I'd like to focus solely on the issue of "your neighbours didn't sign up for you opening a hotel". Of course my neighbors have a right to not be unreasonably disturbed by my own existence. Most communities have noise violation laws and other citations for creating an undesirable atmosphere.
The folks offering short-term rents are not excused from such laws. Why do we need new laws? If your neighbor's short-term tennats are loud assholes, make a noise complaint.
It's like saying: there is no need for zoning, if industrial activity creates noises/hazards, just sue!
There is a place for piecemeal litigation of individual disputes. There is also a place for regulation and zoning to maintain order, especially in a large, tightly-packed city.
And what will that solve? In a day or two the tenants will be gone, replaced by other loud assholes. The complaint solves nothing, as the neighbor has no reason to punish the original assholes who have already left.
The assholes problem is why we have restrictions against short-term leases in so many areas. (Most such restrictions predate AirBNB, despite what the article would have you believe.)
Don't fines solve this problem? The owner gets fined and either passes on the fine to the renter or pays it and has an incentive to police renters more thoroughly.
The folks offering short-term rents are not excused from such laws. Why do we need new laws? If your neighbor's short-term tennats are loud assholes, make a noise complaint.