This is also why there is nothing affordable to buy or rent in many desirable areas....combine this with speculative "house flipping" and you have another 2008-scale housing/foreclosure disaster on the horizon.
7
I have stayed in a few Airbnbs and found the hosts to be wonderful people who supplied lodging in parts of their homes that were completely separate from their livings spaces so I could come and go at will and not worry about bothering my hosts. And their prices were super reasonable. One of my hosts was an elementary school teacher and he told me he'd been worried about how he was going to pay for college for his little girl. Other teachers suggested Airbnb. He's been doing it for a couple years and already has a healthy college fund going for her. In the meantime, I have become an Airbnb host myself of a studio cottage next to our house. We certainly didn't want a full time tenant, but renting it our a few weeks in the summer takes care of the property taxes and insurance which has been steadily climbing. It's been a great way to help with our living expenses and we've met some super nice people along the way, as well. The people who are abusing the platform deserve to get smacked and I totally sympathize with the neighbors having to deal with impolite guests. Hopefully a happy medium can be met because it's really been a lifesaver for us, income-wise.
30
Not only Miami Beach. Had an encounter with a nice officer from the Austin Code Department who explained me that the flat I rent during SXSW is an illegal AirBnB. Hartmut Giesen
10
Airbnb is not the Boogeyman. Most vacationers and homeowners are responsible and should not be unfairly characterized as gouging the market and driving the neighborhood into ruin. Renting my modest vacation home on airbnb for the weeks I wasn't there allowed me to avoid selling at a loss when I lost my job during the recession at the age of 50. Contrary to the arguments of some intolerant homeowners, airbnb can bring life and money to communities which can increase property values. It's better to focus all the negative energy on cracking down on excessive noise, trash and partying, rather than punishing the responsible homeowners and vacationers for the actions of a few.
21
I agree. Also where’s the anger against big developers? Thats what’s responsible for racking rents up and making communities unaffordable for average folks!
14
This internet stuff about renting your spare bedrooms out to strangers is just plain nuts. But it does make for interesting horror movie plots.
16
We still have a constitution.
Knock, knock...
“Do you have a warrant?”
“No.”
‘You’ll need to get one. And have a good evening.”
End of story.
21
I do not feel sorry for the woman that illegally rented her second home for income. She knew it was illegal and completely disregarded the rights of her neighbors. Instead of buying a second house she should have invested her money more wisely.
29
I don't mind the city enforcing its rules regarding rentals with the owner of the property. The person renting on Airbnb is not the person at fault, and should not be tossed out on the street because of the city's ordinances. I doubt that doing so, or even threatening to do so, is legal.
13
These tech disrupters couldn't care less what happens to the neighborhoods and can't be bothered to spend the money to figure out which of the units on their sites are legal. They just want to take their cut of the rent and buy Teslas and palaces in San Francisco.
We have rented in good faith and been on the short end of the stick from irate busybody neighbors who seem to think that it is their duty to act as the loci Stasi and yell at us and rat us out. How is the customer supposed to know the zoning laws?
AirBnB and VRBO need to properly vet these properties. They are making money by cheating the system, plain and simple.
39
There needs to be low-service hotels. I never use room service, and never let housekeeping in during my stay. I never ask the concierge to book any dinner or trip reservations. I don't use the hotel spa. I pick a hotel mostly by decor, price, and maybe restaurant. I stay at the hotel with the best interior design (to my taste) that I can afford. What I want in a hotel is location and decor style (for example, I detest Chippendale furniture and adore Danish modern and Restoration hardware type furniture). If my stay is longer than 5 days, I want a kitchen (but my long stays are always ski condos). I don't want to be pampered. I don't need hospitality. In my own home, I have a 50" TV, a 2200 dollar sofa, a 2500 dollar coffee table, and two 900 dollar chairs. Not super expensive, but nicer than most mid-tier hotel rooms. I just want to stay somewhere as nice or nicer than my own home (in terms of decor). I'm happy to wash my own towels and sheets, if there a washer on the floor. What I don't want to pay for is a hotel's hospitality. I don't want a concierge, valet, or bellhop. I want a big flat screen TV, nice furniture, and a sense of style. I'll take out my own trash, park my own car, carry my own bags, wash my own towels, and make my own dinner reservations.
14
Politicians like to blame AIrB&B for the housing shortage, while it is really the politicians and their developer allies who are responsible. In New York City thousands of new units have come on line since Mayor De Blasio took office, but almost all of them are luxury apartments built by developers who fill the Mayor's campaign coffers.
Most AirB&B hosts are hardworking and honest people trying to make a little extra money in cities that are squeezing out the middle class.
21
Of course, if these AirBnB renters had half a brain, they would just tell the code officer they were house sitting for a friend.
10
People who stay in Airbnb's are not taking business from hotels. Because of hotel high prices and "resort fees," these folks would not be visiting the area at all. Tourists bring cash to the community, patronizing local stores and restaurants. Scammers who shouldn't rent their homes make it bad for the rest of us. Also, Airbnb doesn't give refunds, the homeowners do. So go after them if you're kicked out in the middle of the night.
14
This is a subject near and dear to my heart. I have just moved out of a condo building that was taken over by someone who bought 17 out of 101 units to rent on AirBnB, and a few other owners followed his lead. The result? The building was basically a hotel, illegally I might add, as there is a one month minimum rental law here for condos. As someone who just retired here (Thailand), it's frustrating to see laws flouted just so people can make money at the expense of everyone else in the building. Let's be clear; Holiday makers have a different agenda than residents. Many, not all, disregard the building rules on noise, drinking, smoking, and parking. And why not? They're here for a few days and will pay no consequences. Many bring children, infants, and toddlers who can make life miserable for anyone within earshot. They put a strain on building management services. And because they're 'On Vacation' they feel entitled to do as they please. AirBnB is a pox on residents for the most part, and should be held accountable. It's a lousy business model, zoning laws, hotel regulations and licensing exist for very good reasons. A big thumbs down from me. Thank you for posting this article, I'm glad to see some pushback on these jerks.
79
@JP
Lol...if you don’t like seeing laws flouted, then you might not want to be living in Thailand. The right number of baht in the right hands can let one get away with murder, literally.
5
Airbnb should pay all taxes and carry required insurance that a hotel would be subjected to. If it is a single family home, I defer to the owner's rights to choose to be the uber of hotels. If you live in apt, coop or condo the rules of the building apply.
24
Those who have the most to lose from the harrasment of Airbnb by city busybodies aren't the big commercial companies; it's the small owners who rent out the spare room to pay for their mortgage and living expenses. I've stayed at one such property in Ojai recently, and it was sad to hear about the efforts the city is making to make life unbearable to small owners. It is, essentially, a scheme to benefit the large hotel/B&B outfits with friends in the city gvmnt.
13
The state of Arizona and airb&b reached an agreement two years ago that all airb&b rentals have to pay the usual taxes plus any bed tax in the community of the rental. It is collected by the air b&b as part of the rental fees and sent to the State. and The State sends it to the community. However they do not send the name of the person who is doing the rental. Small towns, like Bisbee where I live, do not have the admin people to track every down owner/manager to ensure they have a business license and proper insurance. Some neighborhoods in Old Bisbee are now being adversely affected by the number of overnight rentals. And likely this year there will be an effort to legislate how many overnight rentals may occupy a block. VRBO and HomeAway, both owned by Expedia, do not collect taxes and have refused repeated attempts to get them to do so.
10
By now we've all heard the stories how neighbors hate having an Airbnb next to them and the problems that creates for the whole neighborhood, which only seems to be getting worse. The result will be more regulation in towns across the country and the trouble for the industry isn't regulation per se, it's that each town will make it's unique rules.
From these rental companies we've heard the marketing PR push about very sympathetic people who need a little extra income, although for some unspoken reason they're unable to get a job in the traditional sense to do that.
The truth is many of these home rentals are run by investors who buy up blocks of properties in an area. They don't have a lot in common with the case of Ms. Nichols featured in this story. An example: I recently wanted to spend a relaxing weekend on Venice Beach CA and went to Airbnb for a 3 day rental. Catch a little sun, read a book on the beach, perhaps. To my surprise, a lot of the houses were owned by professional investors. Remember, these are homes that families would normally lease for a year, subject to all the rental protections we've created based on the safeguards we need. But they're bought by some VC and pulled off the market. Prices for new homes go up. Prices for rentals go up as well. Who are we really helping here?
48
We owned a property in Florida until last May. Yes, we sold because air bnb moved in next door. Like so many of the other writers here the constant roll of suitcases outside our condo door, the late night arrival and departures and lack of respect for the property and amenities grates for all of us that pay high condo fees to maintain them. The last straw was when 13 teenage boys came in for a 3 day weekend. I will forever resent air bnb for ruining my happy place.
83
Like you, Rhonda, I paid top $$$ to live/retire on Miami Beach, only to see my condo ravaged by utterly unscrupulous landlords rent out units to equally unscrupulous ‘tenants’ who rent out their units daily to unsuspecting Airb&b customers. It’s an ongoing nightmare, and I am so relieved to see Code Compliance on Miami Beach take this seriously, finally, and I will continue to bring to their attention all illegal actions and antics at play in my condo.
