A Bloomberg report said the city of San Francisco has sued five property owners over allegations that they have evicted long-term tenants to give way to tourists who book rentals online like Airbnb. In an emailed statement, City Attorney Dennis Herrera said that the owners ave violated local and state laws regarding the use and conversion of residential properties.
Herrera also added that the lawsuit is just one of the many the city has filed to target illegal short-term rental conversions who are eyeing to gain from the expensive rental prices in San Francisco. On the other hand, the lawsuit is the second one wherein Airbnb is involved in regarding occupancy. The $10 billion company which has successfully created a marketplace for people who are looking for short-term rentals all over the world is also facing flak from the city of New York for possible housing and occupancy tax laws.
Airbnb spokesman Nick Papas told Bloomberg in an email about the company's willingness to support the fight against enterprising entities who are taking advantage of its service. He said, "If a small number of predatory landlords are abusing platforms like ours to illegally evict tenants in search of a quick buck, we wholeheartedly support efforts to bring those landlords to justice and applaud the City Attorney for his actions. We have investigated and this user will be immediately and permanently removed from Airbnb."
The complaints were reportedly filed by Herrera's office in the San Francisco state court. Herrera is seeking disgorgement of illegal profits on behalf of the California state and is looking to impose penalties of as much as $200 daily on the owners for code violations.
In the efforts of addressing predatory entities, San Francisco Board of Supervisors President David Chiu recently introduced a legislation that will have residents to register for short-term rental with the Department of Building Inspection. According to Chiu's website, residents will be able to secure two-year permits to rent their place if they can provide verification that it is their primary residence.
