Airbnb Regulations in Greater Los Angeles Area

Introduction

In the Greater Los Angeles area, the burgeoning Airbnb market has not only provided a plethora of accommodation options for travelers but also a lucrative income stream for homeowners. However, with the boom come regulatory measures aimed at ensuring a harmonious co-existence between hosts, guests, and local residents. This article delves into the specifics of Airbnb regulations in West Hollywood, Pasadena, Glendale, Huntington Beach, and Riverside.

Airbnb Regulations in West Hollywood

West Hollywood, a city celebrated for its immaculate neighborhoods and lively nightlife, has adopted rigorous regulations for Airbnb and other similar short-term rental platforms to ensure a harmonious relationship between hosts, guests, and the local community. If you are a property owner in West Hollywood aiming to host guests for compensation for less than 31 days, it’s imperative to apply for and obtain a Home Sharing Business License. Eligibility for this license is strictly for property owners who will reside in the unit during their paying guests’ entire stay.

It’s noteworthy that all apartments or other rental units where a property owner does not reside (such as ADUs or duplexes) must be rented out for a minimum of a 1-year lease. On the other hand, single-family residences, condominiums, or properties that qualify under the Sunset Specific Plan are permitted to be rented for initial terms of 31 days or more.

For a smooth Business License Application process, property owners are directed to the registration page linked in the Home Sharing Business License Registration Page. It’s crucial to note that this page is exclusively for property owners. During the application process, proof of identity, ownership, and residency must be provided to validate the application.

Renters, it’s important to note, are not eligible for Home Sharing Business Licenses, reinforcing the city’s stance on maintaining a stable and harmonious residential atmosphere.

Furthermore, once the Home Sharing Business License is obtained, licensees are obligated to pay the Transient Occupancy Tax (TOT) which is currently pegged at 12.5%. TOT payments are a monthly requirement and are due by the last day of the month following the reporting period. For instance, taxes accrued in January are due by the end of February, those for February are due by the end of March, and so forth. This systematic tax collection ensures a fair contribution to the city’s revenue, which is instrumental in the provision of essential services and the maintenance of public amenities.

This robust regulatory framework underscores West Hollywood’s commitment to ensuring that the growth of short-term rentals does not impede the quality of life for its residents while allowing property owners a chance to earn extra income. Observance of these regulations is not only a legal necessity but also a step towards fostering a cohesive and mutually beneficial relationship between hosts, guests, and the local community.

Pasadena’s Stance on Airbnb

Short-term Rental Definitions:

A short-term rental is a dwelling unit shared for up to 30 consecutive days.
Permits are only issued for the host’s ‘primary residence’, where they reside for at least nine months per year.
Hosted rentals have the host on-site, while unhosted rentals have the host off-site.
Vacation home rentals are not allowed.

In Pasadena, Airbnb and other short-term rentals are regulated under Pasadena Municipal Code (PMC) Section 17.50.296, with additional guidelines on Noise Restrictions and Litter Control. Three violations against a property can result in permit revocation and administrative fines.

Short-term Rentals | City of Pasadena

Permit Application:

Apply online at www.cityofpasadena.net/shorttermrentals.
Requirements include Property Inspection Self-Certification, Neighborhood Notice copy, proof of primary residency, property photographs, permit application fee payment, and a notarized Short-term Rental Affidavit.

Other important notes:

Permits can be obtained by property owners or long-term tenants with owner approval.
Rental is allowed for single bedrooms, whole homes, but not for accessory dwelling units permitted on or after January 1, 2017, and other non-eligible structures.
Occupancy is limited to two guests per bedroom plus two additional guests.
Hosted stays have no rental frequency limit, while unhosted stays are limited to 90 days per year.
Transient Occupancy Tax (TOT) must be remitted to the city quarterly. Current TOT rate is 12.11%
Inspection is required to meet fire and life/safety requirements.
Onsite parking is mandatory for guests, and property listing must include the city-issued Short-Term Rental permit number.

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Airbnb Framework in Glendale

On December 10, 2019, the City of Glendale enacted Ordinance No. 5941 to regulate the rental of residential property for thirty (30) consecutive days or less within its jurisdiction. This ordinance delineates the framework for limited home-sharing, where the host is present on-site during a guest’s stay, while explicitly prohibiting vacation rentals, where no host is on-site. These regulations are aimed at preserving adequate and affordable housing for residents as stipulated in the City’s Housing Element of the General Plan. Additionally, they seek to mitigate potential nuisances and threats to public health and safety due to issues like excessive noise, disorderly conduct, overcrowding, traffic congestion, illegal parking, and refuse accumulation that could arise from home-sharing and vacation rentals.

Useful link: Home-Sharing | City of Glendale, CA

Application Process

Individuals wishing to engage in home-sharing need to file an application with the Community Development Department — Licensing Division on a form provided by the City of Glendale. An application fee, determined by the City Council resolution, is required.

Application Requirements

Hosts must complete a Transient Occupancy Registration Certificate.
Proof of residency, satisfactory to the Community Development Director, must be provided by each host.
Hosts are required to designate a local responsible contact person or a property management company available 24 hours a day for handling emergencies, complaints, or violations pertaining to this ordinance.
An affidavit affirming that the host has received, understood, and agreed to abide by all home-sharing regulations must be signed by the host.
If the dwelling is part of a common interest development governed by a homeowners’ association, hosts must provide written documentation to the City affirming the homeowners’ association’s approval of the home-sharing. It should be noted that a home-sharing license from the City does not override any rules, covenants, conditions, or restrictions set by the homeowners’ association.
Both the owner of the property and the host, if different, must sign an indemnification and hold harmless agreement, approved by the City Attorney. This agreement mandates the signees to indemnify and defend the City of Glendale and its representatives from any liabilities, claims, or costs arising from the operation, occupancy, use, and/or maintenance of the property.

