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AirBnB Troubles?


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52 minutes ago, Herbie Hancock said:

Fuck AirBnB and their bullshit ass "cleaning fee" that is typically no less than 50% of the cost of the entire stay. Don't get me wrong I hate the stupid tourism fee, occupancy tax, resort fee, and the other 7 line item "fees" of hotels, they're usually somewhere around 25-30% of the total price. I've never seen an AirBnB fee structure that was close to that. Fuckers

The cleaning fee is set by the host and 99% of the time is reflective of the actual fee they are charged by their cleaning crew.  That said, high fees of other kinds (admin fees, etc) are an industry wide problem, mainly because hosts tend to not understand that high fees drive away prospective travelers.  

 

ETA: this is why you are seeing a shift to showing the actual full price (instead of the nightly price) before you go to book on sites like Vrbo and Airbnb.

Edited by Biff Tannen
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You can set it to see the full price from the search screen. I do that all the time to weed out the low price high fees trap. 

I've used it in Austin this year and was a great stay. First time I've used it since using it several times in 2019 and once in 2020. All were good stays. I never thought about these rental sites being a big problem for driving housing prices up but if so I would like to see them regulated better or outlawed. I'll pay more for a hotel room if it means I'm paying less for a house. 

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AirBNB has turned into a pretty shitty experience in a lot of cases. A lot of hosts treat you like children with curfews, quiet hours, and chores before you leave. An oh yeah, it is now more expensive than a hotel. I rent through BNB/VRBO if I want to be in a house (or I’m staying in a place where there are no hotels) but if I’m going to Austin/Phoenix/Nashville etc. I will stay on a hotel 100 times out of 100.

edit:

And there’s a not-insignificant chance your host is voyeuristically watching your every move via security cameras the whole time you’re there.

Edited by Auto Driller
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I used three air BnBs in Paris and Rome earlier this month and they all rocked.  got a 4th floor apartment on St. Louis island, one on Cite and one on the Spanish steps.  Only met the Spanish steps guy; the other had lockboxes or downloaded e-keys. All three apartments were clean and spacious.  Having a full kitchen and washer/dryer were awesome.  A+, would advise.

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23 minutes ago, Auto Driller said:

AirBNB has turned into a pretty shitty experience in a lot of cases. A lot of hosts treat you like children with curfews, quiet hours, and chores before you leave. An oh yeah, it is now more expensive than a hotel. I rent through BNB/VRBO if I want to be in a house (or I’m staying in a place where there are no hotels) but if I’m going to Austin/Phoenix/Nashville etc. I will stay on a hotel 100 times out of 100.

edit:

And there’s a not-insignificant chance your host is voyeuristically watching your every move via security cameras the whole time you’re there.

That's why you give them the old Tom Herman and spread your buttcheeks to the mirror. 

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Don't discount that a lot of mid tier hotels are now building new properties with kitchens and basic restaurants.  

I know someone who stayed at an AirBnb where the owner was constantly adjusted the thermostat via Nest.  It was in the summer and she would turn it down to 72 and the owner would then turn it back to 78.

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I haven't used AirBnB in awhile. Tend to prefer VRBO. That being said, I'd be shocked if there is a massive inventory turn-over, particularly in a place like Austin. At worst considering the housing shortage I'd think they could pivot pretty easily to long term rentals, particularly if they're zoned to decent schools. Also, a not zero chunk of that inventory is literally people renting out their own fucking apartments or condos to make some spare scratch during weekends and holidays and events.

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1 hour ago, Dbeasy said:

As posted in the Real estate thread, ignore anything Nick Gerli posts. He literally posts wrong information all the time. 

He might be wrong on some stuff but the AirBnB issue is part of the general housing price spike.   Commercial investors jumped into the market and bought up a bunch of inventory with cash bids.  Companies like Homevesters (which has it's own corporate problems) bought up lower end properties.  The general "flipping" mentality that took hold 10-12 years ago brought this on.

If you look at that list, more than half of them are vacation type areas.   It's no surprise to see properties in these areas struggling.    Gerli might be a tool but the housing market has some real issues.  

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1 hour ago, Biff Tannen said:

The cleaning fee is set by the host and 99% of the time is reflective of the actual fee they are charged by their cleaning crew.  That said, high fees of other kinds (admin fees, etc) are an industry wide problem, mainly because hosts tend to not understand that high fees drive away prospective travelers.  

 

ETA: this is why you are seeing a shift to showing the actual full price (instead of the nightly price) before you go to book on sites like Vrbo and Airbnb.

What gets me is being charged a cleaning fee but being told to do laundry, dishes, e.t.c.

  I used to enjoy Airbnbs as at one point in time they were seemingly more affordable or the same price as chain hotel stays.  And with a young family having a place with no shared walls was nice.

Now I am back to mostly hotels as the pricing seems more up front and generally a lot more affordable.  And I believe I read once that many Airbnbs are actually owned by corporations anyway.
 

Edit:  they are certainly not collapsing where I live, but tourism is a key industry here. 

Edited by MC Fresh Breath
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We use AirBnB for a few purposes:

1) When traveling as a full family needing three beds, it's often cheaper to get an AirBnB than a hotel room(s) offering 3 beds.  Not always, but often.

2) If we want to set up someplace for a longer time -- like 5+ days -- and be part of the community/neighborhood, AirBnB can sometimes offer a good opportunity.

3) When staying someplace off the beaten path.  We sometimes like to rent little cabins in the hill country for a private getaway.  Or, when we visited Estonia, we wanted to stay out in the sticks, near the national park.  Found a cool little cabin on a river, with a sauna.  It was great.

