Can I Rent Out My Los Feliz Condo? Leasing Limits, Minimum Terms and Short-Term Rentals

In most cases, yes. California law says an HOA cannot ban renting or unreasonably restrict it, and it cannot cap rentals below 25 percent of the units. An HOA can ban rentals of 30 days or less, and short-term rentals in Los Angeles also have to meet the city's home-sharing rules, which limit them to a host's primary residence.

So a longer lease is usually allowed, with the building's reasonable rules. A short-term rental is a different question with tighter limits. At Rooster Homes™, we read the leasing section of the CC&Rs with every buyer who plans to rent, before the offer.

This guide covers what California law says, what the City of Los Angeles adds and what to check in a building's documents.

California Civil Code section 4741 sets the main rules. They have applied to associations since January 1, 2021.

• No bans. A governing document cannot prohibit, have the effect of prohibiting or unreasonably restrict renting a unit.
• No cap under 25 percent. An association cannot limit rentals to fewer than 25 percent of the units. It may allow more.
• Short stays can be banned. An association may prohibit transient or short-term rentals of 30 days or less.
• Old rules had to be fixed. The law applied even if the association had not updated its documents. Boards were required to amend noncompliant provisions by July 1, 2022.

Section 4740 adds a protection for existing owners. A rule that prohibits renting does not apply to an owner unless it took effect before that owner took title. An owner relying on that section gives the association proof of the date they took title and the tenant's contact information before renting.

You can read both sections on the California Legislative Information site.

The law bans unreasonable restrictions, not all rules. A building's CC&Rs or house rules can still cover how renting works day to day. Look for:

• A minimum lease term, including a ban on stays of 30 days or less.
• A cap on the share of units rented, set at 25 percent or higher.
• Rules that tenants must follow the CC&Rs and house rules.
• Steps for giving the association notice of a new tenant.
• Moving-day rules and any related deposit.

If a rule looks tighter than the law allows, ask a real estate attorney. Under section 4525, a seller must disclose any provision in the governing documents that prohibits renting, so it will be in the documents you receive.

Only within tight limits. Two sets of rules apply, and both have to be met.

The building's rules. Under section 4741, the association can ban rentals of 30 days or less. Check whether yours does.

The City of Los Angeles rules. The city's Home-Sharing Ordinance FAQ sets these requirements for a host:

• The unit must be the host's primary residence, where they live more than six months a year.
• The unit must not be subject to the city's Rent Stabilization Ordinance or an affordability covenant.
• The host registers with City Planning and posts the registration number on every listing.
• Home-sharing is limited to 120 days a year unless the host qualifies for extended home-sharing.

The city notes that its Rent Stabilization Ordinance covers most non-single-family rental units built before 1978. You can check an address in ZIMAS, the city's zoning map, under the Housing tab.

In short, a condo bought only to use as a short-term rental does not fit these rules. A Los Feliz condo you live in may allow some home-sharing, if the building permits it and you register with the city.

A lease rents the whole unit to a tenant who lives there for a set term longer than 30 days. The tenant makes the unit their home. The owner usually lives somewhere else.

Home-sharing is the city's name for short stays of 30 consecutive days or less. Under the city's rules, the host rents out their own primary residence, either a room or the whole unit, while keeping it as the place they live most of the year. The city does not require the host to be home during a guest's stay.

The two follow different rules. A lease follows the CC&Rs, state law and the city's tenant rules. Home-sharing follows the CC&Rs, state law and the city's home-sharing registration. Decide which one you have in mind before you read a building's documents, because the answer can differ in the same building.

1. The leasing section of the CC&Rs. Minimum terms, any cap and the notice steps.
2. How many units are rented now. If the building has a cap, ask the association where it stands.
3. The house rules. Pets, parking and moving day all affect a tenant.
4. The HOA fee and reserves. They shape your monthly return. See how to read an HOA reserve study.
5. Your loan. Tell your lender early you plan to rent. Loan terms for an owner-occupied home and a rental can differ.
6. City rent rules. Ask a real estate attorney which Los Angeles tenant protections apply to the unit.
7. Taxes. Talk with a CPA about rental income and expenses.

Our page on buying a Los Feliz condo as an investment covers the rest of the plan.

• Assuming a rule in old CC&Rs still applies. Section 4741 overrides noncompliant provisions, even if the documents were never updated.
• Assuming the law allows short stays. The association can ban stays of 30 days or less, and the city adds its own rules.
• Skipping the association's notice steps. Follow the building's process for a new tenant.
• Planning a rental without checking the loan. Talk with your lender before you write the offer.

Here is a hypothetical example. It does not describe a real building or a real client.

A buyer plans to live in a Los Feliz condo for a few years and then rent it out on a one-year lease. The CC&Rs set a minimum lease term longer than 30 days and a rental cap above 25 percent. The buyer asks the association how many units are rented today, reads the notice steps and talks with a CPA about the future rental. The plan fits the building, so the buyer writes the offer.

Rooster Homes™ is a Los Feliz, Los Angeles real estate brokerage owned by Brandon and Sarah Arlington (DRE #02051216) helping buyers and sellers of Los Feliz condos and townhomes. We handle lease representation too, so we read a building's leasing rules with an eye on how a tenant will actually live there.

Compare leasing rules across buildings in our Los Feliz condo building profiles, then send us a note. Let us know what works best for you, and we will coordinate our schedule around yours.

This guide explains how rental rules generally work. It is not legal or tax advice. For your own situation, talk with a real estate attorney or CPA.