{"id":4565,"date":"2016-05-16T15:49:24","date_gmt":"2016-05-16T22:49:24","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=4565"},"modified":"2016-12-27T13:39:22","modified_gmt":"2016-12-27T21:39:22","slug":"airbnb-effect-rental-industry","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/airbnb-effect-rental-industry\/","title":{"rendered":"The Airbnb Effect on the Rental Industry"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-4566\" src=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2016\/05\/placeit-27-300x225.jpg\" alt=\"Airbnb Effect\" width=\"300\" height=\"225\" srcset=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2016\/05\/placeit-27-300x225.jpg 300w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2016\/05\/placeit-27.jpg 400w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>The popular short term rental website, Airbnb, is getting criticized for negatively impacting rental housing availability and causing rent rates to rise &#8211; a phenomenon dubbed as the \u201c<\/span><a href=\"http:\/\/www.nytimes.com\/roomfordebate\/2015\/06\/16\/san-francisco-and-new-york-weigh-airbnbs-effect-on-rent\"><span style=\"font-weight: 400;\">Airbnb effect<\/span><\/a><span style=\"font-weight: 400;\">\u201d.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The concept behind the Airbnb effect is that rental property owners are using their units for short term rentals which keeps them off the long-term rental market, contributing towards to<\/span><a href=\"https:\/\/www.rentecdirect.com\/blog\/2016\/01\/2016-rental-market-outlook-renting-wins\/\"><span style=\"font-weight: 400;\"> low vacancy rates<\/span><\/a><span style=\"font-weight: 400;\"> seen in major cities across the country.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Airbnb founder and CEO Brian Chesky claims the that the majority of hosts rent their apartments to \u201cmake extra money and meet cool people\u201d, however, \u00a0<\/span><a href=\"http:\/\/therealdeal.com\/2015\/10\/14\/how-much-does-airbnb-impact-nyc-rents\/\"><span style=\"font-weight: 400;\">analysts at <\/span><i><span style=\"font-weight: 400;\">The Real Deal<\/span><\/i><\/a> <span style=\"font-weight: 400;\">discovered a sizeable minority use Airbnb to essentially run hotels and earn substantial income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ironically, Airbnb\u2019s founder claims to have conceptualized the idea behind Airbnb due to the very issue the company is getting blame for perpetuating- Chesky and his <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=03kSzmJr5c0\"><span style=\"font-weight: 400;\">roommate couldnt afford their rent<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><a href=\"http:\/\/www.sfchronicle.com\/airbnb-impact-san-francisco-2015\/#1\"><span style=\"font-weight: 400;\">The SF Chronicle reported<\/span><\/a><span style=\"font-weight: 400;\"> that critics of Airbnb believe, &#8220;the vacation rental site has made short-term rentals so lucrative that greedy landlords and tenants illegally divert precious housing stock to the practice. \u00a0[While supporters say&#8230;] services like Airbnb help regular people afford to stay in San Francisco, while forging international friendships.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">San Francisco law currently prohibits entire homes, referred to as \u201cunhosted rentals\u201d, from being rented more than <\/span><a href=\"http:\/\/www.nolo.com\/legal-encyclopedia\/overview-airbnb-law-san-francisco.html\"><span style=\"font-weight: 400;\">90-days in one year<\/span><\/a><span style=\"font-weight: 400;\">. This law is supposed to prevent Airbnb hosts from making an significant income on hosting guests.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"http:\/\/www.sfchronicle.com\/airbnb-impact-san-francisco-2015\/#1\"><i><span style=\"font-weight: 400;\">SF Chronicle\u2019s Airbnb Impact<\/span><\/i><\/a><span style=\"font-weight: 400;\"> report found that entire homes account for 59.8 percent of all the listings in SF during the first 5 months of 2015. \u00a0<\/span><span style=\"font-weight: 400;\">Properties listed on Airbnb in 2014 and 2015 averaged 22 reviews each. Among entire homes, 352 showed 26 or more reviews in the 52-week period. That means new guests checked in at least every other week and likely more often.<\/span><\/p>\n<p>Airbnb does not track how many days a unit is listed, it is up to the individual hosts to track and report the number of days a united is rented as a short-term rental. \u00a0The self-reporting aspect may by why so many rentals appear to be available beyond the legal limit.<\/p>\n<p><span style=\"font-weight: 400;\">Airbnb is facing critics in most major cities in the U.S., including<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-02-25\/airbnb-says-it-removed-1-500-listings-in-new-york-before-data-release\"><span style=\"font-weight: 400;\">New York City<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Airbnb, <\/span><a href=\"http:\/\/www.seattletimes.com\/business\/airbnb-says-its-rentals-arent-affecting-housing-affordability\/\"><span style=\"font-weight: 400;\">fighting a similar battle in Seattle<\/span><\/a><span style=\"font-weight: 400;\">, points to reports that show how a short-term rental would generate less income for landlords than a long-term tenancy. \u00a0Rental owners and property managers might have a different opinion, as <\/span><a href=\"http:\/\/tgnpropertymanagement.com\/blog\/\"><span style=\"font-weight: 400;\">industry blogs<\/span><\/a><span style=\"font-weight: 400;\"> cite the success stories and benefits of using investment properties as short-term rentals.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Bloomberg<\/span><\/i><span style=\"font-weight: 400;\"> published an article on <\/span><a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2015-11-10\/how-airbnb-makes-property-investors-rich-despite-the-neighbors\"><i><span style=\"font-weight: 400;\">The Rise of Airbnb\u2019s Full-Time Landlords<\/span><\/i><\/a><span style=\"font-weight: 400;\">, sharing that, \u201c[Ryan] Scott, 33, figures he brings in half a million dollars a year in revenue from 14 San Diego homes he leases by the night using the short term rental sight.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Airbnb effect is making headline around the world, not just in American cities.<\/span><span style=\"font-weight: 400;\"> \u00a0<\/span><a href=\"http:\/\/www.independent.co.uk\/news\/world\/europe\/airbnb-rentals-berlin-germany-tourist-ban-fines-restricting-to-protect-affordable-housing-a7008891.html\"><span style=\"font-weight: 400;\">Berlin, Germany recently banned tourists from renting entire apartments through Airbnb<\/span><\/a><span style=\"font-weight: 400;\"> and its competitors in an attempt to protect affordable housing. \u00a0The law was passed in 2014, with a two-year transition period, that ended on April 30, 2016.<\/span><\/p>\n<p>Berlin city officials discovered that the number of available long-term rentals fell dramatically after more people were renting their vacant properties as short-term vacation homes on sites like Airbnb. \u00a0Although tourism increase, the German city also discovered an affordable housing crisis. The new law prohibits renting out entire apartments for short-term vacation rentals, but allows a single bedroom in a home to be rented through Airbnb or similar sites.<\/p>\n<p>Airbnb is just one of several companies that list short-term rentals online. \u00a0Other sites that promote the same services to consumers include VRBO, Flipkey, and HomeAway.<\/p>\n<p><em>How have you experienced the impact of Airbnb and similar vacation rental services on the rental housing industry?<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The popular short term rental website, Airbnb, is getting criticized for negatively impacting rental housing availability and causing rent rates to rise &#8211; a phenomenon dubbed as the \u201cAirbnb effect\u201d. The concept behind the Airbnb effect is that rental property owners are using their units for short term rentals which keeps them off the long-term [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":4566,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"iawp_total_views":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[275],"tags":[865,864,863],"class_list":["post-4565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","tag-airbnb","tag-short-term-rentals","tag-vaction-rentals","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - 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