Airbnb asks people to donate money to landlords, backlash ensues
sfgate.com
sfgate.com
In reality, Airbnb is a glorified hotel room broker but with added facilitation of discrimination, normalisation of the charging of extra fees such as for "cleaning" (how have hotels managed to get by since time immemorial without charging one!?), rating obfuscation and a huge negative impact on local rental prices with landlords assembling empires of dozens of Airbnb properties. The fact Airbnb were so tone deaf to all this, asking the public to offset the losses made by landlords in times like these is really incredible.
I just went on the site and looked at an advertised $80 per night listing. On booking it became $137, with the $40 cleaning and $17 service fees. That’s a $137 room not an $80 one and I doubt it costs $40 to clean it.
The one time Cleaning fee is minimal compared to the total cost and I would not be able to afford my lifestyle if hotels were my only option.
Only airlines publish full fares and that’s because of a federal law. I remember back in the day when it wasn’t the case and you had to click through to the final pricing page to do any serious fare comparison.
Also, in my encounters, resort fees are in lieu of being a boarder. The resorts by me, Miami Beach, charge visitors for access to the pools and spas, not their guests.
Between that too-easy-to-pass-up profit optimization, and the marketing benefits of deceptively low list price, it's become pretty pervasive. And isn't limited to actual resorts – I've had bog-standard business hotels in the suburbs tack on a $30/night non-waivable "destination fee". Luckily it got to a ridiculous level recently, triggering a lot of media backlash and class action lawsuits last year[1][2].
It's also losing effectiveness, as things like online booking websites start displaying all-inclusive pricing and renegotiate their commission structures to be inclusive of mandatory, non-governmental fees. Between that, all the negative sentiment, the spate of lawsuits and legislation its triggered, the fees are hopefully on their way out.
[1] http://killresortfees.com/
[2] https://www.cnbc.com/2020/02/07/resort-fees-being-addressed-...
I understand that showing prices without the sales tax is commonplace in the USA. I find that practice quite dodgy and "everyone does it" is a poor excuse.
That sort of thing is a legitimate reason for a separate fee. I guess pedantically it is "non-baked in unconditional cleaning fees" essentially.
Some places will clean every 4 days, some won’t clean at all during your stay. I suspect this may be the new normal, even post-covid.
Having different fees is fine. What is troublesome is that AirBNB doesn't immediately show the total price (including all surcharges). I think recently they finally were forced to do that in the EU (before that I used a browser addon). That the initial price includes all the additional surcharges has been mandatory for quite a while due to companies using this to trick customers (e.g. advertising 200 EUR for renting 1 week; practically you need to pay 700 EUR).
Note that various companies still try to skirt that bit (surcharges only shown at a later stage). E.g. mandatory "booking fees" and so on.
Noticed that too lately. It’s become pretty difficult to search for something by price because a lot of places almost double the price after cleaning fees.
Our neighbour Airbnbs multiple rooms in his house full time. He barely has parking for 3 cars, 2 cars if you don't want to be boxed in. However he rents out room for 6 people. He constantly has business moving through his house, occasionally his guests encroach on our driveway which is adjacent to his.
The city has not been able to catch up with the modern world and has no policy or licensing for Airbnb style businesses.
The pandemic has had zero impact on his ability to rent out rooms, it's always full.
TLDNR: I wish I had a neighbour and not a business next to me in a residentially zoned street.
/rant
Currently you can only allow 30 days of AirBnB for a property.
Over here the demand for AirBnB is pretty much non existant now, though. The Coronavirus lockdown has put an end to all travel and tourism for now. Many properties are now returning to normal, long term rental units.
Noise is not a problem, fortunately.
Putting the onus on me to deal with his guests is a problem that bothers me in of itself.
If you had the same situation I am sure you'd grow tired of it pretty quick.
Yes, with actual long-term neighbours I only have to tell them once where the property line is and how to deal with trash pickup. Also there is zoning and bylaws regulating multiple occupancy homes, and I can look that up before purchasing my house.
A family or group of people occupying a residence that would be occupied by a similarly size group is not a problem in my mind. It's only when there is noise at all hours, trash left around the property or on yours, or parking in your parking area that I would really start to mind.
Maybe that's easy for me to say as someone who doesn't (that I know of) live near someone who rents out on AirBnB. That said, I do live next to 1 house that has ~6 (I honestly can't be sure) people that live there (all adults) and on the other side have a house that is often vacant and the owners have their parents live there sometimes I think and none of that bothers me. That's mainly because they keep to themselves, don't make lots of noise, leave trash laying around, or take up extra parking. So knowing all that I don't think I'd mind an AirBnB as long as all those factors didn't change.
It's these small things that chip away at the otherwise close-nit neighbourhood.
