Airbnb is the talk of vacationers and renters everywhere. The growing trend made waves throughout the entire hotel industry, changing the way we view short term rentals forever.
The city council recently had a meeting Jan 21, 2020 to continue discussing and voting on the details of the regulation to be adopted. These ordinances make all short term rental interactions far safer for everyone involved. Airbnb for home owners in Long Beach is changing, but what does that mean for you?
Keep reading to find out.
What to Expect
At first glance, the updated drafted ordinance to Long Beach’s short term rentals seem overwhelming. But we’ll go through each section together and discuss what it can mean for your future Long Beach property rental endeavors. For starters, process has been in motion for about 2 years so lets start with an overview to catch you up.
Overview up to Now
- May and July 2018 – City Conducts Community Workshops
- December 2018 – City Council approves Limited STRs in Long Beach with amendments. City attorney is directed to prepare an ordinance.
- Partnership with Airbnb begins & Long Beach begins to charge TOT (transient occupancy tax)
- June 2019 – Additional research is presented for amendments and the draft is reviewed
- January 2020 – First Reading is had, motions are voted on
- Next Step: Two readings are necessary before an ordinance is passed. Additional review to hammer out the details
There is an estimated 1500 rentals on Airbnb. While some of these details may continue to slightly change, the city council has come to a consensus and has been able to land on some of the big items.
Once final approval is received, city attorney estimates one year before program is implemented. There will be a grace period for STR’s (Short Term Rentals) on Airbnb to comply with Long beach Short Term Rental Regulations.
“Hosted stay” means a short-term rental activity whereby the
host remains on-site and resides in a habitable dwelling unit or portion
thereof throughout the guest’s stay
“Un-hosted stay” means a short-term rental activity whereby
the host, as that term is defined herein, resides off-site during the guest’s
Living in the Area
In an early draft, Long Beach proposed that a host be a Long Beach resident. That is no longer the case. Permanent Long Beach residency will not be required to operate a STR.
You’re allowed to rent out a maximum of two secondary homes. This maximum goes up to 3 if one of the homes you’re renting is your primary home. The number of non-primary STRs in multi-family buildings will be restricted based on a sliding scale.
It’s not possible to rent out your home for huge amounts of people as that creates a lot of stress and noise for your neighbors. To cut back on this, there’s a maximum of 10 people allowed at one time per short term rental. Anything more is not allowed.
The number of un-hosted guest stays in non-primary residence STRs is not limited. By definition of a primary residence STR, the number of un-hosted guest stays is limited to 90 nights in such STRs. The number of nights of hosted guest stays is not limited.
Transient Occupancy Tax
Short term rentals will need to register with the city. There will be a 12% transient occupancy tax collected on reservations. This is the same tax given to traditional hotels in the city and is not paid by the owner, but the traveler.
Several factors come into play when renting out a home. To start, you’ll need to maintain property insurance of at least 1 million dollars.
It’s also necessary to make a map showing all the safety features of the home. These include things like fire extinguisher locations and clear exits in case of emergency.
There will be a CAP placed on the number of vacation homes in the city of Long Beach. The motion was voted on 1000 non-primary properties. There are currently 1300 non primary properties on Airbnb.
If there are 3 infractions during a 12 month period, the host’s registration is no longer valid.
Have an Easier Time With Airbnb in Long Beach
With all the changes to short term rentals broken down, it’s not as daunting as it might first appear. Most of the changes are pretty straight forward and hosting through Airbnb in Long Beach is still possible.
There’s a grace period allowing people to make changes as needed before the city enforces the rules. In the end, following along with these rules will make the entire process easier and safer for you and your guests.
Looking to start renting out your home now that you know what to expect? List your property to get started!