New Orleans Looks to Further Restrict STRs
("New Orleans inches toward tighter short-term rental regulations," Curbed - New Orleans on May 20, 2019)
The New Orleans City Council, after years of debating, is within 90 days of taking a final vote on new short-term rental regulations that will result in further restrictions on owners of short-term rental units. The new regulations would outlaw rentals of entire homes in residential neighborhoods and maintain a total ban on short-term rentals in popular neighborhoods including the Garden District and most of the French Quarter. We are interested to see if, upon passing the proposed regulations, New Orleans manages to succeed in enforcing the new law. Some jurisdictions—including Seattle—have found significant challenges in gearing up their enforcement efforts. This is a trend we expect will continue as local jurisdictions try to keep up with explosive STR innovation.
Airbnb poised for a reprieve in the EU
("Why Airbnb Could Escape the Uber Trap in Europe," Fortune Magazine on Apr 30, 2019)
The Court of Justice of the European Union is considering whether Airbnb was breaking the country’s housing laws by operating without an estate-agent license. The question is how much control Airbnb exerts over the transactions between hosts and guests. It appears, based on an opinion issued by the top legal adviser to the Court, the housing laws will be determined to not apply to Airbnb because hosts maintain significant control over each transaction, including decisions relating to rental rates and cancellation policies.
Guesty offers innovative and more streamlines tools for property management side of short-term rentals
("How Automation Technology Is Changing Property Management, Forbes - Innovation on Apr 26, 2019)
("How Automation Technology Is Changing Property Management," Forbes - Innovation on Apr 26, 2019)
Guesty is an innovative company thinking about ways to make the property management side of short-term rentals more efficient and seamless for operators and guests. It offers a unified calendar to manage properties listed on multiple online travel platforms, keyless entry options, task management systems for cleaning and repair teams and pricing tools.
This week’s Short-Term Rental Update features a number of interesting topics, including these highlights:
Short-Term Rental Operator Lyric raises $160M
("Airbnb Leads $160 Million Investment in Business-Travel Startup," Bloomberg Quint - Stories on Apr 17, 2019)
Lyric is a small, luxury apartment rental company working to change the narrative around short-term rentals. It prioritizes regulatory compliance in every jurisdiction where it operates. Of note, Airbnb, which has been deeply involved in regulatory compliance litigation nationwide, is leading Lyric’s latest funding round of $160 million. It appears that Airbnb is doing everything in its power to tidy up its house before a highly-anticipated IPO.
We regularly update clients about changes in real estate law and on industry trends. This includes briefing clients on legislative proposals in the federal tax, housing and other legal areas affecting their businesses. Staying current enables you to anticipate and prevent legal problems as well as capitalize on new developments.