Airbnb Cuts Ties With 2 of Its Largest Hosts – Legal Implications

According to a recent article in the Los Angeles Times, Airbnb has cut ties with two of its largest Los Angeles area hosts and 10 of the 13 hosts with the most local listings as of October, 2014. The Times cites growing scrutiny from the Los Angeles City Hall as one potential reason for the moves Airbnb made.

For some time now, local media outlets have been reporting on growing friction between the Los Angeles City Council and Airbnb over the collection of taxes. Los Angeles County and the City of Los Angeles apply a tax on “transient use” of property. According to the Los Angeles Municipal Code, property owners use property for a transient use whenever a guest stays for 30 consecutive days or less. (Los Angeles Municipal Code Article 1.7, Chapter 2.)

As a result, the City of Los Angeles has begun sending threatening letters to many property owners who use Airbnb. In fact, recipients of such letters have already contacted the attorneys at Schorr Law regarding their rights.

As attorneys who primarily handle Los Angeles real estate property disputes, we have taken an interest in the legal implications surrounding companies such as Airbnb, Homeaway, and VRBO. In fact, Schorr Law’s lead attorney, Zachary Schorr, wrote a popular story for Linkedin.com detailing how to deal with Airbnb occupants who refuse to leave. You can read that article at:

https://www.linkedin.com/pulse/20140725043916-11700131-airbnb-occupants-who-refused-to-leave-a-better-way-is-self-help-against-lodgers.

You can also view the Los Angeles Times article, mentioned at the top of the page, at:

http://touch.latimes.com/ – section/-1/article/p2p-83218648/

We see this issue as one that is rapidly evolving and intend to continue to monitor it as it develops. In the meantime, if you have an issue relating to your rights to list your property on a platform such as Airbnb, you can contact us for a free 30-minute consultation at 310-954-1877 or info@schorr-law.com.

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