39
It's as much about the responsibilities of the owner than it is about Air BnB. We have a guest cottage in our back yard that we rent out via Airbnb, typically one or two night stays. Airbnb guests have private parking via a private alley and do not take up residential parking space. We are always on site during those stays. We keep our space immaculate and we keep its price high. We set non-negotiable house rules in our listing - no parties, third party guests, no noise, no drinking on site etc. We get great guests who love their time with us and are uniformly quiet and considerate. We've been doing it for 3 years and I'd be surprised if any neighbors even are aware of it.
11
Do not be fooled; while many cities are seeking to create reasonable laws to address this issue and mitigate the adverse effects in communities, AirBnb is heavily lobbying state governments to loosen restrictions everywhere and preempt local decision making, The service is also quickly becoming big business. It’s less your neighbor renting out their garage apartment but out of town investors with no interest in the neighborhood. Property rights are just as important for those whose neighborhoods are being impacted.
41
Um check your facts. Hotel lobbies are working overtime trying to shut down Airbnb to keep the industry/$ to themselves. Cities that are successfully passing ordinances for short term rentals, forming a task force dedicated to address noise and occupancy issues, and charging city tax on short term rentals to fund all this are doing very well. It’s a win/win for their respective communities. In mine alone complaints are down an incredible amount and most of them are noise complaints from permanent residents.
8
"I am depleting my retirement savings, and the city has taken a business from me that should have produced income and carried me through retirement". Let's rephrase that. You are depleting your retirement savings because you could not come up with a business idea that was legal.
77
It’s legal in many many cities to operate an Airbnb currently.
7
@Alex
The point being that it isn't legal for this woman to do so anymore - nor to expect that a gap in time before bringing in needed rules should be kept in place just to suit her.
I bake a mean pie. I'd prefer to quit my job and fund my retirement by making and selling them out of my house.
Doesn't mean it's in the public interest.
15
It’s not just one woman, there’s a lot of real estate that relies on rental income and a lot of people will be affected... I think it’s funny that you have a problem with somebody baking pies to make money in their own home! Yeah if it’s illegal it’s her problem for sure. But it’s shortsighted to think that making Airbnb illegal is going to do anything great for communities. So many of them go rogue which lead to the problems in this article. Then what - police state? Sounds like it in this article with city officials banging down doors... The only way I’ve seen that works is when cities develop a task force dedicated to vacation rentals and enforce laws around them. Also collect tax on short term rentals to fund the whole thing. I also think it’s very problematic that you think there should be no time period of adjustment once the city decides to make renting out their own asset illegal... strikes me as cruel
3
I enjoy and make use of Airbnb. I like living in a neighborhood instead of a hotel. Its lovely; Airbnb rentals feel more humane to me than a hotel. However, a local municipality, responsive to its own residents, should be able to set limits in whatever way they decide on how much and where the service is available. Any suggestion to the contrary is ludicrous. Its Airbnb here who is being unreasonable, not local governments. Local communities agree on rules, drafted by elected officials. That everybody follows them, votes in new governance, or moves elsewhere seems simple and fair to me.
28
After recently reading about the impeding IPOs of companies that include Airbnb, I'd think that Airbnb would AT LEAST give people refunds without question when situations like this come up. Apparently they have money to burn.
15
In Hawaii, Airbnb is wreaking havoc on our neighborhoods. I put a lot of blame on our local government for refusing to crack down on them, but the simple fact is that many Airbnb homes have become party venues, bringing extra traffic and noise into residential areas. Worse is that they’ve removed thousands of affordable housing units from the rental market (why rent a room for $800 a month and commit it for months when you can rent it for $100 a day for a week at a time?) creating a horrible housing shortage. So all of you Airbnb users, when you see our homeless camped at a nice beach or a park, or on a sidewalk, you are part of that problem. Many of these owners don’t pay taxes on them either, robbing us of needed funds. Airbnb ‘s response? Sure, we’ll collect taxes for you, just let us continue to operate unfettered in any and all of your neighborhoods.
39
@steve
Please don’t conflate the housing crises with Airbnb necessarily. Here in Tahoe, we have locals claiming the same thing. Problem is, there is nothing affordable about a destination resort town.
11
You live in a highly touristed area. Doubt Airbnb is the cause of all the evils u are describing.
9
I hope the "share" economy gets fined the heck out of it!
There is no sharing, this is just raw capitalism which tries to get away with everything.
25
I’m you live in a capitalist society... it’s not ALL bad is it? Rather socialism? then go to Europe and see how you like your tax bill
2
Those who are hurt the most by ABnB are the newly homeless in the small, quaint, tourist destination regions and towns.
No places available to rent anymore. It is a disaster in areas like Cape Cod, Maine, ski resort towns, islands, etc.
These places are not sustainable nor balanced communities.
Teachers, nurses, firefighters, police, emts, municipal workers and others must live somewhere.
28
Airbnb is a blight upon the earth. I live in a beautiful home in the Hollywood Hills and the home above mine constantly rents to Airbnbers who feel it is incumbent upon them to play loud music and scream. I go up and threaten to harm them but invariably they leave and wouldn't you know another Party, moron group of feebs take their place. I finally called the city and and they told me that the neighborhood is not zoned for Airbnber's either but it is a constant battle. Hate them Hate Airbnb
43
I grew up in Miami Beach, last visit was in 1999 to wrap up my mother's estate. Have no plans to ever go back. Probably the only city in the country that has one of its main thoroughfares named for a virulent anti-Semite, Arthur Godfrey. There are much better resort destinations in this hemisphere, well, even up the beach. The $20,000 fines speak for themselves, as confiscatory as a Bolshevik property seizure.
1
Air BnB and other similar outfits, and owners who use their services, are simply law-breakers and public nuisances. Regulate them and fine them more and more until they stop degrading the neighborhoods they infest.
19
Airbnb provides an excellent service and fulfills a need that hotels cannot match. Neighborhoods change and are not static. If you don’t like your surroundings anymore, move.
7
@So Sorry
The point is that YOU should move on because YOU don't live there.
22
We here in Canada can only look enviously at the enforcement protocols available to US cities.
Let's be clear: As stated in the article, Miami does allow short term rentals in specific zones with appropriate licensing. The issues at hand include paying appropriate commercial property taxes, safety of the occupants (as well as neighbours) as well as adherence to local noise bylaws, parking and litter.
The city of Miami should be commended for their diligent approach on behalf of their established residents.
27
@Rob
But with all due respect, I think things might be just a tad different there in Niagara Falls than in the rest of Canada, don't you think?
I occasional use Airbnb both as a renter and to rent out rooms in my NYC coop apartment and I’m suspicious of the crack down on Airbnb. Finding polite, quiet, respectful short term guests is all in the screening process that is straight forward on the Airbnb website for renters or hosts. Indeed I’ve had more problems from some permanent or long term neighbors being loud or disrespectful in one way or another than I have from Airbnb guests. If an Airbnb host consistently rents to unruly guests, address it with that particular host. Don’t try to shut down an entire system that enables average folks to meet their expenses or take an occasional, affordable trip!
9
If the renters are quiet and respectful no-one will know they are there. And even if they did they wouldn’t care. The problem comes with partying and rowdiness, which some renters just can’t seem to keep under control, usually because of excessive alcohol consumption. That’s when the neighbors call the authorities.
The whole enterprise becomes extremely shaky when the host does not occupy the property being rented out. This is because a) the guests usually make a nuisance of themselves, b) the property is usually not properly insured as a rental, c) the appropriate property tax and other taxes are hardly ever paid, and d) if the property was purchased using a mortgage the buyer most likely claimed to be occupying it themselves, thus defrauding the lender.
I say let them stay if the guests are quiet and unobtrusive. But stop it immediately if it disturbs the neighborhood. I don’t care what your financial sob story is, that’s no excuse for waking me up at three in the morning with yelling, loud music and general mayhem. If your guests behave sensibly nobody will be bothered by them and, most importantly, nobody will bother you.
14
I think the decision regarding the rental rules for a building or neighborhood should be up to the owners/residents. The argument that neighbors are loud or rude is disingenuous since you can't control who buys the house next door or who legally rents the apartment across from you for the next year. Either short or long term renters could have loud parties with people vomiting on your welcome mat. What do you do about it? I live in a resort town and several of the houses in my neighborhood are empty much of the year because the owners live in other parts of the country or the world. When water pipes break it may not be noticed for weeks. When animals die in the garage next door we can't get rid of the smell because the owner lives in another country and nobody here has a key.
I find it interesting that so many areas worked hard to restrict population density but now are reversing these rules to allow "mother-in-law" apartments or dividing large houses into multiple units due to the shortage of housing and the lack of space to build. Perhaps this trend will extend to the short term rental business when the crack-downs affect the local economy by limiting spending at restaurants and other venues since the property owners can't afford it anymore.
