January 9, 2026
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Got a Guest House? The City Wants You to Help Affordable Housing Stock By Putting it on the Long-Term Rental Market

By Jennifer Eden

 

All “accessory dwelling units,” AKA guest houses, built after March 31, 2017, in Santa Monica will be subject to a new City of Santa Monica ban on short-term rentals of backyard properties, rendering them illegal for stays of less than 30 days. And it’s all in the name of increasing affordable housing stock.

The rationale behind the move, according to the City, is that new guest houses will add to Santa Monica’s housing stock and drive down rental prices to the “affordable” level.

Residents whose guest houses were constructed prior to March 31, 2017, are not subject to the ban, and can continue to operate short-term rentals with the corresponding business license.

“This update strikes the balance of preserving newly-constructed accessory dwelling units for potentially long-term affordable housing use while also preserving the existing guesthouses that are successfully and lawfully operated as home-share units,” said City Planning and Community Development Assistant Director Salvador Valles.

No figures are available on the number of residents who will be building guest houses to help solve the housing “crisis,” or of whom would consider renting their guest house out on a long-term basis.

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