How do short-term rentals work for homeowners?

A short-term rental is a furnished home rented to guests for less than 30 nights, usually through Airbnb, Vrbo or a direct booking site. The platform takes a fee from each booking (Airbnb's host-only fee is 15.5% for most hosts in 2026, and Vrbo moved hosts to a single 12% commission on October 29, 2026), the host or a manager handles guests, cleaning and upkeep, and the city decides whether the home may be rented at all. In Southern California the rules come first: many cities, including the City of Los Angeles, allow short stays only in the host's own primary residence, with a permit and hotel tax.

By the Villa Home Studios team · Updated

The short version

What happens from booking to checkout?

A typical stay runs like this:

  • A guest finds the home on Airbnb, Vrbo or a direct booking site, picks dates and pays. The platform holds the money.
  • The host answers questions, approves the guest if the listing isn't instant book, and sends check-in details a day or two ahead.
  • The guest checks in with a lock code or lockbox, stays, and checks out on the agreed day.
  • Cleaners turn the home over: linens, a full clean, restocking and a check for damage, with photos.
  • The platform pays the host about a day after check-in (Airbnb's usual timing), minus its fee. Both sides leave reviews.

Is a short-term rental legal in my Southern California city?

It depends entirely on the city. In the City of Los Angeles, stays under 30 nights are allowed only in your primary residence (where you live more than six months a year) with a Home-Sharing registration, up to 120 nights a year unless you qualify for Extended Home-Sharing. Burbank, Calabasas and Culver City don't allow them at all, while Malibu and Long Beach permit whole homes with a city permit.

Check your own city before you buy furniture or take a booking. Our city-by-city table for Los Angeles County lists permits, fees, night limits and hotel tax, and our Southern California guide covers Orange, Ventura, Riverside and San Diego counties.

Where does the money go on a booking?

On a $1,000 stay (nightly rate plus cleaning fee) booked on Airbnb with the host-only fee in a city with 14% hotel tax, roughly:

Illustration only, for a $1,000 stay subtotal. Your platform fee, tax rate and costs will differ.
ItemWho pays itAmount
Stay subtotal (nights plus cleaning fee)Guest$1,000
Hotel tax (City of Los Angeles, 14%)Guest, collected and sent by Airbnb in the City of LA$140
Airbnb host-only fee (15.5%)Host, taken from the payout$155
Payout to the hostPaid about a day after check-in$845
Cleaning, supplies, utilities, repairs, managementHostComes out of the $845

What does a host actually do every week?

Self-managing is doable, but it is a part-time job:

  • Set and adjust nightly prices for weekends, holidays and local events.
  • Answer guest messages, often within the hour, including late at night.
  • Schedule a cleaner for every checkout and check their work.
  • Restock linens, toiletries, coffee and paper goods.
  • Fix what breaks: a slow drain, a dead smart lock, a broken chair.
  • Keep the permit number on the listing, file hotel tax where the platform doesn't, and keep receipts for income tax.

What insurance does a short-term rental need?

A standard homeowners policy often excludes business use, so tell your insurer before you host and ask about a short-term rental or landlord policy. Airbnb's AirCover for Hosts includes host liability insurance and damage protection, but it is not a substitute for your own policy and has its own claim rules. Productions and direct guests should sign a written agreement.

How are short-term rentals taxed?

Two different taxes apply. Hotel tax (Transient Occupancy Tax) is charged to guests by the city; Airbnb collects and sends it in the City of Los Angeles, but not every platform does it everywhere. Income tax applies to what you earn, and the IRS treats rentals with an average stay of seven days or less differently from long-term rentals. Rent your home for 14 days or fewer in a year and that income is generally not taxable. Ask your tax professional how this applies to you.

Should I manage it myself or hire a manager?

Self-managing keeps the most money if you live nearby and have time. A co-host takes on part of the work, usually messages or check-ins. A full-service manager runs everything, from pricing to repairs, and suits owners who live elsewhere or want the home cared for like a hotel. Compare what each one includes before you compare price.

Common questions

What counts as a short-term rental in California?

Most California cities define a short-term rental as a stay of fewer than 30 consecutive nights. Those stays usually need a city permit or registration and carry hotel tax, and many cities, including the City of Los Angeles, allow them only in the host's primary residence.

How much does Airbnb take from hosts in 2026?

Most hosts pay Airbnb's host-only service fee of 15.5% of the booking subtotal (nightly rate plus cleaning and other fees, not taxes), deducted from the payout. Guests don't see a separate Airbnb service fee on those listings.

How much does Vrbo charge hosts?

Vrbo moved hosts to a single 12% commission on October 29, 2026, replacing the old pay-per-booking fees of about 8%.

When do short-term rental hosts get paid?

Airbnb usually releases the payout about 24 hours after the guest's scheduled check-in, then the bank takes a few days depending on the payout method.

Can I rent out my house in Los Angeles if I don't live there?

Not for stays under 30 nights in the City of Los Angeles: Home-Sharing is limited to the host's primary residence. Some other cities, such as Malibu and Long Beach, allow whole homes with a permit, and stays of 30 nights or more fall under normal rental rules.

Do I need special insurance for an Airbnb?

Usually yes. Many homeowners policies exclude business use, so ask your insurer about a short-term rental policy. Airbnb's AirCover for Hosts adds protection but doesn't replace your own policy.

Sources: Airbnb host-only fee as reported by Hostfully (September 28, 2026); Vrbo's 12% commission email to hosts as reported by Rental Scale-Up (September 30, 2026); City of Los Angeles Home-Sharing ordinance (planning.lacity.gov); IRS Publication 527 (residential rental property) and Topic 415. General information, not legal or tax advice.

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