These regulations ensure a structured approach to home-sharing in Glendale, promoting a balance between the interests of homeowners, renters, and the broader community.

Huntington Beach Airbnb Regulations

In recent years, short-term rentals (STRs) have surged in popularity. Defined as residential units rented out for thirty or fewer consecutive nights, these rentals are now subject to new regulations in Huntington Beach following the approval of Ordinance No. 4224 on December 21, 2020, by the Huntington Beach City Council.

All short-term rentals were mandated to obtain a valid City Permit by December 31, 2021, failing which, online advertisements for such rentals would be removed by platforms like Airbnb, VRBO, among others.

Short-Term Rental Regulations

1.Huntington Beach has been divided into two zones for the purpose of STRs:

Zone 1: Properties within the City, excluding Sunset Beach.
Zone 2: Properties within Sunset Beach.

In Zone 1 (Huntington Beach), only hosted or owner-occupied STRs are permitted. Meanwhile, both hosted and un-hosted or owner un-occupied STRs are allowed in Zone 2 (Sunset Beach).

2. To operate a STR, obtaining a valid, non-transferrable annual City of Huntington Beach Short-Term Rental Permit is mandatory. The regulations stipulate one STR per property for single-family residences, duplexes, triplexes, and rental properties of any size. However, properties with four or more units like condominiums and townhomes are allowed up to three STRs per property, provided it’s permitted by their CC&Rs (Covenants, Conditions & Restrictions).

3. STRs can also be legally permitted dwelling units like ADUs (Accessory Dwelling Units) or junior ADUs, provided the unit was legally established prior to the effective date of the Ordinance.

4. A designated Local Contact Person must be available round the clock to respond within an hour to complaints and take necessary actions to resolve them. Furthermore, STRs are required to adhere to the Noise Ordinance, and events such as commercial parties, weddings, fundraisers, or conferences are not allowed.

5. All STR operators must collect and remit Transient Occupancy Taxes (TOT) at 10% and Tourism Business Improvement District (TBID) assessments at 4% to the City. The application fee for the initial two years is $657, followed by an annual renewal fee of $341.

Enforcement

A Local Contact Person is required to respond to complaints within one hour of receipt. Any violation of the provisions could result in a fine of $1,000 per day per violation. Accumulation of three violations against a STR Host/Operator within a 12-month period will lead to the revocation of the STR Permit. All marketing or advertisement for STRs must display the City-issued STR permit number, and STR properties are required to be properly maintained with no code violations.

These regulations have been put in place to ensure a structured and compliant operation of short-term rentals within Huntington Beach, aligning with the broader housing and community objectives of the city.

Riverside Regulatory Landscape

The Short Term Vacation Rental Ordinance was enacted in Riverside in March 2016, aiming to regulate the use of privately owned residential dwellings as short-term rentals. This move was aimed at mitigating the adverse impacts such rentals could have on neighboring properties. According to this ordinance, all residential properties used as short-term rentals must be registered with the County Transportation and Land Management Agency, and the relevant registration fees must be paid. More details on this, including the registration forms, can be accessed here.

Additionally, the nature of short-term rentals necessitates the payment of Transient Occupancy Taxes (TOT). The ordinance emphasizes the importance of timely tax payment, requiring all such rentals to register with the County Treasurer-Tax Collector for TOT payment purposes. The registration forms for TOT payment, along with the quarterly filing forms, can be found on the specified website. It’s noteworthy that stays extending beyond 30 consecutive days, as well as certain employees of foreign governments, are exempt from TOT, although they are required to file for this exemption.

These regulations are structured to ensure that the operation of short-term rentals within Riverside is organized and compliant with the city’s objectives to maintain a balanced residential ambiance while also allowing homeowners to leverage the benefits of the sharing economy.

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Conclusion

The Greater Los Angeles Area, encompassing West Hollywood, Pasadena, Glendale, Huntington Beach, and Riverside, exhibits a pragmatic approach to regulating Airbnb and other short-term rentals. Each city has formulated regulations reflecting its unique community needs and housing dynamics. West Hollywood and Pasadena emphasize homeowner occupancy and community harmony, while Glendale aims at preserving affordable housing. Huntington Beach delineates zoning rules to manage short-term rentals efficiently, and Riverside focuses on registration and tax compliance to mitigate negative impacts on neighboring properties.

Navigating through these regulations across different cities can be intricate. MasterHost can provide invaluable assistance in understanding and complying with these varied regulations, ensuring a smoother operation of your short-term rental business in the Greater Los Angeles area. Their expertise could be instrumental in avoiding legal hassles and ensuring that you operate within the stipulated local laws.

These regulations collectively represent a balanced approach towards harnessing the economic benefits of short-term rentals while ensuring community welfare, showcasing the region’s adaptive regulatory framework in the face of the burgeoning sharing economy. By leveraging resources like MasterHost, property owners can better navigate the regulatory landscape, contributing positively to local economies and communities.