LA is Anaheim. An Airbnb host in this area who operates a 3-bedroom property can expect to earn an annual revenue of $121,133 and a GRY of 14.32%.
Why Invest in an Airbnb in Los Angeles?
Los Angeles is not just profitable for Airbnb, but there are also affordable housing options available. With its strong economy and competitive market, property investors can expect a high price appreciation.
In fact, Norada Real Estate guarantees that LA offers the best long-term real estate investments. Known for its leading business industries for IT, logistics, and healthcare among others – LA also offers plenty of job opportunities.
Real estate investment LA should not be overlooked. If you’re looking forward to earning a passive income while enjoying the iconic buildings and views – then Los Angeles is highly recommended!
Top 10 Best Areas to Airbnb nearby Los Angeles
If you’re wondering, “Where to Airbnb in Los Angeles?” – we got the solution for you! Check out the nearby cities in LA that are highly recommended for starting an Airbnb business:
1. Long Beach
It is required to register with your local city council to operate a short-term rental in Long Beach. Located 20 miles from LA City Center (25 mins drive), check out the Airbnb data in Long Beach:
- Recommended bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $664,644
- Airbnb Annual revenue: $71,292
- Gross Rental Yield: 10.73%
2. Anaheim
Airbnb rules in Anaheim state that a host should rent their units for at least three nights and obtain a short-term rental permit. Anaheim is located 24 miles from LA City Center (28 mins drive). Here is the Airbnb data in Anaheim:
- Recommended bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $845,872
- Airbnb Annual revenue: $121,133
- Gross Rental Yield: 14.32%
3. Oceanside
Airbnb rules in Oceanside state that you have to apply for an STR permit unless it is a hosted unit or part of a gated HOA with at least 50 units. Oceanside is situated 77 miles from LA City Center (1 hour & 13 mins drive). Discover the Airbnb data in Oceanside:
- Recommended bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $806,855
- Airbnb Annual revenue: $127,203
- Gross Rental Yield: 15.77%
4. Palm Springs
To be an Airbnb host in Palm Springs, you need to have a vacation rental registration certificate. A Transient Occupancy Tax Permit is also needed before operating your short-term rental. Palm Springs is about 99 miles from LA City Center (1 hour & 44 mins drive). Check out the Airbnb data in Palm Springs:
- Recommended bedroom size: 1 bedroom
- Median property price (1 bedroom): $255,564
- Airbnb Annual revenue: $44,461
- Gross Rental Yield: 17.47%
5. Bakersfield
Bakersfield does not have any short-term regulations yet – and this is what you can take advantage of. Located 93 miles from LA City Center (1 hour & 52 mins drive), here’s the Airbnb data in Bakersfield:
- Recommended bedroom size: 1 bedroom
- Median property price (1 bedroom): $156,317
- Airbnb Annual revenue: $24,629
- Gross Rental Yield: 15.76%
6. Yucca Valley
To operate a short-term rental in Yucca Valley, an Airbnb host should secure a permit from the local city hall. It is 104 miles from LA City Center (1 hour & 54 mins drive). Check out the Airbnb data in Yucca Valley:
- Recommended bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $315,220
- Airbnb Annual revenue: $70,701
- Gross Rental Yield: 22.43%
7. Indio
The City of Indio requires all Airbnb hosts to register and STRs are only allowed in residential single or multi-family zones. Located about 117 miles from LA City Center (2 hours drive), here is the Airbnb data in Indio:
- Recommended bedroom size: 5 bedrooms
- Median property price (5 bedrooms): $638,368
- Airbnb Annual revenue: $200,213
- Gross Rental Yield: 31.36%
8. Tulare
To be an Airbnb host in Tulare, one must get a short-term residential rental special use permit. Tulare is situated 154 miles from LA City Center (2 hours & 46 mins drive). Discover the Airbnb data in Tulare:
- Recommended bedroom size: 1 bedroom
- Median property price (1 bedroom): $188,435
- Airbnb Annual revenue: $42,319
- Gross Rental Yield: 22.46%
9. Henderson
Henderson can be a long drive from LA, but it also offers a promising gross rental yield! Registering your STR is a primary step before hosting an Airbnb in Henderson. It is about 226 miles from LA City Center (4 hours drive). Check out the Airbnb data in Henderson:
- Recommended bedroom size: 4 bedrooms
- Median property price (4 bedrooms): $573,128
- Airbnb Annual revenue: $95,308
- Gross Rental Yield: 16.63%
10. Monterey
To date, there are no limits for hosting a short-term rental in Monterey. Located about 230 miles from LA City Center (5 hours drive), here’s what you can expect for hosting an Airbnb in Monterey:
- Recommended bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $1,257,363
- Airbnb Annual revenue: $178,981
- Gross Rental Yield: 14.23%
Takeaway
Now that you have a clear overview of the best places to Airbnb in Los Angeles, take the next step in your business!
In general, areas within and nearby Los Angeles county offers several promising property investments. If you’re looking to invest in a new city or nearby neighborhoods, it’s advisable to look at other options and compare each market.
You should also consider investing in a property in close proximity to your primary residence, tourist areas, or your work office for easy management.
Using an Airbnb profit calculator, you can definitely get ahead of your competitors and make the wisest investment decisions.
