West Hollywood City Council Approves Short-Term Rental Ordinance, Capping Permits at 1,200 Citywide

The West Hollywood City Council voted 4-1 on July 7 to pass Ordinance 2026-05, which sets a citywide cap of 1,200 short-term rental permits and limits each permitted property to no more than 60 rental days per calendar year.

City records show that 850 short-term rental applications were processed in 2025, with the majority concentrated in the Norma Triangle and West Hollywood West neighborhoods. The new rules take effect on January 1, 2027, and require hosts to register through the city's online portal while paying an annual fee of $450 per permit.

Impacts on Housing Availability and Resident Costs

Policy analysts at the local level note that the daily cap will reduce the number of units removed from long-term housing stock during peak tourist seasons. Residents who currently rent rooms or entire homes for supplemental income will face new restrictions on how often they can list properties on booking platforms. Local advocates note that enforcement will rely on complaints filed through the city's 311 system and on data shared by short-term rental companies.

The ordinance allocates $450,000 from the general fund for two additional code enforcement positions and software upgrades to track compliance. City budget documents project that permit revenue will offset roughly half of those costs in the first year of implementation.

Implementation Timeline and Compliance Process

Existing permit holders must reapply by October 31, 2026, and demonstrate that their properties meet updated safety and occupancy standards. The legislation states that violations will result in fines starting at $1,000 per incident and potential permit revocation after two substantiated complaints within 12 months. Council staff will present quarterly compliance reports beginning in April 2027.