The fire that struck an Appleton St. home said to be listed as an AirBnb offering has raised questions about the safety and propriety of certain buildings being used in such a capacity. — Photo by Bobbie Toner

By Joe Ruvido

A fire ripped through a 3-family house on Appleton St. in late January, prompting people to jump from 2nd floor windows to safety. The fire department has kept a detail at the house around the clock since then.

The façade is now burnt to a charred crisp. The cause of the fire was most likely the “inappropriate disposal of smoking materials” according to Somerville’s fire examiner.

According to documents released by AirBnb, Somerville has 813 active listings as of January. The majority of these (62%) are private rooms in houses or apartments where a host may or may not be present along with a renter. Most of the remaining 38% are rentals of entire homes.

That renters are less accountable than owners for property upkeep is one basis for the added scrutiny. AirBnb says their business model counters this logic. After a stay, a renter rates both the house and the host, and the host rates the renter in terms of cleanliness and respect of house rules. Renters are keen to keep a good rating to book future homes and lofts while homeowners look to keep up high ratings to get future business.

City and state officials are taking a serious look at the impact of AirBnb type rentals on the economy as well as safety issues that have been raised.

“It’s part of the sharing economy, it’s cheaper, and it’s more authentic than staying in a hotel,” said Tom Goldstone, 32, of Somerville. Goldstone says that incidents like the fire are anecdotal and won’t deter him from using the service in the future.

Yet fires set in cities as densely populated as Somerville have Somerville aldermen taking a more cautious approach. “It appears that smoke detectors did go off so that residents could get out quickly. Fortunately there were no serious injuries,” remarked Alderman At-Large Jack Connolly, who noted that Somerville and the State of Massachusetts are both looking into possible regulations of the service. Massachusetts Senator Elizabeth Warren joined Senators last summer in calling for added scrutiny of the service. Policy tools that Somerville could impose include permit and licensing restrictions for hosts as well as occupancy taxes and fees.

Others are concerned about AirBnB’s role in Somerville’s rapidly appreciating housing and rental markets. “I am concerned Airbnb could negatively affect available housing for families and artificially increase the cost of real estate,” said Alderman At-Large Dennis Sullivan. To that end, there is evidence that AirBnb has affected the vacancy rate in already densely populated New York City, driving up rents. Also, the ratio of AirBnb rental units to owners is increasing, evidence that the rental service is becoming increasingly commercialized.

At the same time, Sullivan says that some residents are serving as AirBnb hosts to make ends meet. AirBnb sent a letter to the mayor and the Board earlier this month defending the role of home sharing in the community and expressing the company’s willingness to work with the city regarding policy. “Smart policymaking will allow home sharing to achieve its potential as an economic, social and environmental solution, not just for the everyday people who take part in it, but for the cities and other local governments that stand to benefit from it,” says the letter. The Board of Aldermen referred the letter and considerations on AirBnb taxes to committee.