Los Angeles started enforcing a new law three years ago to regulate short-term rentals via platforms like Airbnb. A new study shows that law-breaking is increasing and enforcement has been less effective.

A report by McGill University professor David Wachsmuth of urban planning found that almost half of all recent listings on Vrbo and Airbnb were not in compliance with the city’s home-sharing ordinance.

Wachsmuth stated that Los Angeles is among a number of cities with short-term rental regulations. “But what I find in practice when I dig into the data is that L.A.’s rules are not being enforced effectively.” “But I found out in practice, when I looked into the data, that L.A.’s rules aren’t being enforced .”

One of the study’s results:

• It is believed that approximately 45% of all recent listings on Vrbo and Airbnb violated L.A.’s home-sharing law.
• Last year, the city could have collected as much as $300 million in fines for violations. It levied fines of less than $40,000 over the same time.
• The Short-term rental has taken approximately 2,500 homes from the market for long-term residences.

Short-term rental operators need to register with the city in order to legally do business in L.A.

The study compared Vrbo and Airbnb listings to a city-provided database of valid registration numbers. Many listings had expired or invalid registration numbers, the study found.

The study found that other listings were validly registered, but still broke the rules. Some listings were booked for more than 120 days per annum, even though they did not have the required permit from the city to allow extended home sharing.

City Fines for Illegal Airbnb Listings?

Hosts who violate the rules of the city can face a $500 fine each day they list a non-compliant listing. Hosts who rent out units for more than 120 consecutive days per year, without permission from the city, are subject to a daily fine of $500.