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 sales slump 26.6% this year

L.A.’s luxury home owners are renting out their properties at attractive rates, while a new mansion tax slows the luxury housing market.

Luxury homes in California’s largest city are being offered for as much as $150,000 a month as vacation villas or corporate event venues.

It comes after luxury home sales in LA fell 26.6 percent thanks to the “mansion tax” imposed earlier this year on properties costing more than $5 million.

This levy also magnifies the effect of the labor strikes on the area’s usually booming entertainment industry, resulting in fewer celebrity buyers.

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

DeSantis, 60, an early investor in LinkedIn Corp and owner of five properties in California, described the move as “a hedge.”

“I believe renting it out will highlight the value of the property in a much better way,” he shared Bloomberg.

The most expensive property currently available for rent in LA on Sotheby’s real estate website is a gated estate in Beverly Hills that costs $65,000 per month.

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

The impressive white marble entrance is decorated with gigantic chandeliers and immaculate furnishings, and the house also features Mediterranean-style wood-paneled rooms.

Home sales in the area fell 26.6 percent from the previous period through September this year, according to Bloomberg analysis of real estate agent data.

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

There are so many mansions on the market that they have fetched a total of about $3 billion, according to LA Estate Rentals founder Patrick Michael, who told Bloomberg that luxury home owners are in “panic mode.”

Among them is a plastic surgeon who has asked him to find clients to rent a Hollywood Hills home that he often rents out for $25,000 a day for corporate events.

LA’s “mansion tax” went into effect on April 1, allowing the city to take a four percent rebate on all home sales between $5 million and $12 million.

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

This measure brought luxury sales to a near standstill within the first month, as only two properties costing more than $5 million were sold in April, compared to 126 in March.

According to real estate appraisal site Zillow, 457 townhouses would have been subject to the new tax rules when the policy was first imposed.

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

The money will be funneled into affordable housing and tenant assistance programs in the area, with money raised from each home sale above $5 million.

One of the most lavish homes left on the Los Angeles real estate market is an $85 million listing called “The Reserve.”

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

Surrounded by towering palm trees and lush forests, the architectural gem features 10 bedrooms, 19 bathrooms and 20 garage spaces for a fleet of supercars.

On site you will find a swimming pool, a tennis court and a large pavilion.

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

And it’s accompanied by a beautiful guest house that even runs parallel to the main house, also with five bedrooms and picturesque views of the LA coastline.

The Reserve is equipped with a host of luxurious amenities, including an Art Deco Hollywood-inspired bar, a 1920s French Regency-style cinema, a spa and a private gym.

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

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

The most striking feature of the sprawling resort-style home is a 30-meter swimming pool, with seven bedrooms and thirteen bathrooms on site.

Located next to the exclusive Riviera Country Club, panoramic views of the California oasis can be enjoyed from everywhere in the lavish retreat.

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

A water feature greets guests in the expansive garage with enough space for 30 vehicles, while the inside is decked out in sleek white finishes, an extensive library and a huge dining table that seats 25 lucky guests.

But Los Angeles’ mansion taxes are expected to generate nearly $3.8 million from each future sale.