by Evan Simon 
This story has received quite a bit of media attention recently. An Airbnb user who moved into a Brentwood homeowner’s guesthouse over two years ago has not paid rent in more than a year and refuses to leave, instead claiming the landlord should give her $100,000 to move.
The tenant has claimed she is entitled to stay rent free because the unit lacked a certificate of occupancy and had an unpermitted shower.
This story has many implications and lessons for owners and purchasers of real estate in and around Los Angeles.
First, owners who are looking to rent out a unit on their property (an ADU or other rental unit), must make sure to “cross their Ts and dot their Is.” A unit must be permitted for occupancy and an owner must be vigilant about curing habitability issues. Having a unit which is deemed “uninhabitable” creates a defense to an eviction.
If you are looking to purchase a property with rental income potential, you and your agent should thoroughly investigate the permit records, including whether any unpermitted work was performed in the unit. It’s best to work with an agent who has experience in purchasing investment properties and can guide you through the many issues that should be examined.
AirBnbs and short-term rentals have impacted many different neighborhoods in and around Southern California. Even if you are looking to purchase just a single-family home to live in, you should investigate the number of AirBnb properties which may neighbor your new home.
This story, and a follow up story exploring the claims being made, has many other lessons for owners and purchasers (and renters) in Southern California. If you have any questions about these articles, or wish to discuss how your real estate might be impacted, feel free to reach out!
