Airbnb fights back against Boston!
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
The City of Boston recently enacted regulations that severely restrict property owners from renting out their homes by the night, unless the owner lives in the unit - a move aimed squarely at Airbnb.
I don't have a dog in this hunt, but it seems to me that restricting an owner's use of his own private property without compensation is just reprehensible, so long as it doesn't cause a hardship to others
Placing a pig farm in a residential neighborhood seems like an unreasonable burden to others. Having guests sleep in your property doesn't.
Well, Airbnb is fighting back. They've sued the City of Boston.
"The lawsuit filed Tuesday in federal court says the ordinance violates state and federal law by forcing home-sharing platforms to share information about clients with the city and requiring the platforms to enforce the new rules."
https://boston.cbslocal.com/2018/11/13/airbnb-sues...
Godspeed, Airbnb. Enough of Regulation Nation.
The argument that the government is taking away home owners rights is BS. If the owner does not live full time in the property he is not a home owner. If investors are not allowed to do what they want they don't invest. They go else where or invest in something else. No crime no fowl.
That seems like a bizarre standard. if I own a car that I do not commute to work in on a daily basis, does this mean that I do not own this car?
You gotta be kidding me! Here’s how str’s are GOOD for their neighbors and commuties:
1) as a str owner on both aIrbnb and vrbo I review my guests. Hotels can’t do that. If my guest has a bad reputation I can and have rejected them
2) when guests stay at my place they spend their money hyper locally, benefiting the businesses nearby.
3) I hire many professionals to maintain my property, most notably a cleaner i pay about $1000 per month and is a neighbor of mine.
4) my vacation rental will never be the eyesore on the block. As a thriving investment it is imperative that I maintain a professional clean appearance. Property values benefit from that.
5) and oh yeah, THE CONSUMER benefits. People want a different kind of vancation experience that isn’t the same old hotel. Despite all the taxes and regulations and hotel lobbyists the demand still exists.
I don't have a dog in this fight. It's interesting for me though from the outside perspective. I luckily live in a HOA (never thought I'd say that) which flat out restricts STR's, thank goodness. Because as a owner occupant and resident in my neighborhood the idea of having a revolving door next door to me in my residential neighborhood would destroy our neighborhood.
But to go down your points just to devil advocate you.
1) you can’t compare a hotel that is in a area zoned for a hotel versus a single family home in a neighborhood. You are still introducing a business establishment into a residential area. There’s a reason there are zoning requirements. With that logic I can start doing light industrial out of my garage because, well it’s my property.
2). That's an assumption and even if true may only be specific to your individual STR. Again they could stay at a hotel 3 blocks away and spend their money in the same "hyper local" way and buy their avocado toast from the local restaurant too. (I kid about the toast).
3) What does that have to do with the legality and issues that arise from having a “hotel” in a residential neighborhood? I pay my housekeeper a similar wage in comparison to the work provided.
4). That's great your one of the 80% (made up statistic to make a point) that cares deeply of ensuring a higher quality STR. Now I bet if your next door neighbors home had a STR and was at the bottom 1% of caring you'd be throwing a fit. But don't worry it's all something that can be fixed by a law limiting STR for your area, you in board now that it's your residential home being affected.
5). That's great that consumers want something different, doesn't negate the fact that an STR is a hotel, bed and breakfast, or whatever new age name you label it as. The citizens of the town/city should be able to have their tax dollars work for them, not prop up a unregulated industry. I welcome a STR regulation for any area, one that is taxed properly and regulated.
You aren't thinking of how this effects the citizens of the location you have your STR in, just seeing how your ROI hasn't increased. That's great hopefully you and other STR investors took into account rules and regulations when you purchased the property to make sure it is still profitable.
They are only 8 times bigger because they are renting out property that VRBO won't. You can't do a bedroom on VRBO.
If I am thinking "home" I think VRBO. If I think "couch surfing" I think AirBNB.
I am glad it is working out for you and your listings.
@Thomas S. This isn't Canada.
I would LOVE to hear your reasoning that these kinds of regulations aren't taking away private property rights.
I am not the best debator out there , but why would your right to rent out rooms at high prices supercede the right of the collective “we” of society ? Especially since just 10 years ago you never knew anything about short term rentals ala airbnb?
We have a similar, but different discussion going on with Pot. Pot farmers are coming in, buying land and destroying the value of the neighboorhood due to smell and crime. The Pot folks use the same type of argument as used above
I guess I think there should be balance. We need all levels of income earners to keep areas vibrant. And as landlords and investors, it seems we have an interest in keeping areas desirable and rentable.
