Los Angeles has been viewed as the hub of glitz and glam for a number of years, thanks to the likes of luxurious destinations such as Hollywood, Beverly Hills and Rodeo Drive. The Californian county attracts millions of visitors every year.
There’s nothing else like strolling down Long Beach with the sun beaming down and the Hollywood sign glistening in the distance. Why do you think there are around 30,000 Airbnb listings in L.A? Because the area is just so appealing!
When it comes to Airbnb, there still hasn’t been any regulations finalized. Yes, short-term rentals allow the tourism industry to continue prospering, but for the permanent residents of the county, Airbnb is not so popular. You see, without any limitations in place for short-term rental landlords, long-term rent prices keep soaring.
That’s because the demand for houses from those seeking long-term rent opportunities far exceeds the supply available in Los Angeles. A report from the Los Angeles Alliance for a New Economy stated that short-term rentals remove 11 units from the L.A rental market every single day. At the same time, the Airbnb marketplace just keeps growing and growing.
Despite that, authorities are still pondering over what course of action to take. At the moment, there’s a quite lenient requirement for a business licence, there are some zoning laws that you should double check and there’s a 14-percent transient occupancy tax on all listings. But, none of those have stopped the surge of Airbnb hosts.
However, the involvement of the Planning and Land Use Management Committee should speed up the process. They’ve made the decision to introduce a cap on how many days a year hosts are allowed to rent out their home, but the only dilemma is the number of days. The Committee president, Jose Huizar, indicated a solid decision will be made within 30 days, but they’ll still need to present the new law to the Los Angeles City Council.
According to reports, the number they’re leaning towards is 180 days, but that has received heavy criticism from the county’s Airbnb hosts. So, that’s probably what has delayed the process, as PLUM are desperately trying to establish a compromise. That compromise may well be allowing certain hosts to exceed the 180-day cap if they receive approval from their neighbors.
Ultimately, while there’s no official regulation in place right now other than the typical taxes and zoning laws, there will be one coming imminently. If it does turn out to be a 180-day cap on short-term rentals, that will have a huge impact on a multitude of Airbnb hosts, with many losing a significant amount of income.
Out of the approximate 32,000 listings, 3,900 of those last year were rented out for more than 180 days, which highlights the effect the proposed new regulation would have. Keep an eye out, because the new law could be implemented very soon.