The guy in question stayed in the apartment himself and let friends stay for free. So he's off the hook; short-term rental wasn't the sole use of the property.
This entire line of argumentation relies on the fact that there is (maybe) not a clear distinction between hotel and not-hotel.
Engineer-ish types take this to mean that the line is arbitrary and therefore irrelevant, concerns addressed by that distinction are invalid, and efforts to circumvent/exploit it are victories in the battle against analog logic. Other people understand that fuzzy definitions do not mean that the distinction therein is imaginary, merely difficult to identify.
If you've ever heard the phrase "don't throw out the baby with the bathwater," it applies here.
Throwing out the baby with the bathwater is preventing people like OP from doing what he's doing just because some guests might be a nuisance. What about we fine the house owner over those guests instead?
The problem is that the article itself tells us that AirBnB's protection mechanism to keep bad renters out it is broken (don't leave bad reviews for fear of getting bad reviews yourself). So AirBnB is taking all the benefit from this market, without providing a working way to curb any abuses.
My guess is that the fine is either a slap on the wrist (so the house owner just chalks it up to business expense) or so sever that the house owner stops doing short-term rentals entirely. I've not used AirBNB, but I assume that the house owner doesn't really know anything about the renters most of the time.
One solution might be to pass the fine onto the renters, but that leads to another problem: "Quiet" renters would probably be more put off by the possibility of an extra surprise charge than "Party" renters. The latter category probably ignore the penalty clause when booking the apartment and then try to avoid paying the fine after the fact. So now your set of renters is mostly loud partiers and the problem is even worse.
> My guess is that the fine is either a slap on the wrist (so the house owner just chalks it up to business expense) or so sever[e] that the house owner stops doing short-term rentals entirely.
This is tautologous. Either the owner does not cease to rent out his unit, in which case fines are a business expense, or he does. What sort of third option were you imagining might happen?
The fine should high enough to serve as deterrent. If the house owner doesn't know anything about the renters, s/he can either ask for a bond from the tenants that covers the fine (and deal with the loss of customers) or AirBnB or a competitor could offer better vetting of tenants.
My post was in response to the parent, which suggested that any property "solely" used for short-term leases should be regulated.
I was not suggesting that was a useful or appropriate test. Leaving aside the question of whether regulation is necessary, a "dominant purpose" or even "substantial purpose" test would lead to less absurdity.
Engineer-ish types take this to mean that the line is arbitrary and therefore irrelevant, concerns addressed by that distinction are invalid, and efforts to circumvent/exploit it are victories in the battle against analog logic. Other people understand that fuzzy definitions do not mean that the distinction therein is imaginary, merely difficult to identify.
If you've ever heard the phrase "don't throw out the baby with the bathwater," it applies here.