City of Los Angeles: Technically, short term rentals are currently illegal in Los Angeles. ( (Chen vs. Kraft (2016) LA is slow moving but in April 2018 the City Counsel committee approved a measure to allow short term rentals but CAP the number of days that a primary residence can be rented out to 120 days a year. A “qualified host” category may also be included to allow more rental days. Neighbors (or the City) must approve if you want more than 120 days a year of short term rentals.

https://cityclerk.lacity.org/lacityclerkconnect/index.cfm?fa=ccfi.viewrecord&cfnumber=14-1635-S2

I love city reports such as this that cost tens of thousands of dollars (or more) to prepare:

https://planning.lacity.org/ordinances/docs/HomeSharing/StaffRept.pdf

Santa Monica: In 2015 Santa Monica passed a law requiring the “host” to also stay in the rental unit. Air BNB sued Santa Monica and in March 2018 the US Federal District Court denied Air BNB’s request for an injunction against the City indicating the City will win. It seems Air BNB has made over $31 million since 2015 in fees from Santa Monica short term rentals!
West Hollywood: In March 2018 West Hollywood banned renters from hosting short term rentals and the homeowners must be on site for at least 4 hours a day.
Pasadena: In January 2018 Pasadena enacted an ordinance to ALLOW short term rentals for 90 days a year and unlimited rentals so long as the host is on the premises. Air BNB must pay a tax and register with Pasadena.
Hermosa Beach, Redondo Beach: No short term rentals are allowed.

A homeowner who is an attorney accused a bank of violating Civil Code § 2923.6, subdivision (c) by  foreclosing while his loan modification application was pending. The attorney did not pay his mortgage for eight years. The attorney sued the bank, and the bank’s demurrer was sustained without leave to amend. The Court of Appeal affirmed and stated:  “A person who borrows money from a bank to purchase or refinance a home has a reasonable expectation that the bank will fund the loan. The bank has a reasonable expectation that monthly mortgage payments will be made. Here, appellant’s reasonable expectations were met. The bank’s were not. Nonpayment of the mortgage for approximately eight years while the borrower remains in possession is an egregious abuse. Respondent argued, and the trial court agreed, that appellant is ‘gaming the system.’ The game is over.” (Gillies v. JPMorgan Chase Bank, N.A. (Cal. App. 2nd Dist., Div. 6, Jan. 24, 2017) 2017 Cal. App. LEXIS 47.) http://www.courts.ca.gov/opinions/documents/B272427.DOC

Contract

A common question is how to count the days referred to in the Real Estate Purchase Agreement and related CAR (Calif. Assoc. of Real Estate) forms.  In October 2016 CAR published a concise article on this in their magazine.  In essence the CAR attorneys confirmed that every day counts, even holidays, but if the last day is a weekend or holiday, then the next business day would be the last day.  That confirms with Code of Civil Procedure §12.  More specific examples how to apply this are as follows and are in this great article and summarized below.  See also  http://www.onlinedigitalpubs.com/publication/?i=341167 Continue Reading Counting Days and Loopholes in CAR Real Estate Purchase Agreement Forms

marijuana_legal_gavel_620x350Medical and probably soon recreational marijuana is going to be a hot box for landlords and tenants.  Medical marijuana is also NOT a basis nor does it create “civil rights” for residential tenants to smoke in their apartments!!  Health and Safety Code §11362.5 (Compassionate Use Act of 1996 “CUA”) allows medical marijuana to be purchased, possessed and used. There are many levels and issues, but here is a sampler.  This is one confusing, vague, and evolving area of law and how it impacts employers and landlords.  Make sure to check current law both state, national and local (city), as all laws apply. Continue Reading Marijuana Laws and Landlord-Tenant Rights

women at water coolerThis is the big new 2016 law.  This allows women to ask questions about their own pay and ask others what they make without the threat of discipline.  While this is not a “new law”, this law helps lawyers to help their female clients!  Also the employer’s record keeping requirements is increased from two to three years.  Violation is technically also subject to prosecution and a civil action.  Lawyers need to be careful, there is a one year, two year statute of limitations and if will full, three year statute of limitations.

See Labor Code §1197.5