Interesting to view Airbnb as a kind of capital flight for property. The risk/reward of short term rentals is better than that of tenants, and so owners are swi

Interesting to view Airbnb as a kind of capital flight for property. The risk/reward of short term rentals is better than that of tenants, and so owners are switching. The main gap is between the risk adjusted value of a lease vs. the potential income on short term rentals. Theoretically, over the long term, the net value of a lease should be greater than what you can net from the short term market, but something has broken that. Also, given that rental income is taxed as regular income at the top marginal rate that the owner pays, does that not mean an owner must charge at least %40 more than their mortgage payment to break even? Given most of those condos have mortgages from people with middle class jobs, pricing that in creates a dead loss that would cause rent increases by itself.