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this is definitely happening in NYC. A friend of mine just told me how he was considering getting in on it. In NYC there's an enormous arbitrage. The cheapest
by riggins 13y ago
this is definitely happening in NYC. A friend of mine just told me how he was considering getting in on it.
In NYC there's an enormous arbitrage. The cheapest hotel room in the city is $300/night. Meanwhile, you can rent a 1BR apt for $2,500 / month.
So you rent an apt for $2,500 / month and book it out on AirBnB for $200 / night ... and you're looking at a monthly arbitrage of $3,500.
The guy I know heard about it from a friend who's already doing this with 6 apartments ... so he was making something like $18K / month (less the cleaning expenses).
- hammerzeit 13y agoEasily. I know at least two people clearing $100k/year by being 'airbnb slumlords.' Real estate agents are keeping apartments off the market and renting them out as hotels. Airbnb is clearly forcing a convergence between hotel prices and rents. This doesn't just mean forcing hotel prices down, it also means forcing rents up. I wish the tech community could stop reflexively defending airbnb and engage with the question of what the costs it is imposing are or might be.
- deleted 13y ago[deleted]
- jseliger 13y agoAirbnb is clearly forcing a convergence between hotel prices and rents. This doesn't just mean forcing hotel prices down, it also means forcing rents up. I responded to this issue here: https://news.ycombinator.com/item?id=6657242 https://news.ycombinator.com/item?id=6657242 , but the short answer is to build more units. Building the Second Ave Subway, extending express bus service, and doing similar things would also be helpful.
- riggins 13y agoI agree that the way to deal with increasing rents is to build new buildings. In fact, I think that is probably Bloomberg's greatest accomplishment. He made it much easier to develop new buildings which led to a boom in development.