What is a short-term rental?
A short-term rental is defined as the rental of any portion of a single-family home, condominium, townhome, apartment, or any dwelling unit for periods of time less than thirty (30) consecutive calendar days.
This includes any portion of a(n):
- Accessory dwelling unit (ADU).
- Junior accessory dwelling unit (JADU).
- Garage conversion.
These types of rentals are common on websites such as Airbnb or VRBO.
What types of short-term rentals are allowed in Lakewood?
In order to maintain Lakewood’s quiet, safe, family-friendly neighborhoods, Lakewood City Council passed Ordinance 2018-7 that created the standards and regulations for the operation of short-term rentals in the City of Lakewood.
Home-share rentals of up to two rooms in an owner-occupied dwelling unit for up to a collective maximum of ninety (90) days and/or nights in any calendar year are allowed.
- Whole home or entire property short-term rentals are completely prohibited.
- Any ADU, JADU, or garage conversion short-term rentals are completely prohibited.
The dwelling unit must be the primary residence of the property owner who must live within the same dwelling unit that is being rented.
Because ADUs are considered separate dwelling units, the property owner cannot live in an ADU and rent out the other dwelling units on the property.
All short-term rental owners must:
- Obtain a short-term rental business license with the Finance and Administrative Services Department ($40 annually).
- Register for transient occupancy tax (8%) with the City to collect and remit all transient tax quarterly to the City.
- Provide on-site parking for each guest. Street parking for short-term rental guests is completely prohibited.
- Ensure the dwelling unit fully complies with all building codes and all provisions of the Lakewood Municipal Code.
For additional information on these requirements, please email BusLic@lakewoodcity.org or call 562-866-9771, ext. 2606.
What about long-term rentals?
Long-term rentals or rentals of a dwelling unit for periods of time greater than 30 days at a time are allowed within the City without a license or permit.
These types of rentals are regulated by other State and County agencies.
What are the penalties for violators?
The State of California passed Senate Bill 60 that gave cities the authority to issue administrative fines for violations of their short-term rental ordinances starting at $1,500 for the first violation, $3,000 for a second, and $5,000 for each additional violation.
The City of Lakewood fully utilizes these fines to gain compliance from violators who are jeopardizing the safety and welfare of the community.