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Published July 25, 2026
Los Angeles bars short term rentals in rent controlled units, and Venice has been a repeat flashpoint. Here is what enforcement actually looks like for owners.
If you own an older apartment building in Venice, most of your units are almost certainly rent controlled, and Los Angeles flatly bars short term rentals in rent controlled units under its Home Sharing Ordinance. A 2018 rule made that explicit. The city has spent years grinding through enforcement, and Venice keeps showing up in the file. Fines start at $586 per violation and climb from there.
The part that surprises people is not that Los Angeles regulates short term rentals. It is that the rules are different depending on the unit. A homeowner can register a spare room or a primary residence for home sharing. A rent controlled unit cannot be listed at all. The 2018 ordinance specifically outlawed short term rentals in rent controlled dwellings, full stop, no permit, no workaround.
That matters here more than almost anywhere else in the city. Venice is full of exactly the kind of older, character heavy multifamily that tends to fall under rent stabilization. It is a good asset to own. It is also, quietly, an asset the city has decided to protect from being pulled out of the long term housing stock and turned into a nightly rental. So the same qualities that make a Venice building valuable are the qualities that put its units off limits for Airbnb and Vrbo.
I want to be precise about this, because owners ask me some version of it constantly. Whether any specific unit is rent controlled is a legal question, not a vibe. It depends on the building and the unit, and you should confirm it with a licensed professional before you rely on it either way. But if you own vintage Venice multifamily, the safe assumption is that the units are covered until someone qualified tells you otherwise.
For a long time the honest answer to "does the city really enforce this?" was "slowly." That is still partly true. But slow is not the same as never, and the machine has been running.
Los Angeles has leaned on an outside contractor to find listings that should not exist. The city paid the vendor Granicus roughly $6.3 million over six years, a contract that ran to 2025, and that effort generated more than 18,400 warning letters. Investigators identified 63 rent controlled buildings across the city that were taking tourist bookings anyway. So the pattern is real, the city knows it is real, and it has spent years and real money documenting it.
When a violation sticks, the money is not trivial. The standard penalty runs $586 per violation and jumps to $5,869 for repeat violations. Booking platforms are on the hook too. The city reached a $150,000 settlement with Vrbo over its handling of thousands of illegal bookings, which tells you the enforcement appetite reaches past individual owners and up to the platforms themselves.
Venice has been one of the sharper examples. The Venice V Hotel, run by owner Carl Lambert, was converted from the Venice Waldorf apartments into hotel rooms starting in 2015, with penthouse suites going for around $600 a night and 18 complaints logged since 2014. The property drew a $4,000 fine for eight violations in 2021, though that particular citation was later withdrawn pending further investigation. I am not holding that up to scold anyone. I am pointing at it because it shows how these cases actually move: a converted building, years of complaints, a fine, an appeal, and a process that can drag. Citation appeals in this system can take two to three years to resolve. That is a long time to have a cloud over an asset.
There is a demand side to this that Venice owners feel directly. The region is preparing for the 2026 World Cup and the 2028 Olympics, each expected to bring hundreds of thousands of visitors. A beach adjacent neighborhood a few minutes from the water is exactly where that visitor money will look for a place to stay.
That is the tension. The nightly rate on a Venice unit during a big event can look enormous next to a rent controlled monthly rent. The temptation is obvious. But the same event calendar that raises the payout also raises the scrutiny, because a city bracing for that many visitors has every reason to keep enforcing the rules that decide which units can host them. Higher reward and higher risk are arriving on the same schedule.
Here is the plain readout, owner to owner.
If you own rent controlled units in Venice, treat short term rental of those units as off the table. Not gray, not "as long as nobody notices," just off the table under current rules. The upside on paper does not survive contact with a $5,869 repeat violation, a platform that can be pushed into a settlement, and an appeals process that can hang over the property for two or three years.
If you bought a building and are not certain which units are rent controlled, that is the first thing to nail down, in writing, with a licensed professional. It changes what you can and cannot do with every unit, and it is not a detail you want to guess on.
If a previous owner or manager set up any nightly listings before you took over, find out now rather than later. Complaint histories follow the building, not the person, and you do not want to inherit a file you did not know existed.
And if the goal behind the short term rental idea was simply better cash flow, that is a real and fair goal, and there are legitimate ways to chase it. Tightening the long term rental strategy, reducing vacancy, and getting the operating side clean will usually get you further than a nightly listing that carries this much regulatory risk. That is a conversation worth having with someone who knows the Venice market.
Are all Venice apartment units rent controlled?
No, not automatically. Rent control coverage depends on the building and the unit, and there are exceptions. But older Venice multifamily is frequently covered, so the practical move is to assume a unit is covered and confirm the specifics with a licensed professional before acting on it.
Can I short term rent a unit that is not rent controlled?
Possibly, but it is still regulated. Los Angeles runs a Home Sharing framework with registration requirements and limits, and it is generally built around a host's primary residence rather than a full building of units. A non covered unit is not a free pass. Get the specific rules confirmed before you list anything.
What is the actual penalty if the city finds an illegal listing?
The standard fine is $586 per violation and $5,869 for repeat violations, and platforms can be pulled into settlements of their own, as when the city settled with Vrbo for $150,000. On top of the money, a contested citation can take two to three years to work through the appeals process.
Last verified: July 25, 2026. Figures and enforcement details are drawn from public reporting on Los Angeles short term rental enforcement and are current as of that date. This is general information for property owners, not legal advice. Whether a specific unit is rent controlled, and how the Home Sharing Ordinance and its penalties apply to your building, must be confirmed with a licensed professional before you act.
Kellie
Schofield Properties
323 Richmond Street, El Segundo, CA 90245
Topics: market, venice, westside, regulation, short-term-rental
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Schofield Properties is a family run property management company at 323 Richmond St, El Segundo, CA 90245. We have managed the South Bay since 1972 and personally oversee about 186 doors today. Book a call to talk about your property.