Dive Brief:
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San Francisco Mayor Ed Lee has vetoed a bill that would have restricted homeowners from renting out a room or entire house or unit for more than 60 days a year, according to a report in the San Francisco Chronicle, saying that it would increase the likelihood of illegal short-term rentals rather than improve regulation.
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The rule targeted home-sharing services like Airbnb, whose growth has caused many cities worldwide to seek to better regulate short-term rentals. However, because of the veto, owners in San Francisco will continue to be able to rent out a room or apartment for an unlimited period while the rental of entire homes will remain capped at 90 days.
- Roughly 20% or fewer home-sharing hosts in San Francisco are registered with the city, according to the Chronicle, making it a challenge to enforce the would-be cap.
Dive Insight:
Lee’s veto looks to have alleviated some of the pressure mounting on home-sharing services like market leader Airbnb. It comes on the heels of a recent decision by New Orleans city officials to help that company register hosts and set a rental cap of 90 days on certain properties.
Airbnb also appears to be softening its stance and last week unveiled a set of proposals for the voluntary collection and remitting of taxes from hosts. Earlier this month, the San Francisco-based company said it would limit the amount of time homeowners in London and Amsterdam can rent entire homes to match restrictions placed on non-licensed, full-home rentals in those cities.
The news comes in response to concerns that the home-sharing sites like Airbnb are exacerbating tight housing inventory conditions by allowing owners to rent their properties to tourists and visitors rather than to locals seeking longer-term accommodations.
Despite the concerted look toward regulations, Airbnb still faces challenges in San Francisco after it sued the city in federal court this summer over legislation that would fine home-sharing services upwards of $1,000 a day for allowing unregistered users to list their property online.
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