Research & News

Santa Monica – Strict regulations by the city has effectively wiped out 80% of its Airbnb listings by instituting the toughest regulations on short-term rentals in the U.S. The southern California city said it was spurred by overall increases in housing prices and dwindling housing supply. The new regulations, which have been effective since June 2015, require no advertising on Airbnb or STR platforms allowed, strict enforced fines, 30 day maximum guest stays, the Santa Monica resident must live on the property, and be present during the renter’s stay, register for a business license, and collect a 14% occupancy tax from users that will be payable to the city.

Salvador Valles, the city’s Assistant Director of Planning and Community Development, cites two main reasons for this move:

  • The overall increase in housing prices in the city and region.
  • Companies taking over multiple units and subleasing them as short-term vacation rentals, decreasing the housing supply and putting even more pressure on housing prices.

More than just driving up rents, Valles says, the decrease in owner- and long term renter-occupancy has the potential to change the character of the city. “It becomes more of a transient community than a neighborhood where people are invested in the community.”

Miami Beach Mayor Dan Gelber Weighs in on how Airbnb & STR’s are ruining communities

“Airbnb does not have a good record complying with local laws
Miami Beach Mayor Dan Gelber said situations like this are common and not good for the city.

Officials from other large cities also have seen similar problems. We’re seeing commercialized, predatory companies and third party individuals who are trying to commercialize our residential communities in ways that are damaging to our citizens and our residents and our quality of life,” Gelber told CNBC. “It is predatory.”
“It’s people taking very nice properties, buying them and turning them into essentially a flophouse stuffing as many people as they can put in there to extract as much income as they can in the middle of a neighborhood that wasn’t zoned for that kind of behavior,” the former Miami Beach prosecutor and state representative and senator said.

5 Cities Where Airbnb is Illegal by Mashvisor

New Buffalo official: Online home rentals became ‘Animal House’ situations – From Detroit Free Press on May 29, 2019

Hosts Share a Look at a St. Ignace Airbnb – St. Ignace News from January 25, 2018 [PDF]

Airbnb battle brews in Lansing – Crain’s Detroit Business from October 15, 2017