Avoiding a $1,000 a day fine
Imagine you have saved your money and spent wisely for several years looking to purchase a home. After some searching, you find the perfect home, close to the city but far enough away to enjoy some peace and quiet. The neighborhood is quiet and safe so you are more than happy to raise your kids there. However, your neighbors don’t seem to be home, they haven’t been there since you moved in. After some looking into it, you realize that the home is owned by a company, and the company name is “Party House LLC.” How do you feel about the neighborhood now?
This scenario is exactly what happened in Las Vegas, homes were being purchased by companies that looked strictly to rent them out on a daily basis. Party House LLC is just one example of such an instance, a potentially more disturbing case came in March when a “El Camino LLC” purchased the home, entered talks with the city to regulate the time frame on a short term rental, and then violated the new time frame. El Camino LLC rented the home for one night, despite the new rule making a short term rental no less than 30 days. Las Vegas passed the rule in 2010 as a means to keep residential areas quieter, applying to both rental management companies as well as vrbo’s.
New Neighbors? (Photo by Ryan Somma)
The home was in a rehabilitation phase, where Clark county and the new owners of the home were working together to move away from party rentals. The owners of El Camino LLC have been upfront and admitted their transgression. Sadly, the Clark county officials are holding firm. They have enforced a $1,000 per day fine under the 30 day mark. Since the house was rented out for one day, the owners racked up 29 separate $1,000 fines.
New legislation like this is very important knowledge for vacation rental management companies to stay on top of. Party House LLC sold this property knowing the rule was coming into effect and was able to sell the property to maintain their business. VRBO’s are a much smaller market and may not be aware of every rule or the zoning, can the VRBO owners in your area afford a fine like this? Remind them that a management company will help them avoid any circumstance like this. Make sure to like us on Facebook to see our blogs in your newsfeed!