What Exactly Is Considered a Short-Term Rental in Los Angeles
The city of Los Angeles defines a short-term/vacation rental as a dwelling unit, room, or other housing accommodation rented for periods of 30 consecutive days or less. The city has enacted “Home-Sharing” policies to define and regulate the rental market within the city. Los Angeles permits two types of home sharing. Regular Home Sharing: allows eligible hosts to Home-Share all or a portion of their primary residence for up to 120 days in the calendar year. Extended Home-Sharing: allows hosts to Home-Share all or a portion of their primary residence for more than 120 days in the calendar year.
Quick Summary of Los Angeles Airbnb Rules and Taxation
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- Short-term Vacation rental: 30 consecutive days or less.
- Property must be the primary residence of the host.
- In addition hosts may operate an Accessory Dwelling Unit (ADU) as a secondary housing unit on the same property as their primary residence.
- Licence required: Apply online or in person, License number must appear on all ads (Airbnb, Booking.com, Vrbo).
- $89 annual licensing (and reapplication fee) for a regular home-sharing licence application
- Extended licences are $850 initially and upon renewal
- Seattle does apply two separate municipal rental taxes as well as the state income tax.
- Retail Sales Tax: The minimum combined 2025 sales tax rate for Los Angeles is 9.75%
- Transient Occupancy Tax: Los Angeles applies a 14% Transient Occupancy Tax on all properties rented to transient customers. A transient is defined as any person who exercises occupancy or is entitled to occupancy for 30 days or less.
How to Apply for a Los Angeles Home-Sharing Licence
Step-by-Step application instructions and descriptions (Apply Online Here):
To operate a Short-term rental in Los Angeles hosts will need to be approved for a Home-Sharing Licence. There are 5 steps that must be completed so that the property can be legally permitted to be rented on all booking sites.
- Verify eligibility criteria
- For renters and lessees, obtain a notarized affidavit signed by the property owner/landlord authorizing the Host’s participation in Home-Sharing
- Gather relevant documents to demonstrate primary residency
- Complete online registration
- Post Home-Sharing Registration Number on all listings
If applying for an extended home-sharing licence the applicant will need to meet the following requirements.
- Possess an active regular home-sharing licence
- Hosts must have maintained a valid Regular Home-Sharing registration for at least six months, or have hosted for at least 60 days in the calendar year.
- No suspensions, citations or license revocations
- Adjacent and abutting owners and occupants are notified of applications to engage in Extended Home-Sharing
Hosts will have to remit the aforementioned taxes at the required dates and times.
Los Angeles Rental Enforcement & Penalties
The city of Los Angeles will enforce regulatory compliance through one of if not all avenues described here:
- Fines under both state and municipal guidelines.
- Unpaid penalties can be added to your property tax bill.
- Suspension or revocation of license
- Inspections may occur without prior notice
Los Angeles Short-term Rental Market Potential
- Average Nightly Rate: $215–$400
- Premium Properties: $850+ during peak summer months
- Occupancy: ~85% average, up to 95% in peak seasons
- Average Monthly Revenue: $3750-$4500 for typical listings, $6000+ for premium properties
Why Los Angeles is a Top Airbnb Destination
Los Angeles attracts tens of millions of visitors each year thanks to its unique blend of entertainment, culture, lifestyle, economic excellence and natural beauty. As the entertainment capital of the world, LA draws travelers from all over the world to come and experience the film and television industry up close and personal. Its luxurious beaches, including Santa Monica, Venice and Malibu famous for the views, surf and boardwalks. Throughout the city there are rich and culturally diverse neighborhoods. From Beverly Hills and Rodeo Drive’s luxury shopping, to the artsy energy of Downtown LA and Silver Lake the city offers up something for every interest. Outside of the tourist destinations Los Angeles also offers up a beautiful and pleasant climate with abject sunshine throughout the year. This combination of entertainment, culture, outdoor recreation, and international appeal makes Los Angeles one of the most visited cities in the world.
Los Angeles excels as a short-term rental market not only because of its year round demand due to tourism, entertainment, business travel and iconic attractions. Visitors flock to world famous landmarks while also enjoying the diverse and rich neighborhoods, restaurants, beaches and nightlife. Los Angeles is not just the tourist trap it is home to one of the most powerful and diverse economies in the United States. With strong sectors in entertainment, trade, technology, manufacturing, fashion and professional services. These economic strengths paired with the cities booming tourism serve to only amplify the revenue generating potential of the rental market within the city.
Demand for Mid-Term Rentals (30+ Days)
Absolutely. Los Angeles is not just a tourist destination. It boasts a strong and robust economy that is supported by international trade, technology and professional services. A strong job market and beneficial tax structure brings in not just local professionals but there is a diverse mix of prospective renters to fill the need for longer term stays. With major employers in the trade, tech and film/television industries dominating large scale business parks in the area there is a consistent stream of international workers coming in and out of the area. With rising remote hybrid work trends, many professionals and visitors are choosing to spend months at a time in their work environments to balance the hybrid models major companies are taking on.
Why Choose Guestable for Your Seattle Airbnb
- Best Revenue Optimization Strategies: Data-driven pricing to maximize earnings.
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- Dynamic Rental Approach: Expertise in both short- and mid-term markets, adjusting to seasonal trends.
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Los Angeles Airbnb FAQ
Do I need a licence to operate an Airbnb in Los Angeles?
Yes, all rental units with the express purpose of housing guests/visitors for less than 30 days at a time will need to be approved for either home-sharing license.
How long does the licence process take?
The application takes minutes, but full approval depends on inspections and document submission. The municipal code officer will contact the applicant within 3 business days of the inspection being completed.
Do I need to collect any tax from guests?
Yes, the City of Los Angeles requires that both the state sales tax and the municipal transient occupancy tax be applied to all bookings.
Final Word for Potential Hosts
Los Angeles’s vacation market thrives as one of the most dynamic in the United States. Fueled by year-round sunshine, world famous attractions and a diverse, powerful economy. The city welcomes visitors by the tens of millions annually to Hollywood, Beverly Hills, Santa Monica and other cultural landmarks throughout the city and surrounding areas. Its booming economic sectors such as entertainment, international trade, and technology ensure a strong demand for both tourists and professionals no matter the length of stay. With the right management and strategy hosts will be able to not only maximize returns, but offer up exceptional accommodations in one of the most popular and influential destinations in the world.
For specialized support, explore Airbnb Management Los Angeles.