By David Graham-Caso, communications director for Councilman Mike Bonin

Moving to insure that the emerging “sharing economy” complements our neighborhoods rather than threatening them, Councilmembers Mike Bonin and Herb Wesson today called for new rules to regulate and manage short-term housing rentals (STR) in the City of Los Angeles.

Short-term housing rentals – such as those coordinated through websites like AirBnB, VRBO, and Homeaway – are a key element of a technology-fueled sharing economy that is not anticipated by the city’s zoning codes or tax structure.

In a motion introduced today, Bonin and Wesson called on city staff to work with neighbors, community stakeholders, and the operators of short-term rental websites to look at short-term rental regulations in cities such as San Francisco and Portland, and to make recommendations for policies that will recognize and permit short-term rentals in LA, while protecting neighborhoods from unintended negative consequences.

“The current system, which turns a blind eye to an important industry and its impact on our neighborhoods, our rental stock, and the city treasury, works for no one,” Bonin said. “We need a regulatory model that will put neighborhoods first while paving the way for short-term rentals to thrive in an appropriate fashion in Los Angeles.”

“Like it or not, the sharing economy is a reality, and we must have a better understanding of the issues at stake,” said Council President Wesson. “Short-term housing is one of the most important issues we will have to consider. I am pleased to be able to partner with Councilmember Bonin in moving this issue forward.”

Bonin noted that short-term rentals have proliferated in Venice, with effects both beneficial and negative.

“Many people share or rent out their homes periodically to augment their incomes, or to give tourists the ability to live like locals, and we welcome that. But in some instances, neighborhood character is being threatened. Commercial ventures have purchased large numbers of rental units or even entire apartment buildings and converted them into de facto hotels, reducing and threatening the City’s stock of rental housing and affordable housing, and that is wrong.”

Bonin and Wesson’s motion reflects similar legislative efforts in cities where short-term rentals have emerged. Both San Francisco and Portland, Oregon recently amended their municipal codes to authorize and regulate short-term rentals.

Earlier this year, Bonin and Wesson co-authored a motion calling for a working group to study the impact of the “sharing economy” on Los Angeles. While that working group will continue focusing on broader issues with the sharing economy, the Councilmembers decided to move forward with short-term rentals expeditiously.

Bonin noted it is important for the city to collect transient occupancy taxes from short-term rentals operators, and said operators have expressed willingness and eagerness to do so.

“The sharing economy is already here,” said Bonin. “Instead of playing ‘whack-a-mole’ and trying to enforce zoning regulations that weren’t designed with the sharing economy in mind, we are going to help protect neighborhoods by welcoming and working with short-term rentals.”