News and Updates

As of July 1st, Los Angeles' new short-term rental law went into effect, and Airbnb is enforcing that new law. While the ordinance makes it legal for homeowners who secure a permit to list their properties on home-sharing websites such as Airbnb and VRBO, if you rent your space, you must prove you have your landlord’s written permission before you can create an Airbnb listing. As stakeholders in the short term rental markets adapt to new regulations, they must keep in mind that the industry is maturing and evolving into a permanent part of the real estate fabric going forward. There will be growing pains to say the least, but the adoption of regulations means that the short-term rental market is here to stay for those who can comply.

If you’ve been thinking about starting or growing your short-term rental business, now is the time to take action. With industry leaders like Airbnb leading the way, the market is booming. Not only is it making the potential of owning property a reality for a larger percentage of younger adults who can now afford a house payment by offsetting it with rental income, but it is also encouraging the development of a wider array of short-term rental businesses who are seeing impressive returns on their investments. The U.S. still has room for more to enter the short-term rental game, but as the market share of such properties grows so too have local regulations that govern how and where businesses can operate. As a result, navigating today’s short-term rental market means mastering the various rules and regulations not just by state but also by city or county. Before you start to stress that owning a short-term rental business in California might be more headache than it is worth, though, take a moment and reach out to us for a free assessment.

PROS: 1. Being able to rent to multiple people within the same year. 2. Vacation rentals typically see less wear and tear than long-term rentals, which means you may spend less time money on maintenance and repairs. 3. The recurring revenue is a definite plus. During peak seasons you can have back to back reservations paying your top rental prices. This additional income is a significant perk of owning a vacation rental business. 4. They give more flexibility and tax breaks than long term rentals are able to do. These advantages provide the business owner with a way to know that they’re making the right decision to invest in this type of vacation rental business. CONS: 1. There is no guarantee that someone is going to rent your property, so you might not make as much on certain rentals. 2. Homes require routine upgrades and maintenance, and these can get pricey. 3. There can be too many things to manage. However, either way, you choose to go, it is important to note that it is not a hard industry to get into, but it is definitely one you have to be smart about. This is where you have to weigh up if the cons are something you can handle because the pros definitely make this a worthwhile investment.

A: A short-term rental (also called a vacation rental or STR) is most often defined as a rental of a residential dwelling unit or accessory building for periods of less than 31 consecutive days. In some communities, short-term rental housing may be referred to as vacation rentals, transient rentals, short-term vacation rentals or resort dwelling units.

A: Occupancy tax is a tax on the rental of rooms that state or local governments may require. In many places this is known as an occupancy tax, but may also be known as a transient occupancy tax, lodging tax, a room tax, a bed tax, a sales tax, a tourist tax, or a hotel tax. Occupancy tax rates and rules vary by city, county and state,. They’re generally owed on the accommodations price plus any fees for other items, like cleanings or extra guests. In some places, occupancy tax is required on a per person, per night basis. There are typically long-term stay exceptions that exempt stays over a certain number of nights (i.e. 30 nights). Occupancy tax is generally paid by the guest, but the obligation to remit the taxes to the government usually falls on the short-term landlord / host.