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> My guess is that the fine is either a slap on the wrist (so the house owner just chalks it up to business expense) or so sever[e] that the house owner stops doing short-term rentals entirely.

This is tautologous. Either the owner does not cease to rent out his unit, in which case fines are a business expense, or he does. What sort of third option were you imagining might happen?




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