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Short term rentals - airbnb or other


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2021 Jul 11, 3:02pm   53,035 views  269 comments

by YesYNot   ➕follow (0)   💰tip   ignore  

Anybody doing short term rentals lately?

I'm thinking of doing this in the Shenandoah region in VA, which has very low inventory and lots of short term rentals on the market. I assume that as more and more people do this, the market will saturate. I'm not sure how long that will take, and exactly how that will play out - plenty of thoughts though. In particular, I think if people insist on working from home, the far flung mountain retreat type areas outside of cities will do very well. I'm thinking that people wouldn't commute long distance every day, but might be willing to commute further once or twice a week. So, the high property values in/close to cities will continue to spread outward.

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210   SoTex   2023 Aug 12, 10:24am  

So much for those vacation rentals on Maui!
211   AD   2023 Aug 12, 11:00am  

zzyzzx says

https://www.reddit.com/r/REBubble/comments/15fgz90/airbnb_in_a_bad_neighborhood_what_could_go_wrong/


Should have a warning on AirBnb such as recommending that you bring at least a 9 mm handgun during your stay, and also a notice that the home has ADT or similar home security system.

The AirBnB advertisement should also have instructions that if you should hear loud noise such as what sounds like gunfire, that you should immediately drop to the floor until about 30 seconds after the sounds has stopped.

That is the minimum standard as far as public service announcement for an AirBnB like this.

,
212   zzyzzx   2023 Sep 7, 9:11am  

https://www.curbed.com/2023/09/airbnb-host-meltdown-new-york-september-regulations.html

Airbnb Hosts Are Feeling Abandoned

New York City’s Airbnb hosts were having a hard summer. “I talked to Airbnb suppor,t and they don’t know how to go about this,” one host wrote on a private forum. “Be careful,” another warned. “After 30 days guests become tenants … hard to kick them out.” Following an extensive period of limbo and legal challenges, the city was gearing up to enforce regulations that would, at least in theory, take thousands of rentals off the platform by requiring hosts to register their properties through a new licensing system and prohibiting them from renting out apartments for fewer than 30 days unless they were staying in the home alongside their guests. A decade of unfettered growth had made hosting something between a lucrative side hustle and a full-time job for thousands of people in the city, but life as the hosts knew it was ending on September 5. “I’m petrified,” one wrote.

Where other, less lucrative gig-economy start-ups like Uber have clashed publicly with their not-quite-employees, Airbnb hosts — the word the company came up with to make short-term landlordism sound like throwing an intimate dinner party — have become loyal political allies. In a marathon seven-hour public meeting in January, hundreds of them slammed the Office of Special Enforcement for abandoning “working-class New Yorkers” who would struggle to pay their mortgages without the cash infusion Airbnb brought in. In language that perfectly mirrored the company’s own campaign against the regulations, hosts described skyrocketing taxes and utility bills, framing their Airbnbs as an economic boom for the city, inviting tourism dollars to their neighborhoods and infusing local businesses with cash. “My assets are bound up in my house and I have very little cash flow,” a host wrote on the city’s public comment forum. “Being able to occasionally Airbnb my home has enabled me to make my mortgage payments.” In public, hosts described Airbnb as a form of public assistance or a godsend second gig. But on private forums, the relationship between platform and third-party contractor revealed itself as a bit more strained: They had fought for Airbnb. Why wasn’t Airbnb fighting for them?

Cracks in the host model first started to show in March 2020, when the company overrode hosts’ cancellation policies and offered full refunds to guests who chose not to travel during a global pandemic. Hosts who had built their lives on the service realized Airbnb was not, in fact, a job. In news outlets, they described being unable to pay mortgages and property taxes when nearly all of their reservations dried up. “We definitely empathize with guests,” said one, “but for us, our business and our livelihood just got canceled.” The sense of abandonment was compounded when the company announced a $250 million coronavirus relief fund for hosts shortly after, paying what many said were paltry sums given how much income they had lost.