( hoping this comment stays within community rules)
10 years ago most people who are in real estate had heard of Short term rentals, it is not a new thing. It has clearly become a much more lucrative and easy to entry market, but to say that it is something Airbnb came up with is ignorant. I have no problem with a little balance, but I hate when the hotel lobbys push the local politicians to do regulations like this. STR become the boogeyman for low rental inventory and rising condo prices when in realty it is a very small part of the issue.
HOAs and condo associations are fine to regulate this and many have been doing so since the 70's, just look at old condo docs for the proof. Acting like Airbnb will "destroy" a neighborhood is silly. If you live downtown how many of the hundreds of people on your block do you know? One or two? Is it better to build a residential skyscraper and sell the units for a few hundred million to people who will be there for less than 90 days a year?
Airbnb becomes an easy scapegoat, but in the end it is a great thing for neighborhoods has made having a vacation home or investment property achievable for people that would otherwise never have been able to make those purchases or investments.
"This is still a free country. Let's keep it that way."
There in lies the major flaw in the argument. As a citizen of either Canada or the US citizens do not have the right to impose there will on others under the banner of freedom. You can not argue that a pig farm should not be allowed but Airbnb should because the negative impact of a Airbnb is less. That is for the citizens to decide in a democracy not the individule. The rights of the collective always prevail over the rights of the indvidual. That is the underlying principal of a democratic society.
Lets keep it that way.
Fwiw, I have no issue with STRs (i am a 5 star guest on airbnb) as long as they are only a small percentage of housing stock. So my guess is STRs will become more regulated and hopefully less contentious
Boston is always a bit ridiculous about the "rules" I wonder if the people on Swimply will have to swim with the Birthday Party while using the pool also.
To everyone saying the STR is a business and doesnt belong in residential neighborhoods I want you to go around your block and stop everyone that is doing small side businesses out of their houses and force them to go rent commercial space in the city. That guy in his wood working shop(or garage) making cutting boards and selling them online...yep business. That stay at home mom that sells Lularoo cloths out of her office while the kids play...another business. God forbid she throws a Lularoo selling party and invites two dozen people to show up. Can you imagine that chaos of all that traffic in a residential area! Because you know those moms can down a bottle of wine when they dont have kids to watch or drive around lol!
I'm not saying STRs need to be free reign and get to do whatever they want. They need to be regulated but in ways that make since and don't put them in the same category as the high volume hotels. Put some extra tax on it and require a city license? I'm fine with that, it is a business after all. But this out right ban on a specific market that is specifically tailored to the STR is absurd. If you force it out of all SFR then guess whats going to happen? Apartments and condos just find a whole new client base with a way better profit model. You want to talk about a housing shortage getting worse? Thats how you do that.
"This is still a free country. Let's keep it that way."
There in lies the major flaw in the argument. As a citizen of either Canada or the US citizens do not have the right to impose there will on others under the banner of freedom. You can not argue that a pig farm should not be allowed but Airbnb should because the negative impact of a Airbnb is less. That is for the citizens to decide in a democracy not the individule. The rights of the collective always prevail over the rights of the indvidual. That is the underlying principal of a democratic society.
Lets keep it that way.
The United States is not a democracy. Its a democratic republic. This is what allows special interests to exist.
I don't see how operating an AirBnB 'imposes' anything... on anyone. Why does anyone care who is sleeping under roof that I own? next thing you'll be telling me is I cant have a girlfriend stay the night because she might park on the street which will upset you.
Additionally, you seem to ignore the simple fact that if an AirBnB guest breaks any laws, it's within your right to call 911 and report it. In all my years doing this, I have NEVER had a 911 call at any of my locations. I have NEVER had a neighbor complaint. I have NEVER had a notice from the city. If you have a bad AirBnB neighbor you can sue them for creating a nuisance. There are already laws that protect YOUR property rights and to PREVENT anything being 'imposed' on you. This logic is very flawed.
There is absolutely nothing wrong with AirBnBs and the cities that are banning them are wrong and it's being done for special interest reasons and not due to neighbors peace of mind.
I'm torn. I've had a couple Airbnb properties and am always hoping Airbnb wins in these battles. After all, I want the right to keep making money with my own property! And like the OP said earlier, I hate when scared industry giants try to force a hand by going the regulation route. Of course hotels don't want Airbnb to work. They can't compete with innovation. I hate when the government interferes with the progress of society. I'm sure most significant developments/innovations over the course of history have upset people. Why should I have to smell the smoke from the Model-T? Outlaw it! But where would we be without cars?
On the other hand, in my heart of hearts, I can't find a great argument against the fact that renting out rooms or a whole house you don't even live in looks a lot like a business (just like a hotel) operating on a residential-zoned lot, does it not? Can anyone answer that question for me? The hair salon has to rent a commercial building. The HVAC repair guy can't store all his vans, equipment, and parts in his front yard, he's got to rent commercial space.
There are thousands of examples of legal business activities one can perform from their house, zoned residential.
