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While you were sleeping: LA bans “granny flats” as Airbnbs


City law set to prevent new “granny flats” as short-term rentals

Airbnb Chief Executive Brian Chesky. A new city law would limit so-called granny flats from being posted on Airbnb. (Credit: Getty Images and iStock)Airbnb CEO Brian Chesky. A new city law would limit so-called granny flats from being posted on the short-term rental platform. (Credit: Getty Images and iStock)

Los Angeles’s law policing short-term rentals goes into effect Friday, and one crucial component is being overlooked: A ban on using newly constructed accessory dwelling units as short-term rentals.

Construction of accessory dwelling units – a.k.a. ADU’s, a.k.a. granny flats, or in-law flats – has exploded the last few years. At least some of these are posted on Airbnb and other short-term rental platforms, though no one yet has a count.

Depending on one’s perspective, the ban could be a needless blow to single-family homeowners and future development, or a necessary measure that could be difficult to enforce.

From ADU to Airbnb

ADUs – which are backyard dwellings or converted garages built adjacent to single-family units – started playing a bigger role in L.A.’s housing stock in 2017. That was when the city conformed to a California law easing ADU construction restrictions, including almost doubling the cap on ADU space to 1,200 square feet.

The effect was immediate. In 2016, the city of L.A. saw 299 permits for ADU construction, according to the Terner Center for Housing Innovation at UC Berkeley. The number of permits skyrocketed to 3,818 in the first three quarters of 2017, per Terner, and there have been about 13,000 additional permit requests over the last two years.

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Posted in Airbnb, Real Estate

How to Help California Wildfire Victims

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Posted in Disaster


Have a safe Halloween!


Posted in Holidays

Real estate agents exempt from California’s new anti-gig labor law

Source: HousingWire

California lawmakers passed landmark bill AB5 on Tuesday reclassifying an estimated 1 million independent contractors as employees to provide them with benefits such as sick time, paid family leave, and health insurance.

“The California Senate has voted to end the gig economy as we know it,” Quartz said. “AB5 passing is a nightmare scenario for the gig economy not just because of its immediate consequences, but because it proves that such legislation is possible and politically viable.”

Licensed real estate agents were given a carve-out in the California bill, along with insurance agents, doctors, securities brokers, and more than half a dozen other professions. Real estate agents needed the exemption because they didn’t meet the law’s “ABC test” for determining status. To be classified as an independent contractor, the following conditions must be met, according to the bill:

(A) The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.
(B) The person performs work that is outside the usual course of the hiring entity’s business.
(C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

Real estate agents by law must operate under the supervision of a licensed broker. More than half of U.S. states specifically exempt real estate agents from workers’ compensation laws, according to the National Association of Realtors. More than a dozen lawsuits across the U.S. in the last two decades have tried to overturn the independent contractor status of real estate agents, without success.

The IRS considers real estate agents to be “statutory nonemployees” if three factors are met. The agent must be licensed, compensation must be directly related to sales rather than hours worked, and there must be an agreement stating the agent will not be treated as an employee for federal tax purposes.

The longstanding IRS test “demonstrates the federal government’s recognition of the unique nature of the real estate industry and, as such, the need to treat it differently than other industries,” NAR said in a paper on agents and tax status.

Gig-type work has become controversial as companies like Lyft and Uber reap millions of dollars for high-level executives while the workers who make it possible end up paying the costs of performing the job out of their own pockets and lack benefits such as health insurance and paid family leave.

Sometimes gig workers don’t earn the minimum wage that would be guaranteed if they were treated as employees. For example, drivers for ride-share services are required to pay for their own gas and other expenses for operating their cars. Once that’s factored in, many would earn more working in a fast-food restaurant, according to studies.

California, the most populous state, has the fifth-largest economy in the world, making it bigger than countries such as the UK.

It’s the wealthiest U.S. state, with a combined net worth of $6 trillion, according to a report from the California Legislative Analyst’s Office. It also leads the nation in measures of income disparity such as homelessness and the number of children living in poverty, facts often cited during the debate in California’s State Assembly prior to AB5’s approval.

California’s homeless population, the largest in the country, began making headlines this week after President Donald Trump ordered a federal crackdown “to get homeless people off the streets of Los Angeles and other cities and into new government-backed facilities,” the Washington Post said on Tuesday.

The following day, the Post reported federal officials had toured a facility once used by the Federal Aviation Administration as a possible site to put homeless people in advance of a trip to the area the president has scheduled for next week.


Posted in Real Estate

10 Party-Ready Specialty Outdoor Kitchen Features

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Posted in Back Yards, Patios

Color Trends From the 2019 Maison & Objet Design Show

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If you’re ready for a change from white, gray or a single bold hue, you’ll like this news out of the Paris trade fair

Posted in Decoration Guides

To-Dos: Your September Home Checklist

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Prep your home for cooler weather with these tasks to do in an hour, over a weekend and during the month

Posted in Home Maintenance, Home Tips

8 Cabins to Dream About This Summer

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Take a virtual vacation by gazing at gorgeous cabins on an Idaho Lake, by a Texas River and along the New Zealand coast

Posted in Landscape, Vacation Homes

9 Stylish Side Yard Seating Areas

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These inspiring designs offer ideas for making the most of a skinny outdoor space by creating a lounge or dining area

Posted in Back Yards, Gardens, Patios

OPEN HOUSE Sunday August 18, 2019 from 12:00 Noon to 4:00 PM

704 N. Bush St., Anaheim, CA 92805          $573,500

Completely remodeled Mid Century Modern 3 Bedrooms, 2 Bathrooms Home with POOL. Granite Kitchen Countertops with self-closing cabinets and drawers. Central A/C and Heating. Double pane windows. Plantation Shutters throughout. Inside Laundry Room. Two car detached Garage. Lots of parking space. Washer & Dryer, Refrigerator and kitchen counter stools are included. Roof is only 3 yrs old.

Posted in Real Estate




Contact Information

CA Department of Real Estate Lic.# 01960213
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