The dynamic took a turn for the worse in the face of the city’s September deadline on regulations that many hosts considered to be an existential threat to their way of life. They were flailing and the company didn’t seem to know much more than they did. On forums, they swap tips on generating contracts for longer-term rentals and “squatters insurance” for legal fees should a 30-day rental turn into an eviction proceeding. Some are dropping their prices 20 to 30 percent to render a monthlong stay affordable; others are looking into ways to charge half of a monthly fee up front, a function Airbnb doesn’t currently afford. And they’re still confused about how to apply for a license or handle bookings made far into the future for short-term stays, stays that are still showing up on Airbnb. “I have contacted support so many times,” wrote one. “I’m distraught.”

Airbnb and its hosts rely on each other to prop up their businesses, and Airbnb works hard to sustain these quasi-partnerships: Since 2014, the Superhost program has rewarded particularly responsive hosts and popular listings with a badge (which, according to the company, comes with significantly more earnings), while a Superhost Ambassador program pairs new hosts with mentees to help them bring their listings live. Airbnb sends photographers to help promote rentals and insures hosts for up to $1 million should a guest damage their home. In web seminars, employees coach potential users on how to launch their small business, reminding them to purchase enough towels and highlight what makes their space unique. “Airbnb has brought the world to me,” an elderly man says in a promotional video shown to potential hosts during an informational Zoom, the camera panning over him and his wife sipping coffee with a few Australian backpackers on their deck.

But it isn’t an exchange between equals. In what would become a telling incident, two companion lawsuits were struck down in their last-minute efforts to block the new law. In one suit, three New York City hosts argued the regulations would financially ruin them and force them “to take drastic action to make ends meet,” including moving out of their homes and returning to work from retirement. In the suit brought by Airbnb, the company argued the regulation constituted a “de facto” ban against short-term rentals and would make it impossible for hosts to do business. Ultimately, the judge ruled that “Airbnb cannot bring a challenge on behalf of hosts (third parties who are not employees of Airbnb). It does not claim that it is acting as an agent for hosts or as some type of broker for these individuals,” the judge wrote. The platform was merely a forum for listings, she said, and thus had no legal right to make an argument on behalf of the people who paid their mortgages using Airbnb.

The legal argument gets to the crux of Airbnb’s issue: Following a decade of cultivating a loyal community of Superhosts under the fiction of something like equal standing — they were the platform, after all — Airbnb remains just a website. And hosts remain very much on their own, a fact that many are coming to realize in stark terms. “We’re not gonna put our unit on the market,” one Airbnb host told Gothamist. “We’re gonna have to figure something else out. Some people are saying they’re going to have to leave New York.”
214   GNL   2023 Sep 13, 12:59pm  

Maybe this is a good time for an airbnb competitor to rise to the challenge.
215   indc   2023 Sep 13, 1:13pm  

GNL says

Maybe this is a good time for an airbnb competitor to rise to the challenge.


And do what?
216   AD   2023 Sep 13, 2:01pm  

zzyzzx says

Airbnb To Lead Real Estate Market Crash


That Yahoo Finance article is referencing Robert Kiyosaki. He always pumps up silver, but that commodity is rigged. I rather hold a total stock market index fund as far as hedge against inflation than silver.

I don't know the current state of market for vacation rentals through AirBnB, VRBO, Vacasa, etc.

You would have to track average and median rates for vacation rentals as well as the amount of vacation rentals per zip code to get an idea of how they fare in regards to cash flow. One gauge I track is bed tax receipts for Bay County, Florida as far as health of vacation rental and hotel market.

.
217   EBGuy   2023 Sep 13, 4:25pm  

indc says

And do what?

Become the WeWork of apartment rentals?
Faux Dude LLC will sign long term lease and sublet to short term renters. What could go wrong?
218   HeadSet   2023 Sep 13, 6:49pm  

GNL says

Maybe this is a good time for an airbnb competitor to rise to the challenge.

