People are constantly looking for ways to up the incomes on their real estate assets. It seems like we hear quite a bit about co-living , cash for keys, and Airbnb. Some people use a few of these different approaches while some stay with the regular leasing and turn over of their units. For those of you who have been using Airbnb to generate some extra income here in Los Angeles, the end could be near!
The new rules
Stabilized aka rent-controlled units can't be used for home-sharing
Hosts must register with the city planning department and pay $89. This begins November 1, 2019
Only primary residences can be rented out. This means the owner must live in the residence for six months out of the year
If you are renting a unit, you can't home-share without the permission of their landlord.
Hosts can't operate more than one at a time.
Hosts can't home-share for more than 120 days a year. However, if you register with the city for "extended home-sharing" you can.
Extended home-sharing hosts pay a fee of $850.
Hosts are responsible for providing a "Code of Conduct" to all guests outlining the current rules around sound and "evening outdoor congregations"
Non-residential and temporary structures are not allowed to home-share (vehicles parked on the property, storage sheds, trailers, yurts, and tents)
Long story short, at the very best, you can operate ONE Airbnb for 120 days assuming you live in that space for 6 months out of the year. I imagine this is going to change some investment strategies!