Los Angeles may be about to allow short-term rentals on investment properties for the first time — and for property owners across the city, the implications go well beyond tourism.
The proposed FY 2026-27 city budget includes a Vacation Rental Ordinance that would permit second homes and investment properties to operate as short-term rentals through December 31, 2028, ahead of the FIFA World Cup and 2028 Olympics. The ordinance would add up to 31,000 units to the city’s short-term rental market. The City Council must approve it, with the Budget and Finance Committee reconsidering on May 7th.
In this video, Oron Maher, Broker-Director at Maher Commercial Realty, breaks down what this ordinance actually means for property owners — and why the December 2028 sunset may not be as temporary as it appears.
What property owners need to know:
▶ Under the current Home-Sharing Ordinance, only primary residences may be listed for short-term stays. The proposed ordinance changes that entirely for investment properties
▶ The opposition from hotel unions and housing advocates is a predictable story of incumbents restricting supply to protect their position — not a housing policy argument
▶ This city has never voluntarily surrendered a revenue stream it became dependent on, and it has not enforced its own Home-Sharing Ordinance against 7,500 properties already operating illegally. The temporary will likely become permanent
▶ For property owners evaluating highest and best use, this ordinance reopens a conversation that has been off the table in Los Angeles for years
The better policy outcome is also the likely one.
📍 Maher Commercial Realty — Beverly Hills. Multifamily, NNN, and commercial assets across Greater Los Angeles.
📩 Own property in Los Angeles and want to understand how this ordinance affects your asset’s highest and best use? Visit mahercr.com or send us a DM.
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