Notorious Airbnb squatter may be the dev behind two flailing Kickstarter games
polygon.com
polygon.com
We (e.g. HN folks) are quick to applaud people with new ideas that are shaking things up (e.g. Airbnb, Uber, etc.) I suspect this is the sort of scenario detractors (e.g. Seattle City Council re: Uber) are worried about.
Terrible situation, clearly. Still, important to see some of these scenarios actually play out. And it raises all the right questions: what should Airbnb do going forward? what should legal protections be going forward? should someone have seen this coming? and should they be held liable for it?
(edit: typo)
I don't see them doing either one anytime soon, since it presents a major PR/deniability problem.
This kind of stuff is pretty much Retailing 101, and it's standard practice for someone engaged in selling items on the open market (through eBay) to know about business laws.
What's "disruptive" about all of these services is that they enable people who wouldn't ordinarily be willing to go through all the red tape and training to enter a previously specialized business, to do so with a few mouse clicks.
One could argue that all of these services (AirBnB, Lyft, eBay) are targeted at amateurs who want to dabble, but we all know that they make a significant amount of revenue from people who are using their platforms to run full-scale businesses, in many cases without securing business licenses, liability insurance, paying relevant taxes and fees, etc.
I don't know if I'd say that the services themselves are responsible, but they are certainly happy to take profit from high-volume vendors operating outside the law.
That's simply not true. The homeowner voluntarily agreed to rent her home to someone for more than 30 days. On the 30th day, that person became a tenant and gained certain rights under the law. The homeowner still has legal rights of her own, but the nature of the rental she agreed to means that she will have to engage in a more involved process to evict the tenant. If the homeowner did not want to deal with this type of scenario, she had every right not to rent her home for 30+ days.
In short, this has nothing to do with disruption or a lack of legal protections. Notwithstanding the fact that some AirBnB properties are being rented in violation of local laws and leases, AirBnB is simply a channel for marketing rental properties. The law already provides landlords and tenants with protections and obligations and every serious party engaged in the rental business is familiar with these laws. This story has everything to do with a homeowner engaging in a business she clearly knew nothing about.
AirBnB's disruption is to enable unserious parties to engage in the rental business, so the negative effects of unserious parties engaging in the rental business can pretty reasonably be laid at the feet of that disruption.
But dabbling into full-time landlording, where you buy an apartment just to rent it out, is not really new or newly enabled by AirBnB. It's not like VRBO checks your sanity either; if you want to not pay attention to rental laws and get screwed on VRBO you could do that, too. Probably that has even happened, but nobody cares, because there's a cultural expectation that if you're renting an investment property on VRBO, you have an idea of what you're doing, and if not, that's your problem.
That's what make their business model very profitable.
Very low risk,they are not providing any real service but connecting 2 people,while still taking a good chunk of each transaction. "It's just a market place,just like an ad in a newspaper",at least,that's what they say.
So their business is not illegal per say.Only those who actually provide the real service face risks.
The woman in question was not aware of the problems involved in 30+-day leases. We can fall back on the idea that she was ignorant, and that she got what was coming to her. True. But that's victim-blaming, and it's only half satisfactory. She is the kind of person who would not have invested in, and rented out, a property without the existence of a hand-holding site like Airbnb. Accordingly, Airbnb should do its part to ensure that people like her -- people entering the market because of Airbnb, and who are presumably unsophisticated -- are reasonably protected from rookie mistakes.
I don't think Airbnb is to blame here. I don't think Airbnb owes her any money. But I do think it should be thinking very carefully about how to retool its process, so that situations like these don't pop up again. Not for legal reasons, but for UX reasons. Airbnb operates a two-sided marketplace, and maintaining that two-sided marketplace means balancing the needs of both sides of the market.
It seems that Airbnb is offering to assist her with her legal expenses, and I applaud them for that. No, they probably don't have to do that. But "We don't have to" is a pretty lousy excuse to fall back on. Customer service matters, even if it means protecting your customers from their own mistakes (within reason).
But this story doesn't fall into those categories and your line of reasoning is not convincing. From what has been published, the so-called "victim" purchased a condo hundreds of miles away from her actual residence as an investment with the intention of producing income through vacation rentals. She was marketing its availability on multiple sites, not just AirBnB. AirBnB and the current crop of sites like it didn't create the vacation rental market. This market existed well before the advent of the internet. Before AirBnB emerged, there was no shortage of unsophisticated individuals trying their hand at real estate.
Making the landlord a particularly unsympathetic character here is the fact that, in the original article about this situation, she admitted to seeing warning signs early on. Instead of terminating the rental well before 30 days had elapsed when her gut told her that there was something off about her "guest", she decided to let the guest stay.
There's a saying, "Pigs get fat, hogs get slaughtered." I have absolutely no doubt that AirBnB could "retool its process" as you suggest and it still wouldn't prevent situations like this because no "process" is going eliminate greed.
