There has been a lot of talk about Airbnb (and other vacation rental websites) and how it has changed the landscape for the City of Angels. Over the past few months, there has been dialogue about adding regulation. This includes the following as reported by The Los Angeles Times and The Real Deal:
- You would only be able to rent out your primary residence. This means you couldn’t have an investment property or second home used strictly for Airbnb.
- The max you can rent your home out for is 120 days per year. As of now, a home owner can rent out all year-long. There may be exceptions to the rule as people can apply for more days, but that would be case by case.
- The fines proposed includes $500 per day to the homeowner, and a $1,000 fine to Airbnb.
In this three-part series, we will look at the pros, the cons, and a conclusion to this and what other options might be. Today, we will focus on the pros of regulating the homes.
Here are three pros to consider:
- We are short on housing: According a report from Curbed LA, Los Angeles County is short 568,255 units for lower-income renters. According to that same article, “Based on Census data, the report indicates that more than 800,000 renter households would qualify for affordable housing, were it available. But fewer than 300,000 units are available across the entire county at rents that would be affordable to these residents.” With Airbnb, that takes even more homes out of the rental market. Now, one argument is that Airbnb homes are most likely in areas where low-income housing wouldn’t exist to begin with, however with limited supply means pushing renters out to other areas where they have options. Therefore, the low-income households are going to have more competition, and against people who can afford the higher prices.
- The aftermath of the tourist. After hosting enough open houses in Los Angeles, I hear and see the effects. Imagine a Wednesday night, you put the kids to sleep, and exhausted from the day and ready for bed before going to work the next morning. But then, midnight rolls around and a party is just getting started next door. This has been a growing concern and problem for neighbors when it comes to noise and trash left around the property and the street. Many home owners, and long-term tenants, live in certain neighborhoods away from the hustle and bustle with an expectation of personal quiet enjoyment. That can pose a problem when parties are going on. And with many of the vacation rentals being vacant, there is no one to check in or hold the guests accountable. This leaves neighbors to call the police if they cannot get a hold of the host.
- It changes a neighborhood. I have seen condo complexes that host movie nights for the community, and streets that have block parties. Start putting vacation rentals in there, and the demographics could change. The guests aren’t emotionally invested in the community, and for some, that is a problem. This includes keeping an eye out for each other when it comes to crime, because there isn’t that sense of community.
Time will tell on what happens next. Right now, it is in the hands of city council for a vote. Of course, for every pro, there is a con. In the next article, we will discuss the cons to these new regulations.
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[…] my previous article, I discussed the pros of the new laws (as a recap, check out Part 1 of Airbnb versus Los Angeles: What are the Pros?). Today, the discussion goes towards the cons of the new laws. Let’s check it […]