I think "potential illegal uses" is a pretty common argument against short-term rentals, and prostitution isn't exactly a non-obvious one. It's just generally a bit easier on the neighbors than, for example, crazy parties or drug houses, which are both commonly-touted (and valid) arguments against short-term rentals.
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https://news.ycombinator.com/item?id=2801400 is a great thread in many ways considering AirBnB's recent press.
I think "potential illegal uses" is a pretty common argument against short-term rentals, and prostitution isn't exactly a non-obvious one. It's just generally a bit easier on the neighbors than, for example, crazy parties or drug houses, which are both commonly-touted (and valid) arguments against short-term rentals.