3 ms·

> Additionally, it raises rates for apartments. $150/night is nothing for a nice AirBnb place, but it makes for some pretty expensive rent. Yes, this is my iss

by physcab 13y ago

> Additionally, it raises rates for apartments. $150/night is nothing for a nice AirBnb place, but it makes for some pretty expensive rent. Yes, this is my issue. People who rent out apartments with the intention of running them like a hotel, will inflate rent for everyone else bc anyone who doesn't have the intention of running their apartment like a hotel won't be able to afford the market price. There are more of them than you might think, I know of atleast two.

gaadd33 13y ago
Assuming the people who rent out apartments comply with the existing law, they will have to rent out at least 2BR apartments, the supply of which is already very low, and live in the 2nd bedroom while their guests are there. Do you really think that will have a large impact on rent? On a side note, corporations already effectively do this. I lived in a building in Midtown that was at least 50% corporate housing and there were constantly people there for short stays and the rent increases were massive since the companies weren't price sensitive. However, afaik, that is legal.
- physcab 13y ago
  > they will have to rent out at least 2BR apartments Or they stay with a friend, a significant other, a cheaper apartment outside the city, their parent's house, etc.
  - gaadd33 13y ago
    At that point they are violating the existing law. Seems like it would be pretty trivial for a pissed off neighbor to report them then.
    - o0-0o 13y ago
      As long as the owner of the apartment is there fine. My upstairs neighbor used to rent out her apt on AirBNB while she was out of town. On two occasions, the occupant flooded my apartment below because they didn't understand how to user a washer and air conditioner properly. I reported the apartment owner to the city by calling 311. Unless the apartment owner is responsible and insured, this is why it is illegal in New York. What wasn't trivial was the damage. Thousands of dollars to electronics, desks, furnishings, etc. AirBNB should be ashamed of themselves for pursuing profits at any costs. It's one thing to rent your house out in the middle of nowhere. It's another to rent it to eurotrash and let them destroy your building.
YokoZar 13y ago
Net demand for apartments can only go up if people who are living in the city would move out entirely if they couldn't use AirBNB. Do you really want to say that good policy should drive these people out of town?
- seiji 13y ago
  Is it like über-gentrification? gentrification: demolish and/or renovate existing structures so people can move in and pay $2500 to $6000 per month for studio to two bedroom apartments. This forces the native element of "I've lived here my whole life" to move elsewhere typically against their will. über-gentrification: All $2500/month studios are now billed out at $150/night and all $6000 two bedrooms are now billed out at $300/night. The rich jerks who gentrified the native population now can't afford to live there because their next lease re-up will take into account the surplus not being captured by the landlord, so all studios will be $4500/month and all two bedrooms will be $9000/month. So the professionals move to... Idaho? What happens if we let the vacation market out price professionals from living close to work? What happens when we let professionals out price service workers from living close to work? Self driving megabus cars. Three deckers. When are we going to get self driving busses and limos?
  - lobster_johnson 13y ago
    This is pretty spot on: http://www.theonion.com/articles/report-nations-gentrified-neighborhoods-threatened,2419/ http://www.theonion.com/articles/report-nations-gentrified-n...
  - YokoZar 13y ago
    Presumably what happens is that selling housing becomes so insanely lucrative developers throw up massive amounts of new places to live, solving the housing issue through added supply. If the city is prohibiting that construction from happening, perhaps that's where you should point the finger rather than the people buying and selling at market prices.
kiddz 13y ago
I have rented up to four apartments at a time on AirBnB in both DC and LA. Also I advised a good friend of mine, GSB grad and former investment banker, on how to use AirBnB so he could pursue a comedy career in NYC. From my experience, if you are renting apts to put them on AirBnB, you seek out low cost apts where you a guaranteed a return. I don't think that apt pricing overall increases by this behavior, because as a sub-letter (unlike if you are paying a mortgage), you are looking for monthly positive cash flow because you don't get the real estate appreciation. For the last three years, I just look for studios and small one-bedrooms that if rented for 12 or less nights covers the rent. So in DC, I'd never rent a $2000 month place for AirBnB because that would require me to rent out the place 15 nights a month just to break=even. Too much risk. But a studio at $1200 a month starts to make a lot of sense. Yet, I would not want to personally live in a studio. So I don't think AirBnB leads to increases in overall rents. It does lead to winnowing of small cheap well located apartments though, that you would otherwise move from but now you have a great opportunity to hold onto and put on AirBnB indefinitely. Oh, and if you really get into AirBnB, it can really affect your relationship with your gf/bf . . . let me crash at their place for three nights so I can make this $450 :) But that's another story.

