LA County Leaders Vote To Advance Rules That Would Limit Vacation Rentals

Airbnb hosts and other short term rental owners in unincorporated areas of Los Angeles County could soon be barred from renting out properties they don’t live in under proposed rules advanced by the Board of Supervisors.

The board voted unanimously Tuesday to craft a new ordinance regulating short-term rentals. The decision comes after years of debate and research by the board. The county regulations were first proposed back in 2019.

Proponents of regulating activity on platforms such as Airbnb and Vrbo say the rules will put homes back on the market for L.A. residents increasingly struggling to find affordable housing.

“Short-term rentals bring with them a wealth of negative consequences,” said Randy Renick, executive director of the advocacy group Better Neighbors L.A., in an interview with LAist. “They push up rents. They make homes unaffordable. They bring crime into neighborhoods. They unsettle the peace and quiet of residential streets. And it's encouraging that the county is finally teeing this up for a vote.”

During Tuesday’s lengthy and at times contentious public hearing, many hosts said the proposed rules are too strict.

Some homeowners said they would be prevented from earning income by renting out backyard granny flats, even while they’re living in the main house. Others said they pride themselves on providing affordable accommodations to travelers.

Topanga resident Nonie Shore said visitors rent her property to enjoy the beauty of the Santa Monica mountains. This area, she said, “is a tourist destination for many who cannot afford a decent hotel room… Homeowners in Topanga should be able to rent out their structures safely.”

LAist reached out to Airbnb and Vrbo for comment, but did not immediately hear back.

How the proposed regulations would work

The rules — which still need a subsequent vote before taking effect — would apply to unincorporated areas, not to L.A. County’s 88 incorporated cities. About 1 million county residents live in areas that would be subject to the new proposals, such as East Los Angeles, Altadena and Ladera Heights.

The proposed regulations would require hosts to register with the county every year. Hosts would only be allowed to list their primary residence. Renting out investment properties or second homes would be prohibited.

Under the original draft of the rules, hosts would also be prevented from renting out accessory dwelling units on their property. On Tuesday, supervisors voted to advance an amendment that would allow hosts to rent out a primary residence to guests while they stay in the secondary unit.

The proposed rules would allow hosts to rent their homes for up to 90 nights per year “unhosted,” meaning while they are not physically present in the home. Beyond that limit, they would be required to be on site during their guests’ stays.

During Tuesday’s hearing, the supervisors debated whether a proposed annual registration fee of $914 was too expensive for lower-income homeowners hoping to earn extra income renting out their homes. They said they plan to further discuss options in subsequent votes for mitigating the cost to certain homeowners.

Residents weigh in

During public comment, many speakers said short-term rentals have taken much-need homes off the long-term rental market. Others said their neighborhoods have been disrupted by raucous, and at times violent party homes. Over the weekend, Los Angeles police said two people were shot at a Hollywood Hills home that had been rented out for a Super Bowl party.

Other public commenters urged the Board of Supervisors to ease or provide exceptions to the proposed regulations, saying they rely on short-term rental income.

“Many elderly and low-income people rent a small space in their homes in order to pay the increasing costs of living, insurance, taxes, etc.,” Susanna Dadd submitted in a written public comment.

The view from City Terrace

In an interview with LAist, Luz Loza said short-term rentals have drastically changed her neighborhood. Loza grew up in the hilly unincorporated area of City Terrace, a largely working class Latino neighborhood famous for its views of the downtown L.A. skyline. She now owns the home where she was raised.

“We knew everybody around here. Everybody was a homeowner,” Loza said. “Now, we don't know practically anybody that lives around here.”

Loza said her home is now surrounded by short-term rentals. A number of those properties are owned by the same person, Loza said, who is rarely on site to address problems with disruptive guests.

“We have so many people that come in and out of this place, we feel our safety is at risk,” Loza said. “My grandson experiences seeing them use drugs, bathing nude… They just don't take into consideration that we have to get up and work early.”

Tourists are flocking to City Terrace to enjoy the neighborhood’s scenic vistas, Loza said, but young adults hoping to maintain their roots in the neighborhood can’t find affordable homes.

“A lot of people like this place. We have such a beautiful view,” Loza said. City Terrace residents “want to invest and live in this area, but there's nothing available for them.”

Lessons from the city of L.A.

The county’s proposed rules would not be the first of their kind in the L.A. area. The city of Los Angeles began enforcing its own home-sharing ordinance in 2019. Under those rules, hosts can be fined $500 for each day they post a listing that breaks the law, or up to $2,000 per day if they rent units for more than 120 days per year without the city’s permission.

Proponents of the city’s rules say corporate hosts returned thousands of rent-controlled apartments to L.A.’s long-term housing stock after the regulations took effect. But they also admit enforcement has been spotty, and illegal short-term rental activity remains common.

A 2022 study from a McGill University urban planning professor found that nearly half of listings on Airbnb and Vrbo at the time appeared to violate the city’s home sharing ordinance. Despite the widespread illegal rentals, fines levied by the city have been limited. Since November 2019, the city has issued 1,083 citations and levied about $920,000 in fines, according to a spokesperson from the city’s Planning Department.

If ultimately passed, the county’s rules would take effect 180 days after a final vote by the Board of Supervisors.