Irvine house rented and then renter sublets it through AirBnB

Vinster

New member
This is the first time I've heard of something like this.
http://www.fatwallet.com/forums/finance/1469179/

My cousin recently purchased an investment property and quickly found a tenant who signed a 2 year lease. Thirty days letter my cousin started getting letters from both the city and the HOA accusing her of illegal short term renting. She contacted the tenant who denies everything but they eventually find multiple Airbnb listings for her property. It turns out her tenant never intended to reside at the property. She has been renting out multiple properties and listing them on Airbnb as part of her "hotel" business. They were able to get the city and HOA to postpone any fines while they initiate the eviction process. The lease clearly forbids any subletting.

Anything else they can do besides go through the courts? The city seemed uninterested in going after the tenant for fines even though rentals are clearly illegal. The listings on Airbnb continue unabated despite contacting Airbnb directly--they simply said it is out of their hands. My cousins's current lawyer seems uninterested and incompetent and they will be meeting with someone new. Would Airbnb be liable for any further damages if they continued to list the property after being notified it is both illegal and contrary to the terms of the lease? Would it be worthwhile to report the other illegal listings to the appropriate cities to "motivate " the tenant? The property is located in Irvine, CA if that helps.
 
Vinster said:
This is the first time I've heard of something like this.
http://www.fatwallet.com/forums/finance/1469179/

My cousin recently purchased an investment property and quickly found a tenant who signed a 2 year lease. Thirty days letter my cousin started getting letters from both the city and the HOA accusing her of illegal short term renting. She contacted the tenant who denies everything but they eventually find multiple Airbnb listings for her property. It turns out her tenant never intended to reside at the property. She has been renting out multiple properties and listing them on Airbnb as part of her "hotel" business. They were able to get the city and HOA to postpone any fines while they initiate the eviction process. The lease clearly forbids any subletting.

Anything else they can do besides go through the courts? The city seemed uninterested in going after the tenant for fines even though rentals are clearly illegal. The listings on Airbnb continue unabated despite contacting Airbnb directly--they simply said it is out of their hands. My cousins's current lawyer seems uninterested and incompetent and they will be meeting with someone new. Would Airbnb be liable for any further damages if they continued to list the property after being notified it is both illegal and contrary to the terms of the lease? Would it be worthwhile to report the other illegal listings to the appropriate cities to "motivate " the tenant? The property is located in Irvine, CA if that helps.

wild.  keep us posted. 
 
I have first-hand knowledge of an individual who is doing this at IAC apartments. Breakeven is about 12 nights rented = one month. It has gone so well, they now have three total leases in the same community (one is primary but leased out when they go on trips, the other two full time AirBnB).
 
Rice Vino said:
I have first-hand knowledge of an individual who is doing this at IAC apartments. Breakeven is about 12 nights rented = one month. It has gone so well, they now have three total leases in the same community (one is primary but leased out when they go on trips, the other two full time AirBnB).

I'm surprised they are able to get away with this arrangement for this long.  Must be doing something right.
 
Here's a twist on this for you guys....I just found out that one of my client's tenants are renting one of their rooms out on AirBnB (the tenant does occupy the home).  I'll be calling the realtor association in the morning to find out what the next step the landlord should/can take.
 
Rice Vino said:
I have first-hand knowledge of an individual who is doing this at IAC apartments. Breakeven is about 12 nights rented = one month. It has gone so well, they now have three total leases in the same community (one is primary but leased out when they go on trips, the other two full time AirBnB).

IAC is known to ban people for life.  If you have a $200 balance with them they won't lease to you until it's paid.  Even after 20 years. 
 
USCTrojanCPA said:
Here's a twist on this for you guys....I just found out that one of my client's tenants are renting one of their rooms out on AirBnB (the tenant does occupy the home).  I'll be calling the realtor association in the morning to find out what the next step the landlord should/can take.

Thats a nightmare for international landlords and landlords who do not live locally :(
 
dream16 said:
USCTrojanCPA said:
Here's a twist on this for you guys....I just found out that one of my client's tenants are renting one of their rooms out on AirBnB (the tenant does occupy the home).  I'll be calling the realtor association in the morning to find out what the next step the landlord should/can take.

Thats a nightmare for international landlords and landlords who do not live locally :(

Isn't this why they pay a PM for?
 
woodburyowner said:
dream16 said:
USCTrojanCPA said:
Here's a twist on this for you guys....I just found out that one of my client's tenants are renting one of their rooms out on AirBnB (the tenant does occupy the home).  I'll be calling the realtor association in the morning to find out what the next step the landlord should/can take.

Thats a nightmare for international landlords and landlords who do not live locally :(

Isn't this why they pay a PM for?

Nope....landlord sent a 3 day notice to perform covenant cure or quit and the tenant took down the Airbnb listing.  PMs do not have additional rights/powers that landlords don't have.  They have to follow the same CA rental laws.  I'd bet that most PMs wouldn't have an idea where to start because they might have never dealt with this kind of situation before.  In my opinion, PMs are only good if you own a property that is not within driving distance of where you live to help manage it for you.
 
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