The 5 Baker Court House, on September 1, 2016. On Baker Court and Fields Court, near the South Bay Mall, two narrow, cobblestone walkways so tiny that one could barely call streets, some longtime landowners get believe real estate gold mine.
Pat Greenhouse | The globe of Boston | Getty Images
Airbnb is planning a major IPO next year, but this year, regulation is growing in the country's cities.
The housing-sharing company had to comply on Sunday with the strict new regulations in force in Boston forcing guests to register their registrations with the city. The Boston Regulations are designed to prohibit "investor units" or residential properties exclusively or primarily used for short-term housing. Legislators say that these homes inflate the housing market and drive out long-term residents.
The city's crackdown on Airbnb ads comes in the context of a wave of similar laws being proposed in cities around the world. Such regulations could break the economic model of one of the latest techies of the decade that has not yet been made public.
Less than half of the entries were submitted
The city has received 1,778 applications for registration and has approved 737 so far, city officials said. The company had about 4,000 registrations in Boston a little over a month ago, according to city officials. An Airbnb spokesman said the company had withdrawn Sunday all ads on the platform that did not display a license number of the city of Boston.
City officials said they had asked Airbnb Monday for data on the number of registrations removed by the company, but had not yet received them.
The new rules require that hosts own the properties they rent and live there for at least nine months a year. They also limit the number of registrations to one per host and require hosts to register their units with the city each year and pay annual licensing fees. The appropriate licensed lists display a "policy number" above the cancellation policy section, such as this listing in the Dorchester neighborhood in Boston.
The regulations were first adopted in July 2018, and came into effect in August 2019 after an Airbnb court challenge was settled.
"All over the city, rents are growing out of reach," Boston city councilwoman Michelle Wu said in a statement. "By removing the de facto hotel loopholes in residential neighborhoods while preserving the opportunity for homeowners to benefit from shared housing, the regulations are designed to help more Bostonians stay in their homes."
"In accordance with our legal regulation, we are ready to work with the City to take appropriate action against ads that have not provided a license number, so that they are no longer available as rentals." short term, "said an Airbnb spokesman. "But it's important to note that it's a long-term collaborative process."
Monitoring more and more
Boston is joining a growing wave of cities imposing new regulations on short-term rentals of Airbnb and other providers. Cities around the world are looking for ways to compensate for the concerns of their customers vis-à-vis long-term residents. Airbnb due to go public in the next year, such regulations could divert investors from the perspective of the company.
Two weeks ago, a court in Ontario, Canada, ruled in favor of Toronto 's short – term housing laws, which require that guests live in properties that are in good standing. they list on Airbnb. Last month, residents of Jersey City voted overwhelmingly to impose stricter regulations on the home-sharing application, after the $ 30-billion company spent $ 4.2 million the fight against regulation. Lawmakers in San Francisco have imposed strict rules on short-term rentals in 2018, halving the number of Airbnb ads in the city. Since then, other cities in Europe and the United States have followed suit.
New Orleans and Portland, Oregon, have put in place regulations similar to those in Boston, which are expected to come into effect on January 1.
Airbnb promises to be one of the most anticipated debut of the public market in 2020. Contrary to this year's notable debut, Uber and Lyft losing unicorns have struggled in public markets. years.
However, increasing regulation in cities around the world could hurt Airbnb's business and reduce investors' appetite for investment. The company will also have to navigate regulatory control without its operations director, Belinda Johnson, who announced her resignation in March of next year. Airbnb CEO Brian Chesky gave him a successful collaboration with the regulators.
– Deirdre Bosa from CNBC contributed to this report