Overview: Are Short-Term Rentals Allowed in Lakewood?

SHORT-TERM RENTALS ARE COMPLETELY PROHIBITED IN LAKEWOOD, CALIFORNIA.

Effective May 25, 2023, the City of Lakewood enacted Ordinance 2023-2, which banned all short-term rental operations within city limits. This represents a complete prohibition on the rental of any portion of a residential property for periods less than 31 consecutive calendar days.

How to Start a Short-Term Rental Business in Lakewood

It is not possible to start a short-term rental business in Lakewood. The city has implemented a complete ban on all STR operations, including:

• Whole home rentals for less than 31 days
• Home-share rentals (renting individual rooms) for less than 31 days
• Accessory Dwelling Unit (ADU) rentals for less than 31 days
• Junior Accessory Dwelling Unit (JADU) rentals for less than 31 days
• Garage conversion rentals for less than 31 days

This prohibition applies to all residential zoning districts within the city and supersedes any previous regulations that may have allowed certain types of short-term rentals.

Required Documents, Permits, Licenses, and Guidelines

No documents, permits, or licenses are available for short-term rentals in Lakewood due to the complete ban. The city does not issue any STR permits, business licenses, or registrations.

However, it's important to understand the regulatory progression:

Historical Context (Pre-2023)

Previously, Lakewood operated under Ordinance 2018-7, which:

• Prohibited whole home rentals for less than 30 days
• Allowed home-share rentals (owner-occupied properties renting individual rooms) for less than 30 days, subject to:
  • Maximum of 90 rental days per calendar year
  • Owner-occupancy requirement
  • Building code compliance
  • On-site parking requirements
  • Business license and Transient Occupancy Tax (8%) requirements

Current Status (Post-May 2023)

All short-term rental activity is prohibited regardless of property type or ownership structure.

Specific Regulations for Short-Term Rentals

City-Level Regulations (Lakewood)

Primary Ordinance: Ordinance 2023-2 (effective May 25, 2023)

• Complete ban on all short-term rentals (less than 31 consecutive days)
• Applies to all residential properties including single-family homes, condominiums, townhomes, apartments, ADUs, JADUs, and garage conversions
• No exceptions for owner-occupied properties or any other circumstances

Penalties: California Senate Bill 60 authorizes cities to impose administrative fines:

• First violation: $1,500
• Second violation: $3,000
• Third and subsequent violations: $5,000 each

County-Level Regulations (Los Angeles County)

The provided content does not specify Los Angeles County-level STR regulations. Investors should consult with the Los Angeles County Department of Regional Planning for any county-level requirements that might apply.

State-Level Regulations (California)

Transient Occupancy Tax (TOT): While not applicable in Lakewood due to the STR ban, California state law allows cities to impose TOT on short-term rentals. Previously, Lakewood's Ordinance 2018-7 mandated an 8% TOT for home-share rentals.

Senate Bill 60: Authorizes cities to enforce STR regulations with administrative fines as described above.

Alternative Investment Options

Since STRs are prohibited, investors should consider:

Long-Term Rentals: The city allows long-term rentals (31+ consecutive days) without specific permits or licenses, though standard landlord-tenant laws apply.

Other Investment Types: Consider traditional rental properties, commercial real estate, or investment opportunities in nearby cities that allow short-term rentals.

Contact Information

City of Lakewood - Code Enforcement

Address:
5050 Clark Avenue
Lakewood, CA 90712

Phone:
562-866-9771, ext. 2140 (for reporting violations)
562-866-9771, ext. 2606 (for general inquiries)

Email:
Service1@lakewoodca.gov (for reporting violations)
BusLic@lakewoodca.gov (for business license questions)

Online Reporting:
www.lakewoodca.gov/Service

In-Person:
City Hall during business hours

Key Departments

• Business Licensing: 562-866-9771, ext. 2606
• Code Enforcement: 562-866-9771, ext. 2140
• Planning and Development: Contact through main line

Important Considerations for Investors

1. Due Diligence: Always verify current regulations with the city before making any investment decisions.

2. Enforcement: Lakewood actively enforces the STR ban through citizen reporting and proactive code enforcement.

3. Advertising: Operating or advertising STRs in Lakewood is prohibited and subject to penalties.

4. Zoning Compliance: While long-term rentals are allowed, investors must comply with all applicable zoning requirements and building codes.

5. Alternative Markets: Consider nearby cities like Newport Beach, San Clemente, or other Orange County jurisdictions that allow short-term rentals under specific conditions.

Source Links

• Lakewood STR Information Page
• Ordinance 2023-2 (STR Ban)
• Ordinance 2018-7 (Previous STR Regulations)
• City of Lakewood Official Website

Disclaimer: This guide is based on the provided content and current regulations as of the information cutoff date. Investors should verify current regulations directly with the City of Lakewood before making investment decisions, as municipal regulations can change rapidly in the short-term rental industry.