this post was submitted on 31 Jan 2024
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You don't need to ban them, just make them meet the same regulations on safety and zoning that regular hotels have to
I agree. A lot of the trouble that Airbnb causes can be mitigated with simple regulations that we already have in place. Additionally, we should recognize that Airbnb is currently filling a void in the market that hotels aren't currently filling. There are times when people want to rent a place to stay for a full week or a month and also not have to pay to eat out every night. Airbnb allows you to rent a place that's generally cheaper for longer stays and also provides a basic kitchen including cookware and dishes. Hotels just don't have that unless you pay a premium. The only other thing they offer, which I'm on the fence about, is the ability to rent a place in close proximity or directly in a specific neighborhood or town as opposed to whatever area has a hotel to host tourists. On the one hand, that's super nice for exploring cities and doing non-touristy things. On the other hand, residents deserve some separation from tourists especially since they don't all behave. If hotels can find a way to fill these gaps, then I'd be ok with banning Airbnb. But we can also just regulate Airbnb 🤷
I feel like several advantages of Airbnb comes specifically from the lack of regulation. I'm speculating, but I imagine installing kitchens and maintaining them costs quite a lot as a hotel, with probably stricter and more expensive regulations compared to an Airbnb. I wouldn't be surprised if Airbnbs were regulated similarly to hotels, that they'd be priced higher due to all the costs. It doesn't make sense to me that a hotel, with 10s or hundreds of units, where not all units have to be rented out at once, is more expensive than a single property home where the whole unit must be rented out at once, and it takes up a bigger space. not to mention the inefficiency of repairs, and cleaning.
You might be right on the potential cost, but aren't all Residence Inns basically this? I don't think they cost that much more than other hotels.
It’s not the regulations, generally. Hotels are simply more cost effective for corporate management and ROI. If you want to make 20-25% a year you maximize units and minimize land expense and labor to manage. That it costs $10-30M is not a barrier to entry for a large corporation. AirBnB is less profitable but has substantially lower barriers to entry, especially if you lie about owner occupied status (which nearly all do when starting it).
The regulatory angle only really gets put in play because the land is cheaper due to improper zoning (residential is less expensive than commercial) and if the owners are dodging taxes.
Putting up private rooms/homes for short term vacation rentals is nothing new and has been a thing since long before Airbnb. They have the same regulations as any private lease, which differ from commercial regulations for the same reason why your parents house doesn't have lit exit signs and wheelchair ramps.
I used to work away a lot, an airbnb was always a considered option - even when my meals were paid for. Sometimes you want to have a place to chill at for the week, not just a room.
Saying that though I generally didn't use airbnb for this, booking.com often has holiday lets as well - or better yet go directly to the owner's website.
Air BNB also exposed another aspect of the market as they can be so damn cheap, for a house to stay in! It's clear there's something scammy going on when the best option for me and my friends visiting New York was to rent an Air BNB loft for two weeks instead of a hotel.
I think the convenience and the swollen price tag of Airbnb offers particular issue. In my mind Airbnb exploits an issue with a lack of landlords not offering leases with full year of commitment requirements. Nobody is forcing a landlord to set a minimum year of occupancy, that's just the culture we have. That additional markup for having a short term rental is what incentivizes the market to pledge houses towards people who want to travel on a budget.
When I was living in Japan it was fairly normal to find short term rentals that were basically just regular rentals. You weren't charged hotel prices for them, they cost the same as every other rental just you basically gave them a ballpark for how long you intended to stay as a courtesy to them or gave your month's moving notice as needed. If you wanted to just keep staying there as a regular renter that was normal too. There were even small businesses that served as convenient rental realtors who smoothed the process between owners and renter so you could set things up by phone or email to take the key and possession of the apartment.
Airbnb isn't the only thing disruptive to the housing supply... It's in part our entire culture of assuming a difference between short and long term renters and gouging short term renters because we assume that a low income person who is a short term leaser is going to ruin the places they live due to class prejudge. Long term lease requirements lock people living paycheck to paycheck down into situations that subject them to abusive landlords and the lack of flexibility means additional stress and impairment of freedom to move when something is desperately not working.
I feel like Japan would have an extremely different level of risk assessment - determining whether a temporary tenant is going to kick down the walls, smoke drugs, break a window, leave the place a mess, and have absolutely no credit to pay back for damages.
