New ADU Short Term Rental Laws in California?

Question

California released the new Civil Code 4741. It’s quite lengthy, but does this mean that Short Term Rentals (Under 31 Days) are now allowed in ADU’s where the property is owner occupied?

Basically, it allows people to AirBnB their ADU even if the HOA restricts this in their CC&R’s?https://www.calassoc-hoa.com/H...

Jon Martin · Answer

City rules can still override this, correct?

Nathan Gesner · Answer

Code 4741 said the HOA can't prevent someone from renting, but they are allowed to cap rentals at a maximum of 25% of the total units and they are allowed to prohibit short-term rentals (less than 31 days).

4740 says that if you owned a property before the HOA enacts a new rule under 4741, then the new rule does not apply to you. In other words, if the HOA chooses to restrict short-term rentals but you were already operating a short-term rental on the property, then you can continue doing it. Once you sell the property, the new rules would apply to the new owner.

Nicholas Coulter · Answer

@Jeffrey Magenes super interesting and thanks for the share! This might open up a lot of opportunity for house hackers in these expensive markets.

New ADU Short Term Rental Laws in California?

New ADU Short Term Rental Laws in California?

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