The city of Amsterdam requires that companies through which apartments can be rented, apply for a license.

Because of the internet, the number of such companies has exploded, as has the number of rental apartments on the market. Because of this strong growth, the city authorities want to restrict and control the number of apartments rented out to tourists and temporary workers (expats), in order to retain the residential character of the centre of Amsterdam.
A lot of residences in Amsterdam are rented out illegally for short periods (so-called 'illegal hotels').
Amsterdam also wanted to get a stronger grip on apartment agency websites.

To that purpose, Amsterdam has introduced new legislation for short-stay rentals, which has come into effect at the beginning of 2010. After that, it became possible to assess Simply Amsterdam's application for a license. After a review of all properties, this license has been granted on August 24.