5 ms·

That top post was my first-hand account (and it's all true, so glad I left) but... let's not focus on the small picture of safety/quality of life. The BIG pict

That top post was my first-hand account (and it's all true, so glad I left) but... let's not focus on the small picture of safety/quality of life. The BIG picture is general cost of living in all major metropolitan areas where AirBnB has made in-roads. Fewer apartments/rooms available result in higher rents. This has been noticed all over the world (Amsterdam, Berlin, NYC, San Francisco). While I like the the basic concept of AirBnB (let no resource go to waste) the skirting existing rules/regulations which are in place for a good reason simply has to stop. With regards to the AirBnB post in question, my best guess is that the DA has decided to require details on those properties which indicate actual illegal hotels. The most likely scenario for 'innocent' hosts is that they will need a permit, like Berlin, and in the process of applying for one, they will be vetted appropriately. A recent CNet article outlines issues in cities other than NYC [1]. [1] http://www.cnet.com/news/vexed-in-the-city-the-sharing-economys-hidden-toll-on-san-francisco/ http://www.cnet.com/news/vexed-in-the-city-the-sharing-econo...

mr_spothawk 12y ago
> general cost of living in all major metropolitan areas where AirBnB has made in-roads could you also make the counter-argument: the hotels are keeping prices for rental artificially high by having unused (presumably unrented, or else airBnB would not have such high demand) space they're unwilling to lower their price for.
- notlisted 12y ago
  I can guarantee you this is very rarely the case for hotels. Like airplane seats, the room is there, the show must go on (ie the hotel cannot close), and the room costs X whether it's filled or not. If the room is not occupied, they miss out. This explains also why companies like HotelTonight (and Priceline bidding option) have such great last-minute deals. Hotels maximize occupancy by making remaining inventory available last-minute at reduced rates (without that rate being published). By the way, AirBnB's demand, according to Mr YCombo, is driven by 'the experience' vs 'the price' (but I doubt that). In NYC, the 15% hotel tax that is skipped, plus getting away with non-payment of income taxes on AirBnB revenue, plus avoiding regulations for hotel safety allows hosts to make AirBnB rooms cheaper.
rahimnathwani 12y ago
I understand that both NYC and San Francisco have rent control (either fixed rents or a maximum annual % increase), at least for some portion of the housing stock. It seems like rent control creates consumer surplus for renters, at the expense of landlords. The use of AirBnB transfers some of this consumer surplus from the original renter to the temporary guest. So, the combination of rent control and AirBnB-style short term rentals takes money from landlords (by restricting their return on capital to below the market level) and shares it between tenants (who become middlemen) and guests. In cities without rent control, does AirBnB thrive to the same extent?
- wdewind 12y ago
  > It seems like rent control creates consumer surplus for renters, at the expense of landlords. The use of AirBnB transfers some of this consumer surplus from the original renter to the temporary guest. We can obviously agree AirBnB is not the way to address this potential issue. > In cities without rent control, does AirBnB thrive to the same extent? I'd wager that less than 1% of AirBnBs are in rent controlled apartments in NYC. I'm sure rent control has a minor systemic effect, but rent control arbitrage is not the story here.

mr_spothawk 12y ago

> general cost of living in all major metropolitan areas where AirBnB has made in-roads could you also make the counter-argument: the hotels are keeping prices for rental artificially high by having unused (presumably unrented, or else airBnB would not have such high demand) space they're unwilling to lower their price for.

notlisted 12y ago
I can guarantee you this is very rarely the case for hotels. Like airplane seats, the room is there, the show must go on (ie the hotel cannot close), and the room costs X whether it's filled or not. If the room is not occupied, they miss out. This explains also why companies like HotelTonight (and Priceline bidding option) have such great last-minute deals. Hotels maximize occupancy by making remaining inventory available last-minute at reduced rates (without that rate being published). By the way, AirBnB's demand, according to Mr YCombo, is driven by 'the experience' vs 'the price' (but I doubt that). In NYC, the 15% hotel tax that is skipped, plus getting away with non-payment of income taxes on AirBnB revenue, plus avoiding regulations for hotel safety allows hosts to make AirBnB rooms cheaper.

rahimnathwani 12y ago

I understand that both NYC and San Francisco have rent control (either fixed rents or a maximum annual % increase), at least for some portion of the housing stock. It seems like rent control creates consumer surplus for renters, at the expense of landlords. The use of AirBnB transfers some of this consumer surplus from the original renter to the temporary guest. So, the combination of rent control and AirBnB-style short term rentals takes money from landlords (by restricting their return on capital to below the market level) and shares it between tenants (who become middlemen) and guests. In cities without rent control, does AirBnB thrive to the same extent?

wdewind 12y ago
> It seems like rent control creates consumer surplus for renters, at the expense of landlords. The use of AirBnB transfers some of this consumer surplus from the original renter to the temporary guest. We can obviously agree AirBnB is not the way to address this potential issue. > In cities without rent control, does AirBnB thrive to the same extent? I'd wager that less than 1% of AirBnBs are in rent controlled apartments in NYC. I'm sure rent control has a minor systemic effect, but rent control arbitrage is not the story here.