All You Need to Know About Airbnb Permit Costs in Los Angeles

The city of Angels is one of the hottest places to rent an Airbnb, not only in California, or even the United States, but in the entire world. But before you start marking your calendar and counting the cash, you need to secure the license. One of the first items on your licensing checklist is to learn about the costs. How much will it set you back? How much will the process last? What about the hidden fees and the risks? Will it be faster and cheaper to turn to professionals to secure your Airbnb permit in Los Angeles?

In today’s post, we answer all these questions and more to unpack the process behind Airbnb licensing in the Entertainment Capital of the World. The rental market in LA waits for no one, so let’s not waste a second more and start from the top—the price. 

How much does an Airbnb license cost in Los Angeles?

In the City of Los Angeles, the cost to register for an Airbnb license is $89 for the online application, with an additional $199 registration fee for the initial registration. This amounts to a total of $288 for the first year. The registration is typically for a standard annual permit, which limits rentals to 120 days per year and must be renewed every year.

• Initial Application and Registration: An $89 application fee plus a $199 registration fee for a total of $288 in the first year. 
• Annual Renewal: The $199 registration fee is annual. Hosts must pay an annual renewal fee to keep their registration active, as outlined by the City of Los Angeles Office of Finance. 
• Los Angeles County: For short-term rentals in unincorporated areas of Los Angeles County, the annual fee is $914. This is a separate fee from the city’s process and applies outside of city boundaries.
• Proof of Primary Residence: You must prove that the property is your primary residence to be eligible for the city permit.
• Extended Home-Sharing: If you wish to host beyond the 120-day annual limit, you can apply for an Extended Home-Sharing Registration, but you must meet additional requirements.

How much does an Extended Home-Sharing Registration cost in LA?

Currently, the Los Angeles City Planning Department does not publish a specific fee for an Extended Home-Sharing Registration. Instead, hosts must meet a specific set of qualifying conditions to receive an exemption from the standard 120-day limit.

Keep in mind that the standard one-time application fee of $89 applies to all initial home-sharing applications. This means that you must hold a standard home-sharing license before you can apply for an extended permit.

How to get an extended registration?

To qualify for an extended home-sharing registration, you must meet the following criteria:

• Have an existing, approved standard Home-Sharing Registration.
• Demonstrate that you have not been cited for any Home-Sharing Ordinance violations, such as renting your short-term rental as a party house or advertising an unapproved address.
• Provide a reason for needing the extended registration.

How to apply

If you have a standard home-sharing registration, contact the Los Angeles City Planning Department directly. The department will provide you with the next steps and any specific forms you need to complete.

Are there hidden costs in short-term rental licensing in LA?

While there are no hidden fees in the formal Airbnb registration process in Los Angeles, many hosts overlook additional required costs that can significantly impact profitability. These are often related to business taxes, compliance, and legal fees.

Unanticipated costs associated with licensing

Business Tax Registration Certificate (BTRC) fees

In Los Angeles, all businesses, including short-term rentals, must obtain a BTRC. The fee is based on your gross receipts, and you may pay a minimum upfront fee of $50 to $150, depending on the business type.

Property inspection fees

As part of the permitting process, you might be required to pay for inspections to ensure your property complies with safety codes and ordinances. For example, properties under the Rent Stabilization Ordinance (RSO) have a Systematic Code Enforcement Program (SCEP) fee, which can be passed on to tenants.

Legal & consultation fees

The legal landscape for short-term rentals is complex and constantly changing. Hosts may incur costs from hiring legal or professional consultants to navigate compliance, especially when dealing with violations and extended home-sharing permits.

Rent stabilization fees

If you own a rent-controlled unit, you must pay annual registration fees of $38.75 per unit to the Los Angeles Housing Department (LAHD). Operating a rent-controlled unit as a short-term rental is considered illegal and can lead to significant fines.

HOA or CC&R enforcement fees

If your property is in a community with a Homeowners Association (HOA), you may face fines or enforcement fees if you violate the community’s covenants, conditions, and restrictions (CC&Rs) on short-term rentals.

Potential penalties for non-compliance

Failing to comply with Los Angeles’s short-term rental rules can result in substantial financial penalties, including:

• Fines for operating illegally: Fines can start at $500 for the first offense and increase significantly with repeat offenses.
• Legal action: The City Attorney can take legal action against hosts who fail to comply, potentially resulting in further costs.
• Platform removal: Airbnb is legally required to remove listings without a valid registration number, which could lead to a complete loss of rental income.
• Back taxes: If you are found to be operating without a valid BTRC, the city can demand payment of back taxes plus penalties.

