A woman in San Diego has been hit with a huge fine by the city as a result of not obtaining the proper permits to run a bed and breakfast from her home. 

Rachel Smith, a 70-year-old retired teacher, started renting out rooms in her house through Airbnb in 2012, having decided that the house which she'd bought for her family was too big and had unused space. 

Speaking to The San Diego Reader, she said "I thought how fun this house, this community, would be for families to come and enjoy. I guess I'm a dying breed, but I wanted to share this beautiful home with others". This did not go down well with her neighbours, who noted that she had a lot of people coming and going, and were concerned that she could be "running a hotel".

Smith was charging up to $80 a night for accommodation in her Bulingame home, an affluent area of the city in which she bought a five bedroom home after receiving a large inheritance in 2007. 

Her neighbours didn't like the fact that she was bringing as many guests as she was into the house, so they lodged a complaint, which eventually lead to Smith being told that she had violated a municipal code as a result of running a bed and breakfast from her home without a permit. 

Smith claims however, that she never served her guests breakfast, and therefore is not violating the code, but in a case earlier this month, administrative law judge Catriona Miller found in favour of the San Diego council and hit Smith with a $25,000 fine.

Smith's layer told Vice News that Airbnb were not involved in the case, and "have not offered to help in any way. They wanted me to make sure I was clear about that". However, she may still consider filing a lawsuit against the city of San Diego as a result of the ruling and confusion over the permit. 

Via Vice News