Do you not agree that Airbnb is probably attracting a fair number of would-be landlords to the market who would not be in the market otherwise? Yes, the vacation rental market existed long before Airbnb. No, I don't buy the implication that Airbnb is only attracting people who would have operated in the pre-Airbnb vacation market. Clearly Airbnb has expanded the supply side of this market, at least somewhat by enticing new entrants into it, many of whom are probably unversed in the laws and regulations they should be versed in. That's not Airbnb's fault, but it is Airbnb's headache.
Regardless of our sympathies toward this woman in this particular case, she might be a canary in a coal mine. There are plenty of theoretical Airbnb hosts, and perhaps actual hosts, who could very easily take the plunge on Airbnb without coming to grips with the ins and outs of rental laws. They would assume, furthermore, that because Airbnb exists and thrives, then surely it must have sorted out the fine print.
Airbnb can take actions to prevent this situation from happening again. That doesn't necessarily mean blocking 30+-day rentals, or cutting back on the range of options one can undertake on Airbnb. But it probably means providing more information, at the very least, triggered by certain actions taken when posting a listing. Not because they have to, but because they know that their business model creates an "easy button" for a lot of unsophisticated users. That's a fine business model. But if you're going to do that, then you need to design prophylactic solutions to protect people from their own stupidity [greed/arrogance/naiveté/haste/whatever we want to call it in any given case]. You can't protect them from everything, but at the very least, you can learn and adapt as you go.
Not every PR hiccup deserves a complete redesign of the UX flow, of course. And no solution fixes every potentiality. So you evaluate the problems on a case-by-case basis as they emerge, estimating the likelihood that they'll happen again, and weighing the costs of a fix against the benefits. I'm not a fan of preemptively freaking out about possible edge cases. But when something like this happens, at the very least, you need to analyze whether it's a ridiculous edge case, or whether it's likely to happen again.
And who knows? Maybe this woman's mistake serves a sorting function, and the problem solves itself. Nobody will make her mistake again. Or so we'd hope.
At the end of the day, you refuse to believe the simple fact that even if AirBnB goes out of its way to inform its "hosts" that their use of its service might subject them to certain laws, risks, etc., folks like the landlord in question will continue to click on your so-called "easy button" because whether greedy or naive, many people simply don't consider the possibility that anything bad can happen to them. Until it actually happens of course.
As I pointed out, the landlord here is on record stating that she ignored her own gut feeling about her tenant from hell after there were early indications he'd be trouble. If an individual presented with clear and specific warning signs that trigger an instinctual unease is willing to ignore such signals, why do you believe such an individual would make a better decision when presented with, say, a popup containing abstract warnings?
As for the idea that this story will prevent other such stories, the landlord in question is hardly the first landlord to have to deal with a rental gone bad and she won't be the last. Situations like these are not uncommon, and today's crop of real estate newbies makes the same mistakes that real estate newbies were making 20 years ago. The only reason this got any attention at all was that the so-called victim played up the AirBnB angle, which many people correctly recognized as being a red herring.
This is just an example of a person with barely enough capital to dabble in capitalism and lose. They thought they were going to flip a condo into rental income, skirted the law -- one wonders what other shortcuts were taken; did they have an occupant's insurance policy or a landlord's policy? did they take out a mortgage under the pretense of occupancy? Are they taking income tax interest deductions and claiming homeowner's property tax exemptions -- and pretty much got what they had coming.
This post is really the ultimate in weasel-y, passive-aggressive muckraking. If you've got a point, make it.
• occupancy of less than 7 days is allowed (this doesn't mean your occupancy has to be less than 7 days)
• a fireproof safe is provided for residents' use
• it has a central telephone service
• it has maid, mail, and room service
• it has food service provided by a food establishment on or next to the hotel/motel grounds and that is operated in conjunction with the hotel/motel,
then California classifies you as a guest, not a tenant, and no matter how long you stay there you can be kicked out as soon as you fail to pay, with no need for any kind of eviction proceeding.
More details here: http://www.dca.ca.gov/publications/landlordbook/whois.shtml
If you think about it simplistically, AirBnb sidesteps regulation. As a result, the biggest use-case for AirBnb is leases that are supposed to be against regulations.
AirBnb can't avoid messes AND regulations. Avoiding regulations is their profit model! With that comes messes. But that's OK for them- they have pretty successfully outsourced the risk to their hosts.
That's the thing that annoys me the most about Uber and AirBnb. They are no fools; they know what they are doing. And when you boil it down, what they are doing smells a lot like what the banks did running up to 2006- socialize the risk, privatize the profit.
No doubt such a system would be a huge privacy problem for people as people would say that negative reviews reveal their private facts, or that those reviews are defamation.
