San Francisco Passes Legislation to Regulate Short-Term Online Rental Companies like AirBnB

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San Francisco Passes Legislation to Regulate Short-Term Online Rental Companies like AirBnB

(October 10, 2014) The San Francisco Board of Supervisors has passed legislation creating a new regulatory framework for short-term online rental companies, such as Airbnb and VRBO. A final, pro forma vote will take place October 21, and media reports indicate Mayor Lee will sign the bill.

The American Hotel & Lodging Association (AH&LA) views this legislation as a step forward, especially given that San Francisco is the birthplace of the sharing economy. The new law reflects what appears to be the Board of Supervisors’ desire to bring the short-term online rental industry into the regulatory fold by requiring registration, taxes and insurance – all of which are requirements for hotels. The provisions of the new law, which takes effect in February 2015, include:

  • Allowing only permanent residents to offer short-term rentals
  • Establishing a new city registry for hosts
  • Mandating the collection of hotel tax
  • Limiting entire-home rentals to 90 days per year
  • each listing to carry $500,000 in liability insurance
  • Establishing guidelines for enforcement by the Planning Department

Read details and the full text here and news coverage of the Supervisor’s action here.

The lack of regulation and health, safety and taxation standards for short-rentals is also an issue in Washington State, and one of the legislative priorities for the Washington Lodging Association for 2015 will be to ask the Legislature to require all lodging establishments –including those marketed exclusively online–to meet the same health, safety and taxation standards. Learn more about WLA’s legislative priorities here.

AH&LA is also working to address the issue with Neighbors for Overnight Oversight, a coalition of concerned residents, community leaders, businesses and policymakers committed to protecting neighborhoods nationwide by speaking out for sensible rules and oversight of the short-term online rental market. Members are encouraged to join these efforts and to use the Neighbors for Overnight Oversight Toolkit. Learn more here.