Airbnb’s Big Bet on the Olympics and What it Means for Short Term Rentals in Los Angeles ahead of 2028
By: Brad Greiner, CEO of Open Air Homes and OpenAiRE Brokerage
Los Angeles Faces Legal Challenges for Short-Term Rentals Amid Hotel Lobby Push for Stricter Regulation
We, like millions of others, are experiencing Olympic fever and loving watching the Olympic games. Simone Biles. Serena Williams. Flavor Flav supporting women’s water polo. Celine Dion. Snoop Dog with Martha Stewart discussing Dressage. The Olympics are shining a bright light on just how special the city can be, and back here in Los Angeles, we have four years to prepare just the same.
I’ve been watching the games since I was a kid, and the athletes never cease to amaze me. I played water polo in college at UCLA and had a number of close friends compete and win medals – their dedication never ceases to amaze me.
Business Insider dug deep into Airbnb’s sponsorship of the Olympics in 2024 and 2028, and as the owner of a short term rental management company in Los Angeles, I wanted to look to the future as our great city begins to prepare for the games.
Airbnb’s $500 Million Olympic Sponsorship
Airbnb has signed a $500 million sponsorship deal with the Olympic Games through 2028. Their ads are all over Paris, encouraging residents to rent out their homes and skip town, which makes sense to accommodate more visitors.
Paris has had a rocky relationship with rentals for good reason, as the popularity of visiting Paris continues to increase year over year, and for good reason.
Looking Forward to the 2028 Los Angeles Olympics
With Los Angeles hosting the games in 2028, there are some significant implications for the city and for short-term rental market:
- Strict Rules in Los Angeles: The city has strict regulations on short-term rentals. Open Air Homes has continued to pivot after every rule change, similar to the 120-day rental limit in Paris.
- Police Permits Requirement: The latest law required all hosts to obtain police permits. However, the Board of Police Commissioners notified the City Council before the 7/1/24 cut-off date that they would not enforce this requirement, citing the infeasibility of full implementation.
- Public Transportation: Los Angeles has been investing in public transportation, but there is still so much work to do. Paris has set the golden standard for public transport, and to showcase the city in the best light, visitors need options other than sitting in traffic on the 405.
- More Bike Lanes and a Commitment to Biking: Los Angeles should look to Paris for a playbook on how to create the critical mass necessary of bikers to making biking in this city truly possible. Velib as well as other electric and regular bike startups make the entire city of Paris explorable on bike. Citibike has done the same for New York. We would love to see Los Angeles invest in the necessary true bike lanes to make biking safe and a true option for both residents and tourists. It is possible, but it takes a critical mass of people that wish to bike, and that critical mass will only come once there are safe bike lanes and both regular and electric biking options.
Laurel Canyon in Los Angeles, by Open Air Homes
The Critical Role of Short-Term Rentals
Airbnb is sponsoring the 2028 Olympics, yet the Los Angeles City Council seems to be working with the hotel lobby to impose stricter regulations on homeowners. This brings us to some key points:
- Hotel Shortage: Los Angeles does not have enough hotels to accommodate the influx of visitors for the Olympics. Short-term rentals will play a critical role.
- Modern City Dynamics: Any truly modern city has a combination of homeowners, long-term renters, hotels, hostels, short-term rentals, and monthly furnished rentals.
- Fair Regulations that weed out bad actors: The short term rental industry in Los Angeles is plagued by bad actors. Fair regulations which are enforceable will help to prevent party homes, and encourage homeowners who wish to escape the crowds for the Olympics the ability to legally rent their homes, and go on vacation while the city receives this influx of tourists.
Laurel Canyon in Los Angeles, by Open Air Homes
Open Air Homes’ Unique Approach
At Open Air Homes, we exclusively partner with homeowners who use their investment properties for a portion of the year and rent them out through us when they are not in town. Here’s how we ensure compliance and success:
- Working Within Legal Frameworks: We have always followed the legal guidelines set by the city of Los Angeles.
- Month+ Bookings: Many of our homeowners prefer renting out for longer periods (30+ days), which are considered long-term rentals and require signing a CAR form to protect the homeowner legally.
- Direct Bookings: We are also focusing on direct bookings to diversify our revenue streams and provide better deals to guests.
As Airbnb invests significant amounts of money in their Olympic partnership, we hope to work alongside Airbnb and the city council to ensure the long-term viability of short-term rentals with fair and balanced regulations.
Laurel Canyon in Los Angeles, by Open Air Homes
Preparing for 2028
Showcasing the scenic city of Los Angeles is our full-time job. We have four years to prepare to show the world just how spectacular Southern California is.
Here is the article from Business Insider:
Short-term Airbnb rentals surge during Paris Olympics, hurt hotel revenue
By: Eliza Relman | Jul 25, 2024
Final Thoughts
As we look forward to the 2028 Olympics, we remain committed to working within the legal frameworks and continuing to provide exceptional service to our homeowners and guests. The city of Los Angeles has it’s work cut out for it with public transportation, but the low hanging fruit is to truly commit to safe bike lanes and install a Citibike or Velib type of system to create a critical mass of bikkes.
If you’re a homeowner considering short-term rentals, we invite you to partner with Open Air Homes to rent your home when you are out of town, and potentially take a nice long trip in 2028 so that we can work together to open your home up to guests looking to experience Los Angeles for what will inevitably be another exciting Olympic Games.
Join us in making Los Angeles a top destination for visitors from around the world!
