Los Angeles Short-Term Rental Regulations for Airbnb Hosts

With more than 11k active Airbnb listings and an average yearly revenue of $52,000 per property at a solid 67% occupancy, Los Angeles remains a lucrative market. However, the city’s 2019 Home-Sharing Ordinance, combined with aggressive 2025 enforcement, allows short-term rentals only in primary residences effectively banning ADUs and most non-hosted rentals in unincorporated county areas. Nearly half of all listings are still non-compliant, so here’s the current playbook to operate legally.

Registration & Eligibility - How to Get (and Keep) Your Permit

• City of Los Angeles: Register annually with the Department of City Planning ($89 fee) and receive a unique Home-Sharing Registration Number that must appear on every listing. You must prove the unit is your primary residence (lived in 6+ months/year) with utility bills, voter registration, or tax documents. If you rent, written landlord approval is mandatory. Short-term rentals are prohibited in rent-controlled units, ADUs, and certain zoning districts.
• Unincorporated LA County (areas outside city limits): Separate 2024 ordinance requires a $914 annual permit, limits operations to primary residences only, caps guests at 12, and strictly bans parties or events.
• Platform Responsibility: Airbnb and others must verify your registration number before any booking is confirmed - non-compliance triggers $500/day fines for the platform.
• Exemptions: Licensed hotels and traditional B&Bs are allowed but must notify platforms.

More than 7,500 violation notices have been issued since 2019, underscoring why regular self-audits are essential.

Core Operational Rules

• 120-Day Annual Cap: Strict calendar-year limit on rentals under 30 days; extended permits are rarely granted.
• Transient Occupancy Tax (TOT) – 14%: Automatically collected and remitted by platforms for registered hosts; you still file monthly returns with the city.
• Guest & Record-Keeping Rules: Provide house rules, quiet-hours policy, and emergency contacts; maintain booking logs for city inspections.

These measures are designed to stop “ghost hotels” and preserve long-term housing stock (California’s statewide ADU short-term ban reinforces this).

Enforcement & Penalties - 2025 Is Not Forgiving

2025 audits flagged roughly 50% of listings as non-compliant. Penalties are steep:

• Hosts: $2,000 (1st violation) → $4,000 (2nd) → $8,000 (3rd+), or double the nightly rate, whichever is higher.
• Platforms: Up to $1,000 per day per illegal ad.
• A proposed police permit (expected mid-2026) will add $100–$500 annual fees and extra party-prevention requirements.
• Fines increased 3.2% on September 1, 2025, and resident complaints via the city hotline trigger rapid inspections.

What’s Coming Next

No loosening of rules in sight. The mid-2026 police permit will bring more oversight, unincorporated county areas continue enabling local bans, and housing-first policies dominate. Airbnb is lobbying for modest reforms for one- and two-family homes, but significant change is unlikely. The clear trend: pivot to mid-term (31+ day) rentals or face shrinking opportunities.

Tax Obligations at a Glance

• Income Tax: California residents up to 13.3% state + 37% federal; non-residents 7% withholding on gross rents over $1,500/year.
• TOT: Handled by platforms for compliant hosts; report earnings on IRS Schedule E (short-term rental loss offset rules often apply).

Los Angeles still richly rewards hosts who follow the rules - but the margin for error has never been smaller. Always double-check your zoning and registration status before listing.