Las Vegas Fines Airbnb Operator $55K for Illegal Rentals

A Las Vegas homeowner who rolled the dice on defying the city’s short-term home sharing law by renting out his house for 110 days must pay a fine of $55,000.

The Las Vegas City Council upheld the civil penalties against owner Jonathon Foulks and his X Management LLC, accused of illegally operating a short-term rental despite warnings he had violated the city’s short-term rental ordinance, the Las Vegas Review-Journal reported.

Foulks and his company racked up fines of $500 a day for 110 days for allegedly renting the house near Oakey Boulevard and Arville Street.

Short-term rentals are permitted in Las Vegas, but must be licensed and are subject to city regulations. A similar Clark County ordinance is being challenged by the Greater Las Vegas Short-Term Rental Association before the Nevada Supreme Court.

Ultimately, the city found that Foulks had rented the house 110 days from August to Feb. 11, and continued listing it afterward, despite warnings from the city. A code enforcement officer opened a case in April last year after a citizen complaint and informed Foulks about the ordinance, department manager Eric McCoy said.

In July last year, the code enforcement officer found the home listed on Airbnb and sent Foulks a written notice asking him to stop, McCoy said. Foulks didn’t respond to the notice.

At one point, Foulks established a limited liability company, which he thought would protect him, he later told the council.

In August, McCoy said the enforcement officer called Foulks, who allegedly told the officer that “he doesn’t see how the city can tell him what to do with the property.” Foulks was warned that the city would take enforcement action.

City officials argued that had Foulks closed the door on rentals sooner, he could’ve likely avoided penalties. In January, the city imposed a $180,000 penalty on another homeowner who violated the ordinance, according to the Review-Journal.

“He could’ve contacted me directly, he could’ve contacted the officer directly,” McCoy said regarding Foulks. “He could’ve turned (this) around, or he could’ve contacted us for clarity, but the gentleman chose to go his route, and this is the penalty.”

Foulks told the Las Vegas Review-Journal that he bought the house as an investment. He said he plans to hire an attorney to fight the penalties.

“$55,000 on top of my mortgage is putting the place into, basically foreclosure,” Foulks told the council. “It’s way too steep of a fine for what I did.”

“It’s over the top,” Foulks said about the $55,000, “It’s basically gonna make me bankrupt.”

— Dana Bartholomew