Real Estate

City Leaders Move to Ban Short-Term Rentals

A pair of Los Angeles councilman proposed a ban on short-term rentals such as Airbnb.

A pair of Los Angeles city councilmen said today they want to restrict Airbnb-style short-term rental offerings in Los Angeles to lodgings that are part of the owner’s primary residence.

Councilman Mike Bonin and Council President Herb Wesson said they want to drive out “rogue” hotels, saying some hosts buy or own property for the sole purpose of listing it as short-term lodging on web-based broker sites like Airbnb.

The councilmen introduced a motion that would instruct the city attorney to write an ordinance allowing hosts to only list a spare room, back house or their entire primary residence.

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The ordinance would also have a provision allowing the city to collect transient occupancy taxes from the hosts.

Bonin said short-term rentals are popular in his district’s Venice neighborhood, with people buying up property to profit off of what was originally envisioned as a “sharing economy.”

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“We don’t want to take away someone’s ability to make ends meet by renting out an extra room or guest house, but we cannot tolerate how a growing number of speculators are eliminating rental housing and threatening the character of our neighborhoods,” he said.

Wesson said the ordinance would create a “win-win protecting neighborhoods and our much-needed affordable housing stock, while allowing the city to maximize transient occupancy tax for city services.”

Some cities, including West Hollywood, recently banned short-term rentals, while others are imposing restrictions and levying hotel taxes.

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