Examples: Working from home remotely (many people enjoy their home office write off right?), book keepers, ebay sellers, tax prepares, in many states massage therapists, day cares, pet sitters, tutoring, personal training, and in many states you ARE legally allowed to do hair from your home.
There are thousands of examples of illegal business activities one cannot perform from their house, zoned residential.
The debate, as I see it, is where this falls along that scale. AirBnB is much closer to the legal examples than the illegal ones.
In your example, they guy is welcome to use his garage for all his stuff, and in some states he can, in fact, use his front yard (if he's willing to risk the theft). Same for your home hair care example.
We have had this same law in Philadelphia for years and I haven't heard of an Airbnb lawsuit. I wonder why they targeted Boston.
I guess my issue with banning STR's outright comes down to the fact that they provide unique product that is more than just a substitute for hotels. Hotels just aren't always the product that people are desiring in so many different situations as travelers. Let me give you a few examples of situations I've seen regularly from my limited experience as a host on AirBnB, and I encourage everyone to try and see this experience from their perspective:
*Professors who teach at a local university, and stay 3 nights a week when in town
*Traveling Nurses who stay 8-11 weeks
*Business travelers who are staying for a week each month
*Families & friends traveling in a group to an event
*Couples visiting the city to see if they want to move to the city/neighborhood
In each of these situations, I could argue that the STR is competing not just on price with a hotel but also on features and experience. Those features & experience make a STR different and unique in a way that some travelers place considerable value on, and it seems like an injustice to them to regulate this entire product category out of existence.
A lot of CPA's work out of their homes which are zoned as residential. Like Mike stated, this debate is about where on the scale Airbnb falls.
The magnitude at which Airbnb would impact Boston much less than a tourist magnet such as Barcelona, which has enacted laws that sell a limited number of licences to Airbnb renters. This might be the way to go, issuing licenses during seasons (similar to hunting) thereby limiting Airbnbs impact on the community.
So I will throw my opinion in here. I am a hotel owner. I honestly have no issue with AirBnb because there are studies that show it is not considered a real competitor to hotels. The guests that stay at our hotels are much different from those that stay at Airbnb. In fact, the hotel industry is hitting record highs. All these talks of a secret hotel lobbying group is ridiculous. I attend many conferences annually and most of the CEOs of large companies like Hilton and Marriott are not worried. Business is booming for the industry and they dont care as much as most people think. In fact, a couple hotel companies are even entering this space. My only issue with Airbnb is that if the owners want to rent short-term and essentially become a hotel, then they need to be regulated like a hotel. For example, I have a hotel in Florida that has fire panels that are electronically monitored by an outside company. I am ADA compliant meaning that every square inch of the property is inspected by both state and local officials to make sure its not a problem. All electrical components have to be NFS approved. Also I have regular check ups from the health department to ensure the hotel is in sanitary condition and able to rent rooms. I honestly think Airbnb should stay, but they need to be treated just like hotels.
@Jimmy Klein I agree with you regarding the competition. I've looked at but never used AirBnB or any of the other STR platforms because I like a better quality lodging experience for my personal preference. I've spent my whole life growing up in Southern California either 5 blocks from Santa Monica beach, then Newport Beach, and now 5 miles from Laguna Beach, all Class A, or B+ neighborhoods, If I'm leaving home and seeking lodging, I'm not looking to pay someone to downgrade my lifestyle on a STR location. I prefer to be catered to at top tier hotels, not someone else house serving myself so in that sense STR's will never compete with hotels for my busines.
Like you, I posted earlier that if STR's are going to operate in a hospitality business action, then they should be licensed, regulated, and taxed like a hospitality business. I think that's the point that is missing from most of these post, people are responding from a personal preference position not a logical business position. The compliance requirements you've outlined are some of what people are looking beyond when defending some of these STR's. Some of these responses are along the lines of yes I'm operating an unlicensed, unregulated, noncompliant business, but the people have demonstrated that they want it by booking it on AirBnB so it should be OK, these noncompliant ADA STR's probably don't know or don't care that they're violating U.S. Department of Justice ADA regulations and neglecting to provide a service for a protected class of people
"Why, because I never want to see my neighbour move out and rent out his home and I have to put up with a revolving door of strangers like living next door to a brothel."
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At least with a brothel you could sample the wares . . . :)
@Charlie MacPherson I'm libertarian Charlie but part of being libertarian is the phrase "your rights end where my rights begin" and, in my opinion, the City of Boston has this right. Airbnb is fine for detached single family properties and owner-occupied two-family properties but then the issues begin... I wouldn't, if I were a tenant, want any Airbnb occupants ever traipsing through my building. Why? Airbnb occupants would infringe on my rights of quiet enjoyment and safety. I generally don't like government interference but, this time, the City of Boston hit the nail on the head.