You Can Only Irritate Short-Term Rental Owners For So Long. Is This The Beginning Of The End For Airbnb?


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The average Airbnb host makes $99 per night for an average of $13,800 a year, according to iProperty Management. 

But the bloom has faded on short-term renters using Airbnb as their prime marketing tool with a recent move to direct booking or VRBO. The reason is simple. Homeowners using Airbnb are fed up with high fees and increased community restrictions. 

For owners or short-term rental investors, “there’s a consensus that Airbnb is difficult to work with. If you, as an owner, have an issue, they seem to always side with the tenant and make it difficult,” Investment.com Senior Vice President of Real Estate Adam Littlefield. Littlefield, who has spent the last decade leading residential real estate investment, told Benzinga simply that “direct booking is the future.”

Investment.com says that demand for short-term rentals is expected to remain strong through the year, but with increased regulations and an oversupply of stay, some markets are doing better than others. 

“We’ve seen an oversaturation in small and rural areas like Joshua Tree National Park in California and in the Blue Ridge Mountains in North Carolina,” Littlefield said. “Occupancy is dropping across the board due to significant supply increases.”

Don't miss: Owners Of This Short-Term Rental Raked In Over $25k In One Weekend: Here's How You Can Get A Piece Of The Action With A $100 Investment

Airbnb stock has struggled in recent weeks, falling as much as 6% last week following a blog story that said the company's top hosts have begun competing directly with Airbnb on new platforms. In his The Bear Cave publication, publisher Edwin Dorsey said, "Airbnb's top professional hosts are building out their own booking platforms and offering cheaper deals to cut out Airbnb, growing their own email lists and distribution and offering loyalty discounts to book off of Airbnb.” 

Dorsey argues that Airbnb’s base of hosts is increasingly being professionalized and those professional hosts are using their own independent websites, taking market share from Airbnb-hosted rentals. 

Littlefield agrees that Airbnb is in trouble and needs to make a shift in its business practices to remain competitive in the short-term rental market. “My personal opinion is that they’re going to have to make some serious changes in how they operate and how they treat both the owners and the customers. If they keep going down this same path, they’re in trouble.” 

According to the Associated Press, Airbnb hosts have become increasingly disillusioned with the platform and its disrespectful guests. But it’s not just homeowners who are fed up. The wire service reports that disgruntled Airbnb guests are going on Twitter and TikTok to vent about everything from cleaning fees to misleading listings. 

On top of that, many communities across the country are restricting Airbnb listings by adding additional sales taxes or regulations. Much of the government activity is believed to have spun from neighbors complaining about Airbnb renters using short-term stays for parties.

A recent battle in Greensboro, North Carolina, has erupted with homeowners bucking new city ordinances, which they believe would potentially take away property rights. The proposed ordinance would allow property owners and investors to live outside the city but remain in Guilford or adjacent counties. Property owners would also be required to obtain annual zoning permits, limit the number of people renting the house and prohibit large gatherings. 

Littlefield says much of the negative renter publicity is overwrought. “People don’t want to be told what to do to rent their houses while they’re trying to add to their personal cash flow. Most short-term renters and tenants take good care of the properties and don’t throw parties. There are always horror stories, but it’s certainly not the norm.”

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