San Francisco Ballot Initiative May Restrict Short-Term Rentals

Date: July 07, 2015

November Measure Would Regulate Airbnb, Similar Services

As short-term rental services like Airbnb have faced increased pressure from varying city, county, and state regulations, San Francisco has surfaced as a key battleground for the industry. TechCrunch reports that homeowners and affordable housing advocates in San Francisco have submitted more than the 15,000 signatures necessary for a ballot initiative for this November’s elections that would further regulate short-term rentals like Airbnb. The measure “proposes a law with a 75-day limit on hosting, quarterly data reports from platforms and an ability to go to civil court if the planning department does not react to complaints in time.” Supporters of the ballot measure argue the boom in short-term rentals have further reduced the housing stock for residents, while Airbnb argues its business model combats wage stagnation and that most hosts only rent their residence for an average of 66 days a year.

BuzzFeed notes that Airbnb claims the new restrictions would force visitors to stay at traditional hotels located in central tourist districts and could “create fissures in the city” since it’s meant to be applied differently to low-income and high-income neighborhoods. The report also notes that the new ballot measure would permit neighbors to sue each other if they suspected illegal renting on digital platforms like Airbnb and has the potential to create tremendous social tension. Opponents of the measure warn that such propositions are incredibly difficult to remove once passed, and that Airbnb-like rentals help tourism in local neighborhoods that otherwise see very little.

What Happens Next

The ballot initiative will be put to a vote by San Francisco voters this November. Until then, current regulations will remain in effect. However, the odds that short-term rentals will face tougher regulations come 2016 have increased with the ballot initiative’s approval.

What This Means For Small Businesses

Small business owners in San Francisco may see city attempts to regulate a sector such as the short-term rental industry as a troubling indicator of encroaching government oversight on business. Increasing government oversight on an industry could stifle the business community as a whole, making San Francisco less welcoming for small businesses.

Additional Reading

NFIB previously noted efforts to increase restrictions on short-term rental services in San Francisco.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

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