A real estate investor was who was fined $180,000 by the City of Las Vegas for having an unauthorized Airbnb at his property is blaming his tenant for running afoul of local laws and berating the local authorities for not informing him of this problem earlier.
Business Insider reports that Xin Tao, an Oregon-based engineer, purchased the five-bedroom, two-bathroom house in June 2021 for $378,000, to be used as a rental property. A tenant who signed a long-term lease in September 2021 soon began to illegally lease it as an Airbnb site.
Tao added the city was aware of the unauthorized Airbnb usage as early as October 2021 but did not inform him of the situation until February 2022 when he was charged $2,132 in fines. He was under the belief that the tenant ceased renting out the property after that incident, but when the tenant moved out last September Tao learned the city pasted a notice of the $180,000 fine on a window at the residence.
Last January, Tao unsuccessfully asked the Las Vegas City Council to void the fine. He insisted he would continue to fight the penalty.
“We have a mortgage and car payments — $180,000 is definitely something I cannot afford,” he said.
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Once again…a city overreaching! Why did he go to city council? He needs to take it to court! They should have sent him a notice/certified letter to his mailing address on the tax records. A posting on the residence is insufficient notice. Hopefully, his attorney can get this dismissed.
The new rule under local, state and federal governments: no can make money unless we, the government, approve it. And, we will let you know how much $$ you can make.
My thoughts exactly!
Wow, what a mess!
First and foremost, consult with a knowledgable real estate attorney in Las Vegas familiar with zoning regulations, code enforcement and notice requirements.
Out of area owners should have proper means for monitoring rental properties. Hire a qualified local property management firm to check the property periodically.
Also, always be sure your mailing address is up to date with local jurisdictions for correspondence and notice purposes.
In Las Vegas, Nevada, the specific requirements for zoning authorities to notify non-occupied owners of property violations may be outlined in the city’s zoning ordinances or other relevant regulations.
It is recommended to refer to the official website of the City of Las Vegas or contact the local zoning authority for accurate and up-to-date information on the notification requirements in this jurisdiction.
If it were me, I’d also refer to the lease agreement that hopefully restricts subleasing of the premises. If so, the owner may want to file suit against the tenant for damages if the tenant has sufficient assets or means to collect.
Otherwise, if the fines stick, owner might be looking at pulling cash out of the property to negotiate a settlement with the city.
There’s a lot to discuss with legal council for sure!
Well said, Jennifer! Owning an out-of-state rental takes more than signing a lease.
Thank you Catie. Yes it does. Being a property owner and landlord is a huge commitment and responsibility.
It is not fair for all of this cities to put short term rental restrictions on us. We work very hard for our money to be able to better ourself by purchasing investment properties. We should be able to rent to whom we want and for as long as we want. The cities and counties should provide more housing by working with large investors to build housing. It’s not our responsibility to provide housing.
It seems to me, if the city believes this is illegal, they should have a problem with the tenant who set up the air B&B.