Ellis Act Evictions and Airbnb

[Account Closed]

Hello all,

I am in charge of a multi family property in the Los Angeles area.

Recently all of the tenants were evicted via the Ellis Act. This apartment building will be demolished to make way for a bigger apartment complex.

There are a few months before we will be doing the demolishing, and I was wondering if it is okay to rent the units out on Airbnb while waiting for the building to be demolished.

Anyone have any insight in regards to this?

[Christian Mkpado]

Hi Chris, 

I would NOT try to rent the units out via Airbnb. You are opening yourself up to way too much liability. Below are a few snipits of information available on the LA Housing Website. I recommend you read this page (http://hcidla.lacity.org/Removal-From-Rental-Market-Owners) fully before you make a decision. 

• If the landlord intends to re-rent the withdrawn units, a Notice of Intention to Re-Rent Withdrawn Accommodations form (E-7) must be filed with HCIDLA. The landlord may not rent or lease any such unit, except to a tenant displaced from that unit, for a period of 30 days following the filing of the notice.
• Displaced tenants have a right of first refusal on the unit from which they were displaced for a period of 5 years after the withdrawal of that unit from the market, provided they request the offer in writing within 30 days after the landlord has filed the Notice of Intention to Re-rent with HCIDLA.
• If a withdrawn rental unit is returned to the market within two years of the date of withdrawal, the landlord is liable through a civil action for both actual and exemplary damages to any tenant displaced from that unit. In addition, the City may also initiate civil proceeding for exemplary damages.

A few months of income is not worth the legal and monetary repercussions that may arise if you try to re-rent the units. Just wait a few months, develop the project and enjoy a brand new, non-rent controlled building.

Best,

Christian M.