Category Archives: sharing economy

Legal Trend: Short Term Rental Ordinance Unconstitutional.

The city imposing a short term rental ordinance: Nashville, TN

The highlights from the Nashville ordinance:

  • Capped rentals at 3 percent of all homes within each neighborhood
  • Requires would-be renters to obtain a permit

What was unconstitutional?  The ordinance was too vague, but the 3% cap completely A-OK

Model Legislation from ALEC is moving in TN after having passed in AZ.

Reason | Nashville’s Airbnb Regulations Ruled Unconstitutional

LOCAL TREND: Sharing Economy Partner Agrees to Track Property Owners. Legislature Bans all Short term Rentals.

Where is this happening? New York City

What’s happening? Short term rental company, AirBnB, agreed to track property owners who have are renting out multiple locations

Why does this matter?  2 reasons:

1.  It typifies local ordinance quagmires over short term rental ordinances.

  • Property owners like the free market principles of short term rentals to use their property as they see fit.
  • Local governments, like NYC, want to address issues like exacerbating a lack of affordable…

Sharing Economy. Local Government Bans Short Term Rental Ads. Lawsuit Ensues.

The city: Santa Monica, CA

The short term rental regulations: 

  • No advertising
  • Requires internet providers to provide information about those posting short term rentals for rent
  • Home owners must be home during the rent
  • Home owners must have a business license to operate as a short term rental

the lawsuit: HomeAway & AirBnB sued in federal court asserting 1st Amendment free speech violations, violations of the Communications Decency Act & the 4th Amendment 

Law360 | HomeAway,…

INTERIM. Sharing Economy. Statewide Short Term Rental Regulation in the Land of Technology.

What’s happening with short term rental regulation in California? The Legislature is pursuing statewide regulation

What do home sharing comapnies like Home Away and AirBnB support? A tax collection bill, SB 1102

Why do cities and labor groups oppose in SB 1102? It shields the names and addresses of their hosts

The Recorder | Five Bills to Watch in the California Legislature

Interim. Private Property Rights. Sharing Economy. Who is responsible for city violations ?

Why is Airbnb is suing the CIty of Anaheim? A local ordinance makes Airbnb liable for short term rental proeprty owners who violate city ordinances.

What violations of local laws are we talking about? the ordinance requires Airbnb to remove unlicensed listings within 10 days of $500 for the first offense, $1,000 for the second offense and $2,000 for a third or subsequent offense.

Is this local law trending? yes, Airbnb also sued San Francisco for fines the city is imposing on the…

Sharing Economy. Private Property Rights. Trade Practices Issues can impact Laws & Regs

What trade partcices allegations are being made against short term rentals?

  • discrimination
  • inconsistent tax collections
  • violations of local health and safety regulations

What’s the solution proposed to curb this? Increased data collection of short term rentals with FTC monitoring

What would this look like as city ordinances or state laws? 

  • Data collection requirement by the oversight agency to record ethnicity of renter,
  • Tax collection data linked to the short term rental…

INTERIM. Private Property Rights. Sharing Economy. Local Government Fines Create Lawsuits.

What local government fines are home share platforms facing?

  • In San Francisco, AirBnB and other home sharing services face $1000 per day fine for every unregisered host
  • In New York, fine anyone who rents a whole apartment for fewer than 30 days, which has been illegal in New York since 2010

What’s the basis for the San Francisco lawsuit? 

  • Feeral law prohibits holding websites legally accountable for the acts of their users

New York Times | Airbnb in Disputes With New York and San…

Property Rights. Sharing Economy. INTERIM. TREND. Local Short Term Rental Rules from the Midwest.

Which city passed new short term rental rules? Chicago

What was said the councilmembers? 

  • This is about a new economy.
  • Chicago is racing to keep up with new economic drivers.
  • “This is the ‘Jetsons.’ We’re not going back to the ‘Flintstones,'”- Alderman Moreno

How are the new regulations described? “Dizzyingly complex”

What are 5 regulatory highlights?

  • Different types of residences are regulated differently
    • a building with 5 residences, only 1 can be used for short term rental at a…

Sharing Economy. Home Share Regulations. Austin Lawsuit. Be Informed. 5 Bits Intel.

Who filed suit against the City of Austin short term rental ordinance? Texas Public Policy Foundation

What’s the goal of TPPF?  No licenses for property owners who lease out property for less than 30 days

What 2 constitutional rights are alleged in the lawsuit? The Right to Assemble. The Right to Privacy. 

How does TPPF address the argument that short term rentals are nuisances? That the city data does not support the city’s claim that the nuisances warrant special regulation

How…