Because I suppose hotels have to actually clean their rooms well, so the housekeeping expense is probably a significant fraction of the daily charge. But Airbnbs definition of cleaning is at best changing the sheets (if you're lucky) and make sure that there are no streaks in the toilet. So they charge a pittance and get away with it.
† Not sure if capitalism will actually end any time soon, but stuff like this is what makes radicals try their best to end it.
It can't because any change or evolution keeps the name.
The only way to end it would be to revert back to a pre-capitalist economy that's not been retroactively deemed one (either by fans or detractors).
"Airbnb is a glorified hotel room broker but with..."
Still want phrasing which is more critical. Something along the lines of profiting from cheating.
Despite the wild-west nature of vacation rentals like this, people often prefer it over traditional hotels. Maybe it's the free market saying all this regulation meant to entrench the incumbents has hit its critical mass.
It's not because they are supposed to be able to afford it that you didn't assumed you would get that revenue.
We do pet sitting, we don't need that revenue, in fact, we would nearly do it for the cost (food and cat litter) if the platform allowed it, simply because we like having pets, but can't afford the long-term responsibility of owning one right now (it's also incredibly rewarding to allow people to know their cats are well taken care of during their travel). For obvious reason, that revenue wen't down to nearly 0 during the pandemic. We don't need that cash, but it did change our plans quite a bit, because we expected that revenue. In our case it wasn't too bad, but I have no doubt it can be worst for others (I can easily see people that paid for renovations expecting to keep getting that revenue).
That's also completely ignoring the fact that it's not only the loss of revenue from Airbnb that can be the issue. The pandemic had impact much greater than Airbnb. It's not because someone didn't even expected any revenue from Airbnb, that they aren't in need right now.
You don't want to help someone? Don't, I'm not either right now, can't afford that, but that doesn't means there isn't people in needs and that you will never want to help them. Airbnb added that feature on their platform... that's all...
> (how have hotels managed to get by since time immemorial without charging one!?)
Hotel staff aren't paid? You pay the fee, it's just not itemized...
Would it be better if it weren't itemized? The total cost is shown before clicking on any offer... it wouldn't change a thing to hide it better.
Call me callous but I don’t feel the need to bail out someone who charged me $500/night on a place with a $3000 monthly payment. I entered the transaction freely, and the transaction is over.
I think you can make many arguments that being more expensive is worth it (more free parking is an example of what is included in the price of a home today), but there is no technical reason homes cannot be very inexpensive. You can also argue it's a "feature not a bug" from existing homeowners, who work to reduce supply (zoning, NIMBY, etc).
I think they are partially. In London, rents have decreased 25%-50% since COVID. Part of that will be reduced demand. But I have also seen a lot of rooms advertised for long-term rental that were previously Airbnbs.
We could certainly ameliorate this by building more houses. But here in the UK we're a lot more limited by available land space than you are in the US. And while there is limited supply it makes sense to prioritise making primary dwellings affordable over profit making for landlords.
>I think they are partially.
You're mistaking housing costs with prices. Housing costs are the input prices of components that entrepreneurs accept or reject to produce housing.
Such as: * price materials producers demand for their products (concrete, wood, electrical wire etc) * the labor prices, labor sellers demand (Carpenters, iron workers, etc) * the prices land owners demand to either keep land undeveloped or developed * the prices state agents demand to abstain from interfering with home building.
Consumption can't drive up a producer's input costs. Consumers may abstain from purchasing from a producer unless the producer meets different inputs ("I demand you only buy the labor of architects who live near me and not people far away").
Zoning and NIMBY issues are mainly a West coast problem. The South, Midwest, Southwest, and a good part of the Northeast are not even close to the West coast.
[citation needed]
I concur with you that zoning and regulations definitely impact the supply quite a bit. (Mostly reducing supply)
Yes, we can build more residential properties (and we are), but I think it's a bit naive to assume that tourists leaving hotels vacant, and staying in livable housing instead wouldn't drive up rents for locals in the short term.
The government.
The section 8 landlords are enjoying some serious schadenfreude right now because even though they only cash small checks once a month they're the only ones still cashing checks at all.
Short term rentals have an effective monthly rent far in excess of the normal monthly rent for equivalent accommodations. With this payoff comes risk. The money source can dry up on you much faster. I have no more sympathy for people who went all in on AirBNB than I do for people who went all in on day trading.
My old apartment, complete with modern amenities, had section 8 renters. It was targeted towards young professionals. But new construction made it 100% ADA-compliant. Which is perfect for wheelchair bound social security-disability check receivers. According to the property manager, "no problem with section, unlike you, they always pay rent on time!"
Section 8 is a fantastic program that deserves more credit for avoiding the issues that plague the Projects.