by physcab 13y ago

gaadd33 13y ago

Assuming the people who rent out apartments comply with the existing law, they will have to rent out at least 2BR apartments, the supply of which is already very low, and live in the 2nd bedroom while their guests are there. Do you really think that will have a large impact on rent? On a side note, corporations already effectively do this. I lived in a building in Midtown that was at least 50% corporate housing and there were constantly people there for short stays and the rent increases were massive since the companies weren't price sensitive. However, afaik, that is legal.

physcab 13y ago
> they will have to rent out at least 2BR apartments Or they stay with a friend, a significant other, a cheaper apartment outside the city, their parent's house, etc.
- gaadd33 13y ago
  At that point they are violating the existing law. Seems like it would be pretty trivial for a pissed off neighbor to report them then.
  - o0-0o 13y ago
    As long as the owner of the apartment is there fine. My upstairs neighbor used to rent out her apt on AirBNB while she was out of town. On two occasions, the occupant flooded my apartment below because they didn't understand how to user a washer and air conditioner properly. I reported the apartment owner to the city by calling 311. Unless the apartment owner is responsible and insured, this is why it is illegal in New York. What wasn't trivial was the damage. Thousands of dollars to electronics, desks, furnishings, etc. AirBNB should be ashamed of themselves for pursuing profits at any costs. It's one thing to rent your house out in the middle of nowhere. It's another to rent it to eurotrash and let them destroy your building.

YokoZar 13y ago

Net demand for apartments can only go up if people who are living in the city would move out entirely if they couldn't use AirBNB. Do you really want to say that good policy should drive these people out of town?

seiji 13y ago
Is it like über-gentrification? gentrification: demolish and/or renovate existing structures so people can move in and pay $2500 to $6000 per month for studio to two bedroom apartments. This forces the native element of "I've lived here my whole life" to move elsewhere typically against their will. über-gentrification: All $2500/month studios are now billed out at $150/night and all $6000 two bedrooms are now billed out at $300/night. The rich jerks who gentrified the native population now can't afford to live there because their next lease re-up will take into account the surplus not being captured by the landlord, so all studios will be $4500/month and all two bedrooms will be $9000/month. So the professionals move to... Idaho? What happens if we let the vacation market out price professionals from living close to work? What happens when we let professionals out price service workers from living close to work? Self driving megabus cars. Three deckers. When are we going to get self driving busses and limos?
- lobster_johnson 13y ago
  This is pretty spot on: http://www.theonion.com/articles/report-nations-gentrified-neighborhoods-threatened,2419/ http://www.theonion.com/articles/report-nations-gentrified-n...
- YokoZar 13y ago
  Presumably what happens is that selling housing becomes so insanely lucrative developers throw up massive amounts of new places to live, solving the housing issue through added supply. If the city is prohibiting that construction from happening, perhaps that's where you should point the finger rather than the people buying and selling at market prices.

kiddz 13y ago

I have rented up to four apartments at a time on AirBnB in both DC and LA. Also I advised a good friend of mine, GSB grad and former investment banker, on how to use AirBnB so he could pursue a comedy career in NYC. From my experience, if you are renting apts to put them on AirBnB, you seek out low cost apts where you a guaranteed a return. I don't think that apt pricing overall increases by this behavior, because as a sub-letter (unlike if you are paying a mortgage), you are looking for monthly positive cash flow because you don't get the real estate appreciation. For the last three years, I just look for studios and small one-bedrooms that if rented for 12 or less nights covers the rent. So in DC, I'd never rent a $2000 month place for AirBnB because that would require me to rent out the place 15 nights a month just to break=even. Too much risk. But a studio at $1200 a month starts to make a lot of sense. Yet, I would not want to personally live in a studio. So I don't think AirBnB leads to increases in overall rents. It does lead to winnowing of small cheap well located apartments though, that you would otherwise move from but now you have a great opportunity to hold onto and put on AirBnB indefinitely. Oh, and if you really get into AirBnB, it can really affect your relationship with your gf/bf . . . let me crash at their place for three nights so I can make this $450 :) But that's another story.