Before the launch, the company shared the new tool with San Francisco’s Office of Short-Term Rentals. “They’re pretty positive about it and hopeful this will definitely improve their ability to get bad actors off the platform,” said Jeffrey Cretan, a spokesman for the city’s mayor.
Perhaps because of these scofflaws, Airbnb says it has not lost significant listings. According to AllTheRooms Analytics, among popular cities in Europe, only Rome and Lisbon have shed listings, about 2,000 each. In Lisbon, the crackdown still leaves just above 14,500 listings, the same figure as in January 2019, but down from the peak in July 2019.
The effect of more regulations may show up in the future, posing a threat to a robust portfolio. “For a platform like Airbnb, they’re not just worried about the demand side, but the supply side,” Mr. Mody, of Boston University, said, noting the travel freeze may convince hosts to put their units in the long-term rental market, shrinking the platform, and worrying potential investors. “When you’re living on venture capital, profitability is not as important as growth,” Mr. Mody added. “Shareholders will be a lot less patient.”
The music stops at party houses
During the pandemic, Host Compliance, which tracks legal compliance among short-term rentals for 350 cities and counties in the United States, said noise complaints about so-called “party houses” tripled.
“A lot of people have been at home for a long time and they have to let some steam off and can’t jump on a plane to go to Europe or Cancún to party so they are renting out short-term rentals in driving distance from their homes,” said Ulrik Binzer, the founder and general manager of Host Compliance.
Often, these rentals are in residential neighborhoods, triggering noise complaints and health concerns about large gatherings.