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AirBnB: Cheap, Convenient, Potentially Illegal - in Richmond

Airbnb is a prime example of what’s known as the sharing economy - homeowners renting out rooms on a short-term basis to visitors looking for a low-cost alternative to hotels.  Booking occurs through the company’s website, which takes a cut.  Users says it’s a great way to make extra cash, but some cities - like Richmond -- claim the practice is illegal, as Sandy Hausman reports.

Deborah Doe shares her historic Richmond home with three zebra finches, a dog and a cat.  She also welcomes guests from around the world - collecting about $70 a night through Airbnb.

“ It’s wonderful making the extra money, but I also enjoy meeting the people.  Probably two dozen of the people who have stayed here are now my Facebook friends.”

And guests apparently enjoy the experience too.  They rate her a top host on the website.  She’ll  pick them up  at the train station, the bus stop or airport, serve them steel cut oatmeal and - like other Airbnb hosts,  offer  personal  advice.

“We know the city.  We’re not just referring people who bring in brochures and say. ‘Please pus this.”  We’re saying ,’Iif you really want to see some local color, go Hollywood cemetery .  Well nobody’s out there pushing Hollywood cemetery, because they don’t make any money, but it’s one of the most beautiful places in the city.”

But Doe - who asked that we not use her real name - was alarmed to learn that in Richmond it’s not legal to rent rooms in residential areas on a short-term basis. 

“If they’re caught doing it, you have x many days to fix this before  we fine you.”

That’s City Councilman Parker Agelasto.  He says the law was originally written to keep boarding houses out of tony residential neighborhoods.  A few owners of Bed and Breakfasts have managed to get a special use permit for a price.

“A thousand dollars to file the application, and then you’re not guaranteed you will be approved.”

But for homeowners like Deborah Doe, who is semi-retired, that fee is too much.  The city’s decision to crack down on Airbnb comes at a bad time for Richmond, which expects nearly half a million visitors for a series of international bike races in September.

“A lot of people have heard this figure of 450,000 spectators.  That is over the course of nine days, so you could have one visitor who is here each of all nine days, but they get counted nine times. You also count the local population who comes out to see this.”

Still, Agelasto says the region could run out of hotel rooms, and about 200 properties now listed on Airbnb might be needed.

Now it turns out Richmond is not the first city to tackle questions of whether and how to regulate properties rented through the likes of Airbnb, Flip Key, Homeaway andVRBO.  Matthew Kiessling  is Executive Director of the Short Term Rental Advocacy Center in D.C.

“We were involved in Portland and San Francisco and saw some less than fantastic regulation get passed, and ultimately both those cities are having a lot of trouble, because the regulations they did wind up passing are largely unenforceable.”

Property owners were supposed to register with those cities, but very few did. 

Charlottesville attorney Peter Caramanis says some neighbors have concerns about short-term rentals.

“Concerns about this proliferating to the point where a neighborhood will lose its character, because a large proportion of the homes are now being used as rentals, and some of it is honestly lobbying from the hotel industry  -- whether the proper taxes are being paid and whether there’s level playing field for these tourism options.”

But, for the most part, he claims there have been few problems, and Travis Wilburn, President of the Virginia Short Term Lodging Association, says many more places are likely to face questions about regulation, given the trends.

“You see a lot of talk across the country as people are going back from corporate America, looking at local.  They want that local experience, and this is just one piece of that. It’s just that the mentality of America is shifting.”

Fortunately for homeowners who offer rooms or whole houses through online sites, big companies like Arbnb are not sitting this fight out.  They’re bankrolling the Short Term Rental Association in Washington - offering support for owners and renters advocating for sensible regulations.

Charlottesville is expected to consider an ordinance governing short-term rentals soon, Albemarle County is updating its rules, and Roanoke requires a special permit which costs about $250.

Sandy Hausman is Radio IQ's Charlottesville Bureau Chief
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