LAS VEGAS (KTNV) — Homeowners who were held hostage by Clark County won a preliminary victory in court after a federal judge sided with them and against Clark County in the ongoing battle over short-term rental regulations.
The judge said the county's slow-moving permit process, endless delays and heavy-handed enforcement are likely illegal because they violate property rights by effectively preventing some homeowners from using their homes. As such, the court issued an injunction to force the county to back off on massive fines and speed up short-term rental licensing.
WATCH| Darcy Spears gives an update on short-term rental licensing in the valley
A number of Las Vegas homeowners count on short-term rentals to make a living. Two of them were introduced in September when they reached out to ask 'Darcy, what's the deal?'.
PREVIOUS COVERAGE| Homeowners question Clark County's lengthy short-term rental licensing process
"The idea that any business could establish a location, completely set up shop and then wait indefinitely--right now we're at three years--to open its doors, it's not possible," Michael Watson said.
Watson and Zachary Krassin were both held hostage in the county's licensing process, which issued only 174 licenses as of March 2025, with about 515 applications still pending. In a federal lawsuit filed on behalf of affected homeowners by the Greater Las Vegas Short Term Rental Association and Airbnb, plaintiffs say the county has "failed to provide a workable path for homeowners to obtain licenses."
The county has only opened its license application portal once. In fact, it's been closed since August 2023 and hasn't accepted any new applications in over two years. All the while, court records say the county has had no problem with aggressive enforcement, including daily fines ranging from $1,000 to $10,000 and placing liens on properties.
Court records call that "a draconian enforcement regime" that leaves some homeowners risking "financial ruin."
Krassin tried to apply for a license but the county told him he had to wait for another lottery. He decided to open his short-term rental anyway and got immediately slammed with a $4,000 fine.
"In the time period where I was really trying to do it correctly, and I called, and I actually went down to code enforcement, I wasn't getting anywhere. But the moment I opened, they were focused more on how they can get a fee versus actually helping to legally fill this process and get a business license," Krassin said.
After paying his fine, Krassin shut down his listing and had to cancel six months of bookings. He's now getting ready to move into the home he'd hoped to use for income because he had no other choice. While the court's ruling may be too late for him, it will allow Watson to list his other property that remains in limbo.
The judge found that Clark County's actions violate homeowners' due process rights, leaving them "stuck between a rock and a hard place" where they're likely to suffer "irreparable harm" without the preliminary injunction. The court ruling pauses the county's license requirement and suspends its enforcement until homeowners have a practical means to apply for a license.
The county said it cannot comment on pending litigation, but is aware of the order and will be reviewing it to determine next steps. The Nevada Attorney General's office, also named in the pending lawsuit, said it has no comment. Homeowners wonder whether at some point they'll get reimbursed for the fines they've already paid.
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