More than a 3rd of Philly Airbnb listings lack valid licenses
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Despite Philadelphia's efforts to crack down on unlicensed short-term rentals, more than a third of the city's Airbnb listings still aren't properly licensed, per a new report.
Why it matters: The city controller's findings could force Philly to rethink how it enforces its short-term rental regulations.
Driving the news: More than 1,300 of the 3,732 Airbnb listings the controller's office reviewed over one month either had inactive or expired licenses or were ineligible for the city's short-term rental program.
- The report found several factors behind the low compliance, including staffing shortages at the city's Department of Licenses and Inspections that make it harder to proactively identify hosts violating the rules.
What they're saying: The city is reviewing the report and "committed to promoting compliance among" short-term rental properties, city spokesperson Leah Uko tells Axios.
Catch up quick: Until recently, short-term rental rules were rarely enforced in Philly.
- New regulations were passed in 2021, but they were delayed for two years to give unlicensed short-term rental owners a grace period.
- Under the new rules, hosts living in their units had to obtain a limited lodging license. And booking sites were supposed to help with enforcement by requiring hosts to show proof of their licenses.
- The city has more stringent licensing and permitting requirements for hosts who don't live in their properties.
What they found: Some unlicensed listings falsely claimed they had licenses, billed themselves as experiences or had documentation that the controller's office was unable to verify.
- Case in point: A Rittenhouse Square rental listed for $3,657 for the month provided a dumpster license instead of a lodging one.
Reality check: Because the controller's office only examined Airbnb listings, the findings are likely an undercount of the city's unlicensed properties, Controller Christy Brady tells Axios, but they are still "pretty startling."
- "This is not just about taxation or violations. It's about accountability," she says. "The city needs to protect residents and visitors and also support compliant hosts. We need to ensure that we're all operating on a level playing field."
Zoom out: Some cities, such as Nashville and Mount Pleasant, South Carolina, have hired outside companies to help with enforcement.
- Such companies use online platforms that compare booking-platform listings against city records to identify potentially noncompliant properties.
- Mount Pleasant boosted its compliance rate to more than 95% after adopting the changes, the controller said.
What's ahead: Brady recommended the city consider similar reforms.