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Cities Struggling To Crack Down On Airbnb Renters (latimes.com)

An anonymous Slashdot reader writes: A California man has been charged with eight misdemeanors for renting several apartments under his own name, and then subletting them all. "Apartments in Santa Monica that might fetch $3500 a month as ordinary rentals, are worth three or four times that on a daily or weekly basis," reports one newsweekly, and the subletter notes that he only received two years of probation plus a $3,500 fine, "what one of my properties makes in a month." On Wednesday three prominent U.S. Senators "called for a regulatory probe into whether short-term rental websites such as Airbnb are taking housing away from long-term renters and pushing up prices," but the number of Americans planning to use Airbnb this summer has apparently already doubled since last year.

The Hotel and Lodging Association of Alaska is complaining that the state's renters "are not required to follow the same state and federal safety mandates that are required for other hotels and lodges creating an unsafe and unfair market for consumers as well as hoteliers." But it seems like currently the only pushback is coming from local and city officials, like the short-term rental rules that Airbnb is currently fighting in their home city of San Francisco. For example, in Maine, the owner of one of Portland's 425 rentals units is now fighting a city order "demanding that he stop renting out part of his home through Airbnb. "Portland has a limited staff to enforce zoning rules, so it comes down on the most egregious cases, said City Hall spokeswoman Jessica Grondin."

I laughed at the quote from the City Hall spokeswoman. "It's kind of like speeding on the highway. You know it is illegal, you do it anyway, and you get caught."

15 of 260 comments (clear)

  1. Not even close to Speeding by Anonymous Coward · · Score: 5, Insightful

    When I speed, I'm not forcing people with smaller cars off of the expressway and onto dirt roads, far far away.

    These people are driving up the rents and prices of homes in communities, while not being restricted by the laws that hotels/motels/holidayinns have to follow. So for those who want decent housing at decent pricing, they have to live far away, or in worse areas.. driving the next people to live farther and worse-er.

    1. Re:Not even close to Speeding by jmcvetta · · Score: 4, Insightful

      Get real, dude. Rents in Santa Monica were sky high before Airbnb. Rents there will continue to be outrageous until the city government allows enough housing to be built to meet demand. Restrictive zoning - and the macroeconomic relation between the money value of land versus labor - is the cause of high rents, not short term rentals.

    2. Re:Not even close to Speeding by crow_t_robot · · Score: 2, Insightful

      Speeding endangers lives; airbnb renting does not. Therefore, speeding is much worse. Let them do what they want with their property.

    3. Re:Not even close to Speeding by Anonymous Coward · · Score: 2, Insightful

      They own the houses, they can do what they feel like.

      Hey neighbor! I hope you won't mind the composting and recycling operation we'll be opening up in our front yard. The trucks will be by twice a day, so you may want to time you entry and exit to miss them. The nighttime lighting will be pretty bright, so you might want to get some blackout shades too. And we'll be having an all-day hip-hop jam to kick things off the first Saturday of each month!

  2. Re:Can't let the money fall into the wrong hands! by Anonymous Coward · · Score: 4, Insightful

    If by "little people", you mean folks that can buy 425 properties, you and I have very different definitions... The article is all about the abusing that people with plenty of money are doing to a system would have worked if it was only done on a small scale.

  3. the usual suspects by ooloorie · · Score: 5, Insightful

    On Wednesday three prominent U.S. Senators "called for a regulatory probe into whether short-term rental websites such as Airbnb are taking housing away from long-term renters and pushing up prices," but the number of Americans planning to use Airbnb this summer has apparently already doubled since last year.

    Well, it sure is pushing down prices for hotels. Which is probably why crony capitalists get all pushed out of shape about this. As for housing prices and the housing shortage, AirBnB isn't responsible for that, it's zoning laws, rent control, and the interference of the federal government in the mortgage markets. But, hey, leave it to the usual suspects (Warren, Feinstein) to first wreck people's lives and then blame "big evil corporations" for the mess they created.

  4. The old struggling to fight off the new by mi · · Score: 3, Insightful

    Be it Uber or AirBNB, the pattern is the same — the old way of doing things is struggling against the technology-enabled new way.

    We lived through this, when automobiles replaced horse-drawn transport, we are witnessing it now...

    creating an unsafe and unfair market for consumers as well as hoteliers

    It is decidedly no less "safe" than the overpriced "real" hotels/motels. And it is only unfair because of the costs of government-regulations, which those "real" establishments have always passed on to their customers.

    With the immediately-available customer ratings offered by the new companies, the government regulators are simply no longer necessary. If "fairness" is a concern, the hotels should be left alone — and unregulated — too.

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    1. Re:The old struggling to fight off the new by geoskd · · Score: 4, Insightful

      If "fairness" is a concern, the hotels should be left alone — and unregulated — too.

