It's not a new industry at all, but inside the tech echo chamber people want to act like it is so they can pat themselves on the back for their "disruption."
It's not a new industry at all, but inside the tech echo chamber people want to act like it is so they can pat themselves on the back for their "disruption."
Airbnb is potentially disruptive in the same way as early eBay, by providing a larger market (more options for buyers, more customers for sellers), and by inserting themselves as a trusted intermediate (potentially increasing convenience and trust in the marketplace, which can lead to a larger total market - more people engaging in short-term rentals when the process becomes more convenient).
One model of technical innovation: Once in a great while there is a major technical innovation, but to become a product in widespread use the 'technical' innovation (inventing a new type of product, say "horseless carriages") needs decades worth of 'process' innovation (making the product simpler and cheaper to produce, e.g. Henry Ford's assembly lines, and making it easier to use, e.g. by standardizing the controls for steering/braking/etc across all cars).
In this model, Airbnb is, or could be, a process innovation that makes short-term rentals a viable option for more people. If it succeeds - too early to tell, but looking good so far - it would be a disruption in that sense.
The surprise isn't so much that money can be made but that people are rather brazen about breaking lease terms and laws (which I believe are reasonable; who wants an everchanging parade of random, unvetted people traipsing through the hallways?).
That being said, I'm sure you can find a cave-based Airbnb rental. [1]
Calling the LL / Calling the cops are a bit more of a nuclear option that I'm looking for; I just want to find out who's doing it so I can discretely ask them to inform their renters of a few things. I don't want to see airbnb go away :)
Well for one thing a fancy web 2.0 site [1] and airbnb is filled with pictures of hip looking people and the same place on airbnb just looks better than it would on homeaway. Everything about it (presentation wise) is nicer. Things like that shouldn't matter but they do matter to people. More or less puts a halo around the property being offered.
Right now, looking on the homepage at airbnb I see "New York, London, Paris, San Francisco, Sydney, Tokyo" even those city names (in the mind of a browser) will add value. (The halo of those names. Similar to how a watch company wants to hire a famous golfer etc.)
[1] Which even I will have to agree gives a better experience or shine to the whole process.
One thing most NYers don't realize is that if you sublease to someone and there's proof (agreement, payment record etc), they can squat in your place and not pay any rent. You will have to use the courts to evict just as any other landlord must. In NYC this will take up to 8 months. You can't just get the police to throw them out.
What happens if the airbnb tenant does pay rent, but insists that he or she is now a long term tenant governed by SF landlord-tenant law. Tenant protection laws are very strong in SF, and typically require some kind of "cause" for eviction. If San Francisco courts do not recognize the legality of a short term rental agreement, what would they do with it? I'm not a lawyer at all, these are just questions... but would the courts allow the tenant to remain as a long term tenant? How would the calculate the rent? Would they simply disregard unenforceable provisions and default to existing law?
Does anyone know if this has been litigated?
I don't have to dig through dozens of local weeklys, or tons of unsearchable craigslist ads. I pick the place where I'd like to stay, the price range, and make my choice - complete with a (far from perfect, but still) recommendation system for the hosts.
Saying that's not a game changer is like saying search engines added nothing to the Internet.