Airbnb CEO Brian Chesky

A new law passed in San Francisco yesterday will make it easier for residents and travelers to use social network room rental services like Airbnb Inc. and VRBO (a branch of HomeAway Inc.) within the city.

These services allow people to temporarily rent out their homes while they are away, giving homeowners a bit of extra income and giving travelers a cheaper, more private alternative to hotels. Airbnb boasts that its service is the “easiest way for people to monetize their extra space and showcase it to an audience of millions.”

Previously, the city of San Francisco banned residents from temporarily renting out space for anything less than 30 days. The new law lifts this ban, allowing short-term rentals and opening the door for Airbnb.

The new law is not without its opponents, however. U.S. Senator and former mayor of San Francisco Dianne Feinstein wrote a letter condemning the law and urging the current mayor to veto it. Sen. Feinstein said:

As such, those of us who value the residential character of our neighborhoods and are invested in the city’s quality of life will see all of this washed away by a blanket commercialization of our neighborhoods.

This would not be the first housing or zoning controversy in San Francisco, as the booming technology industry in the area has dramatically raised the cost of living and is driving out many non-tech residents in what has been called the San Francisco housing crisis.

The crisis might be offset as more and more office jobs are created, but the zoning laws in some areas prevent sufficient housing from being built to support the influx of jobs. A proposed business park in Mountain View earlier this year could bring as many as 42,000 new employees to the area, but the nearby North Bayshore area would only allow 7,000 new homes to be constructed by 2030.

Despite Sen. Feinstein’s criticisms, Airbnb is optimistic about the new short-term rental law. Airbnb said in a statement: “This balanced and sensible legislation will help San Franciscans share their home and the city they love and earn a little extra money to pay the bills. We look forward to working with everyone to make this city an even better place to visit and call home.”