Short-Term Rental Update: Short-term rentals continue to gain market share; partnering early in the multifamily development process; New York City continues to battle Airbnb

by Garvey Schubert Barer
Contact

Short-Term Rentals Continue to Gain Market Share
("Booking Holdings breaks down private accommodation revenues for first time, now at 20% of total," Phocuswire, Feb 27, 2019)
Alternative accommodations, including short-term rentals, accounted for 20% of the overall annual revenue for Booking Holdings, the parent company of Booking.com. Notably, 40% of Booking.com’s active customer base booked an alternative accommodation within the past 12 months. We see no indication that growth in the short-term rental market will slow down anytime soon.

Partnering Early In the Multifamily Development Process
("Multifamily Developers Are Planning For Long-Term Partnerships With Short-Term Rental Operators," Bisnow, Feb 26, 2019)
Multifamily developers are shifting away from viewing short-term rentals as a stopgap measure when units remain unoccupied in new multifamily buildings. Instead, developers are partnering with short-term rental operators earlier in the development process. This allows the short-term rental operators to have input on the building structure, layout and amenities. We view such early partnerships as being instrumental to effectively address the fire and life safety concerns that local governmental bodies have focused on as one of the blockers to allowing short-term rentals in urban areas, such as New York City.

New York City Continues to Battle Airbnb
("City issues subpoena for 20K apartment listings on Airbnb, The Real Deal - New York, Feb 20, 2019)
In an effort to identify “illegal hotels,” New York City issued a subpoena to Airbnb demanding the short-term rental site hand over the details of 20,000 apartment listings in the city. Airbnb responded via a letter stating it removed 5,000 listings in New York through the “One-Host, One Home” policy it implemented in 2016. We’ll continue to monitor whether Airbnb is successful in reaching an agreement with city officials.


Other news:

Industry News

Airbnb Has Big Plans For China and India
Skift Travel News on Feb 25, 2019
Airbnb will be making “aggressive investments” in emerging markets like China and India after seeing a huge spike in both number of guests and listings in these countries in 2018 over 2017. The homesharing platform attributes last year’s 131 percent growth in guests in China, and 65 percent in India, to a surge in domestic travel in these markets. What’s more, the countries are attracting growing numbers of international travelers. “In 2019, we will double our marketing investment in India to drive awareness of Airbnb across the country and reach millions of potential guests,” said Siew Kum Hong, regional director of Airbnb Asia-Pacific, giving an example of an aggressive push. “We are also working to integrate more local payment methods [in India] by the end of this year,” he added. Airbnb co-founder and chief strategy officer Nathan Blecharchzyk was in New Delhi over the weekend to launch a partnership with the Digital Empowerment Foundation to provide hospitality skills training to 15,000 potential women host entrepreneurs.

Oyo Partners With Yahoo to Bring Its New Home Rental Model to Japan
Skift Travel News on Feb 22, 2019
India-based hospitality company Oyo has targeted Japan as its latest market for expansion. The fast-growing startup has launched operations in Japan through a joint venture with Yahoo Japan and is fielding its new home rental model, Oyo Living, launched last October. “We are really excited about commencing our operations in our third and potentially the largest home market, Japan, through [this] joint venture [which] will be focused on creating unique living experiences for the Japanese citizens, students and young professionals looking for good-quality, affordable accommodations, starting with our fully managed homes brand, Oyo Life,” said Ritesh Agarwal, founder and CEO of Oyo Hotels and Homes. India and China are the other two home markets. In Japan, Oyo Life will be used instead of Oyo Living. Yahoo Japan is majority-owned by Oyo’s biggest funder, SoftBank.

Regulation & Legal Developments

Hotel group challenges validity of state’s Airbnb agreement
Florida Politics on Feb 26, 2019
The state’s agreements with Airbnb and HomeAway that have the companies collect sales taxes from their client vacation rental home operators and remit them to the Florida Department of Revenue are being challenged by the Asian American Hotel Owners Association. The hotel association filed a petition with the Florida Division of Administrative Hearings Tuesday charging that 2015 agreement and HomeAway’s 2018 pact were negotiated in secret, outside of usual rule making protocol, do not provide sufficient accountability, and should be voided. Airbnb was the first internet vacation rental home marketing company to begin working with Florida to collect taxes on behalf of the state from thousands of privately owned properties being operated as individual short-term rentals. HomeAway and its affiliated companies reached a similar pact last year. Airbnb has similar agreements with 40 counties and municipalities. The hotel association asserted similar complaints about those agreements in a news release, though the official petition deals only with the state agreement. Florida Politics on Feb 26, 2019

How it worked: Inside three ex-brokers’ $21M Airbnb scheme
The Real Deal - New York on Feb 24, 2019
The ringleaders, Max Beckman, Alon Karasenty and Simon Itah, used to work at Metropolitan Property Group A former real estate broker the city is suing for running an illegal network of Airbnbs wants to tell his side of the story. “We’re not criminals,” Max Beckman, an ex-agent at Metropolitan Property Group, told the New York Times. The scheme, which reportedly grossed Beckman and his partners about $21 million, was conceived after the resi game wasn’t working out for him. Beckman said he rented the first apartment that he then leased out on Airbnb to pay rent and pocket the difference in 2012. “It took off, and I made more money, and then I got another one,” he recalled, in the interview. “I couldn’t stop.” Beckman quit his day job as a broker three years later and convinced two of his fellow brokers, Alon Karasenty and Simon Itah, to join his venture. Together, they went on to rent out more than 100 apartments in 35 buildings and then relisted them on Airbnb to cover their costs and then some.

