LAS VEGAS (FOX5) — A homeowner tells FOX5 that an investment purchase became a “nightmare“ when she learned that a home she purchased as an investment with an operating short-term rental was actually unlicensed, leading to a $41,000 fine from the City of Las Vegas.

The homeowner purchased the property in August 2025, after an online listing over the summer caught her interest: a “spectacular home” with “competitive monthly income” from a currently operating short-term rental from a tenant with an ongoing lease.

The homeowner said she was not aware that the City began establishing a case against the short-term rental in September 2024 after a complaint.

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Code enforcement

At a fine of $500 per day, city documents show code enforcement calculated $41,500 for more than 80 booked days for guests.

The homeowner’s attorney states in documents submitted to the city: “This is not a case of an owner who initiated an unlicensed use. It is a case of an owner who purchased a home in which that use was already operating and was marketed as an established and lawful source of rental income.”

The attorney asks the city for the fine amount to be reduced based on their calculation for actual stays.

The matter is set for a City Council hearing in late October.

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