A Las Vegas homeowner who violated the city’s short-term housing law by renting out his home for 110 days must pay a $55,000 fine.
The Las Vegas City Council has upheld civil penalties against property owner Jonathon Foulks and his X Management LLC, who were accused of illegally operating a short-term rental despite warnings about violating the city’s short-term rental ordinance, the Las Vegas Review-Journal reported.
Foulks and his company were fined $500 a day for 110 days for allegedly renting the home near Oakey Boulevard and Arville Street.
Short-term rentals are allowed 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 in the Nevada Supreme Court.
Ultimately, the city found that Foulks had rented the house for 110 days from August to Feb. 11 and continued to list it for sale afterward despite warnings from the city. A building inspector opened a case in April of last year following a citizen complaint and informed Foulks of the ordinance, department director Eric McCoy said.
In July of last year, the bylaw officer found the house on Airbnb and sent Foulks a written notice telling him to stop, McCoy said. Foulks did not respond to the notice.
At some point, Foulks formed a limited liability company because he believed it would protect him, he later told the council.
In August, McCoy said, the enforcement officer called Foulks, who allegedly told the officer, “He didn’t see how the city could tell him what to do with the property.” Foulks was warned that the city would take enforcement action.
City officials argued that Foulks likely could have avoided penalties if he had stopped renting earlier. In January, the city fined another homeowner $180,000 for violating the ordinance, according to the Review-Journal.
“He could have contacted me directly, he could have contacted the officer directly,” McCoy said of Foulks. “He could have turned it around, or he could have contacted us to get clarity, but the Lord chose to have his way, and that is the punishment.”
Foulks told the Las Vegas Review-Journal he bought the house as an investment. He said he plans to hire a lawyer to fight the penalties.
“$55,000 on top of my mortgage is effectively foreclosure on the house,” Foulks told the council. “It’s way too much of a penalty for what I did.”
“This is excessive,” Foulks said of the $55,000. “It will basically bankrupt me.”
— Dana Bartholomew
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