Los Angeles is currently one of the most bustling Airbnb hubs in the country, with some rental locations going for over $100 per night. However, the Californian government is concerned that an overabundance of Airbnb rentals in LA is lowering property values and contributing to the housing shortage. Today, the Los Angeles City Council enacted a new ordinance to limit the scope of Airbnb rentals.
According to the ordinance, Airbnb hosts are only allowed to rent out space for 120 days in a single calendar year. Additionally, only a host’s primary residence can have space rented out, and all hosts must pay a yearly $89 registration fee. The 120-day limit can be extended, but the property in question needs to have a clean legal record, and the host must pay an additional $850 fee. Violations will lead to suspension and loss of eligibility.
Multiple hosts showed up to the meeting and expressed concerns that the limits and fees could drastically reduce or even end their Airbnb business entirely. For some hosts, Airbnb is a primary source of revenue, so this would mean effective unemployment.
The ordinance will go into effect on July 1st, 2019, and will be evaluated on its effectiveness six months to a year afterwards.
