AirBnB, a Great Idea that Government Will Attempt to Shut Down
Airbnb —which derives its name from the concept of an air mattress bed and breakfast— is an online marketplace where travelers looking to book anything from a couch to an entire home (or even a private island) are connected with renters and homeowners who have extra space to rent out. Having launched less than four years ago, the burgeoning company was valued last summer at over $1 billion when it featured accommodations in a few dozen cities and a handful of countries. Today, airbnb boasts offerings in 19,732 cities in 192 countries.
Here's how it works from a traveler's point of view:
Depending on your own disposition, you'll either find the concept intriguing or creepy. Local governments, on the other hand, see the business as a threat to power and revenues. For one, airbnb allows property owners and leasers to skirt around rent control laws in big cities by renting out (or subletting) rooms at market value. For another, individuals involved in an airbnb transaction completely avoid paying and collecting bed or hotel taxes, thereby depriving the city of a major source of tourist revenue. And actual hoteliers can't be fans of airbnb either — not only are they stuck paying hotel taxes (which are likely to go up as city governments look for ways to cover revenue shortfalls), but growth of airbnb has the potential to drag down demand for actual hotel rooms.
As the company expands, expect more bills like New York's Illegal Hotels Rule which the state legislature passed into law in 2010. Ostensibly created to "protect tenants, tourists and our affordable housing stock," the law makes it much more difficult to rent out rooms for a period less than 30 days.
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Apr '11
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
Never forget the government's ability to get in the way of a good idea!
Mar '11
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
Hmph, exactly the same type of brilliant logic from New York that dreamed up the entire Taxi Medallion scheme. Now of course if you wish to engage in the rather modest act of transporting an individual from one locale to another for a small fee be prepared to deposit a somewhat larger fee to get started; say one million dollars.
Edited on March 15, 2012 at 1:50amApr '11
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
Big battle in Minnesota attempting to stop vacation home owners or for that matter normal home owners in vacation areas from renting privately. Also there are cities that will allow only so many rentals in an area. Private property rights?
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
Living in a rent controlled apartment myself, I appreciate the deal I get out of it. But a government imposed ceiling on rents is horribly unfair for the property owner.
And because there's demand that's not being met by the supply due to government interference, it's a perfect condition for a black market of sorts.
Apr '11
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
How does this affect the vacation rental business? It seems hard to distinguish between the two.
Apr '11
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
I found airbnb through a friend; I have found it to be a great idea - with great prices - and easy to use (in fact, I'll be staying in an airbnb place in April). It would be a shame to see it end or impinged on in any way.
Jul '10
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
Time to monetize my crawlspace.
Aug '10
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
The reality that Americans will turn to black marketing is another step into the eurozone : mediocrity , oppressive egalitarianism , and cheap linen.
Edited on March 15, 2012 at 2:33amWhile this may look new and shiny to us, there was probably a British version dating back to the end of the 100 Yrs War ( castle-like French villa , four bed, pool, turrets ) .
May '10
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
If the governments manage to kill this, this movie will have to be removed from circulation.
Mar '11
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
I think Airbnb is nothing short of genius.
What a super way to expand the range of available housing!
Aug '10
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
Hmm... we've got a relative in Minnesota who likes to rent out space in his house privately. He's recently fallen in love with Statism. I wonder whether this battle will get him to change his mind...
Nah... probably not.
Aug '10
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
midge
we need to reach out to lileks for an underground rental scheme for cabins north of brainerd
"psst , hey buddy...come here you gotta see this loon !" " how many bedrooms you need - jetskis ? "
now , gee that's free market ! gosh this works swell.
Edited on March 15, 2012 at 4:09amNov '10
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
Thank you Diane! Now I know how I'll afford my trip to Hawaii for the old 20th anniversary! Who says the Internet is going nowhere?
Sep '10
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
seems like it would be great to rent a place. to be a host could be a little more stressful/problematic.
the first i heard of air bnb was on "This Week in Tech" (http://twit.tv/). unfortunately, it was the story about the San Fran woman whose apartment had been ransacked by renters while they continued to email her about how great everything was. her publishing of this situation and air bnb's unwillingness to make her whole, led to this: http://allthingsd.com/20110801/airbnb-apologizes-and-offers-50000-guarantee-in-hopes-of-defusing-security-concerns/
to be a guest seems relatively safe. to be a host should be thought out a bit...unless the risk of having your home used as a meth lab or some such doesn't bother you.
Dec '10
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
Diane, I don't see anything to which the federal government would object. The states and localities have been attempting to tax internet sales for a whole bunch of years. And so far, unless the vendor has a brick and mortar facility within the state or locality, those governments have been invited to pound sand.
And in this case, there are few issues for states, only for cities and counties. I think it's a lot more likely that some scheme to collect taxes might be introduced, but only in certain locales. This will last a good, long time before any government puts them out of business.
Edited on March 15, 2012 at 4:42amApr '11
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
That should probably happen anyway.
Aug '10
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
Similarly, bus and taxi companies have tried to shut down private ride-sharing services.
Edited on March 15, 2012 at 4:54pmRe: AirBnB, a Great Idea that Government Will Attempt to Shut Down
Jerry Broaddus: Diane, I don't see anything to which the federal government would object. The states and localities have been attempting to tax internet sales for a whole bunch of years. And so far, unless the vendor has a brick and mortar facility within the state or locality, those governments have been invited to pound sand.
And in this case, there are few issues for states, only for cities and counties. I think it's a lot more likely that some scheme to collect taxes might be introduced, but only in certain locales. This will last a good, long time before any government puts them out of business. · 15 hours ago
I agree that city government are more likely to object than the federal government. However, there's still plenty for the federal govt to object to. Do you think most people who receive income by renting out their places on airbnb are going to declare it on their income tax return? I think not.
Apr '11
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
There's a very interesting nugget in the piece that CitizenOfTheRepublic linked:
Besides hotel taxes, I imagine that the government will be quite interested if any of these "custom trust parameters" can plausibly be used as a proxy for housing discrimination. I personally believe that because these are people's own residences they are renting out, often while they are present, that they are therefore entitled to be selective in their choice of guests. I can certainly sympathize with a single woman declining to host a man, or a religious couple declining to host unmarried couples, or whatever. On the other hand, it seems like just the sort of thing a zealous activist would try to precipitate and then sue over.
Regardless, best of luck to the company, which seems like it has a good thing going.
Re: AirBnB, a Great Idea that Government Will Attempt to Shut Down
Chris Langevin: There's a very interesting nugget in the piece that CitizenOfTheRepublic linked:
Besides hotel taxes, I imagine that the government will be quite interested if any of these "custom trust parameters" can plausibly be used as a proxy for housing discrimination.
Very good point. My parents have a granny unit on their own property in Santa Cruz and the county government dictates that if they wish to rent it, that it must be rented out to only low income individuals, which of course comes along with a rent ceiling.
Three immediate problems: 1) Many of the qualifying low-income applicants are...um...not the sort you want near your small children. 2) A rent ceiling on a granny unit?! 3) What about people who would pay market value? Why are they discriminated against?