Los Angeles’ luxury homeowners are renting out properties for up to a staggering $150,000 a month amid new mansion tax and entertainment industry turmoil – as

LA’s luxury homeowners are renting out their properties at eye-watering rates amid a new mansion tax slowing the premium sales market. 

High end homes in California’s biggest city are being listed for as much as $150,000 per month as holiday villas or venues for corporate events.

It comes after LA luxury home sales slumped 26.6 percent thanks to the ‘mansion tax’ imposed earlier this year on properties costing north of $5 million. 

This levy also compounds the effect of labor strikes on the area’s usually thriving entertainment industry meaning there are fewer celebrity buyers.   

Ariba founder Rob DeSantis is offering his seven-bedroom 12-bath Manhattan Beach home to renters for $150,000 a month, after listing the property this week. 

Los Angeles’ luxury homeowners are renting out properties for up to a staggering 0,000 a month amid new mansion tax and entertainment industry turmoil – as

The most expensive property currently listed in LA for rent on Sotheby’s realty website is a gated estate in Beverly Hills, costing $65,000 per month

On 407 Robert Lane in the premium Trousdale neighborhood, the property boasts nine bedrooms and 12 bathrooms, a tennis court and a pool

On 407 Robert Lane in the premium Trousdale neighborhood, the property boasts nine bedrooms and 12 bathrooms, a tennis court and a pool

It's impressive white marble entry is adorned with ginormous chandeliers and immaculate furnishings, and the home also sports Mediterranean-style wood-paneled rooms

It’s impressive white marble entry is adorned with ginormous chandeliers and immaculate furnishings, and the home also sports Mediterranean-style wood-paneled rooms

DeSantis, 60, who was an early investor in LinkedIn Corp and owns five properties in California, described the move as ‘a hedge’. 

‘I believe leasing it out will highlight the value of the property in the much better way,’ he told Bloomberg.

The most expensive property currently listed in LA for rent on Sotheby’s realty website is a gated estate in Beverly Hills, costing $65,000 per month. 

On 407 Robert Lane in the premium Trousdale neighborhood, the property boasts nine bedrooms and 12 bathrooms, a tennis court and a pool. 

It’s impressive white marble entry is adorned with ginormous chandeliers and immaculate furnishings, and the home also sports Mediterranean-style wood-paneled rooms.

Home sales in the area are down 26.6 percent this year up to September compared with the previous 12 month period, according to Bloomberg analysis of broker data. 

With a median price of $13.25 million, luxury home listings in LA linger on the market for an average of 73 days – which is twice as long as a single-family home. 

So many mansions are on the market they total around $3 billion, according to LA Estate Rentals founder Patrick Michael, who told Bloomberg luxury homeowners are in ‘panic mode’. 

Los Angelinos voted to approve the new mansion tax in November, which was expected to raise between $600 million and $1.1 billion every year to help alleviate the housing crisis

Los Angelinos voted to approve the new mansion tax in November, which was expected to raise between $600 million and $1.1 billion every year to help alleviate the housing crisis  

The money is set to be funneled towards affordable housing and tenant assistance programs in the area, drawing funds from every housing sale in excess of $5 million

The money is set to be funneled towards affordable housing and tenant assistance programs in the area, drawing funds from every housing sale in excess of $5 million

They include a plastic surgeon who has been asking him to find clients to lease a Hollywood Hills home he often rents out for $25,000 a day for corporate events. 

The LA ‘mansion tax’ came into effect on April 1, allowing the city to take a four percent cut of all home sales between $5 million and $12 million. 

And for mega mansions that break the $10million threshold, homeowners lose 5.5 percent of their sale price if they decide to cash in on their estate. 

The move slowed luxury sales almost to a halt within the first moth – as only two properties costing north of $5 million were sold in April, compared with 126 in March.  

According to property valuation site Zillow, 457 mansions were set to fall under the new tax rules when the policy was first imposed. 

Los Angelinos voted to approve the new mansion tax in November, which was expected to raise between $600 million and $1.1 billion every year.

The money is set to be funneled towards affordable housing and tenant assistance programs in the area, drawing funds from every housing sale in excess of $5 million.

A lavish $85 million listing would lose $4.6 million if sold under the new tax

A lavish $85 million listing would lose $4.6 million if sold under the new tax

Dubbed 'The Reserve', the abode is situated in the exclusive Holmby Hills community

Dubbed ‘The Reserve’, the abode is situated in the exclusive Holmby Hills community

The architectural gem boasts numerous features, including 10 bedrooms, 19 bathrooms and 20 garage spaces for a fleet of supercars

The architectural gem boasts numerous features, including 10 bedrooms, 19 bathrooms and 20 garage spaces for a fleet of supercars

The LA mega mansion is also decked out with an Art Deco Hollywood inspired bar, a 1920s French regency-style cinema, a spa and a private gym

The LA mega mansion is also decked out with an Art Deco Hollywood inspired bar, a 1920s French regency-style cinema, a spa and a private gym

Among the most lavish homes remaining on Los Angeles’ property market is an $85 million listing dubbed ‘The Reserve’.

Sitting on over 21,000 square feet of manicured landscaping, the exclusive property is found at the end of a winding driveway through California’s Holmby Hills community.

Enclosed with towering palm trees and lush forestry, the architectural gem boasts 10 bedrooms, 19 bathrooms and 20 garage spaces for a fleet of supercars.

A swimming pool is joined on the grounds by a tennis court and a grand pavilion.

Constructed in 1959, the main house is a unique, single-story residence equipped with five bedrooms, floor-to-ceiling windows and classic Italian finishes.

And it is accompanied by a stunning guest house that even parallels the main mansion, also featuring five bedrooms and scenic views of the LA coastline.

The Reserve is fitted with numerous luxury amenities, also including an Art Deco Hollywood inspired bar, a 1920s French regency-style cinema, a spa and a private gym.

But since it failed to sell before the April 1 deadline, the city of Los Angeles will now take a healthy $4.6 million cut of a future sale.

This lavish property is still on the market for $69 million in the heart of Santa Monica

This lavish property is still on the market for $69 million in the heart of Santa Monica

Sat alongside the prestigious Riviera Country Club, panoramic views of the California vista are seen throughout the estate

Sat alongside the prestigious Riviera Country Club, panoramic views of the California vista are seen throughout the estate

Amenities including a private spa, home theater and indoor basketball court

Amenities including a private spa, home theater and indoor basketball court

The sprawling estate is also fit with a 125-foot pool, seven bedrooms and 13 bathrooms

The sprawling estate is also fit with a 125-foot pool, seven bedrooms and 13 bathrooms

Rivalling the reserve as one of the most expensive properties on the West Coast is a $69 million mansion set in the heart of Santa Monica.

The sprawling resort-like home’s most striking feature is a 125-foot pool, joined on the property by seven bedrooms and 13 bathrooms.

Situated alongside the exclusive Riviera Country Club, panoramic views of the California oasis are seen throughout the lavish abode.

And for the huge price tag, any new owner would enjoy amenities including a private spa, home theater and indoor basketball court.

A water feature greets guests at the expansive garage with enough space for 30 vehicles, while the inside is decked out with clean white finishes, an expansive library, and a huge dining room table that can seat 25 lucky guests.

But Los Angeles’ mansion tax is set to take almost $3.8 million from any future sale.