HomeAway's hometown is the latest city trying to manage short-term rentals

It has taken two years filled with highly polarized debate, but the Austin City Council is poised next week to give final approval to a policy that allows commercial short-term rentals in neighborhoods.

Groups fighting for and against the policy have been increasing online campaigns, media blitzes and protests in advance of the Aug. 2 council meeting.

Two camps have emerged: Those who want tough restrictions say neighborhoods need protecting; the other side says the new policy should respect property rights and should not be so strict as to drive the industry underground.

Those arguments aren't unique to Austin. Industry experts estimate the United States has more than 3 million short-term rental properties, in large part because of the ease of listing and finding the hotel alternatives using Internet brokerage firms.

In response to the trend, New York, San Francisco and Portland, Ore., banned the rentals completely. Maui, Hawaii, allowed them but imposed a limit of 400 properties and requires renters to pay a 9.25 percent hotel tax. In San Antonio and Austin, they have been completely unregulated.

"The regulations vary very widely,"