8
I’m also a victim of AirBnB fraud, and that’s the only way to characterize this type of situation. IN 2017, I paid $2,400 for a 3BR apartment in NYC for thanksgiving weekend. Upon landing at JFK on Tuesday afternoon, we learned via text that our reservation had been cancelled by the owners, “Ash and Ben”.
It turns out they had continued renting their apartment via AirBnB even after their landlord had advised them it was illegal, and on the day of our arrival, they had received a cease and desist order.
We scrambled and found lodging for our family of 5, but at an inflated cost of almost $6,000 since we were just days from the holiday. AirBnB offered no assistance, and the property owner, Ashley, actually said “It’s not my problem. Contact AirBnB.” AirBnB claims that my contract was with the owner, and that they were merely the facilitator of the transaction. There has to be a class action lawsuit here somewhere...
This was my first and last experience with that scam operation. The sooner that cities outlaw short-term, un-governed rentals like AirBnB, the better for every consumer.
83
@Greg Wilemon
Stories like yours remind me of the predicament many are also going to find themselves in if they decide to take advantage of a new 'service' currently being advertised whereby you can rent somebody's personal automobile instead of renting through the usual car rental agency.
All that has to happen is for Joe in Phoenix to decide he wants to use his car this weekend after all, instead of handing over its keys to you and voila - your vacation is ruined.
And you'd better be carrying really good personal auto insurance yourself, because guaranteed, that $2 premium you're paying to cover you when you rent a car will not cover your 'rental' from Joe in Phoenix (who, also guaranteed, is violating his own insurance policy by putting his personal vehicle into commercial use).
There's a good reason that legitimate businesses are bonded, licensed, and regulated.
A very good reason, indeed.
33
@Greg Wilemon
If the facts are as you stated, you're 100% entitled under law to the refund of your $2400.
That anyone would attempt to keep your money under this scenario, is fraud.
16
Amazing that government can impose these limits on private property. Yes, it's yours, but you can't do with it as you like. It seems like a struggle between small property owners (homes) and large proper owners ( hotels). As usual, money talks...
3
There are many small property owners adjacent to AirBnb properties that are happy to get rid of AirBnb in their neighborhood. The coming and going of people in the middle of the night, drunken partying and excess garbage left by AirBnb guests are irritating and make it difficult to enjoy a residential area.
The small property owners want the government they voted in to take control of the big business AirBnb corporation to get out of their neighborhood. Looks like the big corporation AirBnb is trying to impose its will on the people who reside in this Miami neighborhood, the small property owners, not the other way around.
26
Missed in this story are the small real estate investors who bought (and overpaid for) these five- to-ten-unit buildings with the primary goal of renting through Airbnb. Now they are stuck with having to do long-term leases to actual residents. And guess what? The rents will not support the debt service and maintenance. Why? Lots of new construction on the mainland, small units, and, above all, only scarce on-the-street parking. So the looming problem: what happens when these buildings go into disrepair? Trust me, a 60- to 70-year old structure in this humid climate will need loving care.
2
Any investment is a gamble. It sounds like some of those units will have to offer up the units for less to keep them occupied by locals or sell them at a loss.
12
Because you say so Jane?
Think of the millions in tax revenue Miami Beach is losing every year because Airbnb guests don't pay hotel taxes. Airbnb cheats everyone.
31
This is s tough one. I personally don’t use Airbnb as either a customer or renter. That said, I have to agree with those who say it’s government oversight and quite intolerant. I recently discovered that the beach party town that I have an apartment in SC has a ‘no noise’ ordinance. Not after 10 or 11pm. No noise period at any time of day. That’s absolutely ridiculous but who has the time or money to fight it? It’s become all about intolerance in America.
4
@Mike L No noise all day? Outrageous!
So, um, what town is this exactly? I need to rewrite my retirement plan.
13
What a great idea! I want to live there!
14
State legislators should play a role by passing homeowner association laws. HOA's can amend their covenants to limit rentals. But associations or board members might ignore those restrictions, especially if they are renting on airbnb and have a conflict of interest. So restrict board membership to those not renting on airbnb and empower individual owners to become bounty hunters entitled to 50% of the rental fee when their neighbors do rent. You throw out the board and hit those who flout the law in the wallet.
4
I love living like a local. I am quiet, I recycle, I read and follow the rules. It usually is more affordable with a kitchen and gives me a better sense of the city. My visits are 7-30 days. I read between the lines and discard rentals that require me to be a "relative" when confronted by other owners. I look to see that "hotel taxes" are added to my bill. Having said that, I don't like having short term renters in our six unit building. All of us sharply limited the ability to rent out our units. Short term renters are usually on vacation. They party, they go to bed late and forget to remove their shoes. They don't know the idiosyncrasies of the building, they can't figure out recycling and they feel entitled to enjoy themselves at what they pay per night, fees included. And what does a person do when guests of a unit misbehave and their host is several time zones away? it seems hypocritical to expect to be welcomed when I myself am not welcoming. There has got to be a better way.
20
"Airbnb, for its part, is currently suing the city, saying that its regulations are overly burdensome."
That's, like, Huawei suing US government for the ability to legislate and enforce its law. It's totally ridiculous.
While I understand that there's genuine market needs for cheaper shorter term rentals than hospitals and conventional B&B offer, and that landlords and residents want to maximize their returns on valuable properties, cities and government have a duty to enforce the law and legislate to ensure that everyone living in the vicinity are on level playing field. AirBnb, much like Uber, wants to exploit current loopholes and previously lax enforcement of building codes, so that they can continue to reap big gains, at the expense of local communities. This has to stop.
There are cities (eg. Cambridge MA) that has since put together legal framework for owners to apply for STR (short term rental) license, ensure it's done according to the laws, and pay necessary taxes on profits. THAT's the way it should be, rather than keeping everything hush-hush under the table.
27
@tiddle Why is it ridiculous for Huawei to sue? Why should US laws be binding on foreign companies in pursuit of their own interests? And why can't home owners have the right to rent their rooms? It's not a tax question at all, it's a real estate contest between big capital and small ownership. And has anyone taken a poll to see if "local communities" are actually hurt? I don't think so.
2
@Antoine
Granted there's something fishy about the US government going after Huawei, but those who act legitimately in the public interest are something different.
They have every right to prevent people from turning their residential properties to commercial interests if there are good public policy reasons for doing so.
3
It’s more complex than that. Homeowners already have rights to month to month leases... want to make that illegal? Making it outright illegal is hugely problematic. Who is going to enforce it? The police are busy enough fighting crime as it is. Have random city officials banging on doors asking for id is literally unconstitutional. Litigating and setting down a set of ordinance laws around the practice of renting out your own home is the only way and works in many cities already.
All cities should limit short term rentals to properties where the owners are residing there too. Converting apartment buildings into hotels is not going to help the shortage of lower income housing anywhere.
24
On the average night, two million people are staying in an AirBnB. It’s a huge market for any city to turn it’s back on. When hotels book up, they often jack up prices too so cities with a convention business shoot themselves in the foot by discouraging AirBnB. Plus hotels are often clustered in the tourist sections of town, for people visiting other areas accommodations can be slim. Travelers who want to experience a city as a local often prefer AirBnB, while hotel chains are best for those who want no surprises and for every room in every town to be the same.
5
There seems to be a mistake here. Air B&B should be fined $40,000 for each illegal rental, not the property owner. The company can attempt to recoup it's loses from the property owner, and this will provide a modest incentive to do things right or shut the business down.
50
this article is strikes me as more of an opinion piece that actual reporting. The experiences of a few members with bad situations being highlighted and not detailing the 99.9% of positive experiences on Airbnb is ridiculous. Random city officials banging on doors is also a big problem with privacy laws - how are they discerning where these rentals are when addresses and guest info is privatized? Police shouldn’t be able to bang on doors and question people and demand identification out of nowhere if they have a suspicion. Airbnb runs worldwide with an incredible amount of people using it daily without issue. People should have the right to monetize their own assets - this is not a socialistic society. Cities have a responsibility to create ordinances and laws to ensure compliance ( noise complaints, etc). airbnbs should be taxed like hotels which would fund this task force and ensure there are few problems. This is proven to be working in other cities already and is a real solution. Trying to make Airbnb illegal just doesn’t work even though the idea might sound like a simple solution- it causes a huge host of other issues (excuse the pun) and many cities are suffering already from trying to do this. NYC has more complex issues that are completely different from Florida. publishing an article like this to guide popular opinion on how to handle Airbnb in the city strikes me as foolishly slanted. To me, this is entirely the wrong way to go about handling sharing economies.
5
There is no random banging on doors. This is all complaint driven.
15
How about this: who you let your property to and for how long is entirely your business and not local government's. Just another example of NIMBY lobbying translating to undue encroachment on property rights.
5
@Liam
How about residents refrain from allowing strangers onto their properties who disrupt other residents? You encroach on their property rights when you do that. Do some research on property law.
19
No, the issue is whether you become a nuisance to your neighbors.
