Airbnb and VRBO in California
Problems with Short Term Rentals
In some states, short term rentals can violate local ordinances-those who rent out their homes do not pay tourism taxes that hotels do. Platforms such as Airbnb and VRBO do not provide legal advice for those who use these companies to make income. Many landlords have been using short term rentals for visitors and tourists in order to circumvent rent control laws. As a result, cities have been designing laws to curb, regulate or even halt short term renting. Below we explore some legal issues to consider before starting a short term rental process.
Check Your Lease
In 2016, California law required that any house sharing or hosting platform (companies created to help people rent out space) needed to provide a warning that addressed the risks of legal action and eviction. These warnings are important because a lot of leases include provisions that prohibit subletting.
Homeowners Associations
Even if you are not violating your lease, you might be violating the rules of the homeowners association. A property that is governed by an HOA, your property is subject to conditions, restrictions and covenants. CC&R’s can prohibit business operations within the community. If broken, you might be faced with fines or legal action.
Business License
Some cities in California require you to have a business license if you are offering rooms for transient occupancy. Transient occupancy is defined as a possession of a room for the purpose of dwelling, sleeping or lodging for a period of 30 days or less.
Taxes
Every city and county in California has a tax on transient occupancy rentals. In Los Angeles.
