Are Airbnb Rentals Being Booted From California?
Digested from “New Regulations to Wipe Out 80% Of Airbnb Rentals in California's Santa Monica”
Forbes (6/15/15) Bender, Andrew
Despite the surge of popularity in Airbnb rentals across the world, such rentals might cease to exist in cities such as San Francisco and New York. And new regulations threaten to wipe out more than 80 percent of the short-term rental market in Santa Monica, California.
The Santa Monica regulations state that hosts will have to register for a business license and collect the city’s 14 percent occupancy tax. In addition, hosts will have to live on the property during the renter’s stay. The reasons cited for the new regulations: the increase in housing prices and further pressure on the already staggering housing prices as companies eat up existing home supply to capitalize on income from short-term vacation rentals.
Full enforcement of the new regulations won’t begin for a few months. However, violators can still face a hefty $500 fine. To keep hosts diligent, the city of Santa Monica is hiring three staff members to track down violators.