11
" renters like Mr. Igbokwe and his friends, who unwittingly book rooms that are being offered illegally, are the collateral damage."
Nah, they are the perpetrators, the gas which is allowing the entire machine to run. Hit at the airbnb renters, who don't give a hoot who they are renting from or whether laws are being respected, and hit them hard.
"Airbnb has said it works with cities around the world to create reasonable regulation."
How nice of Airbnb! Rather than respect laws, it expects to make them.
Airbnb is yet one more evil Silicon Valley invention which monetizes law-breaking and social harm. The sooner they are fined out of existence, the better.
51
Why “hit” the renters? Surely the blame is on the property owners and AirBnB itself. They’re the ones that need to sort out the legality of the properties they’re offering to potential customers. We can have a separate conversation about whether AirBnB should exist at all (I don’t and won’t use the site), but as long as properties are “wrongfully” listed on the site, it should be up to them to pay any fines, and customers ought to be fully refunded when they’re kicked out of these places.
6
I respectfully disagree. Unless they have been living under a rock the renters know exactly what they are getting themselves into.
7
@GB
Same reason you go after the johns as well as the pimps.
7
It really isn’t that hard for Airbnb to know the laws of popular areas and not rent ..
29
Most people who rent through Airbnb are responsible and great. While there are legit concerns In some locations I am getting tired of reading that Airbnb apartments are the source of all evil in our cities.
I’m sure the writer and 80% of readers have stayed in an Airbnb and enjoyed it.
12
AirBnb is a large corporate at this point, similar to Hilton, Marriott or Holiday Inn. These corporations have to figure out how the laws and regulations work in multiple locations. AirBnb should be able to figure it out, too.
12
What are the major products of Miami Beach? You make widgets there? No, it's tourism, as it always has been. If you don't like tourists, don't live in Miami Beach. AirBnB is popular for a reason, it's great for a tourist who likes privacy, or cooking for themselves, or having a washer and dryer so they can pack less. AirBnB does exacerbate urban housing problems in cities with large tourism industries, but it doesn't create them. The city's community is responsible for solving urban housing and lodging problems. If the city has noise and disorderly conduct issues dealing with its tourists then maybe they could encourage attractions that aren't alcohol dependent. I really do understand how residents of a touristic city would enjoy having all the fun amenities of tourism for themselves. If they ate out every meal and danced every night away, that might be possible....
11
Areas that attract tourists are much, much more than that. They are places where real people live and work and have a right to neighborhood peace and quiet. Just because Miami Beach, or any other location with interesting architecture and/or a beautiful natural setting attracts tourists doesn’t mean the whole entire place is a hotel. It’s not Disneyland we’re talking about here.
18
As someone who has rented out my former apartment occasionally on Airbnb, as well as stay at Airbnb locations globally, I can see BOTH sides. People who rent or buy their places should not have to worry about loud parties, trash or property damage from visiting Airbnb renters who for whatever reason have no home training. At the same time, this unstable economy has forced many folks to use Airbnb & other "home sharing" apps/web sites as reliable income. As the saying goes, "you do what you have to do." And, they're more affordable than hotels overall.
For me, renting my place on Airbnb was more stress than it was worth: worrying if my landlord or neighbors would find out (subletting was not allowed in my co-op building), worrying that my guest would trash the place, making sure it was up to my guests' expectations (Airbnb basically wanted the place to be perfect & spotless--like a hotel. For that, you basically have to treat being an Airbnb host as a full-time job). That these rentals cut into a city's available affordable housing; I think in most cases the landlords wouldn't be making these units affordable to working-class people anyway.
I do think that Airbnb et al has gotten out of hand and there needs to be SOME level of legislation to protect homeowners and keep "hosts" with numerous properties from gaming its system. The obvious solution to all of this would be more secure jobs with a living wage, so that folks don't need to do short-term rentals for income.
30
@bklynfemme - good points, and also I think that the companies that are essentially encouraging/facilitating illegal behavior should be held to account when the illegal behavior happens. Profiting from people's need for income by offering them an easy way to cheat local ordinances isn't helpful to anyone.
"We don't vet each listing" isn't a legitimate excuse for a company that takes a cut from every listing.
24
@bklynfemme The thing is, AirBnB isn't just people renting out their property for some spare cash. It's become big business. People buy properties specifically to AirBnB them, driving up real estate costs. Better paying jobs won't stop people who do this as a full time business just because it's profitable. If you have money to invest, becoming a landlord is lucrative. Meanwhile, properties are unavailable to live in.
20
The neighborhood is "picture perfect" because it doesn't have an influx of short term rentals. As for the woman who can't pay her bills without resorting to flop house rentals, too bad. You are not entitled to degrade your neighborhood because of your financial situation. Recently in our own neighbhood we were notified by other neighbors that airbnb was holding a "community awareness" meeting to inform airbnb hosts of pending regulation to restrict short term rentals. We attended without telling them we were concerned neighbors. There was a team of two from the company and they went over suggested "talking points" on what should be said to our elected officials. One of them was how restricting short term rentals would constrict housing stock. Pretty rich. This company needs to cooperate with local officials more closely. They need to share rental data and be a more proactive in making sure local laws are enforced.
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@Mark Stone
Right on!
15
I am a little bit horrified by this article. I am an ardent fan of Airbnb and have enjoyed many wonderful stays all over the world. I very much appreciate living for a week in a real neighborhood and not in the tourist enclave. I have always assumed that I was welcome in the neighborhood or building and behaved respectfully. I would be very disturbed to discover that I was making other residents uncomfortable. This seems like a very easy problem to solve. Airbnb should never list a property that violates local laws. Period.
262
@Mel427
Most people are nice...but it is the 20% that ruin it..I have had an occupied short term rental going on right under my nose, and on my pvt road no less for the past 3 years.Town does nothing to enforce "Lodging " laws..These are nothing but motels- unregulated and invasive.I've been awakened after midnight, and at 6 in the morning...even parking on my road has to be watched and monitored, and I have had testy encounters requesting complete strangers to move their cars on my road ( I pay all taxes and paving)..A greedy cash grab by inconsiderate neighbor. Air B and B will ruin this neighborhood.
43
@Mel427
I assure you, you are not welcomed by many neighbors. I live in Atlanta and Madrid, Spain, and our beautiful, old building (which is in the city center of Madrid) has been ruined by several apartments that have turned into a churn of AirBnB Rentals. The constant echo of suitcases being dragged through the streets is also a constant annoyance as well turning what were residential neighborhoods into tourist havens - and despoiling the local character that made these neighborhoods attractive to residents and visitors alike. We've friends in Amsterdam, Berlin, Barcelona etc. who are also fed up with similar problems. It's a plague. And I've no sympathy for those violating the law - there's a reason for zoning restrictions to fairly protect the character of neighborhoods that owner/occupiers haver bought into.
86
They wouldn’t exist without illegal listings.
21
We ran B2B events every year in Miami Beach. In the last 5-6 years, we witnessed hotel rates increased by 200-400%. Our delegates turned to AirBnB more and more. We supported them. We wanted more people at our events.
The economics are simple: Event attendance usually costs $500-1000. Some are higher, but most are in this range. Airfare costs $200-500 round trip, depending on where you are in the USA. Hotel costs $450 a night in most places. For a hotel room for 3 nights, that's a whopping $1350, plus taxes and resort fees. Your hotel stay now costs more than the event plus the airfare. A budget for a simple $500 conference with a low $200 airfare is: 500+200+1350=$2050. You tell your boss it's a $500 conference and it will cost you well in excess of $2050 to go. His decision: a firm NO way.
I have dealt with many of the hotel operators. They are not nice people. The hotels made a brilliant move, placing pressure on the city showing them a loss of tax revenue from a disruptor, AirBnB. Miami Beach attempted to quash local rentals in favor of the hotels. Evil, but brilliant.
I believe in free markets. As a result, we made a decision to vote with our feet: No more events in Miami Beach. We simply moved the venues further north: West Palm Beach, Ft Lauderdale, Boca Raton, etc. Now the same $500 conference costs $500+200+300=$1000, 50% less than Miami Beach.
13
@Marc; You support free markets? Really? What if your neighbor decided to open a strip club, or a beer garden, or a garbage transfer station? Zoning regulations are like unions - no one likes them until they are one getting fired and then the union rep if their new best friend. It is reasonable and normal to exclude certain types of businesses from residential areas. This is inconvenient for the business model of Air BnB, but most home owners expect the code officer to protect them when a noxious use tries to set up next door. This is no different. And slandering hotel operators - the ones whose businesses are being threatened - is just sad.
46
@Marc If your delegates were filling hotels or even occupying blocks of rooms, you should have negotiated a lower rate. Rack rates are similar to a car’s MSRP- no one pays them.
10
Short term rental is not so far off from a month to month lease. If your own your property you should be able to lease it out. There are many cities that form regulatory systems to make sure noise issues, etc are addressed. Short term rentals can be taxed by the city to form these code offices and staff.
