During the January 2016 U.S. Conference of Mayors (USCM) Winter Meeting, the American Hotel & Lodging Association (AH&LA) distributed a study conducted by researchers at Penn State University's School of Hospitality Management highlighting the impact of short-term rental businesses such as the popular Airbnb. The study "From Air Mattresses to Unregulated Business: An Analysis of the Other Side of Airbnb," identifies the apartment housing industry as a primary culprit to fostering what it terms as an "illegal hotel." Historically, the apartment housing industry has not had a formal policy on short-term rentals beyond a prohibition on the practice of residents illegally sub-letting in violation of a lease agreement. As an industry that traditionally prefers the benefits and security of a long-term lease, the industry has taken a "wait and see" approach to this burgeoning market. 

Unfortunately, the AH&LA study has created a liability that could impact the greater apartment housing industry—not just to those that participate in short-term leases. Specifically, the report could encourage municipalities to create additional fees on the apartment housing industry. The vehicle for doing so could include the all too familiar creation or expansion of registration and inspection programs on the industry and the assessment fees to support them. As the issue progresses, NAA will continue to update the industry on new developments in this area as they happen.