"Starting today, we are banning 'party houses' and we are redoubling our efforts to combat unauthorized parties and get rid of abusive host and guest conduct, including conduct that leads to the terrible events we saw in Orinda...," the BBC quoted CEO Brian Chesky as saying in a series of tweets on Saturday.
We must do better, and we will. This is unacceptable," he added.
The house in the city of Orinda, near San Francisco, was reportedly booked under a pretence for a small group, before being publicised on Instagram as the venue for a Halloween party on Friday night which eventually drew a crowd of more than 100 people.
But the host did not authorise the party, according to Airbnb.
Three people died at the house and two more died later in hospital.
As of Saturday, the police were yet to arrest or identify any suspects. Officers said they found two guns at the house.
In his tweets on Saturday, Chesky added that Airbnb would create a dedicated "party house" rapid response team and expand manual screening of high-risk reservations, the BBC reported.
The company would also take action against users who violated its policies, he said.
Responding to the mass shooting, California Governor Gavin Newsom called for Congress to pass gun control legislation.
"This will barely make the news today. That's how numb we have become to this," he said. "Our hearts are aching for the victims and all those affected by this horrific tragedy."
( With inputs from IANS )