By Diana Zelikman from Fueled (New York’s leading mobile app development and once in a while they write blog entries for betahaus.)
As of now, the Sharing Economy ideal poses a number of legal questions surrounding government regulation that can’t be easily answered. We, at Fueled, thought we’d check out one business whose implicated itself below.
Coming on the market, fast and loud, with a peer to peer exchange of a constantly sought after asset, Airbnb is an online community network that quickly connects individuals with rental properties to those who are seeking a place to stay on a short-term, temporary basis. Whether customers are looking for a quiet getaway in the mountains of Colorado or need a cozy penthouse with a view deep into the ever busy hub of Manhattan, this mobile app based company provides a means to an end, in a notably inexpensive way. Those who have property to rent on a short-term basis are able to do so with ease by posting the property online, giving way to a money making connection that would otherwise have been unavailable.
Although this may seem like a beautifully simple way to connect needy consumers without the overreaching arm of big business types, cities across the nation are concerned with the regulatory side of this apartment-to-bed-and-breakfast concept. The biggest issue? Regulations that relate directly to the business of short-term rentals are being called into play, specifically in the state of New York. Recently a statewide subpoena was issued to cease business activities for thousands of rental properties within the state, noting that the use of Airbnb to rent out a property violates these broad regulations.
The “Illegal Hotel Law,” an antiquated piece of legislation, was updated in 2010 to vaguely outlaw the “business” of renting an apartment for fewer than 30 days if the apartment owner is not present. This, in turn, has created a frustrating situation for the state while it attempts to collect potential tax revenue as well as enforce safety and insurance regulations that are applicable normally to solely traditional hotels.
Both the State of New York, in this case, as well as the businesses that stand to lose a hefty portion of an otherwise solid market share - the booming (and outlandishly expensive) New York hotel industry - and are trying to save the changing dynamic of the hotel industry. Their reasoning is if large hotel chains are susceptible to government imposition through regulation, the same should be expected of Airbnb users since they provide similar services.
Without viable regulations that can be applied directly to practicing sharing economy businesses such as Airbnb, it is nearly impossible to impose the type of control the state of New York is seeking. The concept that competition within an industry is only possible between big players is beginning to waver and large corporations are scrambling to create roadblocks wherever they can. Many similar issues were present when e-commerce sites like eBay and Amazon launched, so it’s clear that government regulations and the laws are out of date to say the least. There is no clear answer, however, to the New York Airbnb issue yet. But with the popularity of the Sharing Economy coming in strong, something will need to be done in an effort to remedy the problems facing renters – both those providing the property and those utilizing them – and the breakdown of big business as the only option within the hotel industry.
Orietta: When we started looking for a place I was already involved in the betahaus community. Working from previous betahaus locations and attending the community events, I already knew a lot of people in the 'haus ...
Joey: Yes, I remember on the first day we came to betahaus Orietta was like ‘’Oh, hey! Hi! Hey, how are you doing? Hi!'' giving high-fives to everybody and we were like: What is going on, why does she know everybody?!
Orietta: Well, the vibe in betahaus is just super easy going. You directly feel that you can meet people easily. If you go to the kitchen for example and just ask ''Hey how are you, what are you working on?''. We made many new contacts too.
Claudius: What makes it nice here is that people are enjoying being here and working on their projects.
Claudius: The truth is, we could probably afford an office for the same price, but that would put us between these four walls, which put you into a box, much harder to exit and to connect with new people. We went for a Team Desk because here we have so much more space and everything seems much more connected. You can easily meet people.
Orietta: And it’s just so spacious here. We have this super nice garden.
Claudius: I like being focused on my work but I also like if someone disturbs me from time to time. It helps when the door opens. In an office we would work in a whole different way. Here Gillord (Coworking Manager) is coming in everyday, giving me a hug, telling me about his workout .. that’s the main reason - the personal connection.
The day in betahaus starts with a hug and ends with a hug. The time in between is pretty much spent on doing what you love.
After you’ve taken care of your paperwork and you’ve signed up both in Bürger- and Finanzamt, you are all set up to start working. One of the best ways to get integrated into the city fast, meet like-minded people, and even find clients is by working from a coworking space. There are tons of benefits for freelancers and luckily Berlin has a lot to offer in this way. A coworking space is a physically collaborative shared workspace, which brings all kinds of creatives and entrepreneurs together. It’s a perfect place for startups, freelancers, digital nomads and even corporates searching for innovation. And it’s the biggest advantage towards the typical office space is that it pushes a collaborative exchange between its members and facilitates the creative process and networking.