I've had this argument with several people. Their position is that "it's my house/apartment, I should be able to do what I want with it" (even when renting they use this argument). My argument is that this is not and has never been true. You can't, for example, run a tannery in your apartment. What's more, as a resident (and especially if I were an owner) I wouldn't want my building being a de facto hotel. An endless…
I can understand your desire to have things this way, but as an individual, I see no reason why you would want to force this rule on everyone in your city. If you don't want your neighbors renting their place out, go live in an apartment complex that doesn't allow tenants to do this. If you don't want your tenants doing this, then make it against the terms of your rental agreement.
What business licensing really does is foster a kind of local monopoly, often as a favor to the existing businesses. It's anti-competitive, by making it very difficult to start a business. Most people are completely unaware of these very real motives behind local licensing laws.