Hotels and actual licensed Bed and Breakfasts.
219   AD   2023 Sep 13, 7:43pm  

HeadSet says


Hotels and actual licensed Bed and Breakfasts.


yeah, use to do two day vacations and stay at Bed and Breakfasts in Virginia wine country like in Middleburg

it was not hard finding them even without using the internet...use to get a tourist guide in the mail that would have a listing of all the B&B by city and would list the rates and phone numbers

a lot of rest stops along the east coast had advertisement flyers for B&B
220   zzyzzx   2023 Sep 15, 11:07am  

https://www.kansascity.com/news/local/article279307904.html

Kansas City will kick hundreds of rentals off Airbnb, Vrbo this week
222   WookieMan   2023 Sep 15, 12:36pm  

zzyzzx says

https://www.kansascity.com/news/local/article279307904.html

Kansas City will kick hundreds of rentals off Airbnb, Vrbo this week


zzyzzx says

https://www.wdrb.com/news/metro-council-approves-changes-to-ordinance-cracking-down-on-who-can-operate-short-term-rentals/article_01cd5e62-536e-11ee-ac11-a74feef417f6.html

LOUISVILLE, Ky. (WDRB) -- The city is cracking down on who can operate short-term rentals in Louisville.

You literally picked two of the worst midwest cities to visit. I'm surprised they even have any vacation rentals. Louisville especially. South side of Chicago is safer. Kansas is a dump. Worst airport out of at least 50 I've been to. Overrated BBQ. I'm really shocked either city even gives a shit about vacation rental property. No one goes there. Maybe prostitutes and child molesters are renting them out? Little fun fact with motels and short term rentals. Sex offenders don't have to register the address since it's not a permanent address even though it is. That seems highly probable for both cities.
223   zzyzzx   2023 Sep 27, 7:20am  

WookieMan says

I'm surprised they even have any vacation rentals.


I'd say the same about any big city, but most are filled with AirBnb's now.
225   zzyzzx   2023 Oct 6, 9:12am  

https://www.yahoo.com/news/airbnb-renter-stays-brentwood-home-140416878.html

Airbnb renter stays at Brentwood home for more than a year without paying
226   AD   2023 Oct 6, 12:05pm  

https://www.kiro7.com/news/rainier-homeowners-lives-van-while-delinquent-tenant-lists-rental-airbnb/KHY35IOCC5DMDHE5KYLZVK3QFA/

Yes its a drawn out eviction process of about 12 months while the tenant is sub-leasing the downstairs living space for $2000 to $4000.

So what happens in the future when the tenant leaves ? Do they continue the same behavior and possibly operate with other scam artists ? Will any damaging info remain on the tenant's credit report ? I wonder what is the history of this tenant as far as operating scams.

.
227   HeadSet   2023 Oct 6, 2:44pm  

zzyzzx says


https://www.yahoo.com/news/airbnb-renter-stays-brentwood-home-140416878.html

Airbnb renter stays at Brentwood home for more than a year without paying

Hirschhorn’s attorney told the Times that “she was not required to pay rent because the city had never approved the unit for occupancy and that its shower was constructed without a permit.”

That "landlord" did this to himself. He felt no need to follow the law, so now the law is not helping him.
228   HeadSet   2023 Oct 6, 2:53pm  

ad says

https://www.kiro7.com/news/rainier-homeowners-lives-van-while-delinquent-tenant-lists-rental-airbnb/KHY35IOCC5DMDHE5KYLZVK3QFA/

Yes its a drawn out eviction process of about 12 months while the tenant is sub-leasing the downstairs living space for $2000 to $4000.

So what happens in the future when the tenant leaves ? Do they continue the same behavior and possibly operate with other scam artists ? Will any damaging info remain on the tenant's credit report ? I wonder what is the history of this tenant as far as operating scams.

