WMAL Interview - GARY SHAPIRO - 04.27.17

INTERVIEW — GARY SHAPIRO – president and CEO of the Consumer Technology Association (CTA)

Save Airbnb: Don’t let city council destroy D.C.’s home sharing economy. (Washington Examiner / by Gary Shapiro) — A few weeks ago, my organization had a problem: more people wanted to come to our annual Washington meeting than we had hotel space for. Since hotels marked up their rooms to as much as $1,000 per night during cherry blossom season, a number of our invited guests canceled, some shortened their trips and others pursued a third option – staying with area residents through the home sharing services such as Airbnb, HomeAway and VRBO. Unfortunately, this safety valve alternative for D.C. visitors – and source of income for D.C. residents – may all but disappear, if the D.C. Council does the bidding of the hotel lobbyists in their now not-so-secret campaign to block home sharing nationwide. On April 26, the council is set to vote on a proposal that would arbitrarily restrict rentals to no more than 15 days and cap the number of homes D.C. residents can share. Also, violations of this measure would be punishable by fines up to $7,000. City council members should consider the benefits that home sharing services provide – to hosts, guests and the city. First and foremost, these services provide a source of income to the many D.C. residents who rent out their homes. And for many hosts, that income is crucial. Short-term rental income helps roughly 60 percent of Airbnb hosts stay in their homes and 70 percent of HomeAway owners cover more than half of their mortgages. More, this additional income serves as a source of tax revenue for D.C. The District’s 14.5 percent hotel tax also applies to home sharing. And rental income must be reported to and is taxed by D.C. if it is more than $12,000 during the year. Home sharing visitors also precipitate extra revenue to a diverse set of D.C. businesses, with the accompanying sales tax to the D.C. government. Visitors shop at stores, eat at restaurants and visit bars in the neighborhoods surrounding the homes in which they stay. Most of these homes are far from hotels and the additional revenue is significant for these D.C. businesses. In fact, 42 percent of spending by Airbnb guests is in the neighborhood in which they stay. Nationwide, residents overwhelmingly support home sharing. Research from the Consumer Technology Association found those who have participated in the sharing economy – as guests or hosts – are overwhelmingly supportive (85 percent) of the services and of their entrepreneurial neighbors.
DC Council debates regulations for online home rentals. WASHINGTON – Legislation is starting to take shape in D.C. that would place rules on websites that offer homes and rooms for short-term stays. Some say it’s a great way to make money in an expensive city, while others are concerned online housing rentals pull too many homes off the market. The line to testify at the D.C. Council hearing about short-term rentals was out the door on Wednesday. “There are a lot of opinions on this bill and it seems no one has a subtle opinion on it,” said At-Large Councilmember Robert White. White is concerned that some commercial operators use companies like Airbnb, VRBO and HomeAway to list multiple rentals that would otherwise be traditional, long-term housing. “I think there’s no question there is an effect on affordability when entire housing markets come off the market. You shrink the supply,” White said. A recent study by the Working Families Party found that online rental listings rose 38 percent between 2015 and 2016. At last check, more than 6,000 properties were listed online as hotel alternatives in the District. The grassroots political organization, which is active in D.C. and 10 states, advocates for affordable housing as part of its work. The bill’s author, Ward 5 Councilmember Kenyan McDuffie said he recognizes that some residents use short-term rental services legitimately and rely on the rental income.