“Responding to an evolving hospitality industry, the Texas Hotel & Lodging Association recently started crafting legislation that would give property owners reason to pause before opening their homes and apartments to temporary guests.” The Houston Chronicle reported this story on December 10, 2014, which details the THLA’s attempts to introduce legislation that would regulate innovative short-term lodging businesses such as Airbnb, HomeAway, and VRBO.
In my last article on government regulation, I dealt with the Houston City Council’s similar attempts to regulate ride-sharing services Über and Lyft. This story is the same old story. Businesses like Airbnb, HomeAway, and VRBO allow homeowners to put up rooms in their homes for short-term lodgers, much like a hotel or inn, except it is a cheaper and “cozier” alternative to more traditional lodging choices. These rental websites have grown in popularity thanks in part to the success of the “sharing economy,” and it has benefitted both travelers and homeowners. The barriers to entry are low for homeowners, and the lodging choices are cheaper for travelers.
See the rest of my article at HBU's The Kingdom Economy website here.