What’s the latest from the vacation rental industry?
Here’s a hint: New Orleans was in the spotlight this month—and not just because of the Super Bowl. In other news, Airbnb reported strong Q4 earnings and there’s movement on the regulation front in Dallas, Vermont, Montreal, Edinburgh, and…should we go on?
Better yet, read on to get the full lowdown.
Airbnb in the news
Airbnb vs. New Orleans
Whose responsibility is it to ensure vacation rentals comply with regulations? The City of New Orleans says responsibility falls to home-sharing platforms, but Airbnb doesn’t agree—and it’s taking the city to court to make its point.
More specifically, Airbnb is arguing that it is not responsible for hosts’ actions, and that enforcement should be the city’s job. Its lawsuit, which includes local short-term rental hosts, challenges this requirement for platforms to enforce permit compliance as well as the requirement to disclose private data, both of which are set to take effect in 2025.
Of course, this isn’t the first time Airbnb has sued a city over regulatory issues: Its 2016 lawsuit with San Francisco ended in a settlement, whereas its 2023 lawsuit against New York City surrounding Local Law 18 was ultimately dismissed.
So, how will this lawsuit end? Only time will tell.
Strong Q4 results
Legal matters aside, Airbnb has had a strong month, with its shares rising by over 13% after a report of positive Q4 results. The company reported a 12% year-over-year increase in Q4 revenue, which was $2.5 billion, as well as a Q4 net income of $461 million. This can be compared to its reported net loss of $349 million in Q4 2023.
Airbnb expects Q1 2025 revenue of between $2.23-$2.27 billion, while also announcing plans to launch a new travel offering in May with a $200-$250 million investment.
But that’s not all…
In other Airbnb news:
- Airbnb co-founder Joe Gebbia has joined Elon Musk’s Department of Government Efficiency (DOGE), marking a new role after stepping back from his position at Airbnb in 2022.
- Gebbia has also announced plans to donate $15 million worth of factory-built homes to support survivors of the Los Angeles wildfires, prioritizing low-income residents whose properties were destroyed, with the initiative coordinated by nonprofit Steadfast LA.
- Airbnb has warned that young people are particularly vulnerable to online fraud, with research showing that over 40% of those under 30 book holidays through social media. To prevent scams, the platform advises customers to use trusted platforms, avoid suspicious links, and secure their accounts.
- The platform has agreed to stop promoting animal ride experiences at Egypt’s Great Pyramids of Giza after an investigation by PETA (People for the Ethical Treatment of Animals) revealed widespread abuse and neglect of camels and horses used in tourist attractions.
Your monthly rules and regulations roundup
Short-term rental bans? Not in Dallas
Earlier this month, a Dallas-area appeals court ruled that the city cannot enforce ordinances banning short-term rentals in certain parts of the city, citing the harm it would do to property managers. The court found that the city failed to provide evidence of widespread violations and that the ordinances could violate property rights during the ongoing legal proceedings.
This decision follows a legal battle over new short-term rental (STR) regulations in Dallas and is part of a broader trend in Texas cities, including Austin and Houston, proposing or implementing similar restrictions on vacation rentals.
…But possibly in Vermont?
The outlook for vacation rentals in Vermont is somewhat more negative, with a new bill proposing restrictions that would drastically reduce the STRs in the state.
House Bill 242 proposes to require hosts to live on-site, restrict each property to one rental, and introduce a statewide registration system. While municipalities would be able to override restrictions, residents would have to vote to do so through a formal ballot process.
Critics of the bill, including the Vermont Short-Term Rental Alliance, argue that it would harm property owners and businesses, and are pushing for state-level regulations instead of repeated bans.
Montreal to (partially) ban STRs outside of summer months
Meanwhile, Montreal is implementing new short-term rental regulations starting June 10, including a partial ban from October to May.
During the summer months (June to September), renting out primary residences will be allowed, but stricter rules will apply outside this period, with only registered units in permitted zones allowed. The city aims to address housing shortages by freeing up 2,000 units and fining rule violators up to $1,000 per night.