However, if the network is decentralized, then it might be possible to keep it running even in the face of opposition from state actors.
If we have a peer-to-peer rating/reputation network in place, it would allow people to bypass the elitist inside networks (old boys clubs) to raise capital from investors based on mass positive reputation.
Rascals and scammers like these failed Kickstarter bros would be shut down after a single scam ... they would not be able to rent or scam another person after a single scam.
Implementing a centralized reputation system would be a good first step.
I understand why Yelp and other established companies don't want to be in this business. Its a liability/privacy nightmare.
Imagine the first time some innocent girl in high school is unjustly called a slut, and is defamed by her own school as part of some bullying clique.
I believe the network can ameliorate if not outright prevent such clique abuse by enabling users to rate reviewers based on the reviews they have given. If you abuse people with your reviews and ratings, it can damage your own ratings.
This network would be public, and everyone would be able to see what the scum are up to.
I doubt that 20 % of Stasi informers were double agents, if you led the Stasi on there were consequences.
It's a bit like noting that 96% of Harvard applicants are rejected and concluding that "96% of Harvard students didn't deserve to get in," with the caveat that by "Harvard student" you mean "a student that applied to Harvard."
the guys rans 2 scams on kickstarter. peer-to-peer trust rating networks wont help if a plateform does nothing to prevent scams at first place. that guys shouldnt have been allowed to run a second kickstarter even though he didnt deliver a product in the first one.
When you use the same name on all social media, have a domain with it, a blog on it, and openly invite people to google you if they feel like it ... and you aren't a complete arsehat, great things happen. Things like finding a place to live in SF become relatively easy, getting jobs/work becomes simpler, hell, even Tinder works better.
We already have the trust networks in place. Why are so few people using them is a better question.
Count me out.
If it uses a mechanism like CardSpace (http://en.wikipedia.org/wiki/Windows_CardSpace) had:
=> I own my own data (client-side encryption on my client)
=> I consent to others accessing my reputation. Note that access means others can see, not get a copy of, and not keep.
=> I can withhold my reputation completely, or delete it at will.
In such a world, as Airbnb for example, I might make it easier for someone willing to share their reputation to rent a room. A non-existing or withheld reputation might require other checks (like a credit check), or verifiable references, for instance.
If thought through this might have uses. Primarily I'd need to know that it abides by the 7 laws of identity (http://technet.microsoft.com/en-us/magazine/2006.07.7laws.as...). A lot of this technology exists. CardSpace is one example of a client app (I wouldn't use a web app to manage my reputation, but would be ok to use a service to let others leave feedback about me). Attribute provisioning in identity federation is another, and could be used as a mechanism to check someone's reputation, or to give feedback.
There's no catch all, even a single, centralized system wouldn't be very successful at dealing with the outliers in human behavior on top of the questionable honesty of the people adding ratings to the system in the first place.
It would be trivially easy for them to poison this database.
> Rascals and scammers like these failed Kickstarter bros would be shut down after a single scam ... they would not be able to rent or scam another person after a single scam.
Well, you don't know they're a scammer until they've been to court and proved guilty or does no-one care about innocent until proven guilty anymore? And what's to stop them getting a new identity?
> Imagine the first time some innocent girl in high school is unjustly called a slut, and is defamed by her own school as part of some bullying clique.
That is a fucking awful example. You say "some innocent girl is unjustly called a slut" - this implies that if the girl was not innocent that it may be acceptable to call her a slut (as an insult). Then you say "[...] as part of some bullying clique" which implies that the problem is with the false accusation of sluttiness, and not with the fact that some bullying clique exists.
> I believe the network can ameliorate if not outright prevent such clique abuse by enabling users to rate reviewers based on the reviews they have given. If you abuse people with your reviews and ratings, it can damage your own ratings.
The clique just vote-rings and they cancel out bad votes. Or they buy votes off MTurk.
Bullying is always bad.
Hope I didn't piss you off too much. I just wrote that example quickly, without much thought.
The only rating system I've seen that mostly works is Ebay. The only reason it works is because it rates clear-cut transactions that are limited in time and scope, and where both parties have something to loose. And even there you have problems, like its notorious bias against sellers.
Decentralized system would be even easier to game.
I feel it's more accurate to label these guys as talented people who don't know how to manage a project.
As for AirBnB, the label is accurate. They're probably mining bitcoins as well since the electricity bill is so high.
All it's going to take is some tenant slipping on a wet bathroom floor or some other nonsense.
I hope they've squirreled away a huge legal defense fund from their last fundraising round.
edit
searched and found these, tip of the iceburg
http://www.sfbg.com/2014/04/29/lawsuits-target-airbnb-rental...
http://www.theguardian.com/sustainable-business/airbnb-legal...
http://ny.curbed.com/archives/2014/06/18/airbnb_might_have_j...
http://ny.curbed.com/archives/2014/06/10/stabilized_tribeca_...
http://www.fastcompany.com/3027798/the-secret-to-airbnbs-fre...
