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.
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 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.
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 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.