Question

In the last few years, Airbnb has become an increasingly popular option for travelers and homeowners. For those not familiar with the business model, Airbnb is a company that, for a fee, matches up short term renters with property owners. On the website, prospective customers can look at homes or apartments in a particular area, see the terms and amenities and contract for a particular amount of time, usually a few days or weeks. Home or apartment owners can screen prospective renters and set particular terms for the rental. In the last year, certain cities and/or areas have banned these transactions and claim that the Airbnb hosts are in actuality running "illegal hotels" not subject to the usual hotel health and safety regulations. Home owners are countering that they have the right to rent out the property they own.

How do you think the various theorists (utilitarian, libertarian, Rawls) would view this ban? Remember, your discussion is on the ethics of the law. Please discuss the different theories specifically.

Answer 1

Law is designed to protect and regularize human society, there are pros and cons as per each theory:

utilitarian: Where benefit drives all actions.

Libertarian: Where freedom drives all actions.

Rawls: Equality is the key to everything, and so all actions should be as per giving equity.

Benefits to renters and people using:

• Direct income source to renters (utilitarian)
• A platform that allows short term renting with valid background check (Libertarian)
• Easy and cost effective options, with frill and without frills. Everyone has the right to choose what they want (Rawls)
• Options for not going to expensive hotels, and more so when the hotel facilities are not required. (Rawls, utilitarian)

Drawbacks

• Security concern and danger, as terrorists could stay with valid or invalid id proofs . (utilitarian)
• Identity theft, and similar illegal activity could lead to rent out other's houses, which remain vaccant. (utilitarian)
• No control of movement of people, which is generally better as hotels can be easily tracked by police or security. As most of the owners rent out virtually from a remote location. (Libertarian)
• Taxes for government, as tracking airbnb owner's income from renting out is not as per any agreement, all should pay tax as per their income and this leads to tax evasion. (Rawls)