There is a different culture in regards to looking after shared property but it's still not a full proof situation for them. But it's not like those things don't happen with Airbnb clientele, the resolution is just handled by their internal team instead of the landlord. You could very well still end up holding the bag for damages.
Most extendedstay hotel locations have kitchenettes, but aren’t that common.
Another way you could handle that is that any property you own after your 1st or 2nd, automatically attracts commercial property tax rates.
That should not disallow private individual to rent a spare room, or holiday home, but it will kill off the investment businesses that specialise running airbnb syndicates.
Additionally, if a property has not had a full time occupant for at least 9 of the 12 months in a year, it is subject to a wealth tax based on its value.
That should deal with the investment firms that just sit on massive stocks of empty homes and business properties, feeding off the increasing prices they are creating themselves, while adding no value and offering no service.
Taxing the owners will just cause the prices to go up to compensate, unless the tax is a very significant burden. Short-term rentals are way more expensive than long-term leases, and so they are much more profitable. A landlord can make three times as much money on airbnb as they would make on a yearly lease.
Yes, but when prices for short term leases are higher than the equivalent hotel stay, Airbnb landlords will lose money and potentially have to sell at a loss to someone who'll actually live there.
Exactly the point I was going to make, but much better explained.
Also kick the CEO and everybody in his general vicinity in the nuts. This should be law.
Tough, but fair
Everyone who says "ban them" seems like they have never left the US. In Europe and Latin America, there are a ton of other websites that locals use for the same thing. Before the web, you would call up a few places listed in a guidebook and rent it over the phone.
I dislike Airbnb because it's expensive. The concept of "renting a room" in a vacation area will never go away. But the idea of $100 cleaning fees, when they just change the sheets and wipe down surfaces (30 minutes total) is dumb.
We're no strangers to it in the US as well, but what AirBnB has allowed is an industry of landlords that have strangled the housing stock in a number of places. It's not the people renting a room in their house that are the issue, it's the people buying apartments and houses specifically as rental property. I remember seeing a photo of LA that had AirBnB properties marked, and it was estimated at around 45% of all housing as being short-term-only rentals.
I live in a condo complex of duplexes in a summer vacation spot that has a limit on the number of units that can be rented out specifically to avoid this kind of problem - they want affordable housing for people who are actually living here, and not properties that are going to sit empty 8 months of the year. They don't care if you rent out a single room or something, but we have a lady who owns a building who doesn't even live in the same state. She has to drive like 4 hours to get here.
LA is definitely not 45% short term rentals. There are 13 million people living in LA. Where do you think they're all staying?
Just ban them, they are no reason to exist in housing crisis. That or the owner must live at that address with no other addresses or leins on property
I am not opposed to people renting a room through air bnb. It's the whole house as a business model I don't like.
I rent my spare room on a different service to traveling nurses. It works well for both of us but it's not a business.
Traveling nurses?
I'm imagining little old ladies wandering from village to village but I'm certain there's a more logical meaning?
Hospitals will hire some staff on a temporary basis (e.g. 3-6 month contracts) to fill gaps in their staffing during times of high demand. The idea is that experienced and flexible healthcare workers (whose living situations allow it) can “travel” by working 3-6 month contracts around the country. These contracts will often pay quite a bit more than permanent staff, and it’s especially desirable for staff from states who don’t pay as well (e.g. Florida) to work someplace that pays much better (e.g. California).
You will often hear of it in the context of nurses, but I’ve run into radiology techs, social workers, and all sorts of other staff who were traveling on contracts.
In contrast to your image, I find that travelers tend to skew younger (since they generally have fewer commitments keeping them in one place). However, I’ve also seen couples who travel together (both in healthcare), and facilities will often accommodate this by hiring both and scheduling them to work same shifts so they can carpool. I’ve also seen empty-nester couples travel with an RV.
Anyway, these travel nurses would need places to stay for 3-6 months at a time, hence renting a room to them.
They go from hospital to hospital to fill in shortages vacations etc. they need furnished temporary housing normally for 90 days. Since I travel often, it leave someone at the house and they tend to clean and quiet. It’s mutually beneficial.
I give them access the whole house. They get a room.
Most places charges what I charge and there are four to a room. It’s insane.