Airbnb Inc. is fighting a battle in its own backyard as it campaign against San Francisco's Proposition F, an initiative that would limit the company's short-term rentals, according to a report from Reuters.
Airbnb has spent more than $8 million and hired a top political operative to campaign against the proposition.
Reuters adds that Proposition F was brought by affordable housing advocates who are not happy that the city's housing stock are being used as short-time rentals for tourists while residents face increasing rentals and evictions.
The public will vote on Proposition F on Tuesday, November 3, 2015.
Reuters adds that at stake on the initiative is Airbnb's ability to continue adding rentals at a faster pace, increasing its revenue, and maintaining its $25.5 billion valuation.
The company's bottom line are in greater scrutiny as it moves closer to an initial public offering.
The Washington Times-Reporter adds that Proposition F would limit the number of days a host can rent their homes to Airbnb to a total of 75 per year.
Under the law created by the San Francisco government in 2014, hosts are capped at 90 days for rentals that are un-hosted.
But hosts can have an unlimited amount if they are present during the stay of the guests, according to the Washington Times-Reporter.
The law has already undergone several revisions this spring after it was believed to be unenforceable.
Bloomberg adds that Airbnb had hired Chris Lehane, a political operative during the time of former president Bill Clinton, in August to battle against the initiative.
Lehane, a former crisis manager at the White House and known as the "master of disaster," was hired to be the company's global policy chief.
Reuters adds the company conducted a poll on last October 25-27, 2015 and found that 55 percent of the respondents plan to vote against the initiative.
David Binder Research conducted the poll for the "No on F campaign," which was funded by Airbnb.
Lehane told Reuters that they are using this battle to create a playbook that the company can use for other political challenges.
"It will inform us of not only how we work in San Francisco but around the world," he said.
Reuters adds that Airbnb has spent close to $2 million in a campaign in San Francisco.
The company organized more than 400 volunteers to knock on doors.
Reuters adds that Proposition F alone will not have any significant impact on Airbnb's growth.
The company has only about 5,000 rentals in San Francisco.
The problem for Airbnb is that other communities are watching this battle and Dale Carlson, the founder of the "Prop F campaign," told Reuters that he has discussed the proposal to officials and housing advocates in other cities.
He said that he has discussed the proposal with advocates in New York, Chicago, Los Angeles and other cities.
