SAN FRANCISCO — The nation’s largest vacation-home rental website is suing San Francisco, claiming a new law to regulate short-term rentals in private homes unfairly benefits hometown company Airbnb.
HomeAway claims the law discriminates against second-home owners as well as companies and people not based in San Francisco who advertise short-term rentals in the city.
The company claims it effectively turns over control of short-term rentals to San Francisco-based Airbnb.
City Attorney Dennis Herrera said the suit is without merit.
Short-term rentals have long been illegal in the city, but the law is only loosely enforced.
HomeAway co-founder Carl Shepherd says in a statement that the law stifles opportunity and discriminates against vacation-rental website companies by mandating they collect and remit San Francisco’s 14 percent hotel tax.