Las Vegas Homeowner Accused of Operating Illegal Short-Term Rental Says $55K Fine “Way Too Steep”
LAS VEGAS, NV – An effort on the part of a local homeowner to contest a “way too steep” $55,000 fine after being accused of operating an illegal short-term rental was shot down by the Las Vegas City Council last Wednesday, who noted that the defendant had been warned multiple times that he was breaking the municipality’s short-term rental law.
Short-term rentals are permitted in Las Vegas, but they must be licensed and are mandated to follow city regulations.
The council had levied fines in the amount of $500 per day – for a total of 110 days – that X Management LLC owner Jonathon Foulks had allegedly been operating the short-term rental in question, which was located in the proximity of Oakey Boulevard and Arville Street.
Foulks argued that the penalties he was being charged with were unfair and would ultimately result in the loss of the house that was purportedly being rented out.
$55,000 on top of my mortgage is putting the place into, basically foreclosure. It’s way too steep of a fine for what I did,” Foulks reportedly said to the council. “It’s over the top. It’s basically gonna make me bankrupt.”
It’s a sad situation, but it is what it is, and that motion to appeal has been denied,” said Mayor Carolyn Goodman.
The complaint against Foulks began back in April 2023 when neighbors complained about the rental house to authorities; after a code enforcement officer investigated the allegations, he notified the homeowner that he was in violation of city ordinance for renting the property without a license.
However, the city claims that warning went unheeded, and sent Foulks a written notice after they discovered the very same house advertised for rent on Airbnb in July 2023. After the house continued to be advertised for rent, Foulks is alleged to have told a code enforcement officer in August 2023 that “he doesn’t see how the city can tell him what to do with the property.”
It was at this point that he was informed that the city would begin enforcing the ordinance; in an effort to remedy the situation, Foulks temporarily stopped renting the property until he was able to form an LLC – or Limited Liability Company – which he mistakenly thought would legitimize the rental property.
Later, the city fined Foulks a total of $55,000, saying that he operated the rental from August 2023 to February 11 – and continued renting it afterwards. However, the council noted that if Foulks had simply complied with previous warnings, he likely would have walked away without any penalty whatsoever.
Despite briefly considering lowering the amount of the fine, the council ultimately decided to keep it in full to serve as a deterrent, they said.