Airbnb is an innovative service for modern travel. It focuses heavily on community, flexibility, and the power of the internet. For many travelers, it’s been a great new tool. But not all governments feel the same way. It was founded in San Francisco, usually the home for inventive new apps and websites, in 2008. However, the fact that San Francisco is Airbnb’s birthplace doesn’t mean that everyone in the city loves it. Much to the contrary — Airbnb’s strong presence in San Francisco has led to a political fight for the ages in the Bay Area.

Airbnb is essentially a way to rent out living space for short-term use. Often people who have extra bedrooms, second apartments, or some other space will post it on the site. They are registered and checked by Airbnb. Then, a traveler can choose a site that fits their needs. Airbnb allows the host and the guest to communicate. Much of the site is community-driven — after you stay with an Airbnb host you are asked to rate them, and they are asked to rate their guests. That allows others to make informed choices about the listings they choose to stay at and Airbnb guests that hosts choose to approve.

Full disclosure, I’ve used the site, with great success, as have many of my friends. Airbnb is often lauded as the Millennial way to travel — a combination of couch surfing, social media, and budget flexibility. And it’s worked — Airbnb has been enormously successful. A recent valuation put the space-sharing pioneer’s worth at approximately $13 billion.

Yet the history of Airbnb in San Francisco remains a curious one. This week, the San Francisco Board of Supervisors voted to officially legalize operations like Airbnb, but with some caveats. The type of room-sharing that Airbnb is built on will be allowed, but the site will need to collect the same kind of taxes as hotels or other commercial lodging venues. There will also be more oversight from the city — certain registration for short-term rentals will be required. Furthermore, people renting Airbnb spaces have some rules about how often they have to live in the rental space. Those against the bill argued that it was way too restrictive and would make it too tough on those who want to sublet in a non-Airbnb related sense.

Mayor Ed Lee still needs to sign the bill, of course, but it’s a step forward on a fascinatingly gridlocked issue. As the Board President, as well as the one who proposed the legislation, David Chiu explained the Board’s motivation, saying,

We have seen an explosion of short-term rentals without any regulatory or enforcement structure to handle this new activity. … This is a balanced, reasonable approach.

Interestingly, invested in the debate was California Senator Diane Feinstein, once San Francisco’s mayor. In light of the contentious debate, she wrote an op-ed in the San Francisco Gate slamming the proposed law and arguing that the city should not legalize Airbnb in any sense whatsoever. However, the Board went ahead and approved the bill anyway.

It’s a fascinating question that many technology-driven businesses — Uber, Lyft, etc. — have had to answer. When you operate in a non-tangible setting, online, what laws govern you? Airbnb certainly had a victory with the new San Francisco law, even though it may force some hosts to make their rentals more expensive to deal with the taxes. But for now San Francisco will continue to provide affordable, unique, and flexible lodging.

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Anneliese Mahoney (@AMahoney8672) is Lead Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

Featured image courtesy of [Venturist via Flickr]

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

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