Short-term rentals decline in L.A. area as rules tighten

Other hosts are opting for midterm rentals — stays of longer than 30 days but less than a year—independent ofthe fires.

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“The short-term rental space got stuck. Regulations hit, and people are finding that the next best option is midterm rentals,” said Jesse Vasquez, an entrepreneur who runs a midterm rental summit every year.

Vasquez said L.A. is the best market for midterm stays because so many people visit the city for extended periods with no permanent plans: travel nurses, students, digital nomads or people working on long-term projects such as films or construction.

He said midterm rentals rake in about 15% to 20% less than short-term rentals, but in exchange, homeowners deal with less turnover. If a three-bedroom, two-bathroom house in a popular neighborhood can make around $10,000 per month as ashort-term rental, it could still bring in $8,000 per month as a midterm rental, Vasquez said.

Last year, Airbnb Chief Executive Brian Chesky identified midterm stays as a“huge growth opportunity” for the company, and said such bookings make up 18% of the company’s business compared with 13% to 14% before the pandemic.

Mark Lawson used to rent out his San Fernando Valley home on VRBO for weekend stays, but last year he set the parameters to only accept bookings of 30 days or more.

“I got tired of having someone new in the house every few days,” he said.