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Philadelphia is cracking down on Airbnb and Vrbo. Locals are torn over whether it's a good thing.

Jul 22, 2023, 18:15 IST
Business Insider
Philadelphia, Pennsylvania.joe daniel price/Getty Images
  • Philadelphia locals are divided over a crackdown that could remove 85% of Airbnb and Vrbo listings.
  • A former short-term-rental cleaner said the move is long overdue, as bad hosts have multiplied.
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Philadelphia locals are divided over the city's crackdown on unlicensed Airbnbs and Vrbos.

The move could eliminate 85% of short-term rentals, or nearly 1,700 pads, according to the city's own estimate.

"I absolutely think it's a good thing," Lisette Santiago, who used to clean Airbnbs before finding them too messy and disruptive, told Insider.

Santiago believes the sweeping action is long overdue.

This week the city will begin sending notifications out to hosts with unlicensed properties. Hosts will have five days to take out a proper license, which requires properties to be up to code. If they don't, their listing will be removed from the platforms.

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It's a tiny window that seems unfair, local host Rob Brown told Insider.

"The restriction timeframe is horrible, because not everybody can get there," Brown said.

How Philadelphia, the country's sixth-largest city, proceeds could be a glimpse into the future, as numerous cities and towns across the country weigh regulatory action and determine how short-term rentals operate in their communities.

For now, all eyes are on Philadelphia as residents themselves are split on the action.

The crackdown has been in the works for two years

The new enforcement is a result of a 2021 law that expanded short-term rental licensing requirements. Previously, only spots that rented out for more than 90 days a year were required to be licensed, according to Philadelphia news station WHYY.

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Philadelphia will begin dual outreach, first to Airbnb and Vrbo to take down illegal listings, and then to hosts themselves, according to the city's Department of Licenses and Inspections.

Councilmember Mark Squilla, who introduced the measure, told WHYY in 2021 that "by doing this we will have more control over the bad operators."

Airbnb, for its part, says it's working with the city. "For months Airbnb has worked closely with the City of Philadelphia to ensure they have the necessary tools and support to effectively enforce their current rules," an Airbnb spokesperson told Insider. "We've also developed and distributed materials and messaging to our Hosts to make them aware of the new rules and how to comply."

A former Airbnb cleaner thinks it's long overdue

Lisette Santiago lives in North Philadelphia and owns a small cleaning business. She used to clean Airbnbs, before finding the turnarounds too tight to deal with the messes she found. Now, her business focuses on commercial projects.

As a local, she's also experienced disturbances with short-term rentals in the area. She's had to wake up in the middle of the night and confront noisy guests that are yelling or playing music too loud, keeping her kids awake.

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"I have four children. I'm a small business owner. I work very hard to live," she said. "People that are actually tenants are not living a good quality of life."

A Philly host isn't cheering for others to fail

Philadelphia host Rob Brown owns three rentals near Temple University that rent from $150 to $185 per night. He told Insider he obtained his licenses in July 2021, but found the process difficult.

Brown said it took him nearly four weeks and multiple visits to the Department of Licenses and Inspections because of one mistake.

"I had everything except for one paper, so I had to make an entirely new appointment," he said.

The five-day timeframe the city is giving hosts is too small of a window, Brown said, especially if hosts have other jobs, like he does as a broker for yacht and jet rentals.

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Even if a wave of listings are removed, Brown doesn't see it as a boon to his own business. Travelers know exactly where in the city they want to be, he said. He doesn't expect a new wave of interest to his listings if other places are shuttered.

"The real winners are hotels," said Brown, who thinks they haven't been able to compete with the burst of short-term rentals over the past decade.

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