I have a home that I bought to move to when I retire and also to vacation in. I currently do AirBnB it out (it was an AirBnB before I bought it, too), because I don't want to leave it completely vacant when I am not there, and it helps to pay for the property taxes and upkeep. I wouldn't rent it to a long-term renter because I still want to visit every couple of months.
I adhere to all local laws -- including licensing, paying the TRT tax, etc.
I also enjoy using AirBnBs when I vacation, because it means everyone in my family can have their own bed, without having to pay for 2-3 hotel rooms (which is often cost-prohibitive).
I am always upset when I hear that people are illegally renting their places out, because it makes it harder for the rest of us!
108
@Catherine
Yeah, I hear you! Its a great idea in general. Airbnb should smarten up and realize that pushing illegal rentals is not a good marketing strategy. Good short term, bad long.
16
I have no sympathy for the owner who wanted to rent her second property for income, but won't do it unless it's short term AirBnB - what the heck is wrong with renting it for 6 months or a year at a time? Guess that's because she'd have to declare the income and manage the property as a rental. Give me a break!
62
@E Campbell
It's truly amazing what twists and contortions of logic people will make in an attempt to justify their own unjustifiable behaviour.
15
@E Campbell-you know that if you rent your property through airbnb, you get a 1099 misc form, right? The money still gets reported to the IRS if its rented in the USA. Airbnb also collects city taxes. There are loads of people who need short term rentals because they're in a city for work for more time than is pleasant to stay in a hotel-or simply because they appreciate staying in a neighborhood. Don't vilify all hosts and guests. The vast majority are considerate of the area they stay in and tread lightly.
5
When the "sharing economy" runs like a black market or underground economy there are profits to be made, for sure, but there are hidden costs that are shunted to others who do not benefit. The renters who do not pay room occupancy taxes and business property taxes gain an unfair advantage over hoteliers who must pay those taxes for the same type of business. Most likely, neither the renters nor the owners have proper liability insurance when the transaction is an illegal act. The neighbors lose property value in some cases.
Airbnb likes to promote the idea that mom and pop operators supplement their social security by occasionally renting a room to friendly out-of-towners, but the reality is that it is a big business with profits obtained in part from circumventing taxes and safety regulations. Airbnb wants to do business, fine, follow the law.
231
@MEM
Just like Uber, which is really just another taxi cab company that makes money by following none of the rules placed on proper cab companies.
35
I can see someone not wanting the neighbors to run hotel next door.
At the same time the Air B&B guests could just say they are house guests of the host. Seems like code enforcement would not be able to do anything.
4
@Reader In Wash, DC: Is that really going to be Air BnB's business model - relying on its customers to lie to city officials? Going forward I will ask my prospective Air BNB host: Can you certify that the rental of this unit complies with all local laws pertaining to short term rentals. If the host cannot, I will book elsewhere.
24
The complaints and issues Airbnb are having are increasing and I think that's why they're going to have an IPO this year. They're selling the top. For all those commenting, listen to yourselves and NOT buy the IPO as I believe it won't go well in the long run.
Airbnb fills a gap in the travel market, but it is also creating a level of discomfort for the local populations throughout the WORLD, and while that gap probably won't go away, regulation may make it more hospitable for the local citizens.
17
@horace Greeley
I believe it would have been more accurate to write, 'The complaints and issues AirBnb is causing...'.
1
"The company added that it does not review the listings that appear on its site and that it “also advises its hosts and guests to be aware of and comply with local laws.”"
Airbnb and the other places profiting from illegal rentals should be on the hook for at least 50% of the reimbursements to victimized renters and at least 50% of the fines to cities trying to maintain the very valid distinction between residential and the hospitality industry. Yet they attack the law by presenting the idea that residents have no right to avoiding hotels in their building or on their block.
As false a way to escape responsibility while reaping profits as Uber's lame assertions that it's "a data company" that's at arms length from people getting driven places in other people's cars. "Ride sharing", as if the driver was going where you were? Please.
Yes, Uber took advantage of a flaw in the taxi and limo industry's way of doing business. If they'd been "a data company" they could have worked with those industries to revolutionize personal transportation, while preserving the income of people who have been making a living driving other people around.
Yes, the home-rental places offer neat opportunities
11
How is AirBnB still in business? They take no responsibility/legal legitimacy of the properties listed on their site. They are no better than the AirBnB hosts who break the local laws.
33
@newc
How is Uber?
2
If it's not already a legal obligation for AirB'nB to list a detailed and binding piece of information regarding the legal status of any unit/property/room it is offering for rent, it strikes me nonetheless as common sense business practice.
There's nothing keeping a homeowneer from checking "non-complaint" or "uncertain", with a text adding "not officially compliantm, but I've done this for years, and nobody in the neighbourhood cares, and if they do, I promise to refund you the unused portion of your visit", for example.
I'm no lawyer, but I suspect that Air Bn'B is opening itself up to major liabilities and class action suits from all corners.
10
You’re no lawyer :)
1
About one month ago my wife, daughter, and I were accosted by a troop of five Tourist Police as we left our AirBnB rental in Seoul Korea. They were polite and caused us no grief, but they were insistent on knowing why we were in that building. My daughter managed to bring up the booking on her cell phone, giving them the information they wanted.
Could that have been an illegal rental?
7
Airbnb is a commercial rental and takes residential homes out of the long term rental market for locals and also pushes up rents because of supply and demand for long term residential rentals being in short supply. On the other hand, looking at this from a landlords/ladies point of view why wouldn't you do this as you can charge the same rent for one or two nights stay compared to weekly, where you get less, renting to residential tenants.
In NZ government made new laws to cover Airbnb. I think you're allowed to rent out for so many days of the year before it is classified as an Airbnb. Lots of local councils are looking at taxing Airbnb accommodation. Do a web search: local council tax Airbnb
Airbnb rentals do have their risks though, as burglars go around booking under false names and clean out all the whiteware, appliances, furniture etc
7
In a recent comment about Airbnb in NYC, I pointed out the telltale key vault padlocks attached to steel fences around my neighborhood. Another commenter responded that the padlocks were not for Airbnb but for the dog walkers.
Well all I can say is that dog walking, from the photo, must be a bustling business in Flamingo Park, Florida.
25
The racket of Airbnb is no different than that of the street cart vendors in New York. Both do an end run around laws that hotels and restaurants must strictly adhere to and pay high taxes, which Airbnb and food cart vendors get away with. For example, unlike restaurants, whose sales are tracked by the IRA via the cash registers, the vendors can declare they made only $100 in the whole year. The vendors have no cash registers and pay no rent for the sidewalks they occupy.
Also, the short renters leave lots of garbage on the street for others to pick up, as do the vendors. Unlike hotels and restaurants, who have to pay for trucks to pick up the rubbish.
16
Beware of Miami Beach government. These code officers are mostly enforcing nothing. The cases get dismissed at the Special Master level which is really arbitration. The insiders know to hire a lobbyist. The city will tell most condominiums that it is a private issue if the complaints go too far. Highly documented issue that has never been solved. Many of these condominiums have bulk owners. They aren't going to sue themselves.
5
Two Airbnb "guests" interviewed in the article state that Airbnb refused to refund their charges after they were evicted from illegal rentals. These people should immediately contest the charges thru their credit card companies. By law, they can't be charged for illegal goods/services. The charges will be removed from their credit card bills.
49
Air bob has destroyed the whole apartment rental market. When our kids were young about 20 to 30 years ago we used to rent flats and houses for family holidays in Europe. Very few people were doing this and the apartments were always very nice and legit, always an owner met you, rules explained etc. Then air bob got involved, the flats were variable and kept getting worse and worse, people obviously renting out their homes. I refuse to use air bob, their offerings are rubbish. Now we are gravitating bank to small hotels and pensions, not that expensive and real people who live in the city there to inform you. I understand for families the advantage of a house, but for the filthy, mediocre lodgings out there, it might be better then to travel less but well. London is particularly awful, people try to rent anything out. The best alternative now seems to be apart hotels with many small studios or flats grouped in a hotel, limited front desk and not someone illegally renting out their home.
16
It's a waste of time to ignore the fact that airbnb is the guilty party. Stop chasing tourist and go after the problem at the source.
20
Airbnb is a scourge. Contributing to a worldwide housing crisis, making it difficult for people to live in their neighborhoods peacefully without encountering drunken tourists with rolling bags, playing loud music into the night so no one can sleep. While there have been no airbnbs in the condo building in which I live, we did not wait for the City to address this, we re-wrote our governing documents two years ago to make it illegal for anyone to rent for less than year. I hope that the whole operation goes bust very soon, but unlikely. It is really destroying the quality of life in so many cities--Paris, London, Berlin--in addition to those in the U.S. Those who stay in the Airbnbs act like victims when they are called out. They choose to stay in such rentals and they don't care about the residents they inconvenience or the neighborhoods they trash.
