When did renting Airbnbs get so expensive? In Rising Tariffs – Film Daily

Aren’t Airbnbs supposed to be cheaper than hotels? When the room sharing app hit our phones it was touted as the tallest hotel in the world with no buildings and an affordable way to travel in the sharing economy. Now, renting Airbnbs is just as well paying for a five-star hotel!

So what gives? Was leasing Airbnbs a bad idea initially or was it a good idea corrupted by a changing market or increased regulation? Grab your suitcase and travel with us as we investigate this changing landscape.

Rules, rules, rules

First thing to understand about renting an Airbnb: Someone is basically renting you a room in their house, guesthouse, or summer residence for a fee. Unlike a hotel, they don’t necessarily hire cleaners. Like the rest of us though, they have pesky homeownership / rental realities to deal with like HOAs and noise ordinances. They also set their own rates, which means they control your Airbnb price, including fees and fines.

Rules are therefore set to ensure that you, the tenant, do not destroy their dom. Many of them are common sense: no noise after 10pm because people have to work, for example. Don’t Make a Giant Mess is another – the latter spawned horror stories of completely destroyed Airbnbs, guests renting an Airbnb to use as a pop-up escort service, and more (just Google Airbnb horror stories if you dare).

And the animators aren’t the only ones telling horror stories. Travelers have reported finding security cameras in their Airbnbs. An Airbnb tenant has been arrested for voyeurism for tapping his smoke detector with a security camera in Florida!

Assurance

Sometimes Airbnb hosts are blunt about security cameras in their homes. In their list, they explain that their stated goal is to make sure you follow the rules and don’t smoke, make a lot of noise, etc. That way, if you do, they have receipts to fine you or show their insurance agent if you’ve done a ton of damage (which could make them pay more for turning their pad into Airbnb).

Speaking of insurance, Airbnb has a Host Protection Insurance policy that people who rent out their homes can purchase from Airbnbs. However, it’s not free, which means hosts have to pay more for coverage. Obviously, home insurance for hosts could also be factored into the cost increase.

Honoraria, honoraria, honoraria

However, unruly customers who can potentially destroy an Airbnb like a rock star destroy a hotel room aren’t the only costs that drive Airbnb prices up. How does Airbnb itself make money? The costs, of course! The fee has dropped from 14% of your rental fee to 15% in January 2021. Airbnb community forums report that those rental fees with Airbnb in the US have actually increased to 16.6%. Ouch!

Like the increase in insurance, the increase in fees increases the price you pay out of pocket for renting an Airbnb. In other news, the water is wet. Worse yet, users have reported that the fees for the Airbnbs they plan to rent keep going up even after they have booked!

Shift

As Airbnbs are all the rage, people on Twitter take the time to remind you that the Airbnb craze is also potentially bad news for the poorest urban neighborhoods. UCLA Law Journal touched on the topic of how short-term rentals like Airbnb would help gentrify and move neighborhoods.

Citing a study on increasing rents in Los Angeles, the article explained: “Airbnb, by making it easier to use housing as tourist accommodation, leads to a decrease in housing stock, causing housing prices to rise, which makes it easier to use housing as tourist accommodation. more difficult for residents to reside in their current accommodation, sometimes resulting in displacement.

In short, people don’t want to spend their money on a nice hotel or B&B when staying in a big city. They go on Airbnb, rent a cheap apartment. However, the rent of the apartment goes up, causing the Airbnb rate to increase as well so that the host can continue to make a profit. Also, since Airbnbs moved in, it drives up prices through supply and demand, which can eventually drive out locals.

So you stay loyal to Airbnb or do you plan to rent somewhere else on your next vacation? Let us know in the comments!

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