Rising tensions in California regarding short-term rentals leads cities statewide to define and enforce new regulations. Beginning July 1st, Los Angeles implemented such regulations for owners and lessees in order to maintain available long-term housing and avoid apartment buildings becoming like hotels. Learn how to properly protect your vacation rental investment today.
As quoted in the Los Angeles Times,
“In a 2017 report, the city’s planning department said 6,000 to 10,000 units that otherwise probably would have been rented to long-term tenants were being used primarily as short-term rentals”.
Short-term rental operators are now required to produce Photo ID and other documentation such as a voter’s registration card or health insurance bill to prove the rental property is their primary residence. The owner must provide these documents when applying for the city-mandated permit. Lessees must provide written approval from their landlord prior to being remitted a permit. Landlord forms are available on the Los Angeles City Planning website. Once registered, operators are required to list their registration number on all advertisements and hosting platforms.
If an owner chooses to purchase an investment property, they can rent the property on a long-term basis but may not operate the property as a short-term rental. In cases where the short-term lease is extended for a period of 60 days to 6 months, the operator must notify adjacent homeowners and occupants and must maintain a valid short-term rental registration with the city. The city hopes these guidelines will encourage long-term tenants rather than owners purchasing additional properties for the sole use of short-term renting.
Los Angeles plans to work with listing platforms to enforce the registration process and will issue a notice of violation followed by select fines for any non-permitted listings.
As cities across the US struggle to find a balance in regulating short-term rentals, homeowners and lessees need the confidence of knowing their properties are sufficiently protected and coincide with local ordinances. Proper exceeds the expectations of local ordinances by providing a commercial insurance policy specifically for the risks of short-term renting – requiring an active online listing, a rental agreement, and specified underwriting confirmations for pools, bikes, or other such amenities, Proper stays ahead of the influx of regulations and protects homeowners and lessees.
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