171
@Caroline - Congrats on your condo association or HOA board taking proactive action. Side note, we also have the same restrictions written in our governing documents but those who will break the rules, do so nonetheless. The investors and short term companies are concerned with the profits. To anyone reading the comments - short term vacation rentals, or rentals less than six months are illegal at the Quarter Condos in Glendale AZ - and you are not welcome. We would all appreciate if you would not patronize the jerks that are destroying our condo value and disrupting our neighborhood.
18
@Caroline Give us a break, Caroline! What about the other side of this: Travelers victimized by hotels that charge outrageous prices; lack of hotel rooms in many places; no opportunity to stay anywhere but in tourist zones. And, believe it or not, there ARE many small time Airbnb operators who do respect their neighbors and do contribute to their neighborhoods, while also making a few very needed dollars. The key is a sense of balance. Allow at least some Airbnbs in most areas, and enforce the laws, but don't criminalize millions of people who are just trying to make a few extra dollars, or stay in a place that isn't owned by a big corporation.
37
Maybe they should all go with the SF model - perfectly fine to pitch a tent on a street to live in and shoot drugs in front of. Also perfectly fine for a "master tenant" to rent a room to whomever the "master tenant" pleases. But illegal for someone to rent to a room to a family visiting for a few days. #priorities
2
@Samazama
Before I sold my San Francisco condo, one of my neighbors took a job in another city and tried to Airbnb her unit, which made life miserable for those of us who didn't buy our homes in order to live in a hotel. We had her shut down.
I get your frustration with San Francisco's terrible homeless problems and open drug use; it's a big reason why I cashed out and left. But that doesn't mean it's OK to turn your apartment into a Holiday Inn.
37
@Randy Right, and at least a Holiday Inn has an onsite manager to address any late-night noise, partying, or other issues AND its rarely located in the middle of a residential area where the neighbors are living their lives -- like getting up for work early, taking kids to school, etc.
12
Airbnb should be recognized for what it is: One of the drivers of the housing crisis, gentrification, and ultimately homelessness in cities of the US and other countries. Local governments who challenge it should be congratulated and encouraged.
The largely white entitled travelers who use it to notch another travel destination on their travel belts should be challenged to consider the community impact of their individual selfishness. The NYT also should be challenged for catering to this group of travelers and promoting Airbnb as a desirable option
99
@Dave Crumpton So travel is now a crime against humanity. Does my home also belong to the cummunity?
2
@Dave Crumpton don't worry, as one of those "white entitled" travelers, Baltimore won't be a notch on my travel belt.
12
@Dave Crumpton
Your argument is not helped by a dig at alleged "white entitled" people. You also seem to disregard the travelers in the article who were unaware that the listings were illegal, but hey, they are likely privileged.
5
Airbnb is a scam, plain and simple. Too good to be true. They are making loads of money making an end run around state, government and insurance laws that are safety precautions. Why no one has been able to sue them successfully is a mystery - they must be making bribes galore.
129
Years ago the landlord of the apartment tower we were living in started doing this. It was a PITA for the concierge and the tenants. One time, a couple with some suitcases were miffed we got on what they must have thought was their private elevator. Another time, the father of a family staying in the next door apartment started banging pots and pans to wake everyone up at 5AM to catch their flight. It's not a good situation.
59
We are in the process of choosing a place to retire and this is one of our biggest concerns. We do not want to unknowingly select a neighborhood which is filled with short term renters. It's a quiet plague in many sought after communities and it's one of the first things we do when checking out a new place--we look at Airbnb to see if there are many homes for rent in the neighborhoods we're considering. But, as one of the commenters already said, things can change quickly and buildings that were residential can become short term rental and ruin it for the other owners. Buying in a nice residential neighborhood is a big gamble these days unless there are laws and those laws are enforced.
93
@worthly This should indeed be a concern. We bought in a beach neighborhood in California before this all became such an issue. In the US I think one of the best ways to deal with this is to buy in a community that has an active homeowner's association that will enforce rules. We are considering a move to such a community nearby because our current next door neighbor does short term rentals--she "explained" that she couldn't afford the house unless she ran it as a business. She is an absentee owner, the garden is neglected, we have had vermin and noise problems, and lots of aggravation. Good luck.
24
There was a huge article awhile back how renters were being priced out of the rental market and neighborhoods because apartment building owners were increasingly only renting out units in high tourist areas to airbnb tourists. Airbnb offers a wonderful option to tourists and business travelers over conventional hotels and motels, however, it should never become such an issue where people cannot afford a place to live because apartment building managers are filling units with Airbnb travelers instead of longterm renters. It's good that Miami is taking this issue seriously and doing something about it.
40
@Libby and why not?
IF I were someone that wanted to rent out a unit, Airbnb is a much better way to go. I don't have to worry about rent controls, getting stuck for 6 months because the renter is skipping on the rent and using your system to do so. I get a much higher rent per month, and I don't have to listen to all the related nonsense. You do realize that as a landlord I could be held liable for something not repaired in a timely manner even the the renter is stiffing me for the rent. Been there, which is why I'll NEVER rent again.
@horace Greeley
Correct - being a proper landlord DOES come with costs and risks, which is why it's definitely not for everybody.
That nonetheless does not justify your desire to go the unregulated BnB route instead.
10
@horace Greeley
You "don't have to listen to all the related nonsense"
The neighbours of your airbnb do.
10
If these owners financed the purchase of these properties with mortgages, the bank typically provided financing as "owner occupied" not as an investment property, ie rental. If they are not owner occupied, the bank can demand payment in full or require the owner to refinance the mortgage to an investor rate, usually much higher than an owner occupied rates. Renting out an owner occupied property is in violation of the lenders's agreement with the mortgagor.
48
@Sueiseman; The owner's insurance may also specifically exclude coverage for short-term (or all) paying tenants.
10
@Theodore, the provisions of my car insurance contract state very specifically that if my car is used to give rides for income, then the insurance coverage is null and void. Obviously, this is to prevent the use of my vehicle as a way to make money for Uber or Lyft, but I’m sure the same thing applies with my homeowners insurance. If you want to be a professional driver or rent your property for profit you should have the appropriate coverage for business liability.
10
@Sueiseman
And then there are property tax rates.
If the property is generating income, it's a commercial property and shouldn't be allowed to get away with paying what are generally lower residential rates.
10
In NYC the law is this:
You cannot rent out your entire apartment or home to visitors for less than 30 days;
You may have up to two paying guests living in your household for fewer than 30 days, if every such guest has free and unobstructed access to every room and to each exit within the apartment, and has the right to use at least one bathroom;
You must be present during the guests' stay if it is for less than 30 days; and
No key locks may be installed on any internal door as all occupants in the premises need to maintain a common household. A common household exists when every member of the family (and guest) has access to all parts of the dwelling unit.
(from nyc.gov)
In my rental building some (thankfully, only a few) rent out their apartments and break the law. I am against such rentals. The bldg managers do background checks, etc., to ensure some level of safety here. People who rent out their apartments do not. Who are these people? (Most are just fine, of course). Suddenly strangers are wandering the halls. I get it, sort of a win-win for apartment renters and visitors but not for the neighbors.
43
@ronnyc I don't know who your landlord is, but my landlord (Brodsky Org) is a big one that owns thousands of apts in NYC. The "background checks" they do on longterm tenants are minimal based on some of the things I have seen -- these days it's really just a question if they think you can pay the rent, not whether you are likely to scream at and/or beat up the girlfriend you just brought home from some bar. Further, they themselves are doing "short-term furnished rentals."
2
@ellienyc
The difference is, with regular tenants, there isn't a stream of unknown people coming through and then leaving. Longer-term tenants are just that, longer-term.
7
Airbnb should have given these renters their money back.
Why should it have mattered that the notification was not immediate? These folks were trying to enjoy their holiday. and why should they have to spend their Friday night trying to chase it down when the officer made it sound like it would be OK.
Airbnb is not standing behind the legitimacy of their offerings. It seems they are only out for themselves, not the consideration of their customers. That's not good business.
110
I have been using Airbnb for many years.
In the early days it felt like a community. Owners met me at the apt and we had a real interaction. Back then there did not seem to be "professionals" involved, just people who for one reason or another had an apt they were renting.
But now I often feel uncomfortable when I get to an Airbnb rental. I get looks from owners of the apts. in the building who are clearly not happy with the owners who rent out other apts.
The Airbnb contact is great, but their needs to be more informed regulations so that Airbnb does not overwhelm residential neighborhoods.
22
@S.R. - Or now that you know about all the problems with Airbnb, you could just stop using it.
7
Ini 2018 Japan cracked down on illegal rentals, requiring all short term rentals like AirBnb to be licensed. This was a response to too many illegal rentals in otherwise quiet neighborhoods, and I think also a tragedy involving an illegal rental. Singapore has also banned short term rentals and AirBnb although AirBnb continues to operate but perhaps not for much longer.
17
Where I live, a major tourist magnet EU city, is being destroyed by Airbnb. There is a major housing shortage. There are entire buildings in the historic centre that are given over to Airbnb units. It destroys neighbourhoods and creates high-rent blight (shops such as small groceries and hardware stores are kicked out, replaced by cupcake cafes and high end chains). The government doesn't want to "over-regulate" but the level of tourism Airbnb has encouraged is unsustainable.
