Philly's unlicensed Airbnb crackdown still hazy
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Philadelphia is cracking down on unlicensed short-term rentals, but the penalties for scofflaws are not clear.
Why it matters: The new regulations have the potential to cut hundreds of short-term rentals and limit them to certain areas of Philly, such as Center City, industry advocates say.
State of play: The city began notifying booking agents, including Airbnb and VRBO, of unlicensed short-term rental properties earlier this month.
- Booking agents are required to notify unlicensed property owners and remove their listings within five business days.
- The city estimates as many as 1,700 properties are unlicensed and at risk of delisting, accounting for nearly 85% of Philly's short-term rental properties.
Reality check: While hosts who flout license requirements can face daily fines, it's unclear if they will.
- "We are still determining [our] course of action" for short-term rental hosts who operate without a license, city Department of Licenses and Inspections spokesperson Shemeka Moore tells Axios.
Catch up quick: Hosts had time to prepare for the new rules.
- The regulations were passed in 2021, building on rules in effect since 2015.
- But the new rules were delayed from taking effect last year because a large percentage of operators failed to obtain a license.
Between the lines: The rules mandate that short-term rental operators must obtain a limited lodging or hotel license to advertise on a booking agent's platform.
- While relatively inexpensive, license applicants must also ensure their unit is up to code and meet current zoning regulations or get a variance, among other requirements.
By the numbers: The city has issued 459 limited lodging operator licenses and 210 hotel licenses, per Moore.
Of note: Hosts can obtain a short-term rental license to maintain their listing on a booking agent's website or convert their property into a long-term rental.
Zoom in: An Airbnb spokesperson tells Axios the company has worked with Philly officials for months to ensure the regulations are enforced.
- The spokesperson declined to reveal how many properties are listed on the platform in Philly and those at risk of being delisted.
What they're saying: Bryon Smith, a short-term rental host, tells Axios only some of his nearly 20 properties have licenses because the process is difficult, time consuming and expensive.
- He added the new regulations would likely benefit hotels and large companies with scores of listings.
- "There's only going to be a small number of hosts left," he says. "It's going to kill tourism."
The other side: "It's something that needs to be controlled and something that needs to be under supervision," Mayor Jim Kenney told KYW about short-term rentals in the city.
- He added: "And if people could act responsibly in their business dealings, we wouldn't have to do this. But that's not the case."
Be smart: Customers with existing reservations should check with their booking agent to ensure their unit isn’t delisted.