City Sues Landlord Alleging Systematic Violation of the City's Anti-AirBNB Laws Banning Short Term Rentals

The City of Santa Monica has filed a lawsuit seeking approximately $18 million in restitution and penalties against a landlord and his family, accusing them of illegally converting dozens of rent-controlled apartments into short-term rentals listed on Airbnb and VRBO.

This action continues the city's enforcement efforts against illegal short-term rentals to protect its rent-controlled housing stock, explained the City Attorney in a press release.

In a complaint filed on January 22 in Los Angeles County Superior Court (Case No. 26SMCV00397), the Santa Monica City Attorney’s Office Consumer Protection Unit alleges that Hamid Enayati (also known as Andrew Enayati), along with family members Nicole Massarat (aka Nicole Enayati), Jaleh Forouhar (aka Jaleh Enayati), Nina Enayati, Nina Property Management Inc., and numerous related business entities, violated the city's Residential Leasing Requirements Ordinance (Santa Monica Municipal Code Chapter 6.22).

The suit claims the defendants unlawfully rented at least 62 units across more than 25 rent-controlled properties to short-term guests nearly 3,000 times over more than five years.

For Rent sign. File photo. Not a property involved in this story.jpeg

They allegedly pocketed about $18 million in profits that should have been preserved for long-term housing affordability in Santa Monica.

The city is requesting civil penalties of $2,500 per violation, an injunction to immediately halt the alleged illegal short-term rentals, and disgorgement of the $18 million in unlawful gains.

The complaint describes the operation as a deliberate scheme to circumvent local housing protections designed to maintain residential stability amid a housing affordability crisis.

The full complaint is publicly available on the city's website. The defendants have not yet publicly responded to the allegations, and the case is in its early stages in Superior Court.