Airbnb dealt another blow in Santa Monica

A judge’s ruling supports the city’s strict home-sharing ordinance

Los Angeles /
Mar.March 16, 2018 09:04 AM
Santa Monica skyline (Credit: Wikimedia Commons)

Santa Monica has gotten tough on Airbnb and HomeAway, and now it’s getting support in the courts.

A U.S. District Court judge handed the city a preliminary win in its two-year battle to severely restrict the home-sharing companies’ ability to operate.

Judge Otis Wright denied an injunction that sought to suspend the city’s ordinance regarding home-sharing rental platforms while the parties duke it out in court, according to the Santa Monica Daily Press.

Along with imposing taxes on short-term rentals, the ordinance requires that hosts be present while renting their spaces to guests.

The two platforms, which sued the city over the ordinance in 2016, have two weeks to appeal Wright’s decision. The district court is scheduled to hear the city’s motion to dismiss the lawsuit on March 26.

Airbnb and HomeAway’s request for an injunction was based on their argument that Santa Monica’s ordinance violated the company’s First Amendment rights, among others, according to the Daily Press.

The ruling comes a few weeks after the city published a report claiming only 187 of the 950 estimated short-term rentals in Santa Monica complied with the law over a two-year period. The city estimated that Airbnb made $31 million in Santa Monica over that period.

Airbnb hasn’t fared well in other L.A. County cities lately. Last week, West Hollywood banned renters from subletting their apartments on the site.

The L.A. City Council could soon debate a law that would greatly limit the number of days a host could rent their properties on the service as well.

Hosts reportedly skirted the ordinance by falsely claiming their rentals were across the border in the city of Los Angeles and even by taking down listings during business hours at Santa Monica City Hall to dodge city regulators. [SMDP] — Dennis Lynch


Related Articles

arrow_forward_ios
Neil Shekhter (Shekhter by Kevin Scanlon; iStock)
Santa Monica mega-portfolio officially hits market
Santa Monica mega-portfolio officially hits market
NMS Properties' Neil Shekhter and renderings of 1325 6th Street, 1437 6th Street, 1430 Lincoln Blvd. and 1318 Lincoln Blvd. in Santa Monica (Kevin Scanlon, WSC)
City for sale: Shekhter looks to unload mega-portfolio in Santa Monica
City for sale: Shekhter looks to unload mega-portfolio in Santa Monica
Neil Shekhter of NMS Properties, who is involved in the lawsuit. (Kevin Scanlon)
Landlords sue Santa Monica over “arbitrary” ban on short-term rentals
Landlords sue Santa Monica over “arbitrary” ban on short-term rentals
HomeLister CEO and Co-Founder Lindsay McLean (LinkedIn)
HomeLister property-selling platform raises $4.5M in seed funding
HomeLister property-selling platform raises $4.5M in seed funding
1724 Highland Avenue (Redwood Urban)1724 Highland Avenue (Redwood Urban)
Lawsuits allege Airbnb guests ran rampant at Hollywood apartment complex
Lawsuits allege Airbnb guests ran rampant at Hollywood apartment complex
Colorado Campus at 2041-2115 Colorado Avenue and Northwestern Mutual CEO John E. Schlifske
Northwestern Mutual picks up Santa Monica office campus for $166M
Northwestern Mutual picks up Santa Monica office campus for $166M
Macerich CEO Thomas O’Hern and Santa Monica Place mall
Here’s what tenants are paying at Macerich’s Santa Monica Place
Here’s what tenants are paying at Macerich’s Santa Monica Place
The party mansion at 1120 Sierra Madre Avenue, Glendora, Los Angeles (Credit: AirBnb and Google Maps)
Airbnb sues LA “party promoter” for throwing “mansion parties”
Airbnb sues LA “party promoter” for throwing “mansion parties”
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...