Airbnb Rental

In the case of Chen vs. Kraft, [2016] 243 Cal App Supp. 13, Chen, the landlord, filed an Unlawful Detainer against Kraft who was using his rental to sublet on Airbnb. The property was zoned R-1 and was subject to Los Angeles Rent Stabilization Ordinance. Los Angeles prohibits short term rentals that fall within the R-1 Zone.

The tenant refused to cure the 10 Day Notice of Default and continued to rent the property on Airbnb. The landlord filed an Unlawful Detainer action arguing that the tenant was operating an illegal bed and breakfast or transient housing.

The tenant raised defenses such as the prior tenant was allowed to rent on Airbnb. Therefore, the tenant argued landlord waived the claim. The tenant also argued that the premises did not violate the R-1 Zone.

The landlord prevailed on a Summary Judgment motion and the tenant appealed. The Appellate Court affirmed the Trial Court decision stating that the landlord established all of the elements of an Unlawful Detainer based on the theory of Illegal Purpose. That theory is that the landlord is entitled to evict the tenant when he is using the premises for an unlawful purpose. Since the R-1 Zone prevented short term rentals the tenant’s Airbnb listings and rentals were unlawful and the tenant failed to comply with the 10 Day Notice to Quit. The tenant’s argument that the prior landlord allowed rentals is not dispositive as such approval was an illegal contract. Therefore, it was void and unenforceable.