Party’s over? Miami Beach reaches deal with owner and tenant over ‘party house’ lawsuit

MIAMI BEACH, Fla. – The owner and tenant of a “nuisance party house” in Miami Beach reached an agreement Friday with the City of Miami Beach to stop offering short-term rentals and pay outstanding fines, according to court records.

The agreement comes after the City of Miami Beach took legal action on Thursday, filing a lawsuit in Miami-Dade County court to put a stop to what they considered to be a disruptive party house.

According to the lawsuit, the home, located at 1776 Bay Drive on Normandy Isle, is being used as an “illegal short-term rental” that Miami Beach officials say has amassed hundreds of thousands of dollars in unpaid fines and code violations.

“Upon review of the complaint and injunction motion, each of the defendants agreed to stipulate to a consent injunction that protects the city from any further nuisance conduct and provides for the payment of fines, the total amount of which will approximate $389,000,” Miami Beach City Attorney Rafael A. Paz said in a press release on Friday.

The defendants, who were accused of running an illegal short-term rental business with prices going as high as $7,650 per night, will also be responsible for covering the costs of the court case.

Court records show Stephen Krause purchased the property for $6.5 million in 2020 while The Nightfall Group was identified as the agent for the property and identified Scott Weissman as the tenant.

Prosecutors said the defendants were accused in the suit of operating an illegal short-term rental business with rates up to $7,650 per night.

“Since Feb. 8, 2022, the landlord and/or tenant have been cited with at least 45 violations total of the City Code based on activities at the subject property and have incurred substantial fines in connection with many of these violations,” the lawsuit stated.

According to court records, Krause agreed to carefully screen any future tenants, with the city’s approval, to assure that they don’t plan to use or promote the property for “short-term rentals or disruptive events.”

Weissman also agreed to not hold any “ownership or possessory interest in any property within the city” for one year. He is also banned from hosting any commercial parties or events at residential properties in Miami Beach for three years after the consent decree was signed, court records show.

According to court documents, Weissman has had a rent obligation of $616,000 under a seven-month lease that began in November 2022.

The property has been listed by various names in short-term rental advertisements, including Villa Bay, The Bay Villa and Villa Valena, court records stated.