Airbnb peer-to-peer property rentals,

a challenge to an arguably
overregulated industry
Similar companies that create hyper-efficient markets:
Housing: Wimdu, HouseTrip, Berlin-based 9flats, which bought Torontos
iStopOver
Other: Relayride, Uber, Sidecar, Taskrabbit
SHARE: a conference for the sharing economy

May 2014
Pushbacks
In California, state lawmakers are considering amending San Francisco's Ellis
Act, a law that allows landlords to evict tenants if they want to exit the rental
business. Critics say the Ellis Act is being abused by speculators to pave the
way to create short-term vacation rentals at the expense of existing renters.
Ellis Act evictions tripled in the past year, with more than 300 units taken off
the SF rental market.
1

o SB1439 (forces landlords to own a property for at least years before
implementing their Ellis rights) applies only to SF, AB2405 applies
statewide
Realtors say bill(s) would discourage investment in property,
and isnt fair to limit a property owners right to do what they
want with their property.
Opposed by landlord and real estate interests from around the
state, and Republicans.
Supporters: helps mitigate the impacts of mass evictions of
low- and middle-income tenants.
Airbnb quietly stated its support after two announcements
about the bill were made and the position wasnt publicized
by the time of the judiciary committee hearing.
2

Airbnb violates Los Angeles zoning laws, which prohibit rentals shorter than
30 days, except for licensed hotels and bnbs
3 4

Legality of airbnb is pretty abstruse
Short term rentals not allowed: single-family residential
zones & lower-density residential areas, and areas
with a specific plan may have other rules
5

Areas including parts of downtown that are zoned for
higher density and in commercial areas, airbnb COULD
be legal, but the Deputy Director of Planning (Alan Bell)
says sometimes short-term rentals will require a
conditional use permit; other times, they wont. Very
vague memo stating that the zoning laws for short-term
rentals are complex.
o Community members uncomfortable with neighbors homes turning
into mini hotels, changing to community feel.
6

o Silver Lake: For some, airbnb appears as a lifeline for struggling
homeowners.
56% of hosts in SF used earnings to help pay for the
mortgage/rent. (similar analysis happening in LA)
o More articles on homesharing in LA:
http://la.curbed.com/archives/2013/11/airbnbaffiliated_lobb
ying_group_defeats_venices_attempt_to_regulate_vacation_rent
als_in_los_angeles.php
Grassroots org in Venice that aims to protect home sharing:
http://action.peers.org/page/s/venice-council-meeting

Portland: Citys housing commissioner will move to legalize short-term
rentals brokered by companies like Airbnb and VBRB by requiring local
lodging fees, of which 25% would support the creation of low income
housing
3

o Could be an option for LA



Part 2