Los Angeles Cracks Down on Airbnb With New Regulations

Dec 12, 2018

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

The city of Los Angeles has passed new regulations on Airbnb and other short-term rental platforms in an effort to crack down on “bad” hosts and alleviate the ongoing housing crisis.

The ordinance, unanimously passed by the City Council on Wednesday, Dec. 12, has been in the works since 2016. Host Compliance LLC reported that only 10,000 of the 23,000 homes and units listed as short-term rental units for rent in LA. This is part of a bigger issue for locals as these short-term rentals, while more lucrative, take housing opportunities away from those in need of long-term accommodation. This, in turn, feeds the housing crisis and causes tension in LA’s neighborhoods.

So how exactly are the new policies going to combat the crisis? Well, first and foremost, LA is banning all rent-controlled units from Airbnb and other short-term rental platforms. Hosts will also only be permitted to rent out their “primary residences,” or the place in which the host lives for a minimum of six months a year. Hosts will also only be allowed to rent their spaces for 120 days per annum, and it must be their only listed property. If they want to extend their list time, they’ll have to pay the city an annual fee of $89 — and that’s just the tip of the iceberg. 

Los Angeles City Council member Mike Bonin explained that these new regulations are meant to accommodate hosts who list their homes as their main source of income while eliminating “bad” hosts who turn living spaces into “rogue hotels.” However, many Airbnb hosts disagree that these policies are beneficial to them at all. A few hosts even testified at City Hall that they need these rental platforms to pay off their mortgages as housing costs continue to rise. 

“Homesharing and vacation rentals play an important role in allowing Angelenos to directly benefit from 48 million visitors who travel to Los Angeles every year,” Mattie Zazueta, a spokesperson for AirbnbSan Francisco, said to CNBC. “The city needs a comprehensive short-term rental policy that regulates all short-term rental activity, including its long-standing vacation rental market.”

The new rules official take effect in July 2019 and will apply to the entire city of Los Angeles.

Featured image by Carl Court/Getty Images.

Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
  • Earn 1X Miles on all other eligible purchases.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA Pre✓®.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Regular APR
15.74%-24.74% Variable
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.