No easing of condo short-term rental rules in Las Vegas
VegasInc All Stories Headlines on Feb 21, 2019
The Las Vegas City Council today struck down a proposal to allow more short-term rentals in multifamily complexes. Sponsored by Councilman Bob Coffin, the regulation would have permitted up to 5 percent of units in a complex to be rented out for fewer than 31 days, though homeowners’ associations could pass more restrictive rental rules. The proposal was an amendment to an ordinance narrowly passed in December limiting short-term rentals to only one within a 660-foot radius and only in owner-occupied properties. Proposed by Mayor Pro-Tem Lois Tarkanian, the original ordinance was written with single-family homes in mind. Coffin’s amendment would also have eliminated the owner-occupancy requirement for multifamily developments, such as condominium buildings. Councilwoman Michele Fiore joined Coffin in voting for the amendment.

Florida Watchdog: Two bills seek state preemption in regulating vacation rentals
Sayfie Review on Feb 19, 2019
Vacation rentals – exactly what they are and if the state or local governments should regulate them – will again be a hotly debated topic when the Florida Legislature convenes its 60-day session on March 5. At least three Senate bills related to the state’s $31 billion short-term rental industry have been pre-filed thus far, including two that would give oversight to the state’s Department of Business and Professional Regulation’s (DBPR) Division of Hotels and Restaurants. Sen. David Simmons’, R-Altamonte Springs, Senate Bill 812, and Sen. Manny Diaz’s, R-Hialeah Gardens, SB 234, are both pre-emption bills, limiting local governments’ capacities to impose restrictions on short-term rentals and giving the state that authority. Both bills have been referred to the Senate’s Innovation, Industry & Technology and Appropriations committees.

Some Spanish Town residents taking aim at Airbnb rentals, seeking tougher regulations
The Advocate - Louisiana News on Feb 16, 2019
Baton Rouge could become the next city attempting to rein in how and where short-term rentals are allowed to operate.

Scott administration announces study on short-term rentals
News 10 Albany on Feb 16, 2019
Vermont Gov. Phil Scott's administration plans to do a study of the state's short-term rental properties, such as those hosted by Airbnb, to see if they are negatively affecting the state's lodging industry.

Enforcement

Host Compliance and STR Helper to Merge, Accelerating Innovation & Improving Local-Government’s Ability to Make the Sharing-Economy Work for Everyone
PRWeb on Feb 25, 2019
Merger Creates Market-Leading Company with the Financial, Engineering and Customer Support Resources Needed to Deliver the Full Suite of Data, Software and Services Governments Need to Cost-Effectively Implement and Enforce Fair and Balanced Short-term Vacation Rental Regulations By merging Host Compliance and STR Helper we will be able to draw upon our collective experience and capabilities to innovate our short-term rental compliance software and services while remaining focused on delivering outstanding technology, services and financial benefits to local governments. Host Compliance LLC (“Host Compliance”) and Bear Cloud Software LLC, doing business as “STR Helper”, leading providers of innovative technology to local governments, announced today the merger of the two companies. The merger is effective immediately, and the new company will operate under the Host Compliance banner and fully combine their operations in the coming months.

London firms helping landlords break letting laws
BBC News - London on Feb 25, 2019
Companies have been exposed encouraging people to break strict short-term letting laws in London, an undercover BBC investigation has found. Landlords and firms that push the 90-night yearly limit are "undermining" London's housing market, an MP has said. Housing lawyer David Smith said firms such as Hostmaker and Cityrelay were "misleading" landlords about the risks. Hostmaker said it would "immediately conduct a full internal investigation". Short-term letting companies, such as Airbnb, have transformed the tourism industry by making it easier for anyone to rent out their home to visitors. But, landlords in London are only allowed to let their homes out for more than 90 nights a year on short-term lets if they receive planning permission from the council.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Garvey Schubert Barer | Attorney Advertising

Written by:

Garvey Schubert Barer
Contact
more
less

Garvey Schubert Barer on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at www.jdsupra.com) (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at privacy@jdsupra.com.

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to privacy@jdsupra.com. We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to privacy@jdsupra.com.

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at: privacy@jdsupra.com.

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at www.jdsupra.com) (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit legal.hubspot.com/privacy-policy.
  • New Relic - For more information on New Relic cookies, please visit www.newrelic.com/privacy.
  • Google Analytics - For more information on Google Analytics cookies, visit www.google.com/policies. To opt-out of being tracked by Google Analytics across all websites visit http://tools.google.com/dlpage/gaoptout. This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.