Edinburgh reduces regulations during its festival period
Crossing the Atlantic, we arrive at Edinburgh, where the City Council has voted to ease STR licensing regulations during the peak festival period to address the soaring demand for accommodations. Thanks to this change, property owners renting out their primary residences will face fewer regulatory hurdles, with temporary exemptions on health and safety requirements like gas and fire safety checks.
While the changes aim to provide more options for festival-goers, the move has drawn criticism from industry groups, who argue that it could lead to unsafe accommodations and undermine existing regulations that were meant to ensure housing quality and availability.
And in the rest of the world?
Of course, these are hot topics not only in the English-speaking world, but all around the globe. February alone brought these additional news items:
- The mayors of Madrid and Barcelona met in the European Parliament to discuss solutions for the housing crisis. While Madrid focused on increasing housing supply and regulating short-term rentals, Barcelona proposed extending rent caps and even banning short-term rentals by 2028 to prioritize housing access over tourism.
- Under a new Sustainable Tourism Law in Andalusia, Spain, property owners of unlicensed vacation rentals could face fines of up to €600,000, with stricter regulations and enforcement measures aimed at combating overtourism and protecting local communities.
- Marseille City Hall has announced a reduction in the limit for short-term rentals at primary residences from 120 to 90 nights per year, following new national regulations aimed at addressing France’s housing shortage.
- The local government in Florence has ordered the removal of self check-in keyboxes at vacation rental properties, effective on February 25, with property owners facing fines for noncompliance.
- The Mayor of Cape Town has proposed a tax on short-term rental properties to address housing affordability, arguing that large-scale operators should be taxed like hotels. Critics warn that it could harm the city’s appeal to digital nomads.
Stronger together: partnerships and acquisitions
And now, a quick look at the new industry partnerships and acquisitions from the last few weeks:
- Beyond has partnered with Booking.com to offer vacation rental partners dynamic pricing and seamless listing management, helping them optimize revenue and occupancy while reaching new global guests.
- Vacasa has received an unsolicited proposal from Davidson Kempner Capital Management LP to acquire the company for $5.25 per share, which is under review alongside its ongoing merger agreement with Casago.
- HomeToGo has acquired Switzerland-based vacation property provider Interhome for €160 million, aiming to become Europe’s largest vacation rental platform and enhance its tech-enabled services.
- Flexible living operator Mint House has acquired residential hospitality company Locale, expanding its portfolio to 22 properties across 13 U.S. markets and strengthening its presence in locations like California, Wisconsin, and Arizona.
And here at Lodgify, let us introduce you to…
Our new CEO, Shaun Shirazian
We couldn’t be more excited to introduce our new CEO, Shaun Shirazian! Shirazian most recently served as the chief product officer at Pipedrive following senior leadership roles at Intuit and Procter & Gamble. He comes to Lodgify to help us expand our product offerings and ensure that even more hosts use Lodgify to maximize their success.
While we’re thrilled about this next phase of growth and innovation at Lodgify, it is of course a bittersweet change, as Shirazian replaces our co-founder and longstanding CEO Dennis Klett. But we’re glad that this isn’t a goodbye—Klett will continue to support our long-term strategy as a non-executive board member.
Also joining our board as chairman is Joaquim Lechá, former CEO of Typeform.
Read more about these changes here.
Lodgify Smart Locks
While we’re at it, let us acquaint you with our latest new offering: Lodgify Smart Locks.
We released Lodgify Smart Locks earlier this month to help hosts manage all their smart lock devices and brands from a single place—their Lodgify account. Lodgify Smart Locks also automatically generates and shares entry codes with guests for each reservation, ensuring streamlined check-in.
Read more about Lodgify Smart Locks here.
Until next time!
What does the vacation rental industry have in store next? Tax season, daylight savings, the beginning of spring…but we won’t get ahead of ourselves. Whatever the next few weeks bring, we’ll be back to report on them shortly!
