The rules serve a lot of purposes: 1. To protect hotel owners and operators. 2. To protect consumers. They are guaranteed that the hotel has proper insurance, for example. 3. To protect neighbours. You can't open up a hotel in the house next door for much the same reasons that you can't open a pub or an aluminum smelter. 4. And yes, there is some rent seeking behaviour. I'll just mention transient accommodation taxes…
#1 is "a purpose" but not a good one. If hotels can't compete with Airbnb renters then that's their problem (assuming the regulatory playing field is level, which it may not be)
A Warning for Airbnb Hosts
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Re: A Warning for Airbnb Hosts
#62Earlier quoted context omitted.
Exactly. Of course the regulations are worded and advertised as being about "consumer protection", what could the alternative possibly be? There is no way in hell a hotel lobby would write a law that plainly claimed to be for the protection of their interests. When laws protecting Taxi monopolies claim to be for consumer protection, nobody here buys it. Those laws are for the protection of Taxi companies and unions.…
>"When laws protecting Taxi monopolies claim to be for consumer protection, nobody here buys it." If I rent a room from you, and stick my hand in your meat grinder, who gets sued? Are you personally insured against such events? Is your landlord insured against temporary tenants? These aren't unsolvable problems, but are why the laws exist as they do. The hotel pays money for insurance, which protects the consumer. Mo…
If Walmart could figure out a way to make a law banning local businesses look like it was for consumer protection, they would attempt it in a heartbeat. Consumer protection is how you sell corporate protection laws.
Re: A Warning for Airbnb Hosts
#63Was this paid for by hotel interests? I'm really trying to understand the depth of PR in the news.
Or maybe AirBnB is similar enough to craigslist and newspapers hate craigslist because it killed print.
Re: A Warning for Airbnb Hosts
#64Earlier quoted context omitted.
Show me how commercial fire codes / building codes protect hotels but not consumers. (Edited from "instead of" to "but not", since the original assertion was that they only help hotel owners.)
They don't help people who want to make a new hotel, but they increase barriers to entry into the hotel marketplace, which benefits established players in the space. An analogous case is federal/iihs car safety regulations - since it costs xx million to get a car federally certified, you didn't see that many automotive startups until pretty recently, and we don't get a lot of European cars since it would cost to much…
Now I can understand trying to protect against some crazy welding his own frames in his backyard, but these are cars built by Ford and GM and driven millions of miles on tougher roads than any over here. Completely knackered.
Re: A Warning for Airbnb Hosts
#65Earlier quoted context omitted.
>"When laws protecting Taxi monopolies claim to be for consumer protection, nobody here buys it." If I rent a room from you, and stick my hand in your meat grinder, who gets sued? Are you personally insured against such events? Is your landlord insured against temporary tenants? These aren't unsolvable problems, but are why the laws exist as they do. The hotel pays money for insurance, which protects the consumer. Mo…
I am not claiming that there are not legitimate issues with consumer protection to be considered. I merely find the idea that those laws which on the surface claim to be for that were drafted and enacted with that motivation to be incredibly unlikely. Hotel lobbyists and their politicians were not actually concerned for the consumer. They just claim that; what else could they possibly claim? If Walmart could figure o…
Re: A Warning for Airbnb Hosts
#66The rules serve a lot of purposes: 1. To protect hotel owners and operators. 2. To protect consumers. They are guaranteed that the hotel has proper insurance, for example. 3. To protect neighbours. You can't open up a hotel in the house next door for much the same reasons that you can't open a pub or an aluminum smelter. 4. And yes, there is some rent seeking behaviour. I'll just mention transient accommodation taxes…
#1 is "a purpose" but not a good one. If hotels can't compete with Airbnb renters then that's their problem (assuming the regulatory playing field is level, which it may not be)
Re: A Warning for Airbnb Hosts
#67I'm wondering if anyone can illuminate us on the ostensible purpose of these types of regulations. I'm assuming it's to maintain some sort of control and regulation over those who would establish unlicensed hotels on a commercial scale? For the welfare of the guests I suppose? I imagine in a world before the internet, this kind of thing was actually quite necessary. It would have been much harder to know any sort of…
> I'm wondering if anyone can illuminate us on the ostensible purpose of these types of regulations. Adam Smith is useful here. All regulation is created on behalf of business interests and is justified through the public interest. Business Interest: If everybody rented extra unused "space" and the market was fluid, this would substantially impact the profitability of the hospitality industry. Public Interest: Who wa…
That is not what Adam Smith says. His argument that regulations proposed by men of business should be closely scrutinized, since those proposals are almost always meant to further the interests of the business owners rather than the public. He does not assume the same of regulation in general, and is much more sympathetic to the interests of households and laborers than is commonly supposed.
convince the public that their private property rights are being violated
You don't have a property interest in a tenant lease whose terms you choose to violate. Note from the article that it's perfectly OK to let your spare room, as long as you yourself are there to take responsibility for the behavior of your guests.
Re: A Warning for Airbnb Hosts
#68This is especially ironic in light of the post-Sandy NYC-AirBnB "partnership": "Mayor Michael R. Bloomberg and Airbnb today announced the launch of a new platform to help connect victims of Hurricane Sandy with free housing options. Airbnb is now providing a platform to connect those who are eager to offer free housing to those who have been displaced by the storm." http://www.nyc.gov/portal/site/nycgov/menuitem.c093…
Re: A Warning for Airbnb Hosts
#69Earlier quoted context omitted.
I am not claiming that there are not legitimate issues with consumer protection to be considered. I merely find the idea that those laws which on the surface claim to be for that were drafted and enacted with that motivation to be incredibly unlikely. Hotel lobbyists and their politicians were not actually concerned for the consumer. They just claim that; what else could they possibly claim? If Walmart could figure o…
Personally, I find it no different than not being able to drive a car without insurance. That protects me and other drivers, and I don't think it's an "insurance lobby" agenda (although we battle with that too).
We have to be willing to consider putting things called "consumer protection laws" on the chopping block. Calling these things "consumer protection laws" affords them more protection than they may be deserving of, because who doesn't like protecting consumers? It just sounds like a great thing to do.
Calling your law a "consumer protection law" is (or rather, can be) basically a more advanced form of naming your law cleverly enough that it forms a "patriotic" acronym.
Re: A Warning for Airbnb Hosts
#70An interesting story. What is more interesting is that it sets up the entire game. Cities cap rents in an effort to rein in rapacious landlords, this 'traps' money in the system (whenever you artificially price something you open up the possibility that there is demand in excess of supply). AirBnb figures out a scheme to liberate that trapped money by enlisting the folks who are benefiting from the cap (tenants) at t…