Short Term Rental Loophole without Airbnb Permit

Los Angeles County, California
Short-Term & Vacation Rental Discussions
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Short Term Rental Loophole without Airbnb Permit

Brett Hundley
Member since 2024 · 2 posts · 2 votes

The short term rental loophole is for rentals where the average stay period is 7 days or less. However in my city a permit is required to list on Airbnb for 30 consecutive days or less. If I want to use the short term rental loophole, do I qualify if I host a 30 day stay on Airbnb. Then, I quickly list and purchase 4 one day stays. This way my average becomes less than 7 days per stay.

At the end of the year I assume to use the short term rental loophole I need to provide Airbnb proof that I averaged 7 days or less.

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Kristine Ann
Investor · WNY/CNY/Adirondacks, New York State · Member since 2024 · 151 posts · 133 votes
2y

Sounds like a headache.  How difficult is it to just get the permit?

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  • Kristine Ann
    Investor · WNY/CNY/Adirondacks, New York State · Member since 2024 · 151 posts · 133 votes
    2y

    Sounds like a headache.  How difficult is it to just get the permit?

    1Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    2y

    But you can’t list for less than 30 days without the permit. When Airbnb gives that info to your city, as they are likely to do. What’s you defense for breaking the law going to be? How much is the fine? It has to be more than the permit. 

    I have no idea if you're going to lose in court to the IRS is they challenge you but since you were breaking the law during the 1 day stays probably. What is your big desire with the STR loophole? You're not making new deductions, you're simply pulling them forward so you have less deductions in the future. All of which have to be repaid if you ever sell. Certainly not a big enough advantage to break the law and face penalties/fines.

    I can't see 8 thirty day stays and 32 one day stays being any fun. Breaking the law 32 times? What if it turns out you can only get 24 one day stays and end up not qualifying? If you can't figure it out just hire someone to get the permit and list it for you. Maybe you'll get lucky and they'll outright ban STR o require you to live in the property so you can ignore this strategy. Good luck.

    1Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    2y

    Are you trying to do a workaround of the rules?  If so, that usually doesn't end well.

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
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  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    I'm thinking LA county is watching Airbnb for listings with less then 30 day stays. So regardless of your average, a permit would be necessary. 

    [email protected]330-557-3021
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  • Allen DuanPro Member
    Property Manager · Los Angeles, CA · Member since 2022 · 590 posts · 463 votes
    2y
    Quote from @Sarah Kensinger:

    I'm thinking LA county is watching Airbnb for listings with less then 30 day stays. So regardless of your average, a permit would be necessary. 

    Any listing in city of LA requires a permit number submitted to Airbnb to set your minimum stay less than 30 stays. Other cities in LA county have their own rules, some like Santa Monica are the same.
    1Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y
    Quote from @Allen Duan:
    Quote from @Sarah Kensinger:

    I'm thinking LA county is watching Airbnb for listings with less then 30 day stays. So regardless of your average, a permit would be necessary. 

    Any listing in city of LA requires a permit number submitted to Airbnb to set your minimum stay less than 30 stays. Other cities in LA county have their own rules, some like Santa Monica are the same.
    I figured they found a way to "automate" it by now.
    [email protected]330-557-3021
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  • Allen DuanPro Member
    Property Manager · Los Angeles, CA · Member since 2022 · 590 posts · 463 votes
    2y
    Quote from @Sarah Kensinger:
    Quote from @Allen Duan:
    Quote from @Sarah Kensinger:

    I'm thinking LA county is watching Airbnb for listings with less then 30 day stays. So regardless of your average, a permit would be necessary. 

    Any listing in city of LA requires a permit number submitted to Airbnb to set your minimum stay less than 30 stays. Other cities in LA county have their own rules, some like Santa Monica are the same.
    I figured they found a way to "automate" it by now.

     Yep! Airbnb partners with the city to help them enforce their regulations. Part of their PR efforts I'm sure

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