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Numerous North American cities have imposed restrictions on short-term housing rentals. A 2016 Techdirt article reported that municipalities in the United States aiming to restrict Airbnb and its hosts would be in violation of Section 230 of the Communications Decency Act, which does not allow prosecution of Internet-based platforms based on a user failing to comply with local laws.
The move was criticized by some rental hosts, stating it would deprive them of much needed income. These implementations were also criticized by the opposing Non-Partisan Association. Councillor George Affleck argued it was creating more bureaucracy, taxation and sticks, which was not solving the problem. He argued it made Vancouver a more difficult and costly place to live, also giving the opinion that more long term rental housing needs to be built. Airbnb's public policy manager for Canada welcomed the move of making short term rental legal, but criticized the ban on secondary suites from being rented. The company was also considering challenging the move, arguing that many family home spaces are saved for friends and relatives and would not be available for the long term rental market regardless.
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Many landlords have complained and resisted long-term tenants who sublet their rented space on Airbnb and profit from it without consent from the landlord. In many cases, landlords cannot instantly evict their tenants for subletting because of rental laws. A similar law in Quebec that protects tenants also does not hold them legally eligible when subletting their rented spaces as landlords would in the case of long-term rental. In 2016, Airbnb offered to work with landlords whose tenants list their properties on and launched a program consisting of mutual agreements for subletting if the landlords agreed to it and that it was legal in their local municipalities.
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In January 2018, a federal court ruled in favor of Airbnb in a lawsuit filed by Aimco involving its tenants illegally subletting their rented spaces on Airbnb. The court defended Airbnb under Section 230 of the Communications Decency Act which does not hold Internet based services liable for the actions of their users. Instead the tenants are believed to be held responsible for illegally subletting their spaces without attaining prior consent from their landlords.
Some cities have restrictions on subletting for a short period of time. Airbnb has published a list of regulations and requirements for cities in the United States. In some cities, collection of a transient occupancy tax by Airbnb is required. In many cities, hosts must register with the government and obtain a permit or license. Landlords or community associations may have restrictions on short-term sublets.