89
@Person
You bring up another point I failed to mention in my post -- we have a beautiful, old traditional tapas bar --- replaced by a Five Guys' Burgers to satiate the banal taste buds of fat, lazy tourists. Disgusting. Major European capitals are shooting themselves in the foots by not aggressively regulating and prohibiting AirBnB (as well as incongruous chain restaurants, etc.).
13
My neighbor, living in a second home, rented his co-op apartment through Airbnb for years, and his guests were always more respectful and quieter than my actual neighbor. Am I the only one who's experienced the exact opposite of the stereotypical Airbnb neighbor experience?
7
We exited a cruise in Miami last summer and needed a place to perch for the day since our flight was that night. I booked the cheapest room I could find at the fountainbleau hotel. They charged more than $60 in fees on top of the room rate and we didn’t even stay over night. That is why Air BNB is so popular
Wish I thought of it.
16
@Deirdre
There’s a middle ground between the Fountainebleau and AirBNB? What about Hilton or Marriott?
19
Obviously you’ve never been hit with the typical “cleaning fee” on AirBnB for $50-$75. AirBnB isn’t really that inexpensive.
15
That’ll happen when you stay at one of the most expensive hotels in Miami.
8
Everytime I go to Miami there are transients and pan handlers everywhere. There are places you can’t go after a certain hour because it’s dangerous. So glad to see they are cutting back on illegal apartment rentals though... was such a big problem (eye roll).
4
@Josue Azul
It appears to be a big problem for the residents of that neighborhood. Should the local government listen to local or out of state residents? How does that work in your community?
23
Hotels are using the police to squelch this form of competition. They would be better served by hiring a consultant to explain to them why people under 40 prefer to stay at an AirBnB to a Five Star hotel. Hotels can use law enforcement to try to preserve their monopoly, but if customers don’t want the hotel’s service, they are shoveling water uphill.
9
@Rick
Excellent point!
I'm approaching two times 40 and I still don't like 5 star.
1
@Rick
So stay at a Motel 6 (we'll leave the light on).
No stars, but legal.
6
I used to own and lived full time in a condo in the Flamingo Park neighborhood of Miami Beach. I lived there from 2008-2013 and I was the president of my small (16 unit) condo association. There were only two owner-occupiers in the building and a small amount of long-term tenants. We had a terrible time with short term renters, mostly because the owners were irresponsible. Some examples; the front door was repeatedly torn off its hinges since the key fob to get into the building wasn't provided to the guest; guests that arrived early or late for their reservations camping out and sleeping in the lobby; guests not told where the trash chute was and leaving bags of garbage in the hallway.
Talking to unit owners went nowhere so I contacted Miami Beach's code compliance since even before the AirBnB ban, there was a rental limit of six months and one day in the FP neighborhood. I was told "that's a condo issue" and didn't get any assistance.
I find it interesting that NOW it's a big issue and they are strenuously enforcing their rules.
I'm not against short term rentals, but there is a way to do it so that homeowners can make some extra money (especially if helps them to pay maintenance fees) and long term residents aren't negatively impacted. Miami Beach's all or nothing approach is not the way to go here.
1
@Sharon From experience as an Airbnb host for 11 yrs now AND a long-time resident in my community I am also disturbed by the issues of excess late night noise, rowdy behavior, etc. of the newer vacation rentals (often owned by out-of-state or out-of-country LLC's, run by large 'mis-management' companies). Its a huge problem in our beach city on many levels, including housing shortages for
But the Miami Beach "all or nothing" isn't an approach, its about city zoning -- a residentially-zoned area is not zoned to run businesses in. Seems Miami is justly enforcing their zoning laws. If the zoning regulations are not respected, your neighbor could, for example, open a car mechanic shop next door to you, or a brothel, or a nail salon.
5
Disputing the credit card charge is a good way to get a refund, if you're booted from a rental.
21
I have an AirBnB--it's declared for taxes, inspected, all the rules and laws obeyed. Like a hotel, except that the renters have more space, a kitchen, but fewer services--nobody comes to make the bed every day and there's no room service. When I bought the property in 2015, there were 100 AirBnBs in my town; now there are 500, the vast majority of them illegal (mine is on the city tourism office's website, along with about 100 others, up from 40 in 2015--I suspect the tourism office's website has the total of legal rentals).
Meanwhile, hotels in town are closing. Hotels pay taxes and create jobs. If I am taking their business, I need to play by the same rules and I do.
AirBnB is good for me because it's a way to do credit card transactions without the high bank fees. It takes a far smaller cut than other platforms, like VRBO. It's a big platform that gives access to lots of potential customers. It offers protections to me as a landlord and also to the guests. It's easy to use and reliable. But I really wish it would quit fighting municipalities on taxes. It isn't as if AirBnB itself is paying the taxes--it's the landlords.
27
@Cate You appear to misunderstand Airbnb's fee structure. The 3% you pay is for the credit card transaction. Airbnb adds an additional 6%-20% that represents their profits. Many hosts (like you) seem to believe that because Airbnb's surcharge is added on the guest side, the host isn't being charged. In reality, the guest pays X dollars-- the guest doesn't care that you get some of that and Airbnb gets some, the guest cares about the total price. Every dollar that Airbnb takes is a dollar less that you can charge for your rental.
12
I live in a community zoned "residential," which means that those who purchase houses are in a community of single-family dwellings. If I wanted to live next to a motel, I'd have bought a house next to a motel. I'm frankly sick and tired of whining from people and companies that they can't rent out their properties, when they knowingly bought a property in an area where the law says can't be rented. I'm equally sick and tired of AirBnb and their ilk trying to change my community conditions to my detriment and for their profit. It is time for adjoining property owners to start suing Airbnb. Now, we have a new theory...Natalie Nichols apparently believes that, because she lost her job, the law doesn't apply to her. Hey, Ms. Nichols, wonder what your view would be if your neighbor just lost his job, and stole all your money? How about if the Government said, "Gee, they lost their job so we don't apply the law to them?"
65
Bravo Miami Beach! More communities should stand up and defend their zoning and other regulations against disruptive models created by get-rich-quick app marketers in Silicon Valley. Airbnb is commercial lodging. Uber and Lyft are taxis. Just because you book with an app does not make them somehow "special." As the former owner of a home in a vacation destination, we felt this disruption first hand. We did not invest over a million dollars to have different neighbors each week intent on having a good time, parking in our driveway and otherwise misbehaving because their hosts never thought to explain how to use the house. And the town lost lots of important stay-tax revenue from owners who did not comply with the rules governing short term rentals. Perhaps the owners ought to buy property where rentals are allowed rather than complain the rules are stacked against them.
56
The internet has created an environment where any huckster or sociopath can create a scheme to make money at the expense of a civilized society. And since there is no shortage of lawyers from third-rate law schools laboring to pay back their $150,000 education debts, the beat goes on. If I can't do whatever I want to do regardless of its effect on others, why I'll sue!
28
I live in Ithaca, NY where there are dozens of illegal Airbnb's. Local politicians will talk endlessly about affordable housing, but are glad to get the tax $ from Airbnb. All those short term rentals are a big part of the affordable housing market and crisis. It appears that legal zoning is viewed as a form of oppression.
10
I looked at Zillow and real estate and apartment rentals are cheap in Ithaca. It’s not quite as cheap as some other places in central New York, but with prices below $1,000 a month it’s not quite Rochester or Utica, but it’s far cheaper than the City.
1
This article struck a chord with me. I rent a unit in a small fourplex, where one neighbor has chosen to rent out her apartment on Airbnb. We rarely see this neighbor, she is here for a couple of months a year. The constant arrival of new guests every few days is exhausting. It is such a mixed bag, you just never know what you’re going to get - guests range from quiet professional types to weekend partiers to large families on vacation. Usually they are polite, but they are always sheepish and rarely look you in the eye. They fail to lock gates properly, put trash in the correct bins, or bother to take a trash can out on trash day. They leave behind uneaten food and garbage when they checkout, which overflows the communal garbage bins. An apartment with 1 official tenant, is often filled with 4 or 5 Airbnb renters. Of course, neither my landlord or the Airbnb host ever have to put up with it since they are never here. They simply collect the payments. I am strongly in favor of requiring the host to be on site for these short terms rentals. Otherwise it becomes the job of unwitting neighbors to police the activity of the short term renters.
178
@MS
Because they know darn well they're in an illegal rental, and I don't believe a one of them who pretends they don't.
10
AirBnB was shocked that the regulations covered both conditions. Shocked I tell you. Reminds me of being shocked by gambling in the casino in a certain movie.
39
@Sipa111
Yup - just like the renters were also 'shocked' to discover they were engaging in an illegal rental themselves.
Because you know, there are just so many million-dollar properties out there that their millionaire owners want them to enjoy at minimal cost, they're just so magnanimous and all.
6
Interesting. Airbnb says "nobody benefits ..... punishing both homeowners and consumers" Yes .. I benefit as the homeowner .. and I what to punish illegal consumers of my space!