Two popular HN pieces have recently touched on how journalists and newspapers give twitter too much weight:
https://news.ycombinator.com/item?id=23833267
https://news.ycombinator.com/item?id=23827073
All I'm seeing in this article is a few people trying to get that dopamine rush of engagement by dunking on "landlords" (not that all AirBnB hosts are landlords, some are just folks renting an extra room out), and sfgate happily obliging them.
That's a landlord.
Fact of the matter is that momentarily twitter reflects general public discourse and has to be engaged with. Not to say that the whole public discourses through twitter, but that it generally reflects public discourse. As in, even the broadcast segments that are watched by technophobic grandparents show it on screen, reference it, and then talk about it.
Back in the fat cows era (up until a few months ago) it seemed that Airbnb was synonymous to "if you have a spare doghouse in a hot overpriced market then you can make very good money out of it". Not to mention how airbnb was contributing to such markets to get even more overpriced by causing shortages.
And now they are urging customers to sponsor hosts...
Yup. Definitely someone there must have lost it entirely.
I have no sympathy for landlords or Airbnb, they are just going to have to deal with the market like everyone else.
If the host reached out to me on their own, I would probably help them. But to have Airbnb guilt trip people into donating is beyond me as well.
Even in the cases when I met my hosts the transaction was 100% monetary one. Not one of them, ever, offered me to stay some more free of charge - just because we got along well. And I did get along well with all of them. On the contrary, I have slept on the floor at a friends house a few nights because some of these hosts hanged me at the last moment (e.g. when they realized that my flight was coming in too late for them).
Don't take me wrong. I'm not venting here. It took me a while to realize it myself, that Airbnb is not couchsurfing. It is a market. And a hard one at that. That's fine by me but donations are not part of such markets.
Airbnb is certainly a market. So are restaurants. You do see people supporting their local restaurants in this crisis don't you?
Yes, people are patrons of restaurants, because restaurants are still providing food.
We often make value judgements on these things but the reality is that as long as someone is willing to pay it is not 'overpriced'.
They originally pitched it on a social message – stay with other people who enjoy travelling like you, sometimes you'll rent a room from someone, other times you'll rent out your room. Everyone cares about making this a great community.
However this is far from what they've become – most rooms/properties are full-time AirBnB rooms, many managed by management companies trying to skim as much profit as they can, and rented out by professional short-term landlords who clearly don't care about the community.
In the former product, I can imagine having a connection to some hosts, I can imagine emailing them to see if I could book a floating credit for some nights next year or tipping a fair bit more on a booking.
But that's not AirBnB. I've not stayed in a single place like that. Surely AirBnB must know what their product actually is? Does that mean this communication is just gaslighting customers into thinking they're something different?
Heck NO! What is their reasoning here!? I have zero emotional connection with that person. Nor do I think they are entitled to my charity.
I've been in AirBnB hosts where the landlady would make deserts for us and all kinds of stuff, just because she was nice and bored. We enjoyed it very much and I would tip her via AirBnb - she didn't want cash, except once - pre-agreed for multi course meal where she fed a group of 4, and it was pretty much just for the resources.
There was a guy in SF that took me around shown me the city, etc... I enjoyed this too and would tip him.
I have more examples of that.
This is not even charity, it's just pointless.
That doesn’t change the fact that AirBnB has a big problem, and what they’re doing here is tone-deaf. Yeah, tips might make sense sometimes, but fix the problem before you start soliciting tips.
I mean it's insane for a multibillion dollar company passing the hat for homeowners. Both sides aren't charity cases.
Right now it's ripe with places (sometimes entire buildings) dedicated to AirBnB, to the point where they put a dent in the local renting market.
Not donating is saying just as much to the host as donating.
And maybe that's a good change, but I think it's wrong to say that offering the option only affects those who choose to pay extra.
Well, at least it sounds like many of those hosts can't, either.
> The financial situation is especially dire for megahosts, some of whom bought up dozens of properties and built short-term-rental empires that made up their main source of income (about one-third of Airbnb hosts have more than 25 properties, according to the analytics site AirDNA).
https://www.businessinsider.com/airbnb-asking-renters-to-don...
Unless they have a very strong lobby (such as bankers, etc) they cannot make anyone else pay for their loss. And that's how it's supposed to be.
I suspect it has to do with Calvinism essentially and the religious fixation of work as righteous and a guarantee such that anything going wrong is "bad things happening to good people" and a fundamental sign that things Aren't Right and Someone is to blame.
There's no doubt coal miners have been used nihilistically as a political tool to conjure the aesthetic of being attached to the honest, hard-working underclass. Still they (and other workers who have been displaced) deserve support. It is very easy to diversify investments. Extremely difficult to diversify skills needed for a career.