.

“OK. So, not only is he not paying me, but he’s generating an income through the basement Airbnb unit, and meanwhile, I’m having to pay the utilities for that unit,” said Jason.

Yeah, well I bet you voted Dem (because you care about people), and now the consequences of wildly overprotective tenant's "rights" in the law.
229   Patrick   2023 Oct 6, 4:06pm  

https://www.zerohedge.com/markets/something-popped-google-searches-sell-my-airbnb-surge-travel-bubble-downturn-worsens


Something Popped: Google Searches For "Sell My Airbnb" Surge As Travel Downturn Worsens
230   richwicks   2023 Oct 6, 8:56pm  

HeadSet says

That "landlord" did this to himself. He felt no need to follow the law, so now the law is not helping him.


Are you fucking serious?

Why the fuck do you need to get permission from the government to install a shower? Stop being a willing slave. You cattle are killing us all.
231   AD   2023 Oct 6, 9:31pm  

richwicks says


HeadSet says


That "landlord" did this to himself. He felt no need to follow the law, so now the law is not helping him.


Are you fucking serious?

Why the fuck do you need to get permission from the government to install a shower? Stop being a willing slave. You cattle are killing us all.



It might be the local or state building code in regards to water conservation and its all part of the LEED and sustainable living paradigm. I can see this being very relevant in white liberal zip codes such as in Oregon and California.

But it is a major plumbing project for a home, so it would need to have a permit especially given the risks of not installing it properly.

...
232   AD   2023 Oct 6, 9:40pm  

Interesting article below , even if from Vox, that says need more liberal zoning to increase the supply of houses and even encourages use of accessory dwelling units (ADUs)

***************

And scapegoating short-term rentals isn’t the answer.

“In the vast majority of places, something like short-term rentals is not going to drive supply challenges,” Hermann said. “They could exacerbate them.”

In the first quarter of 2023, there were 144 million housing units in the US compared with 1.2 million available short-term rentals like Airbnbs, according to AirDNA analysis of Census data. That means they make up just 0.8 percent of the housing stock, what Jamie Lane, AirDNA’s chief economist and SVP of analytics, calls a “rounding error.”

https://www.vox.com/technology/2023/6/30/23779862/airbnb-collapse-housing-shortage
233   richwicks   2023 Oct 6, 10:13pm  

ad says

But it is a major plumbing project for a home, so it would need to have a permit especially given the risks of not installing it properly.


What are the risks? A leak that creates a sinkhole that would consume the residence?

Let them.

We're at the point where we need a permit to wipe our asshole. I'm kind of sick of it.

Regulations aren't made to protect the public, they are made to extort the public and to keep competition out of certain sectors. We're in fascism now, or maybe communism, they are so similar - except in communism total incompetents are promoted to power because of family connections, in fascism (supposedly) the most competent people are pushed into that position - by the government.

Federal regulations almost never apply to large business, and in the very rare case they do, it's a fine, not jail time. It's a bribe.

We are the new USSR.
234   HeadSet   2023 Oct 7, 7:57am  

richwicks says


HeadSet says


That "landlord" did this to himself. He felt no need to follow the law, so now the law is not helping him.


Are you fucking serious?

Why the fuck do you need to get permission from the government to install a shower? Stop being a willing slave. You cattle are killing us all.


More like this:
The landlord is likely a supporter of Dems who make rules like occupancy permits and permits needed for decks, showers, and related improvements.
The landlord ignores such rules when inconvenient to him.
The landlord then wants the law enforced when someone inconveniences him.

And as far as not wanting building codes, try Montana. When my wife's cousin built his own home in Big Timber, he was not required to get any inspections. He did ask for and got an electrical inspection because he thought it would help when it came time to sell.

