The "Sharing" Economy: Issues Facing Platforms, Participants, and Regulators A Federal Trade Commission Workshop
Airbnb, VRBO, etc. are actively encouraging people to break local laws which prohibit vacation rentals in Residential Zones. The "business" encourages speculation in apartment buildings and homes for the purpose of renting units as short term vacation rentals. These companies know it is illegal in most places in the US yet they hide behind an outdated pretense that a person is just sharing a room or a couch, thus the euphemism "sharing economy". It is illegal rental economy. Many cities do not have staff to police this unlawful practice. The upshot - more ad more housing units are pulled from housing stock for full time residents. The character of residential neighborhoods is threatened. Crime by "alleged" renters and potentials for altercations with unruly, out of control parties with no concern for neighbors is on the rise. Investors in these "arranging" companies are in for a surprise as legal claims including RICO claims can be asserted against them. They aid and abet the violations for money.