So what does Airbnb do when a property owner demands Airbnb delist his property from its site? Clearly an owner has more right than his tenant to determine where his property is rented, especially if their lease agreement prohibits short term rentals.

If Airbnb received a legal notice from a property owner demanding it delist his property, it seems like they would have to comply. Otherwise they might face a pretty simple case of negligence for listing an owner's property for rent without his approval. The only evidence the owner needs to supply is a signed copy of the lease and public records of ownership.

So why aren't landlords doing this? I think the issue is either they don't care, or there's no easy way to do it. Perhaps somebody should set up a service that facilitates this process by reducing it to uploading a copy of the lease agreement and ownership records, then sending a request to Airbnb. If enough property owners use a service like that, it could gain some significant attention.