The gig economy — specifically, the short-term rental industry that includes HomeAway, Airbnb, and VRBO — is under attack by the city of Austin, Texas, according to a lawsuit filed in state court June 20, which was sponsored by the Texas Public Policy Foundation.
The lawsuit asks the court to issue an injunction halting the enforcement of an Austin city ordinance, which became effective March and governs short-term rentals.
The seven plaintiffs named in the lawsuit are people who either have sought to stay in short-term rental properties or to ease their residential properties for less than 30-day periods.
Neither the short-term tenants nor their landlords engage in any activities that should cause them to lose their rights to privacy and to assemble freely, according to Robert Henneke, general counsel for the Center for the American Future at TPPF.
But the lawsuit alleges that Austin’s short-term rental ordinance violates precisely those rights of the tenants and landlords.
Specifically, the ordinance bars the gathering of more than 10 people inside the short-term rentals and more than six in the front or backyards of the homes. It also limits to sleeping or “any joint activities” in the homes after 10 p.m.
The ordinance also requires the landlords and tenants to permit law enforcement officers into their homes to “enter, examine, and survey, at all reasonable times, all buildings, dwelling units, guest rooms, and premises,” even if the officers don’t present a search warrant.
The ordinance represents part of a trend that allows for the “Californization” of the central Texas city or a region where more government regulation, rather than less, is the norm, said James Quintero, director of the Center for Local Governance at TPPF.
You can see a copy of the lawsuit here, via the Austin Business Journal, which also provides some info about the rental ban, which passed in February. I know nothing about this saga, but I do know that aside from a few stray criminal justice issues, the TPPF is wrong about pretty much everything, in particular matters relating to government regulation. Which doesn’t mean they can’t or won’t prevail in court, of course, just that one should never expect them to be on the side of the greater good. The state of Texas does not currently play a role in regulating short-term rentals. Given this action, I won’t be surprised to see some kind of statewide AirBnB bill pushed in the next legislative session, in the same way that a statewide Uber/Lyft bill is being touted; the TPPF name-checked Uber and Lyft in their statement, so you can see how that will play out. The Statesman has more if you have access to their premium content.