Airbnb permanently bans parties in all short-term rentals

By Judy J. Beasley Last updated Dec 20, 2022

PHOENIX (3TV/CBS 5) – Short-term rental company Airbnb has announced it is banning all parties at its properties as Arizona Governor Doug Ducey signs new statewide short-term rental legislation .

On Wednesday, Governor Ducey signed Senate Bill 1168 into law, which protects thousands of Arizona homeowners who share their homes on the site and offers guidelines for communities to deal with particular properties that become a nuisance. In response to new rental legislation in Arizona, Airbnb released the following statement:

“On behalf of the thousands of hosts across Arizona who depend on supplemental income from renting out their homes, we commend Senator Mesnard and Rep. Kaiser for their leadership and determination to work with all stakeholders on this project. SB 1168 is proof that elected officials and community stakeholders can come together to craft fair and sensible short-term rental rules that address community concerns and preserve the economic benefits of short-term rentals. term… We believe there is a direct correlation between our implementation of the policy in August 2020 and a global decline of 44% year-over-year in party reporting. more success in Arizona, where there was a 55% year-over-year drop in party reports.”

In August 2020, Airbnb implemented a temporary ban on all parties and events in the company’s listings globally, which during this period was in effect “until further notice”. The company recently decided that the ban had proven effective and decided to make it a permanent policy.

Paradise Valley Mayor Jerry Bien-Willner said the new law is a step in the right direction. “Having consequences makes sense for bad actors,” said Bien Willner. “It gets people to be careful and behave, and so in the law there are provisions that after three incidents, a license can be suspended for up to a year, and even a bad incident, a license can be suspended.”

Susan Edwards, of the homeowners’ advocacy group Neighbors not Nightmares, doesn’t think the new law goes far enough. She thinks cities need more funding to help police respond to disruptions in short-term rentals because if citations aren’t issued, the owner of the short-term rental can’t be fined. fine. “When are the police busiest? Friday and Saturday night,” Edwards said. “When are the parties most frequent? Friday and Saturday nights. If they have a shooting or a car accident, they have to go first. It creates a lot of stress.”

The company said that since August 2020, it has seen a 55% drop in party reports from Arizona.

Other provisions of SB 1168 include:

Local Licensing – authorizes local towns and cities to adopt and implement local short-term rental licensing programs.
Three-strike penalty – allows escalating fines for serious and repeated offenses – such as parties and excessive noise – that impact public health and safety, as well as the possibility of suspending or revoking a locally issued license for three health and safety violations judged at the same time ad within 12 months.
New Penalties – Allows cities to impose financial penalties on hosts who fail to register or provide contact information with local jurisdictions, as required by law.
Occupancy Restrictions – occupancy limits must be in place for listings up to 2 adults per room.
Insurance requirement – hosts must provide traveler insurance or have it provided by the platform.

The bill’s sponsor, Senator JD Mesnard, said he celebrated the year-long effort that went into creating the bill. “This meaningful compromise will help end misguided efforts to over-regulate or outright ban short-term rentals in communities, which would threaten the state’s visitor economy and undermine Arizona’s balance sheet. when it comes to supporting property rights,” said Senator Mesnard.

The bill has been supported by various organizations, including the League of Arizona Cities and Towns. For months, state legislators, short-term rental platforms, and the League of Arizona Cities and Towns have worked together to identify solutions that will preserve Arizona’s quality of life while allowing the industry to short-term rentals and tourism to thrive. The minds of many Arizona residents may wonder if Airbnb’s permanent party ban will impact the valley’s housing market. Marketing director Anthony Conti of the Driggs Title Agency said he doesn’t really think so, although he thinks the ban is necessary.

“There are 3 to 500 people per social party,” Conti said. “And it can destroy a house pretty quickly.” He said if you’re a landlord with a mortgage looking to turn your home into an Airbnb, check the guidelines and mortgage agreement. You must live in your home for at least a year before listing it on the site.

“HOA, home insurance — everyone has agreements now that you have to let them know if you’re going to do an Airbnb,” Conti said. “Do your homework, be sure and check with your area to make sure you can have an Airbnb, check with your mortgage and HOAs before renting.” Between 2017 and 2020, hosts on Airbnb generated approximately $87 million in taxes for the state of Arizona.