City alleges systematic conversion of rent-controlled units to Airbnb rentals violated municipal housing lawThe city of Santa Monica has filed a lawsuit against a family of landlords who control more than 25 rent-controlled properties, alleging they illegally converted dozens of apartments into short-term Airbnb rentals and pocketed approximately $18 million over five years. Elaborate Scheme AllegedThe complaint alleges the Enayatis developed a systematic process to circumvent the city's short-term rental restrictions while maintaining an appearance of compliance. By converting units to short-term rentals with frequent turnover, the defendants allegedly circumvented rent control protections. "The City takes violations of its short-term rental ordinances seriously and will enforce them when needed." The properties at issue in the lawsuit span addresses throughout Santa Monica, including buildings on Chelsea Avenue, Lincoln Boulevard, Montana Avenue and various numbered streets, collectively containing at least 184 rent-controlled units.