What additional costs should Airbnb hosts expect in LA?

In addition to the registration fees, Airbnb hosts in Los Angeles should expect significant costs from taxes, platform fees, cleaning, and insurance. While the initial registration may seem minimal, keep in mind that these ongoing expenses can consume a large portion of your earnings.

Here is a breakdown of the additional costs:

1. Taxes

• Transient Occupancy Tax (TOT): Los Angeles imposes a 14% TOT on the total listing price for all stays of 30 nights or less, which includes the cleaning fee. While Airbnb collects and remits this tax on your behalf, hosts are responsible for filing monthly returns with the city’s Office of Finance.
• Income tax: Income earned from your Airbnb is taxable. You must report all gross rental income if you rent your space for more than 14 days in a year. The tax rate will depend on your personal income bracket.
• California tax forms: In California, hosts are also required to file an annual county-level tax form (Form BOE-571-STR). 

2. Airbnb platform fees

Airbnb charges a service fee for each booking. While the previous split-fee model charged hosts 3% and guests 14–16%, new standards are rolling out. 

• Since October 27, 2025, hosts who use property management software are on a host-only fee of 15.5%.
• Starting December 1, 2025, this same 15.5% host-only fee will become mandatory for most independent hosts as well. 

3. Cleaning costs

The cost of cleaning depends on your property’s size and whether you hire a professional service or do it yourself. This is a crucial expense for maintaining good ratings. 

• Average cleaning fees in Los Angeles can range from roughly $70 for a private room to over $300 for a five-bedroom home.
• For professional services, the average hourly rate in Los Angeles is higher than the national average, between $24 and $34 per hour. 

4. Insurance

Standard homeowner’s insurance is generally not adequate for a short-term rental property since running an Airbnb is considered a business activity. 

• Commercial policy: The best way to protect yourself is with a commercial insurance policy, which can cost anywhere from $700 to $1,500 per year for $1 million in liability coverage, depending on the risk factors.
• AirCover: While Airbnb provides free AirCover, which includes host damage protection and liability insurance, it has exclusions. Having your own robust commercial policy is recommended as the better option for full protection.

5. Utilities, supplies & maintenance

Hosts are responsible for the ongoing costs of running the property, which can fluctuate based on occupancy. 

• Utilities: Costs for electricity, gas, water, and internet will increase with more frequent guest turnover.
• Supplies: You will need to regularly restock essentials like toiletries, paper products, and cleaning supplies.
• Maintenance: Factor in costs for general repairs, landscaping, pest control, and replacing items damaged by guests. 

6. Property management

If you hire a third-party licensing assistance manager, their fees can range from 15% to 40% of your booking revenue. This can be a worthwhile trade-off for hosts who want to leave all the complications to licensed specialists and rest easy.

Is licensing assistance worth the money?

Yes, paying for Airbnb licensing assistance in LA is often worth the money to avoid hefty fines. However, you can also do it yourself for a relatively low fee. The assistance is particularly valuable if you are new to the process, as it ensures your listing is compliant with the strict and often complex regulations in Los Angeles. Professional services can save significant time and help you avoid costly mistakes and the stress of dealing with local bureaucracy.

Benefits of getting licensing assistance

• Avoid fines: Non-compliance can result in significant fines, and assistance helps ensure you are compliant with all local ordinances.
• Peace of mind: The licensing process can be confusing, and assistance provides peace of mind that your business is operating legally.
• Maximize profitability: By ensuring compliance, you can continue to operate without interruption, maximizing your potential income and avoiding costly shutdowns.
• Handle complexities: LA has complex licensing rules, and an expert can help you navigate the requirements and potential changes to regulations. 

Cost & self-service option

• Self-service option: You can handle the licensing process yourself by applying online with the LA City Planning Department for a $89 fee. 
• Assistance costs: The cost of professional assistance varies, but it’s often worth the investment to avoid the potential for fines and the time commitment of navigating the rules yourself.

