I Bought An Apartment To Rent Out On Airbnb
Under the Las Vegas Code of Ordinances (assuming the condo is in the city), the issue is going to be whether the guy is considered an "operator" of "an establishment that rents or holds out for rent guestrooms on a daily or less-than-weekly basis."  In that case, he needs a license and needs to pay taxes.  See: http://library.municode.com/HTML/14787/level2/TIT6BUTALIRE_C...Beyond that, all that really matters is the "Covenants, Conditions, and Restrictions" (CCRs) document that is recorded in the land records when the condo was created and any other local and state regs governing renting of rooms.The Rules and Regulations statement about short term leases is easily overcome.  Just create an operating company that you lease the condo to under a long-term lease - run all the money through the operating company, pay the rent to the owner, and distribute net income.  The only "lease" will be the long-term lease to the operating company.  Again, there may be local regs about this (or the state's Landlord-Tenant statute: https://www.leg.state.nv.us/NRS/NRS-118A.html#NRS118ASec180), but the "prohibition" under the Rules and Regs is easy to deal with.  Again, what matters are the CCRs that are recorded in the land records.  If they allow it, my bet would be that this guy's scheme is fine.Plus, I'd also bet that he talked with an attorney about this.  If he didn't, he's a damned fool.