Detroit vs Los Angeles

Michigan Legal but Limited | California Legal but Limited

Disclaimer: General information only — not legal advice. Verify with your local government.

Detroit, Michigan
Status Legal but Limited
Permit Fee $500 annual license fee
Tax Rate 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined)
Day Limit 90 days/year
Renewal Annual
Platform Tax Yes
Max Fine Up to $1,000–$1,200 per violation for unlicensed operation
Los Angeles, California
Status Legal but Limited
Permit Fee $89 registration fee + $850 annual platform fee
Tax Rate 14% Transient Occupancy Tax
Day Limit 120 days/year
Renewal Annual
Platform Tax Yes
Max Fine $2,000–$5,000/violation (up to triple for repeat offenses)

Both cities have comparable STR regulatory environments.

Permits & Licensing

Detroit charges $500 annual license fee for STR licensing, while Los Angeles charges $89 registration fee + $850 annual platform fee. Detroit renewal is annual, and Los Angeles renewal is annual. Both cities share a similar regulatory stance, classified as "Legal but Limited."

Tax Obligations

In Detroit, hosts pay 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined). In Los Angeles, hosts pay 14% Transient Occupancy Tax. Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Both cities impose annual day limits: Detroit allows 90 nights/year, while Los Angeles allows 120 nights/year. Los Angeles's higher cap gives hosts more flexibility.

Fines & Enforcement

Hosts operating without a permit in Detroit face penalties including Up to $1,000–$1,200 per violation for unlicensed operation. In Los Angeles, violations can result in $2,000–$5,000/violation (up to triple for repeat offenses). Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Detroit Overview

90-day annual rental cap; max 10 guests at any time; principal residence requirement. Liability insurance required and properties must pass safety inspection.

Contact: BSEED — (313) 224-2733

Full Detroit guide →

Los Angeles Overview

Home-Sharing Ordinance limits STRs to primary residences with a 120-day annual cap (extendable with Enhanced Plan). Registration required. RSO (rent-stabilized) units generally prohibited.

Contact: LA City Planning — (213) 482-7077

Full Los Angeles guide →

Frequently Asked Questions

Is it easier to Airbnb in Detroit or Los Angeles?
Detroit is classified as "Legal but Limited" while Los Angeles is "Legal but Limited." Detroit's permit fee is $500 annual license fee compared to $89 registration fee + $850 annual platform fee in Los Angeles. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Detroit or Los Angeles?
Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined), while Los Angeles charges 14% Transient Occupancy Tax.
Which city has stricter fines for illegal short-term rentals?
Detroit: Up to $1,000–$1,200 per violation for unlicensed operation. Los Angeles: $2,000–$5,000/violation (up to triple for repeat offenses). Both cities actively enforce STR regulations, so proper licensing is essential.
Do Detroit and Los Angeles have day limits for Airbnb?
Detroit limits STRs to 90 nights per year. Los Angeles limits STRs to 120 nights per year.
Which city is better for first-time Airbnb hosts — Detroit or Los Angeles?
For new hosts, consider the total cost of entry: Detroit charges $500 annual license fee for permits with 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined) in taxes. Los Angeles charges $89 registration fee + $850 annual platform fee with 14% Transient Occupancy Tax. Automatic tax collection in Detroit and Los Angeles makes compliance easier for beginners.