3 ms·

The reason this is kind-of a terrible idea unless you're AirBNB is the fee structure is setup in a way where a high amount of the transaction would be going to

by xfour 11y ago

The reason this is kind-of a terrible idea unless you're AirBNB is the fee structure is setup in a way where a high amount of the transaction would be going to them. https://www.airbnb.com/help/article/104/what-are-guest-service-fees https://www.airbnb.com/help/article/104/what-are-guest-servi... So if my napkin match is correct, we have 3% Booking fee and 6% low end guest service fee, you're looking at a 10% off the top of the transaction which in the end, doesn't really need any middle-man in there. It's common for the first month's rent to be guaranteed via cashier's check or equivalent, then usually you are building a trust relationship yourself. I suppose in cases of short term renting, there isn't time for this trust to be built, so the value-add is the security the service provides. Perhaps that really is worth 10%?

acmeyer9 11y ago
I suppose, but I have personally found you can actually get higher rents through Airbnb. This might change as it becomes more popular, more clientele, etc. but we've made more on Airbnb as landlords (including fees) then we did just doing it all ourselves. Don't forget all the marketing, time spent with potential renters, background checks, etc you have to do on your own.
- acmeyer9 11y ago
  And in the case of renters, they usually have to pay a broker's fee (if used) which is typically 1 month up front. So 8% right there plus if you factor in time value of money could be more.
pavel_lishin 11y ago
> you're looking at a 10% off the top of the transaction Brokers in NYC routinely try to charge two months' rent, which is a whopping 16% of the rent. I've had them try to tell me, with a straight face, that it's only 6-10%. They always look surprised when I ask them what two twelfths is. I think that some of them literally don't know what the actual percentage is.

by xfour 11y ago

acmeyer9 11y ago

I suppose, but I have personally found you can actually get higher rents through Airbnb. This might change as it becomes more popular, more clientele, etc. but we've made more on Airbnb as landlords (including fees) then we did just doing it all ourselves. Don't forget all the marketing, time spent with potential renters, background checks, etc you have to do on your own.

acmeyer9 11y ago
And in the case of renters, they usually have to pay a broker's fee (if used) which is typically 1 month up front. So 8% right there plus if you factor in time value of money could be more.

pavel_lishin 11y ago

> you're looking at a 10% off the top of the transaction Brokers in NYC routinely try to charge two months' rent, which is a whopping 16% of the rent. I've had them try to tell me, with a straight face, that it's only 6-10%. They always look surprised when I ask them what two twelfths is. I think that some of them literally don't know what the actual percentage is.