What Hotel Owners Think of L.A.'s New Short-Term Ordinance

Andrew Starrels

Los Angeles has passed a highly requested ordinance to regulate the massive increase in short-term rental activity, which has become popular thanks to websites like Airbnb and Home Away. The new ordinance defines short-term rentals and outlines tax requirements. In general, the hotel community has been in opposition to the short-term rental activity, but this new ordinance helps to level the playing field.

“Not all hotel operators speak with a single voice, but many hotel interests have opposed short-term rental activity,” Andy Starrels, a Los Angeles-based attorney and member of the West Coast Land Use and Environment Group, tells GlobeSt.com. “Opposition was most intense when the activity potentially avoided payment of lodging taxes, because hosts would have a competitive advantage over other hospitality businesses. The new L.A. ordinance confirms that short-term hosts will collect and pay the applicable taxes, eliminating any perceived unfair advantage. To the extent that registration and tax collection injects transparency to the process and eliminates disparate treatment, most industry opposition became resigned to the change.”