Changing the Home Sharing Public Policy Landscape

Short-term rentals (STRs) that are facilitated by online platforms like Airbnb have been the subject of intense debate across the U.S.  Local governments around the globe, including several cities in the U.S., have responded quite differently towards regulating STRs. Most cities have not significantly regulated these platforms, but a limited number of cities have recently put severe restrictions in place.    The truth of the matter is that opposition to multifamily home sharing runs smack up against powerful demographic trends and market demand. And while the pandemic has been an inflection point, change was already taking place in the multifamily sector. Studies indicate that this “living as a service” model has already proliferated multifamily properties nationwide, albeit “under the radar.” In fact, research from NMHC found that 65% of all booked nights on Airbnb took place in multifamily buildings. Resistance to this trend has only led to more risky practices with less control and governance over the activity. Now, Migo by RealPage® is paving a new, right way forward by bringing to the sharing economy the tools and levers needed to streamline the home sharing process and make it safer for all involved.  That said, the resistance to multifamily home sharing has affected the ability of multifamily property owners in New York, Boston, Chicago, Miami Beach, San Francisco and other major cities to offer home sharing as an amenity in their communities. For example, San Francisco imposes a 14% hotel tax (i.e.,  a Transient Occupancy Tax) and a cap of maximum 90 rental days per year. Other cities have banned “owner absent” rentals, which defeats the whole idea of home sharing for those who want a flexible living option.   While all these facts represent strong support for home sharing, public policy needs to catch up. Licensing and regulatory schemes need to adjust to the new reality &md...