The Downfall of Short Term Rentals (Airbnbust)
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- Опубліковано 11 гру 2023
- Airbnb was a great alternative to pricey hotel stays but because the space wasn't well-regulated.
Cities started creating rental ordinances that banned short-term rentals in most major metros.
As a real estate investor with several short and midterm rentals, I've even started seeing a decline in bookings.
Which leads us to a big question... "How did short-term rentals get so big and fail so quickly?"
Original video from How Money Works: • The (Overdue) Collapse...
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Greedy investors is what really derailed Airbnb.
Greedy unethical company
It's more than that. It's greedy states/counties/cities, property managers, cleaners, along with any other company that provided services to hosts. Everyone wanted a large cut of the pie.
@@MrHamlet 💯
here’s the real reason there’s a drop in users. No one wants to pay a $100 cleaning fee only to arrive and notice that the pillow cases are unwashed and smelly. I don’t care how fancy the room is. If they keep continuing to fall to deliver basic needs, why Airbnb when hotels exist?
True, sometimes the Airbnb hosts aren't doing their best job. We tend to book Airbnbs for longer term stays or if we're going somewhere with a big group. Otherwise, I just book a small hotel.
The hotel industry killed it. Plus greedy hosts charging ridiculous hidden fees
I was turned off by the deceptive marketing (cleaning and service fees) from the beginning, never used it even once. Renting your place to strangers is offensive to neighbours too, no background checks.
Appreciate you sharing your thoughts!
Short term rental were affordable alternatives to hotels for young families. Once investors started looking at it as a means to become overnight millionaires with little to no effort they basically destroyed the industry and defeated the purpose of a short term rental which was affordability. Greed is what destroyed that industry . Cheaper to go to a hotel now and I don’t have to clean my own rooms.
Exactly! Same as a single person.
Point is many abused it on both sides since renters like in FL for example almost all places have mold and when you hire others to manage it they dont do a good job and the owner destroys the housing market which also increase taxes and the economy so they get a quick buck.
Adropped
Hotels really dont make much money due to the overhead and taxes.
Some countries like Greece the gov taxes 40% if one airbnb the place so they dont make much.
Technically it is unethical to buy a lot of property and rent it out which in comparison is like a buffet and you take all the food before other and put it in a bucket to say you will eat later. It just makes everyone do the same and be just as bad than respect others which is why regulations needs to apply since freedom without responsibility you lose both and that is what is happening when people get too greedy thinking the other will take it all.
Best to have your own home and rent out a cut off section to others than to buy an entire home.
Interesting take, although instead of a buffet, I would equate it to someone buying out all of the inventory at a Black Friday sale and leaving nothing left for other shoppers.
It’s understandable why neighbors and HOAs don’t want them, however, they’re very beneficial for travelers and investors
You're wrong about the extended stays. They're great when you travel for work. Homewood Suites and Home2 Suites are really comfortable.
I always liked AirBnB because I could not afford hotels and I could always get a cheap room for a few days, weeks or months very affordably without having to take the risk of Craigslist or being ghosted by advertisers that would never answer to my emails.
I never used their premium offerings but I know that I always looked for hotels when I wanted a better experience because I never stayed in an AirBnB where I had the entire place for myself or that I didn't have to keep clean and stay quiet. Hotels usually provide you with more services and you can leave everything messy (not littering, of course) behind without worrying about it as someone else will make up the bed and wash the towels. When you rent a room via AirBnB you're expected to stay quiet and clean after yourself without leaving a trace behind, and you still get complaints if you talk loudly on the phone.
It's been a bit more than a year since I last used but you still could find much more affordable rooms via AirBnB than any hotel could possibly have. It all depends on your search criteria, I guess?
Been waiting for the crash for a little over 2 years now…. Got cash saved for an opportunity. Immediately building an ADU on my first opportunity.
What do you plan on doing with the ADU?
@@seanlovesrealestate Thanks for asking Sean.. My plan was to build it and live in it for a year before I do it all over again. In 5 years that should be 10 doors 🚪.
I plan on doing all the work myself.
Any advise would be highly appreciated.
Government entities got greedy and decided to soak owners with permits, fees, taxes, etc. Next came COVID which was the golden era for STRs, but caused a spike in cleaning fees which never went away after the threat of COVID disappeared. Wanting to cash-in, property managers tripled their cut from ~10% to 30%+. AirBNB's huge fee increases didn't help and on top of additional taxes, made STRs much more expensive vs. hotels. Suddenly hosts were faced with burgeoning fees that couldn't be sustained, so they started cutting costs elsewhere and quality suffered. I know many people who've given up or transitioned their properties to mid-term or long-term rentals.
Hotel corporations also funded local county and city council races for people who wanted to curb the little people from making a bit of money.
Today the best STRs to own are in vacation/tourist areas.
Greed is the whole airbnb game, if you try & rent one, no contact with owners, No ADDRESS, based on a photo, you are told to PAY, then NO REFUNDS for any reason inc. . death. Rules long, hostile, threatening. Generations ago, travelers in Europe discovered them & they were cheap, often a total pleasure, the owner WANTED to meet you, whole thing was charming. THEN AMERICANS turned them into just about MONEY,buying, renting just to get the money. MONEY was all they were about. Creepy I am glad to see them go. Screw these people.
You really need to work on your writing skills.
MTR is the way to level up from Short term rental!
Sir, I’m scared of using a credit card so I’m using a debit card is that OK?
This video it's all over the place.
yup yup
I and my wife are well off chinese indonesians, were trying to book airbnb in NYC about 15 yrs ago...they required us to write an essay of our profile before unable to book...what a racist company
That’s insane 😭
Goat
Rental markets are going down.
Possibly
@seanlovesrealestate they currently are. Especially in Texas. Even her in San Diego. Too many people not making enough on short terms. Turning into long term and not getting the cap rate they want eventually will sell.
Damn
Early
First! 😊
Not
Fear Mongering. Parties were never a big issue for the majority of airbnbs. Long Term Renters & Home Owners are the ones throwing regular parties. Many Hosts are paying for grama's nursing home or supplementing their disappearing income due to inflation. Super sad that the fear mongering lead by the Hotel Industry has created a huge removal of home owner's rights. Can you imaging buying a car & then being told you can only drive it a few places & pay extra fees to do so. The majority of Airbnbs are the best kept in the neighborhood & never were on the market for other usage.