I have a weekend place in bucks county PA -- it's always had B&B's ... people renting small cottages on large properties. It's supervised -- short term renting. Airbnb has made the renting so easy and frequent ... that it's going to wreck it for those who are responsible. Businesses pop up as in this article that supply services to make it even easier. Who wants strangers coming and going all the time with owners who never even visit the property.
Thankfully -- it's impossible in my co-op ... have friends in very good buildings that are having problems.
63
The “Rules and laws” are made to protect the rich hotel owners that charge outrageous amounts for a place to sleep and who donate lots of money to the local politicians. It has nothing to do with the needs of the people.
31
@Tradewinds So wrong...such twisted logic. Airbnb is just another company that began in our unregulated captalist system without regard to its effects on society, which are now revealing that it displaces housing stock driving up rents in global cities. What started as a sharing service has turned in a greedy hotel-like online reservations service. Same can be said for Uber and Lyft, which are taxi services that are driving our carbon footprints higher without regard to planet Earth, encouraging people to use guzzling cars instead of public transportation. Not everyone is fooled by the Airbnb PR machine... which is very insulting to anyone with average intelligence.
81
@Tradewinds You can look at it that way. Or you can consider that people in residential areas and buildings are subject to a revolving door of loud and drunk groups of vacationers who trash their neighborhood. That's why our building residents despised the airbnb crowds that became a problem for a while, despite the rules against short term leasing. It's why many neighborhoods are mobilizing against those types of rentals - the people most directly affected are the renters' neighbors.
60
@Tradewinds
You set up a straw man argument: "rich hotel owners" versus "the needs of the people"....people have a need, and I would say a right, to live in their owned or rented homes in peace - neighborhoods that are zoned residential. Airbnb advertises itself "gently" - "rent that spare bedroom, make a little extra cash". But that's far from what it has turned into , in so many instances. As a long term renter, I'm grateful my landlady forbids this activity.
71
As someone who has used AirBnB and been very happy with it is as a traveling option I was disappointed to hear about Miami restricting it's use. Especially since that is one of the cities we love to visit. However if it is the law, AirBnB should do a much better job protecting it's customers and making amends when its site is used illegally. Also, they can fight to change the law but should not allow itself to be used as a platform to break it in the meantime.
52
@Fred M, My wife and I used AirB&B a lot in the 90’ and the beginning of the 2000 b/c it created the experience of staying with the locals, hearing the history of the places, finding great restaurants, receiving tips to where to go and what are the must see, giving the sense of family... some hosts are so kind... But lately, we found that airb&b is not a chance to share someone’s home but it’s a business. We never meet the hosts ( 2 times), so we haven’t been back searching on airb&b. Airbnb makes ton of money by collect fee on both ends, but when troubles appear they never refund the renters!! We found their business model is disturbing. Totally agree on your suggestions to Airbnb.
19
@Fred M it's legal in Miami, not in Miami Beach. 2 different cities
1
@The Bruce AirBnB started in 2008.
4
I've never stayed at an Air-b-n-b but my sons have many times, all over the world. My wife and I live in a 2-family, occupying both units, in a close-to-the-city, suburban area. I could easily make some extra cash renting out one of the units on their format. But I don't. I live in a residential area, not zoned commercial and letting out rooms is a commercial endeavor. I don't feel it would be fair to let out rooms because my neighbors, like me, have a right to know who is wandering around their houses and neighborhood at all hours. A woman across the street rented her house out on Air-b-n-b during an annual event here and I didn't like it. Why should the long suffering public put up with this business, just so a tech company can make money on their backs?
134
I have a compromise solution - only allow AirBnb when the owner is in the apartment at all times during the rental period. The owner is responsible for noise, cleanliness and strict check-in check-out times. Will that work for the locals?
I love staying with the locals when I travel, makes me truly understand a city/country. I made amazing friendships with people who hosted me through Airbnb. I hosted more than a 100 travelers from 30 countries at my home for free through Couchsurfing app. But I never host when I am not home, because I care about my neighbors in my apartment complex.
I don’t host on Airbnb because I don’t need the money but I understand that not everyone can host for free, and would love to see AirBnb thrive within sensible regulations.
38
@Balu
I like your rule, but understand that most people do not want to share accommodation with strangers, so this would understandably (to which I say, 'good') cut into AirBnB and landlord profits.
Which they won't like, because what this is really about is making money and to heck with other people and rules.
5
Why isn’t VRBO mentioned? The same landlords use both platforms to advertise their vacation rentals...
24
Good for Miami Beach. I wish our city would enforce the laws on our books as regards short term rentals.
160
Visited California and stayed in AirBnB and nice hotels too. The AirBnB had two bedrooms, two baths, a kitchen and living room. At the hotel, we had to get two nearby rooms at a much higher price. They also charged us a resort fee, a parking fee, and a WiFi fee. The hotel itself was fine, but the room was identical in furnishings to every hotel I’ve ever stayed in while the AirBnB was unique and the onera sincerely interested in us and our having a good time. Hotels seem best for tourists, the AirBnB best for travelers. Too bad Miami is turning away travelers.
8
@Rick
There are several good reason that hotels cost much more than AirBnb rentals:
Liability insurance: to cover damage and problems caused by guests. AirBnb hosts don't have this cost.
Inkeeping costs: Security, housekeeping, cleaning, maintenance, etc. Airbnb hosts bear only a fraction of this cost.
City code costs: Costs associated with compliance with city/state codes pertaining to health, safety, fire, etc. Most Airbnb properties do not meet the code requirements for commercial short-term rentals.
Tax costs: hotel tax, travel tax, sports arena tax, and all other taxes imposed on hotels by city, county, and state. Airbnb hosts don't bear this cost.
You see where I'm going here? Airbnb hosts are privatizing gains while socializing the risks. This is called crony capitalism.
87
@Rick - Sorry, but if you don't live in the place you're visiting, you too are a "tourist".
24
In 2008, my husband and I purchased a condo in South Beach, at the corner of 15th and Jefferson. There are 32-units in the building, and, at the time, four had tenants and the remaining 28 were owner occupied.
By 2015, half of the units (16) had become short-term rentals; the building went from a community to a frat house with strangers coming and going 24/7; I no longer felt safe within our unit, and we sold in 2016.
The Flamingo Park neighborhood used to be a respite from the craziness of the South Beach scene where residents could live in some semblance of peace, but those days are gone.
201
This should be illegal. I live in a building where I had to be vetted and my whole life was checked out. I live here for a reason: I want a stable, comfortable home with neighbors that I can get to know, at least on a superficial level. I don't want drunken college kids and vomit in my hallway. This isn't right.
290
A short term rental doesn’t equal drunk frat boys. A monthly rental doesn’t equal responsible resident.
7
@Alex That is a true statement. However it does not address the point of wanting to know who you are living next door to and the chance to establish a sense of community.
13
This enforcement is great. AirBnB is destroying many neighborhoods, and pushing up rents. Why rent for $1000/ month when you can get $125/night? I know that owners are fined, and should be. There was a story about a similar situation in NYC where an AirBnB empire made multiple millions by creating dozens of shell companies. We need more enforcement. If I was a neighbor, I'd be calling in these violators for certain.
249
Though I understand objections to short term rentals, they do serve a very useful purpose. The move to require a business license would probably not stand up to the scrutiny of the courts. The is a wealth of case law that supports short term rentals are residential, not commercial. It makes sense when one considers people have always been renting out parts of their homes forever. What is needed are sensible regulations that meet the needs of the traveler while maintaining the character of neighborhoods.
19
@CD
No, what’s needed is for companies like Airbnb, Uber, et al. to abide by the laws of the markets they operate in. That they believe they should have any say in the laws of towns that their executives have never set foot in is absurd.
202
@CD - the problem really is that the purpose the short-term rentals supply is a way for the illegal landlords to convert the common wealth of residential amenity into profit for themselves, whilst bearing none of the cost.
AirBnB started as the 'rent out the couch', 'rent out the spare room' - and if it had stayed there I don't think people would be complaining - because the hosts would still have skin in the game and would have an interest in making sure that interests of other long-term residents weren't harmed.
The regulations being discussed now are a direct result of people not playing nice and showing themselves not to be trusted with that neighbourhood amenity (especially when the landlord doesn't even live in the community).
149
@CD
In many cities you need a business license even if you rent yearly .. if it makes money ... it's a business.
58
I rented 1 small upstairs apartment for many years ... 38. Some great, some good, some bad, some terrible renters. I have noticed over the years that with the newer renters the yard becomes their's when they want to use it, and someone else's when a piece of paper needs to be picked up.
29
Really? It's the City of Miami Beach's respsonsibilitorable outcome to y to guarantee a favorable economic outcome to Ms. Nichols. Rules and laws are made for a reason and you knew the rules before the Airbnb "disrupters" decided that rules and laws got in the way of profit. Cry me a river but don't expect your neighbors to mop up the mess.
149
@jrk
"Really?"
Obviously