I personally like knowing that homes are inspected for plumbing, electric, et al. When I buy a house, I like knowing that I won't get zapped by some ungrounded or otherwise misinstalled wiring. I also do not want to pay thousands of dollars to repair water damage because the previous owner used the wrong connectors when plumbing that new shower. And do not spout nonsense like I can hire an inspector before buying, since plumbing, electric and HVAC must be inspected before the drywall goes up. I do not want to have to rip out walls to see if the work was properly done.

It is not "cattle" to want sensible building rules, any more than it is "cattle" because we are herded to driving on the right side of the road.
235   AD   2023 Oct 7, 11:02am  

ad says

In the first quarter of 2023, there were 144 million housing units in the US compared with 1.2 million available short-term rentals like Airbnbs, according to AirDNA analysis of Census data. That means they make up just 0.8 percent of the housing stock, what Jamie Lane, AirDNA’s chief economist and SVP of analytics, calls a “rounding error.”

https://www.vox.com/technology/2023/6/30/23779862/airbnb-collapse-housing-shortage


The Left keeps saying there is only 11 million illegal immigrants in the USA since the late 1990s.

I wonder if there is 50 million and that the Census Bureau is grossly underestimating the total population size which includes illegal immigrants.

Hence, the 144 million housing units is not enough even with the 50 million illegal immigrants living in densely occupied house conditions like 3 families for one home.

.
236   SoTex   2023 Oct 7, 11:14am  

FWIW mainstream 'news' claimed we already had 30 million illegals back when Bush-II was elected.
237   AD   2023 Oct 7, 11:52am  

just_passing_through says

FWIW mainstream 'news' claimed we already had 30 million illegals back when Bush-II was elected.


FWIW, see below.

source: https://undocumented.thehastingscenter.org/issuebrief/demographics-and-socioeconomic-status/

"From 2000 to 2007 the estimated number of undocumented immigrants in the US had steadily increased from 8.4 million to 12.0 million, then declined slightly, reaching its current level by 2009. "

"As of March 2010, an estimated 11.2 million undocumented immigrants were living in the United States, a figure equivalent to 3.7% of the nation’s population."

................
238   clambo   2023 Oct 7, 12:03pm  

There're 11 million illegals just in California probably.
239   Reality   2023 Oct 7, 1:22pm  

HeadSet says


The landlord ignores such rules when inconvenient to him.
The landlord then wants the law enforced when someone inconveniences him.


The guy is not asking the law enforced to collect missed rent payment, but taking back his own property. If the law deems the rental agreement illegal due to some element of the house not up to code or not having permit, then the tenancy agreement is invalid and consequently neither can the landlord collect rent nor can the tenant be there. So legally, the landlord should not be able to collect the missed rent, and the tenant has to be out of there. Otherwise, what's happening here is encouraging continued illegal occupation, reducing rental supply (i.e. the owner can not do anything to correct the problem, as the illegal occupant is still there), and eventually may well lead to either violence or non-payment of property tax, or both. If the court/law deems unpermitted shower as unsafe or unsanitary, then encouraging the occupant to continue occupation of the place preventing corrective measures may well lead to unsafe / unsanitary conditions thereby making the court and the judge liable to consequences.

It's a little like: if a prostitute has a repeating John in a state / city where prostitution is illegal, if the John owes the prostitute back pay for service rendered, the state / court is well within its right to refuse the enforcement of collection because it is illegal for the woman to sell herself so the agreement between the prostitute and the John is not enforceable. However, that does not mean the state or the court would be in the right to allow the John continue having sex with the prostitute against her will and occupy her vagina against her will because she had previously entered into an illegal agreement with the John. Just because she had violated the law in entering into an agreement selling herself doesn't mean she had forfeited her property right to her own body (aka self-ownership).
240   HeadSet   2023 Oct 7, 5:01pm  

Reality says

So legally, the landlord should not be able to collect the missed rent, and the tenant has to be out of there. Otherwise, what's happening here is encouraging continued illegal occupation,

You are correct - I just do not have any pity for the man who ignored the occupancy and permit rules. I have owned 10 rentals over time, and I definitely do not like California style laws that allow squatting. I like it here in Virginia where I could evict a deadbeat within 2 months and get a judgement for unpaid rent and damages. However, when I bought distressed homes to rehab and rent out, I got the permits and brought everything up to current code.
241   SoTex   2023 Oct 7, 9:53pm  

ad says

just_passing_through says

FWIW mainstream 'news' claimed we already had 30 million illegals back when Bush-II was elected.

