In 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 out:
- Infringement on property rights: Many people believe that you have a right to use your house however you wish within the zoning guidelines. That should include your personal residence. By limiting the number of days and the fact that it must be your primary residence, that’s someone else telling you how to use your home.
- Meddling with people’s livelihoods: Anytime there is regulation, it can have negative effects. There are people who live off renting their homes as vacation rentals. According to Smart Asset, Airbnb rentals are covering an average of 61% of a host’s expenses when renting out a room. According to the same source, for a full place, the expected net profits for a two bedroom in Los Angeles is $17,740/year! Limiting bookings to 120 days cuts that by more than half. And with Los Angeles home and rental prices so high, some people count on that money just to stay afloat.
- Los Angeles is a hotbed of travelers, and this law limits tourist options: According to Discover Los Angeles, “In 2017 Los Angeles achieved a record high with 48.5 million overnight and day visitors, an increase of 2.6% over the previous year” with “approximately 31.9 million were overnight, up 2.9% from last year.” What makes Airbnb so unique is that a family can book a 2 bedroom home rather than having to book two hotel homes (one for parents, one for the kids). It just makes more economic sense. When I travel to Peru, my fiancé and I get an Airbnb because of the great location, kitchen access, and complimentary laundry. The same applies to tourism in Los Angeles. It gives tourist flexibility that hotels either cannot accommodate or charge extra for.
You better believe that there is going to be outrage for the Airbnb host community regarding this. Let’s see how this all plays out.
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