Millionaire musician Nicholas Jarzabek, better known by his stage name Nick Diver, built a small empire renting out a Los Angeles home he was leasing without the owner’s permission. According to Washington Examiner New, by turning the property into an illegal vacation rental, he pocketed over $215,000 in just 16 months. In this article we talk about How a Musician Raked in Thousands with a Secret Airbnb Scheme In LA.
His scheme shone a spotlight on the potential downsides of the sharing economy. As homeowners increasingly rent out houses on platforms like Airbnb, some unscrupulous tenants have spotted opportunities for fraud.
The Backstory
In August 2022, Jarzabek began renting a Los Angeles house from Nikeeta Sriram, a Netflix executive. For over a year, everything seemed fine. Jarzabek paid rent on time, kept the place in good condition, and raised no red flags.
Behind the scenes, however, he was preparing for his illegal venture. Right before moving in, Jarzabek asked to start his lease a few days early on August 26th. Sriram now believes he wanted extra time to list the property on Airbnb before his first bookings arrived.
The Scheme
Without Sriram’s knowledge, Jarzabek listed her home on Airbnb and began racking up profits. From August 2022 through December 2023, he earned approximately $13,500 per month.
To avoid detection, he took several precautions: using an alias, omitting exterior photos of the house, and listing an incorrect address in the booking details. For 16 months, his covert business went off without a hitch.
Cracking the Case
Jarzabek’s scheme finally fell apart in late December. One too many Airbnb guests accidentally set off the home’s ADT alarm, automatically triggering a police check-in.
When Sriram investigated, she uncovered her house listed on Airbnb under Jarzabek’s pseudonym.
Sriram swiftly moved to shut down the operation, but removing Jarzabek proved challenging. Under California laws, eviction is the only pathway to force out a tenant. Meanwhile, Airbnb hosts little liability for illegal listings posted by others.
The Aftermath
Today, Sriram continues her monthslong battle to evict Jarzabek. Between lost rents and legal fees, his actions have cost her over $100,000 so far.
For his part, Jarzabek raked in over $215,000 through his scheme. And despite everything, he denied any wrongdoing when confronted, referring Sriram to his lawyer instead.
Key Takeaways
This cautionary tale reveals risks surrounding the sharing economy. As houses become hotel rooms through platforms like Airbnb, the door opens for fraud by cunning tenants.
It also showcases limitations around regulations. Companies like Airbnb take limited responsibility for illegal listings, while laws can make removal difficult even after uncovering outright fraud.
As the sharing economy continues growing, regulators will need to balance open access with better protections. Sriram learned firsthand the hard way how gaps in the system can enable exploitation – even by a renowned musician making plenty of money through traditional channels. I sincerely hope you find this “How a Musician Raked in Thousands with a Secret Airbnb Scheme In LA? Find Out Details” article helpful.