Wealthy Los Angeles homeowners are having a tough time selling amid a new tax on luxury sales, and turmoil in the entertainment industry. Rather than unloading their mansions in a sluggish market, many homeowners have resorted to renting them out, Bloomberg reports.
Rob DeSantis, a serial entrepreneur who cofounded Ariba and was an early investor in LinkedIn Corp, is a prime example of this trend. He recently placed his 13,000 sqft Manhattan Beach estate on the rental market for $150,000 per month. “This is a hedge,” DeSantis said. “I believe leasing it out will highlight the value of the property in a much better way.”