Being we provide information on rentals and vacation destinations, we thought we would hit on the infamous Airbnb. A brilliant business model developed by three guys who created the initial concept when in need of rent money. Airbnb has turned into a multibillion dollar company today, with it’s people to people concept.
It allows for home owners to rent their home, condo, studio, or the such for a short term period. They set the price for their rental, and Airbnb acts as a broker, connecting property owners with those in need of lodging.
Airbnb and other Short Term Rental options, provide cheaper lodging with more features than just a hotel or vacation ownership. They are major players in the the vacation rental market. People are staying for longer durations where they otherwise wouldn’t, and people have more choices for their budget. You can rent an entire home, a room, or a bed. The flexibility around the “home share” model is intriguing and financially appealing to both renter and owner.
There are a few concerns withe recent growth of the Short Term Rental Market, especially in certain cities which don’t permit STR’s. What are these concerns?
What may be good for travelers, may not be so good for residents of a community. In major cities where people are able to acquire short term rentals, is it hurting those looking to find a long term place to rent. In cities where the housing market is experiencing shortages, will it drive rental costs up because of the ability to make more money form short term rentals?
In residential communities where people live full time in their home, is it a turn off to have the home next door consistently rented out to short term renters?
In some areas more “commercial listings” are prominent, where whole housing units are purely for the short term renter. Although the impact and amount of property make still be small, what impact will it have as it grows?
From the standpoint of a traveler and property owner renting out a home or share of their home for a short duration, Airbnb is a solution – affordable and convenient for the traveler, and financially rewarding for the owner. However, for those not in those positions, how will this business style affect them.
The short term rental concept in the form of what it is today is a new approach and solution. With anything new, obstacles and glitches will appear. That does not mean that it will not work or be successful on multiple levels.
Airbnb and it’s founders faced many obstacles and challenges in it’s development. Today it is 25 billion dollar company that is providing opportunities for many. It also has the power to contribute to a more sustainable approach for traveling. It maximizes the potential of homes and properties that already exist by renting them out to those in need of a place to stay.