The Story:
Airbnb, the short-term rentals portal, seeks to automatically limit the number of nights that hosts on its network can rent their properties in central Paris. The restriction on the number of nights is in line with city regulations, and will be capped at 120 nights every year.
Important Because:
Regulators in tourist destinations have been up in arms against services like those provided by Airbnb.
They say it artificially drives up the cost of housing, and residents have often accused hosts of running commercial establishments in those locations.
Legislators worldwide are now cracking down on Airbnb and other services.
In one way, these regulations have been triggered by the hotel industry lobbying against them, citing unfair competition.
This Happened in the Past:
In 2016, Berlin brought in a rule saying tourists could not rent entire apartments from services like Airbnb. The move was a bid to protect local housing costs.
Capping limits such as the Paris one have already been put in place in cities like Amsterdam (60 days) and London (90 days).
In the past, app companies like Uber and Airbnb have tried to fight regulations and red tap head on. But for all their bravado, they’ve been bogged down with lawsuits and controversies.
These companies are now taking a more conciliatory approach to regulators, working with them even if it means some shrinking of the potential market.
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