Airbnb and the City of San Francisco have reached an agreement after nearly a year-long battle over a new rental legislation.
In a press conference on May 1, it was announced that temporary rental marketplace company, Airbnb, would comply to the City of San Francisco’s demand for potential hosts to register their properties with the city before they can go ahead and list the property themselves.
Prior to this agreement the city of San Francisco had fined Airbnb and HomeAway, another short term rental company, after a discrepancy was discovered between the number of hosts registered and the actual number of listings.
Currently, the most common room type being hosted in San Francisco on Airbnb’s marketplace are entire homes or apartments, which is a source of alarm for the city for reasons such as taking away housing and turning empty houses into hotels. Local data scraping company, Inside Airbnb, created the following graphic that shows the type of rooms being hosted, as well as the average income per night that hosts potentially make.
As the data shows, many San Francisco neighborhoods experienced dramatic shifts between the years of 2014 and 2015 in the number of Airbnb listings. Take a look at the following chart:
For every unregistered host, San Francisco’s Board of Supervisors levied a fine of $1,000 a day against Airbnb.
In response, Airbnb sued their hometown - San Francisco.
After the back and forth, a deal between both parties has been reached.
Referred to as the “pass-through registration”, all potential hosts will be notified that their information will be shared with the city, who will audit and approve the registrations.
The new deal would see that Airbnb offers a more streamlined registration process for potential hosts to register within the city, which would allow for more transparency and enforcement of local laws. It is currently contingent on approval from the Board of Supervisors, and the new system will likely come into effect by 2018.
With a deal like this, Airbnb’s Head of Global Policy, Chris Lehane, sees this as an opportunity to “partner with cities” and to take responsibility as a platform and be more transparent.
this deal will help to protect the housing stock in San Francisco, making it easier for potential hosts to follow the law.
As a San Francisco REALTOR®, has your real estate business been impacted by the increase of homeowners turning to rental websites like Airbnb? Let us know sharing your opinion below!