City of LA Allows STR Permit Theft & Cashes in on Fraud [Los Angeles]
TLDR - city of LA allows permit STR permit theft in LA as it’s a lucrative scam for both taxes and lawsuits. Won’t fix the mechanism that allows for widespread theft.
I’m an Airbnb host in LA with a 120 day permit. For the past three years, my Airbnb calendar has been prematurely blocked by the city prior to my using all my 120 days. I’ve flagged the home share dept repeatedly and each year, it ends up being months of stress and begging them to fix it. Last year, they mentioned permit theft then backtracked. I was confused - the permit is allegedly non-transferable.
This year, I noticed the inflated count on my listings in April and began emailing the home share department. My calendar has now been fully blocked since August. I chatgpt’d my permit number and found that some jerk down the street has been stealing my number for his illegal Airbnb. I have alerted the city and told them for over a month. They have done nothing.
During this time, I dug further and found that there are thousands of illegal listings in the city of LA, often run by rings of 6-7 people who steal legit permits from unassuming hosts. The city’s own contractor, Granicus, has been flagging this issue since 2023. The city’s won’t fix the loophole that allows the theft nor will it release activity logs of bookings to the affected parties - these would show the exact listings where the theft is occurring.
Why? Money. These listings are often luxury Airbnbs. The city collects 14% transient occupancy tax and these properties often cost over $1K per night, vs what’s often a 2nd room or a portion of a home of a legitimate host for much less. Secondly, the city seems to wait until these rings garner millions in revenue, then they sue the rings for $5-$62M per ring. They are also currently suing Airbnb for “allowing” this to occur. It’s lucrative fraud whereby the city cashes in millions in taxes on illegal listings then millions more in fines/lawsuits Meanwhile, legitimate hosts are paying the price and not even aware of the lawsuits.