Airbnb should do everything in their power to help out this poor owner or it will set a dangerous precedent for future hosts.
Could it really be that easy?
Right, you probably have a lease. If you had a squatter's lease--or a de facto lease--couldn't she just allow more squatters?
I don't think what you say has direct bearing on this situation because you both entered into a specific agreement. There is most likely the precedent of you paying the landlord money, which shows you both agreed to a set of conditions.
Since these guys are squatters, they probably default to a default "lease" as defined by law. So the fact whether they are there illegally as held by the landlord doesn't even enter into it.
This is rather a person who had a legitimate lease, but has violated or exceeded it. Here they clearly had a legal right to lease the apartment for the first 44 days: this lease was agreed to via AirBnB. And the renters paid the first 30 days of it. Now they refuse to pay for the remaining 14 days of the original agreement, and also refuse to vacate after 44 days. That falls squarely into eviction law: if someone previously had a legitimate lease but now the landlord alleges that they don't (because of nonpayment, exceeding agreed conditions, etc.), they can be evicted. How, exactly, depends on the country & state/province.
Courts take a very, very dim view of any act that a landlord takes to harass a tenant, legal or not. Read http://www.ocf.berkeley.edu/~asucrla/Harassment%20by%20Your%... for example. A landlord who takes any adverse action against a tenant outside the legal eviction process is liable for damages.
Further, those other hundreds of tenants could have a legal claim against the landlord for fraud, since in a lease the landlord has to represent that he/she can deliver the property to the tenant, which is demonstrably not the case.
Unfortunately it seems it will only be resolved with a lengthy eviction process.
It is also interesting that there problems within the first few days.
[0] http://www.businessinsider.com/airbnb-host-cant-get-squatter...
That way, the owner isn't turning off power to constructively evict, but the power is off all the same.
See http://www.ocf.berkeley.edu/~asucrla/Harassment%20by%20Your%...
[1] https://www.kickstarter.com/blog/accountability-on-kickstart... [2] http://www.bit-tech.net/news/bits/2014/06/04/kickstarter-ren...
People like me that are too paranoid or skeptical to give free money would never back anything to begin with.
If their previously lawful residence has become unlawful (e.g. as a result of a failure to pay rent, becoming a nuisance, exceeding an agreed duration, etc.), in that case you proceed in a peaceful, legal fashion: you first give them formal notice that they are required to vacate the property; and if they fail to do so, you get a court order instructing the police or sheriff to remove them. The precise series of steps, and how many days they have to respond, varies by country and state/province (and may also depend on length of occupancy, usually shorter-term tenants being given fewer protections). You cannot yourself adjudicate and enforce the dispute, because vigilante justice is disfavored in most civilized countries. If, say, a client failed to pay your contracting bill for a job they owe you money for, you cannot walk into their cafeteria with a baseball bat, threaten the cashier, and seize the money that is legitimately yours. Instead you have to sue them in court, get a judgment, and then have the judgment enforced. There are ways you are allowed to enforce your legitimate claim, and ways that are... not allowed.
As I posted in another comment, see http://www.ocf.berkeley.edu/~asucrla/Harassment%20by%20Your%... for the details of the law.
a cnn story too,an interesting one.
So the guys ran 2 scams on kickstarter and is now scamming an airbnb host... well not really ,since he is just using the law against his host.
> Eviction procedures in California can be lengthy and complicated, often taking three to six months to evict a tenant.
http://www.businessinsider.com/airbnb-host-cant-get-squatter...
> On day one, after the guest checked in, he called her and complained about two odd things, Tschogl says. He didn't like the tap water (complained it was cloudy) and he didn't like the gated entry to the condo complex. He asked for a full refund, according to Tschogl. She had a bad gut feeling about him, she says, so she agreed to a refund.
This guy is really ...
EDITED:controversial expression.
It's probably really important that owners don't do this - renters (even terrible renters) have some legal protections and intimidation is a quick way to increase the legal costs and possibly end up in jail.
EDIT: Wait, did you put "nut case" in after I posted? I missed it before. Please would you consider using different insults? The person you're insulting doesn't care less about being called a nut-case, but by using such language you are subtly adding to the stigma faced by people with mental health problems. It's already harder for those people to get jobs or to rent homes, and one of the reasons is that people fear "unpredictable behaviour", and that fear is to some extent caused when we use terms to describe poor mental health to people who are displaying poor behaviour. This is a gentle request and you're free to ignore it.
The scammer - Maksym Pashanin - is essentially trading what was left of his reputation for just a few thousand bucks. Heroin's a hell of a drug.
Edit: added scammer's name in case he uses some bullshit right to be forgotten on other articles.