Prosecutors allege the defendants violated the Residential Leasing Requirements Ordinance by systematically renting the units to transient guests, mostly for periods of less than 100 days, nearly 3,000 times
The Santa Monica City Attorney’s Office has filed a lawsuit against a family of landlords and their companies, accusing them of illegally converting at least 62 rent-controlled apartments across 25 properties into short-term rentals on platforms like Airbnb, generating roughly $18 million in profits over more than five years.
The Jan. 22 complaint in Los Angeles Superior Court names Hamid Enayati, Nicole Massarat, Nina Enayati, Jaleh Forouhar, Nina Property Management Inc., and multiple LLCs they control.
Prosecutors allege the defendants violated the Residential Leasing Requirements Ordinance by systematically renting the units to transient guests, mostly for periods of less than 100 days, nearly 3,000 times. The ordinance requires initial leases of at least one year for unfurnished units used as the tenant’s primary residence.
According to the complaint, the defendants advertised units on Airbnb after long-term tenants vacated, facilitated short-term bookings through the platform, required guests to sign sham one-year leases outside Airbnb to appear compliant, rented furnished units to visitors not using them as primary residences, deceived guests with fraudulent leases and statements, and either failed to register units with the Rent Control Board or submitted misleading forms.
Zillow and public records show several of the properties named in the complaint — including 1130-1134 Chelsea Ave., 1118 10th St., and 944 12th St. — are multi-unit apartment buildings in high-demand areas like Wilshire/Montana, with recent estimates ranging from $1.1 million to higher values depending on unit count and condition.
The city seeks an injunction to halt the practice, disgorgement of approximately $18 million in alleged unlawful profits, and civil penalties of $2,500 per violation under California’s Unfair Competition Law and False Advertising Law.
Deputy City Attorney Jonathan Frank said preserving rent-controlled housing and keeping rents down remain top priorities.
