L.A Cracks Down on Luxury Rentals for Hosting Disruptive Party Houses

The city of Los Angeles has filed a lawsuit against The Nightfall Group, a luxury short-term rental company, over the disruptive “party houses” it manages in residential areas. City Attorney Hydee Feldstein Soto alleges that these properties frequently violate noise ordinances and short-term rental laws, creating a public nuisance. Police have responded to over 250 calls related to parties at the company’s rentals, including reports of violence, blocked streets, and disturbances so severe they shook neighboring homes.

The lawsuit targets both the company and its owner, Mokhtar Jabli, for violating the city’s short-term rental laws, which restrict homeowners to renting only their primary residences for 30 days or fewer per year. Nightfall, based in Beverly Hills, rents out hundreds of properties, charging up to $16,000 per night, particularly in the Hollywood Hills, an area frequently affected by loud gatherings.

Residents living near these rental homes have suffered from blocked driveways and unbearable noise, such as the case at the Birds Villa on Hopen Place, where neighbors were trapped in their homes during a particularly large party. The complaint alleges that Nightfall’s rental practices disrupt the local quality of life by disregarding laws meant to protect communities from the negative impacts of short-term rentals.

Nightfall’s properties have also seen violent incidents. Police reports indicate that officers have responded to multiple assault cases at these party houses, including an incident on Sunset View Drive in June 2022. Despite assurances from Jabli that parties were one-time events, officers repeatedly returned to address ongoing issues, including as recently as last month.

Jabli, a Moroccan-born entrepreneur, gained notoriety for his rags-to-riches story. After moving to California in 2016, Jabli, once homeless, built a multimillion-dollar real estate empire. However, his business practices have come under scrutiny, with seven lawsuits filed against him and his companies over the past 18 months. Despite the legal challenges, Nightfall has continued to promote itself as a provider of luxury villas and high-end experiences for wealthy clients, catering to celebrities and affluent tourists looking for opulent accommodations in cities like Los Angeles, Miami, and Dubai.

City officials are seeking enforcement of city laws, including penalties for violating noise and rental regulations. Feldstein Soto emphasized that more enforcement actions may follow if similar companies do not comply with city ordinances, highlighting the impact these luxury rentals have on housing availability and neighborhood peace. The lawsuit represents a significant step in the city’s efforts to address the growing problem of party houses in residential areas, which has been a long-standing issue for many residents across Los Angeles.

Nightfall Group and Jabli have yet to respond publicly to the lawsuit, but their legal troubles suggest a rocky future for the company’s rental practices. The city’s action may also signal broader efforts to regulate the burgeoning short-term rental market in an effort to protect both residents and housing availability.

Source: LA Times News