      I'm not normally one to drink the "regulation is bad" coolaid, but in this case, the regulation serves a function that has been deprecated by the new instant availability of information. This is definitely one of those cases where technology has rendered moot the underlying reality that forced the need for regulation in the first place. The only problem is that regulation in the hotel industry lines the pockets of the already established players as well as the town and cities doing the regulating. Just like the cab industry, its time for an overhaul of these regulations and a thorough re-examination of the underlying realities. I find it overwhelmingly likely that its time to give that regulation the axe, and free up hotels and motels to be more cost competitive with airbnb. There will still be a market for hotels, just not nearly such a big one, which seems only fair, as all of the hotels near where I live sit mostly empty most of the time. They can afford that business model because most of their costs come from actually renting the room (aka taxes contingent upon occupancy). This kind of a change will start a culling in the hotel industry that, frankly, its about time we actually got around to. Free up some of that prime real estate in and around hotels, train stations, and major venues for things that provide more social value to the local residents.

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    2. Re:The old struggling to fight off the new by Harlequin80 · · Score: 5, Insightful

      It is materially less safe than the existing hotel market. A simple example is hotels are held to a much higher standard for fire safety. Being held to those higher standards imposes a cost on a business. If you can operate in the grey areas without those costs you have a significant commercial advantage at the risk that a fire may kill / injure people that wouldn't have been killed or hurt if your building had been compliant.

    3. Re:The old struggling to fight off the new by Harlequin80 · · Score: 5, Insightful

      How would an immediately available customer rating know if the carpets were fire retardant or not? That all the electrical items were tagged and tested regularly? That food handling procedures were up to standard, that kitchens were clean?

    4. Re:The old struggling to fight off the new by DerekLyons · · Score: 4, Insightful

      Be it Uber or AirBNB, the pattern is the same â" the old way of doing things is struggling against the technology-enabled new way.

      We lived through this, when automobiles replaced horse-drawn transport, we are witnessing it now...

      Horseshit.
       

      creating an unsafe and unfair market for consumers as well as hoteliers

      It is decidedly no less "safe" than the overpriced "real" hotels/motels.

      Horseshit. A real hotel controls it's keys so that only I and the hotel staff have access to my room. Such control is virtually impossible in an AirBNB situation. In addition, a real hotel has a front desk staff and usually some form of security staff keeping an eye on the premises. A random rental from AirBNB does not. And that's on top of the fire safety and other issues raised by other commenters.
       

      With the immediately-available customer ratings offered by the new companies, the government regulators are simply no longer necessary.

      Presuming the ratings are honest - which I do not trust them to be. Customers have no interest in honest ratings, and can be penalized for them if they cast aspersions on the service. The rental agency itself has no incentive to be scrupulously honest because they don't want to piss off too many providers. Etc... etc... Not to mention, few customers will rate (or even have the technical know how to rate) such things as the fire protection system.

  5. uber all over again... by Anonymous Coward · · Score: 5, Insightful

    uber is a fake taxi, avoids taxes, and avoids regulations and requirements designed to protect the public.

    airbnb is a fake hotel, avoids taxes, and avoids regulations and requirements designed to protect the public

  6. New ways to cause old problems by Anonymous Coward · · Score: 3, Insightful

    This is definitely one of those cases where technology has rendered moot the underlying reality that forced the need for regulation in the first place.

    I disagree, technology is simply providing a new way for people to evade the laws and recreate the same problems that -- long ago -- caused the laws to be created.

    Now, there is some virtue to "shaking things up", but the underlying issues here are not actually computational at all, they are issues about monetary-incentives, damage and accountability, and various tragedies of the commons.

  7. Re:Simon says no by jittles · · Score: 5, Insightful

    The cities and towns who want to regulate this and Uber and the like are doing so not because there is some sort of crisis or need for regulation. By their own admission, they do not have control over it now and yet there are very few reports of problems, which strongly suggests there aren't many issues.

    No, they don't want to solve anything. They're just mad that somebody is doing something without asking permission and paying for licenses and other crap. An awful lot of government is devoted to making people ask for permission to do things and making them pay fees to get that permission.

    If people realize they can do things just fine without permits, then all hell will break loose of people doing stuff on their own for free! How can bloated bureaucratic governments survive and justify their own existence if people just DO stuff?

    You're right. There's absolutely no need for permits to do things like electrical wiring. And no reason whatsoever to mandate that property owners have smoke alarms and fire extinguishers on their properties. Nothing has ever gone wrong in the past, all of these rules and regulations just came to be out of thin air because some bureaucrat thought it would be a great way to make money.

  8. Re:Can't let the money fall into the wrong hands! by Actually,+I+do+RTFA · · Score: 5, Insightful

    The "natural state" is me hitting you and taking your stuff.

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