The Santa Monica City Council will introduce an ordinance that would allow hosts on short-term rental platforms like Airbnb to operate legally.
Currently, the beach city has a “long-term ban on vacation rentals,” defined as renting all or part of a home for a period of 30 days or less “for short-term use only,” according to the city’s website.However, it does “Home sharing,” which is renting out one or more bedrooms for 31 consecutive days or less, with the host living on-site during the visitor’s stay, is permitted, provided the host has a business license.
At a hearing scheduled for Tuesday night, city officials are expected to discuss an amendment that would provide a path for landlords to obtain business licenses under the city’s home-sharing legalization program.
The scheme, an interim version introduced last October, issues operating licenses to a “very limited number” of landlords and provides incentives for operators to obtain proper building permits. The version of the ordinance, a stopgap measure while the city decides to change building codes related to home-sharing, expires on June 30.
If passed, the ordinance would give municipalities the power to issue home-sharing permits.
Additionally, prior to the legalization program, property owners were prohibited from renting out accessory dwelling units (ADUs) under the city’s building code. At the meeting, the City Council will discuss allowing short-term rentals of ADUs and stand-alone outbuildings located more than 6 feet from the main building occupied by the landlord. The proposal would essentially allow landlords to rent out accessory units anywhere on their property. The city currently requires outbuildings used for home sharing to be no more than 6 feet from the host’s primary residence.
Santa Monica and short-term rental startups Airbnb and HomeAway been involved in legal battles before Exceeds the city’s home sharing ordinance. This led to a formal agreement between the city and Airbnb in December 2019. As part of the deal, Airbnb agreed to require its hosts to obtain a business license from the city. The agreement also prohibits landlords from listing multiple properties. The agreement also authorizes Santa Monica to charge the city’s Airbnb guests $2 a night, money that will go toward the city’s affordable housing program.