Coal miners, to switch careers, probably have to uproot their lives, move to another state, and take a much lower paying job. It seems obvious why they'd resent being told to do that. Lucky for me software is going pretty good, but if you told me I had to go install solar panels on a roof in Scottsdale tomorrow I might be upset.
> (about one-third of Airbnb properties are owned by hosts who manage at least 25 properties, according to the analytics site AirDNA).
This makes more sense.
If you're that leveraged, it simply becomes a gamble which might or might not pay off.
Really interested in being corrected if I'm wrong about any of the above.
I wish journalists would stop rehashing PR bullshit that don't answer the question. I look forward to an article that rephrases the above to something like: "In response to the backlash a spokesperson from Airbnb SFGATE offered a PR line which did not address the question.".
Now they're in trouble as their income dries up.
https://www.wsj.com/articles/a-bargain-with-the-devilbill-co...
> Airbnb has created a mechanism in which you can....donate money to landlords....many of whom have overextended themselves by leveraging multiple properties
It’s a big leap to make but I can see how that would influence their theory.
Good.
It's a watered down version of the same schadenfreude people felt when the guys that hoarded warehouses full of N95 masks got burned. They made a large investment and took a risk, but their speculation was at the expense of the wider community, so they shouldn't be surprised when the community had no pity on them when their investment didn't work out.
For three years, I've managed my grandma's home in Wisconsin as a way to generate income for her and allow the house to stay in the family. It has been our vacation home for four generations and we certainly would have sold it by now if not for Airbnb income during the months of June, August, September each year.
I am trying to earn enough to buy the home and then will continue Airbnb'ing (keeping July for family time) to pay much of the mortgage.
Just an anecdote admittedly, but hopefully one demonstrating that not all hosts are evil landlords, and I would not be surprised if some of our (repeat) annual guests were interested in sending us a card/support because of the relationships we've worked to build and maintain with them.
Look at it from another perspective. You've got a property sitting empty for most of the year, driving up property values, so you can have a holiday on e a year.
You're making poor use of that property, and you want people to give you money, even though you could sell it? You need Zero help, you are not in a position of needing food, your children hungry, or being kicked out of your home. You create no, or at least negligible, employment for others.
You essentially think people would want to give you money so you can go on holiday next July?
"You've got a property sitting empty for most of the year, driving up property values, so you can have a jolly holiday."
My grandmother (the homeowner) lives there more than 6 months each year. She spends the rest of her time in a retirement community.
It's a town with <500 people that swells 10x during summer months, there is very low demand besides vacation homes due to lack of nearby schools, healthcare, etc.
We have two maintenance people and one cleaner from the local community that we partner with; it is extremely common to have these "old school" side gigs up there as it is such a vacation-driven community.
If you want to be not super transactional about it, people who having relationships with other people sometimes just help each other out to be nice, and are rewarded for it with reciprocal kindness in the future.
Yeah, I'll chip in some extra after working all year for my two weeks in the sun. The fucking entitlement of Silicon Valley is unbelievable.
[1] https://www.investopedia.com/terms/p/privatizing-profits-and...
Think of all the companies that built their entire business model around helping airbnb owners manage their bookings / rental
For examples,hostmaker, which was heavily advertising in London (transport mainly) has gone bankrupt (1). They raised ~24M (2)
(1) https://hostmaker.com/gb/london/ (2) https://angel.co/company/hostmaker/funding
Maybe they’re taking a cut and their other revenue streams have dried up?
If there are no properties or less properties on AirBnB because those properties were foreclosed on then AirBnB seizes to exist.
The underlying issue is that companies are allowed to not pay employees enough and often are allowed to classify employees as contractors. Unless you're easily paying your health insurance out of pocket (premiums, deductible, and out of pocket max), there's no way one should be classified as a contractor. It's absurd to think people making whatever uber offers have control over their lives and their work. It's tiring that these multi-billion dollar companies as refusing to pay living wages and externalizing their pay onto their customers.
Unfortunately, the only recourse is to not tip and this, like so many things, hurts the workers more than their companies. But what else to do? In a society where learned helplessness is the norm and that has no practical way of addressing one's concerns, boycotting remains the only viable action. What am I going to do? Sue? Write my representative? Please. Let's not be delusional. Hopefully if employees suffer enough, they might unionize, and claw back power for themselves. Or these business will go out of business. It's sad, but that's what it seems to take.
I call BS. No way they implemented this feature because people wanted to give money to past hosts.
The intent here seems to be to ensure that your favourite family-owned chalet can weather the pandemic without you necessariliy going there any time soon.
I’m surprised airbnb is still around. Hotels have been as expensive or cheaper the past 3 years of booking. Why would anyone pay the same to have to deal with rando stranger creeps at odd hours for check-in is beyond me. Knowing there’s a front desk 24/7 is piece of mind.