YOUR BUSINESS AUTHORITY
Springfield, MO
While Airbnb Inc. scored a major victory for short-term rental websites in its home city of San Francisco earlier this month, the battle appears to have given the company insight into what municipalities want.
On Nov. 3, San Franciscans voted 55 percent against Proposition F, which would have limited short-term rentals to 75 days a year. With the rejection of the law change, the limit stayed at 90 days if the primary resident isn’t present or unlimited if the home is occupied by the host when guests are staying.
It became a controversial issue in a city where Airbnb has come under fire for posting passive-aggressive advertisements offering snarky suggestions on what officials could do with its tax money. One ad called on public works to build escalators for the traversal of San Francisco’s famous steep hills, while another suggested libraries could stay open longer.
Those suggestions are certainly farcical – and funny – but with municipalities struggling to regulate the fast-moving world of short-term rentals, some were not impressed.
Last week, Airbnb co-founder Brian Chesky posted a blog suggesting the company is ready to cooperate.
Perhaps the company is tired of tangling with governments or realized the path to continued success cannot be made without municipal collaboration.
Either way, the move is solid and needed.
In the post, which referenced a report dubbed “The Airbnb Community Compact,” Chesky made three promises. Here’s where Springfield officials should take note.
1. The company would work with every city that uses its services to make sure it’s paying its fair share of hotel and tourism taxes.
2. The short-term rental website would be transparent with its data in an effort to help cities understand how much Airbnb activity is occurring, while protecting the privacy of hosts and guests. For example, the estimated economic impact of Airbnb on the New York City market is $1.96 billion, according to the report.
3. In cities with long-term housing shortages, the company would work to limit the time hosts can offer permanent homes on a short-term basis.
“At the highest level, Airbnb is committed to strengthening the neighborhoods and cities we serve,” Chesky wrote.
These promises are sure to be welcome news for communities struggling to get a grasp on short-term rental sites that have seemingly sprung up overnight. Airbnb started in 2007 and already has nearly 2 million homes listed.
Springfield is a fledgling city in the short-term rental market – there are between 20 and 30 properties available on multiple websites – and city officials have barely dipped their toes into the regulation waters.
Short-term rentals don’t, for instance, collect the Queen City’s 13.29 percent hotel-motel tax, and no rules are on the books to prevent party homes – those used for, you guessed it, parties that may annoy neighbors and decrease property values.
For an October article in Springfield Business Journal, “Home Away from Home,” principal city planner Bob Hosmer told me the local government would follow other communities’ lead to determine regulations, if any. Already, city code prohibits homeowners from renting their property for less than 30 days in residential areas. But I learned this isn’t enforced unless a complaint is submitted.
If Airbnb is truly ready to play nice, the move could be a boon for the company and participating communities.
Short-term rentals give consumers the opportunity to live like residents when they lodge, and in my experience, it’s quite neat.
Here’s hoping cooperation can benefit all involved.
Web Editor Geoff Pickle can be reached at gpickle@sbj.net.
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
Longtime employee sues Ozarks Tech, alleges retaliation
Cavender’s opens hat shop in southeast Springfield
Eric Schmitt introduces Modern Skies Act
Caterpillar to acquire John Fabick Tractor Co.
Springfield airport to cut the ribbon on $35M in construction projects
Legacy Bank accused in lawsuit of failing to protect customers in data breach