The Wall Street Journal's Laura Kusisto examines the push-back Airbnb has faced from many local governments, as well as a new start-up that helps root out illegal short-term listings.

While Airbnb has disrupted the hotel industry, it's also shaking up the multifamily world, with many city governments worried that the business model is contributing to a lack of affordable housing. Many multifamily owners have struggled with the issue as well, as tenants sublet their units without warning, and against lease terms.

But a start-up called Host Compliance is helping cities find the most egregious offenders.

... governments have found that the new laws have proven difficult to enforce because Airbnb and rival sites often don’t publicly list addresses, making it a time-consuming process to find offenders.

Host Compliance compiles data such as the location of short-term rental listings to provide cities with reports on which listings violate local rules. The service also can help municipalities understand rental activity better so they can craft more effective regulations.

“What we’re trying to get through is a transition from the Wild West to something that’s a sustainable business,” said Host Compliance Chief Executive Ulrik Binzer.

Read more >