FWIW, see below.

source: https://undocumented.thehastingscenter.org/issuebrief/demographics-and-socioeconomic-status/

"From 2000 to 2007 the estimated number of undocumented immigrants in the US had steadily increased from 8.4 million to 12.0 million, then declined slightly, reaching its current level by 2009. "

"As of March 2010, an estimated 11.2 million undocumented immigrants were living in the United States, a figure equivalent to 3.7% of the nation’s population."


That's the right timeframe and that looks a lot more accurate. It was around 2005 I heard 30 million more than once. On Fox News.
242   SoTex   2023 Oct 7, 9:54pm  

In particular I remember that number because I was living with a Brazilian chick who'd overstayed her visa who always bitched when she called whatever number the government had given her to get citizenship the recording always told her to call back in 999 days or something like that.

Apparently her sisters had it easier because they came before 9/11...
243   SoTex   2023 Oct 7, 9:59pm  

Reality says

thereby making the court and the judge liable to consequences

You've made the most sensible post so far but that part almost made me choke laughing!
245   zzyzzx   2023 Nov 6, 1:30pm  

https://coloradosun.com/2023/11/01/short-term-rental-legislation-raises-property-taxes/

Colorado lawmakers got an earful Tuesday from short-term rental owners on a proposal to classify many of their homes as commercial properties and impose a much higher tax rate.
246   HeadSet   2023 Nov 6, 2:00pm  

zzyzzx says

Colorado lawmakers got an earful Tuesday from short-term rental owners on a proposal to classify many of their homes as commercial properties and impose a much higher tax rate.

They are commercial properties since they are being rented out.
247   AD   2023 Nov 6, 2:16pm  

HeadSet says

zzyzzx says

Colorado lawmakers got an earful Tuesday from short-term rental owners on a proposal to classify many of their homes as commercial properties and impose a much higher tax rate.

They are commercial properties since they are being rented out.

.



.
248   AD   2023 Nov 6, 2:25pm  

zzyzzx says


https://coloradosun.com/2023/11/01/short-term-rental-legislation-raises-property-taxes/

Colorado lawmakers got an earful Tuesday from short-term rental owners on a proposal to classify many of their homes as commercial properties and impose a much higher tax rate.


In Florida they make money by a 6% sales tax plus a local 1% county tax and a 6% bed tax for total of 13% tax, in addition to the property tax which does not have homestead exemption benefits. So Florida makes a lot of money on short term rentals.

Plus there are about 15,000 condos on Panama City Beach that pay the school tax as part of property tax. They are short term rentals so they add to the school tax base without sending kids to the public schools.

How much is this the lobby efforts of hotels to try to make short term vacation rentals have to raise their rates even more and make them less competitive compared to hotels (when factoring in the benefits of vacation rentals like kitchens, more space and privacy, etc) ?

.
249   AmericanKulak   2023 Nov 6, 2:27pm  

zzyzzx says


Colorado lawmakers got an earful Tuesday from short-term rental owners on a proposal to classify many of their homes as commercial properties and impose a much higher tax rate.

Yes!

Why should Short-term rentals not pay the same taxes and be treated as hotel rooms?

Furthermore, all nuisance fines (Garbage, Noise) must be paid directly by the owner within 30 days.

And frankly, property taxes on SFH Short Term Rentals should be at commercial rates.

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