Airbnb settles with Miami Beach landlord in short-term rental dispute

Airbnb has settled a lawsuit with one of the nation’s largest residential property landlords, Aimco, just before trial was set to begin in a Miami court.

Denver-based Aimco sued Airbnb in February 2017 for allegedly permitting short-term rental listings at its three Miami Beach locations (Bay Parc Plaza Apartments, Flamingo North Tower, and Flamingo Center Tower) on its website even though Aimco lease contracts prohibit the practice. Aimco wanted the court to force Airbnb to remove the listings and cough up punitive damages for associated costs.

After grilling potential jurors Monday about their experiences using Airbnb and their links to property management companies, the two sides picked an all-male jury to start trial Tuesday. But before trial began, the companies agreed to settle. Terms were not disclosed.

“Aimco believes that the parties’ agreement provides Aimco with the ability to control short-term rental activity consistent with its contract and property rights,” both parties said in a statement about the settlement. “As part of the settlement, Aimco and Airbnb have agreed to meet to discuss opportunities in the multifamily housing industry.”

In its lawsuit, Aimco claimed that it had contacted Airbnb several times about illegal listings in its buildings and that the company never responded. Airbnb tried to get the case dismissed by arguing it was not liable for what hosts do on its website under the 1996 Communications Decency Act. The judge disagreed and the case moved forward.

Because of the secret nature of the settlement, this case is unlikely to impact other ongoing Airbnb lawsuits.

Miami Beach has become increasingly hostile to Airbnb hosts, with the highest fines for short term renting in the country at $20,000 a pop. A judge recently ruled that Miami Beach had to turn the water back on at the home of a resident who had racked up $200,000 in fines.

This story was originally published December 11, 2018 at 6:22 PM.