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Home sharing site Airbnb faced lawsuit by Aimco for violating the lease regulations

Airbnb stands for Air Bed and Breakfast that founded in the year 2008 that offers the hospitality services across the world with more than three million accommodation listings. It operates in sixty five thousand cities in 192 countries and it benefits both the hosts and the guests. On August 2008, Airbedandbreakfast.com website was officially launched.

 The company has initially started a website that provides short-term accommodation, breakfast and offered an opportunity of distinctive business networking for the people who were unable to book a room in the hotel. Airbnb is also similar to all other hospitality services that consist of sharing and collaborative consumption.

Its name was changed as Airbnb.com in March 2009 and its website content also expanded from shared places and air beds to different kinds of lodging facilities such as private rooms, apartments, entire homes, castles, manors, tree houses, private islands, igloos, tipis and some other properties.

According to the reports, Airbnb has obtained more profit in the latter half of 2016, which is the company’s first profitable year in its history. The company’s total revenue has grown more than eighty percent in the year 2016 and it also predicted that the firm will obtain more profit in the upcoming year.

Aimco suing Airbnb

Apartment Investment and Management Company or Aimco is one of the largest operators and owners of flat communities in the US and has its headquarters in Denver. It is offering 250,000 inhabitants in twenty two states and it mainly focused on the renovation of older apartments in any premiere places.

The major holder of apartment buildings Aimco has filed a case against Airbnb and asking for a rule that would ban the service of Airbnb in the United States. It also seeking repayment for the lost income and property damage and it claimed that the Airbnb allows the tenants to violate the conditions of the lease. This lawsuit is the yet another problem faced by the home sharing website, where it already struggled with the city officials of San Francisco, Berlin, and New York.

Reason for the suit

Aimco filed a case against the Airbnb stated that the tenants came through Airbnb are breaking the lease conditions regulated by the country. Hence, the other renters are not interested in offering subleases for short period of time. It also claimed that the guests are causing damage to the properties and it added that this scenario creates an unsafe situation for all other residents.

The company described the guests of Airbnb as intruders and they are not thoroughly examined before providing rooms to them. The past personal history of the persons is also not verified and most of them are not maintaining a peaceful atmosphere. It also said that the guests are involving in the troublesome activities such as public intoxication and creating chaos.

Airbnb response

A spokesperson of Airbnb stated that the law would affect the middle-class families, which boosting up their financial status through these rental services. It also quoted that it as an attack by a powerful source to the middle-class community. But, according to the reports, listings in Airbnb consist of a majority of investors and full-timers who bought many apartments, especially for the short term rentals.

Aimco and its claims

Apartment Investment and Management Company (Aimco) has filed a case against Airbnb in Florida and California state courts. The country’s largest apartment operators and owners seeking money for the damages caused by the Airbnb guests and it also asked to ban the Airbnb and other online hospitality providers from the state.

Aimco lease agreements have some prohibitions and the short-term rental system provided by any online services was also considered as forbidden. The clients of Airbnb are impermanent and they may cause damage to the safety of the full-time residents of Aimco.

Process in Aimco

The company has tried a lot to provide extraordinary customer services to its customers and it also attempts to make a safe environment that is free from any disturbances. All the potential residents of Aimco will go through the criminal background checks and solvency history before they are accepted as registered renters.

After the successful completion of all the verifications, the residents must sign the Good Neighbor Policy of the company that is one part of the lease and this policy is to provide a good behavior and deliberation for the neighbors. But, the activities of the Airbnb and other guests are contrasted with the policy followed by the Aimco.   

The procedures followed by the Airbnb and other services are violating the policies of Aimco leases where the guests of Airbnb are trespassers and those people did not undergo any background checks, hence their past personal histories are not thoroughly examined. In some of the cases, these trespassers created noise, safety and nuisance problems to the qualified Aimco’s residents and even they are not interested in maintaining a peaceful living environment. Some of the Airbnb guests have involved in the trouble actions like drinking in the public and fighting that requires police assistance.

Required demands

The CEO of Aimco said that they were considering their residents as a top priority and it was their responsibility to provide a safe and deferential environment to the residents. He also stated that the Airbnb was actively promoting and making profits from the intentional breaches of Aimco’s leases and it also created the unsafe and disrespectful scenarios to the full-time qualified Aimco residents and their families.

Hence, the company was asking financial compensation from Airbnb for the losses they have made to the residents and prohibit Airbnb from the involvement in further illegitimate activity at the Aimco’s properties. By eliminating the Airbnb service, the qualified Aimco residents can avail a better living experience and they can enjoy the high quality peaceful living environment.

Aimco has already informed Airbnb about the lease violations on October, August, and December of 2016 and it notified that the lists available on the Airbnb site were violating the lease regulations. But, Airbnb did not provide any response and it has continued its process of providing a lease of apartments to the subtenants. This activity of Airbnb caused several damages to the law-abiding residents of Aimco that includes property damage, noise disturbance, nuisance and loss of income.

Experienced hosts of Airbnb

Airbnb was trying to increase the number of landlords by providing different services to them and recently it has introduced a new service named “Experienced Hosts”. This service would connect the potential hosts with the existing super hosts in order to maintain their properties and super hosts are the hosts who are considered as the verified badge that depends upon some factors such as guest approval, response time and more.

The company said that the new service was introduced to provide a better experience to all the guests and hosts in an equal way. This service is now available as just a trail version and separate active pages are provided to this service in the Airbnb’s website. This service is now active in Tokyo and there are about 92 hosts are ready to help the residents to maintain their property.

The experienced hosts can do various services to the owners and some of the services are listing and promoting a property, helping the owners to maintain the pricing and calendar, managing the homes clean and fill all the stocks, and handling the guest relationship that also involves welcoming the guests.

Author Bio : Anand Rajendran is the Co-Founder and CEO of Zoplay,a best android apps development company in Chennai. As a digital marketer, his main objective is to create new apps with latest coding scripts. The Renters Software Script available from his company is mainly meant for Ios and Android users which is also Airbnb clone script.

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