When professional assistance is valuable

Property eligibility is complex

LA’s Home-Sharing Ordinance is complicated. It restricts short-term rentals to your primary residence and prohibits them in Accessory Dwelling Units (ADUs), rent-controlled units, and subsidized housing. A professional can quickly determine if your property qualifies, saving you from a lengthy application process for a non-eligible property.

You want to minimize delays

The application process can take 30–60 days to approve, and missing even one document can cause significant delays. An expert can ensure your paperwork is completed correctly the first time, preventing months of setbacks.

You need compliance oversight

After approval, LA hosts must follow regulations like the 120-day annual rental cap, quarterly tax payments, and annual permit renewals. Some services offer continued support to help you stay compliant and avoid hefty fines, which can set you back as much as $2,000 per day for illegal listings.

You are a remote owner or busy

If you cannot dedicate time to managing the application and ongoing compliance, a third-party service can be a worthwhile investment for a “hands-off” experience.

Category	DIY (Do It Yourself)	Licensing Assistance
Costs	$89 application fee (2025) + potential renewal fees.	Varies, but often part of a broader property management service that can cost 15–40% of rental revenue. Standalone licensing assistance fees are typically a one-time setup charge.
Benefits	Saves money on management fees, affords full control over the process.	Saves time, expertise to ensure accuracy, and minimizes delays.
Risks	High risk of penalties for errors. LA imposes severe fines for non-compliance, such as for operating an illegal ADU rental or exceeding the 120-day limit. Errors can lead to permit denial or revocation.	Higher cost. The expense of management and licensing fees will cut into your overall revenue.

For most new or less experienced hosts in Los Angeles, licensing assistance is a sound investment. The complexity of the Home-Sharing Ordinance and the severe penalties for mistakes make paying an expert to navigate the process a smart choice. 

How much time does Airbnb licensing take in Los Angeles?

The time it takes to get an Airbnb license in Los Angeles is highly variable and depends on the speed of the Los Angeles City Planning Department. While the initial online application can be completed quickly, processing times often take weeks or even months, and the worst part is that there is no guaranteed timeline.

Step-by-step breakdown of the licensing process

Step 1: Initial online application

• Time: Less than one hour.
• Action: Completing the initial application for a Home-Sharing Registration on the city’s website is a straightforward process. 

Step 2: City processing

• Time: Can range from weeks to months.
• Action: After submission, the application enters the city’s queue for review. According to posts from hosts, this is where the major delays occur, with some waiting for months on end for their application to be approved. 

Step 3: Extended Home-Sharing Registration

• Time: Adds significant time to the process.
• Action: Hosts must first be approved for a standard registration before they can apply for an extended one. This involves submitting additional paperwork, and the review process can be lengthy. Some hosts have reported issues and long delays when trying to secure an extended permit.

Factors that influence timing

• Application completeness: Submitting a fully complete and accurate application from the start is essential. Missing information can cause significant delays as the city requests clarification.
• Departmental workload: The city’s processing speed is subject to the current number of applications and the availability of staff, which can lead to extended backlogs.
• Technology issues: As noted by some users on online forums, technical issues on either the Airbnb or the city side can cause unforeseen delays.
• Communication delays: Hosts frequently report issues with communication from the city’s short-term rental department, with calls and emails often going unanswered.

What does this all mean for the hosts

• Start early: Due to the unpredictable and often long processing times, hosts should apply for their license well in advance of their desired start date.
• Avoid listing without a number: Listing your property without an approved registration number is against the law and Airbnb’s policy. The platform may remove your listing, and you risk incurring fines.
• Patience is required: The process can be frustratingly slow, and hosts should be prepared for a waiting period that can last for several months.
• Consider hiring specialists: Partnering with a seasoned professional can save you precious time, money, and nerves.

Where can I find a resourceful pro to help me with my Airbnb permit in Los Angeles?

If you’ve thought that renting out an Airbnb is a 1-2-3 step process and you’re good to go, think again. With so many details to consider, from fees and taxes to application processing and risks, it quickly becomes obvious that professional licensing assistance can not only save your time and nerves but also significant monetary expenses. 

Enter SocalBnB. Our attentive guidance through the process, knowledge of local laws and regulations, and experience in helping future Airbnb hosts complete the process with as little hassle and time-wasting as possible.Whether you’re looking to pull a permit for your property in Venice or some other part of LA, we make sure you get everything done legally and swiftly. Get in touch with us today, and let’s hit the ground running without delay!