Except, some of that regulation is important. If you're in a hotel, and there's a fire, you know to follow the signs out. There are exit signs, emergency lights, and maps showing you where to go. In someone's house, they don't have any of that, which isn't an issue for the person living there, because of course they know how to get out of their own house. But when it's being rented out, there are certain regulations to make sure that someone unfamiliar with a building can still exit in a fire.

Driving up rent is something that's probably unavoidable, but safety is something AirBNB could try to enforce if they wanted to.