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What is Airbnb, how does it work and and why have ‘party houses’ been banned?

AIRBNB has become a global phenomenon as holiday-goers save some money in ready-to-go homes at a reasonable price.

The rental tour de force has taken off in the past few years as people rent out their homes quickly and easily - although it doesn't always go to plan.

 It's easy to browse the site of US home sharing giant Airbnb online
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It's easy to browse the site of US home sharing giant Airbnb onlineCredit: Getty Images

What is Airbnb?

The company describes itself as a peer-to-peer online marketplace and homestay network that allows people to list or rent short-term lodging in residential properties.

The cost of the accommodation varies, but it always set by the property owner.

The company makes its money through a per cent of service fees from guests and hosts with every booking.

There are more than 2,000,000 listings in 34,000 cities and 191 countries.

When was Airbnb founded?

It was founded in August 2008 and has a headquarters in San Francisco.

The idea came to Brian Chesky and Joe Gebbia in 2007 when they could not afford the rent for their apartment.

So they made their living room into a bed and breakfast for three guests and provided homemade breakfast.

From there they raised money to get started, worked with investors and it became the global powerhouse of short breaks and easy accommodation it is today.

 CMO, Airbnb, Jonathan Mildenhall speaks onstage during Community Driven Business & Brand at The Los Angeles Theatre during Airbnb Open LA
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CMO, Airbnb, Jonathan Mildenhall speaks onstage during Community Driven Business & Brand at The Los Angeles Theatre during Airbnb Open LACredit: Getty Images

How does Airbnb work?

It is as simple as booking a hotel online - the website allows you to browse through location and price and you can see reviews of past visitors.

From there you pay the fee and can just turn up.

Hosts make money by renting out their homes, and Airbnb takes a cut too.

And it is not just houses that have been listed on the site.

Recently a cheeky Airbnb owner listed his tent for rent on a Belfast roadside for £7 a night.

It has expanded recently to include experiences as well as accommodation - so people can buy packages such as a tour or a cultural experience guided by the host.

Mr Chesky, co-founder and CEO, said it would be "magical and easy".

  • Book an Airbnb rental
  • Find out more about becoming a host

Why has Airbnb been controversial?

In some areas where Airbnb operates there are rules about renting out a home in the way that the company does.

Earlier this year the south London suburb of Peckham became the latest region to crackdown on the use of Airbnb.

Southwark Council sent leaflets urging residents in current or former council properties not to let out rooms or houses for short term visitors.

"As far as we are concerned our homes are homes, not hotels," said Southwark councillor Stephanie Cryan.

"We want people in our council homes and on our council estates who are a part of the community, not visitors passing through."

New York does not allow short-term rentals unless the occupier is home and there are tax issues surrounding holiday rentals.

It is harder to police housing standards in custom with local law and regulations.

Why have 'party houses' been banned?

A spate of incidents where properties were vandalised and damaged during unauthorised house parties has prompted a response from Airbnb to ban 'party houses'.

In June 100 party-goers descended on a rented flat in posh London street - although revellers were said not to have damaged much, some renters can find their home trashed.

And a mass shooting at a California home rented through the company left five people dead in November 2019.

Three people died at the house and two more died later in hospital.

The house was reportedly booked under a pretence for a small group, but was publicised on Instagram as the venue for a Halloween party.

A crowd of more than 100 people turned up which the host did not authorise, Airbnb said.

CEO Brian Chesky tweeted the company would take steps to "combat unauthorized parties and get rid of abusive host and guest conduct".

Hoteliers claim it leads to an uneven playing field.

But the future still looks bright for Airbnb which hopes to push into the Chinese market and has recently sidestepped some regulation battles in the courts.

The company hopes to float on the stock market by 2020.

US President Donald Trump's childhood home is up for rent on Airbnb
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