San Francisco reaches settlement with Airbnb

SAN FRANCISCO - San Francisco has reached a settlement in a lawsuit filed by short-term rental companies Airbnb and HomeAway challenging an ordinance requiring them to make sure hosts are registered with the city, City Attorney Dennis Herrera announced this morning.

Airbnb sued the city last June after the Board of Supervisors passed legislation that would fine the company for every booking it accepted from unregistered hosts.

A federal judge later rejected most of the company's arguments but issued a stay on the legislation while the parties negotiated on the method of enforcement.

City law enacted in 2015 requires short-term rental owners to register with the city, obtain a business license and observe limits on the number of days a unit can be rented. It also prohibits multiple listings by the same owner.

However, few hosts have actually registered with the city, and short-term rental companies have previously shown reluctance to help the city enforce the law.