All of that said, I've found myself looking to hotels first whenever I'm in an urban area, because of the issues mentioned above - with all the fees and such, especially when they're applied to a shorter stay of 3 days or fewer, hotels often work out cheaper.  AND, as the kids have become adults, travel is often just the two of us, and a hotel room with one bed is all we need.

AirBnB was a nifty idea, and we've used it the right way plenty of times, but what it's morphed into (blocks of houses owned by consortiums that operate them as standalone rooms to rent, at hotel prices or more) isn't as attractive as it was.

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They are still awesome in Europe.  We stayed in 3 during our recent travels in Greece and all were very nice.  The one on Milos was basically a hotel.  The host provided a ton of free drinks and coffee and a million towels.  If it falls apart in the US, half of Port Aransas is going to be for sale at once.

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I haven't used AirBnB in awhile. Tend to prefer VRBO. That being said, I'd be shocked if there is a massive inventory turn-over, particularly in a place like Austin. At worst considering the housing shortage I'd think they could pivot pretty easily to long term rentals, particularly if they're zoned to decent schools. Also, a not zero chunk of that inventory is literally people renting out their own fucking apartments or condos to make some spare scratch during weekends and holidays and events.


Is the VRBO quality significantly better? Thinking about using it when we go to Virginia.
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Fees disproportionate to value is nothing new.  See Priceline or any other number of brokers.  They are simply not priced accordingly, relative to what they provide.  If you assume many of these homes are locked into very low interest rates, they won't hit the market until taxes become overbearing.  You bought @ $400K, three years later it's $800K, even with maximum taxable appreciation YOY, it starts to catch up quickly.  

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2 minutes ago, kevwun said:

They are still awesome in Europe.  We stayed in 3 during our recent travels in Greece and all were very nice.  The one on Milos was basically a hotel.  The host provided a ton of free drinks and coffee and a million towels.  If it falls apart in the US, half of Port Aransas is going to be for sale at once.

Yeah, for going abroad, I usually stick to AirBnbs. Have had some really good ones in Europe and Mexico City.  Really, when traveling with friends abroad, as we each want our own room and bathroom and it's cheaper to find a 2-3 bedroom apartment than book 2 or 3 hotel rooms. 

Our AirBnB in Costa Rica was better than anything else we could have booked, hotel or resort - private pool for the 5 of us, our own rooms and bathrooms, a housekeeper that also cooked us breakfast and the houses were so spread out, noise was not a factor and we never saw another person. 

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33 minutes ago, Macanudo said:

He might be wrong on some stuff but the AirBnB issue is part of the general housing price spike.   Commercial investors jumped into the market and bought up a bunch of inventory with cash bids.  Companies like Homevesters (which has it's own corporate problems) bought up lower end properties.  The general "flipping" mentality that took hold 10-12 years ago brought this on.

If you look at that list, more than half of them are vacation type areas.   It's no surprise to see properties in these areas struggling.    Gerli might be a tool but the housing market has some real issues.  

Oh I agree. I think the AirBnB market is in real trouble for a lot of reasons. It’s just that he posts fake data all the time so why listen to someone who lies? That’s all I’m saying. 

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18 minutes ago, Brothahorn said:


 

 


Is the VRBO quality significantly better? Thinking about using it when we go to Virginia.

 

I honestly think it's 6 to one, half dozen the other. Most of the properties that are available for rent are listed on both services. I've found VRBO to be a bit less intrusive, and never have had any requests for "do the laundry." I think VRBO is a bit more "corporate" that way, and there's less of poeple renting out their own apartments and such for the weekend, that kind of thing. But realistically, it's like comparing carmax to autonation, who gives a shit, right?

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Stayed at ABNB in Old Colorado Springs awhile back which had to adjacent properties. The Carriage house next to us was had small group staying at it and they were up all night partying showing little concern for any of the other guest on property. When we got up in the morning one of the guest was half passed out in hot tub would see their head start to go under water and then they would jerk back up only to keep doing it. House was great but that left a bad taste in our mouth and have switched back to mostly hotels since.

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I've had some great Airbnb stays and I've had some not so good. 

I think the economics are catching up with Airbnb and many of their best owners have apparently created a direct competitor to bypass the high fees.  I agree that airbnbs are especially good when you have multiple couples or families who may or may not fit well in a hotel/resort esp when you want your own space.   There are times and places where I want to have a kitchen and be able to cook and there are times when I want a hotel lobby with a bar and a restaurant and room service and housekeeping. (will concede that many hotels are not offering daily housekeeping)

Their customer service is a complete joke.  I was notified the morning of arrival that my airbnb in Brussels that there was no hot water and was told to look for a hotel if I didn't like it.  Took me hours upon hours just to get a free night.  Its too bad because the apartment was fantastic

The biggest issue for me these days is that as of now Airbnb has no loyalty program.  I get hundreds if not thousands of dollars in free stays and benefits with Hilton.   I think vrbo, hotels.com and one other have started a loyalty program. 

Edited by midtown
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I use AirBnB or VRBO when there are several people in the group, because getting a hotel might be too expensive or less social. 

But overall I am very wary of AirBnB or VRBO these days for the following reasons:

1. Hidden cameras to look at my butt hole. 

2. Last minute cancellations to lie and rent for a higher price (happened).

3. Gotcha/extra fees that are outrageous. 

4. AirBnB or VRBO being worthless as your advocate in a dispute. 

5. Reality not matching the online presentation. 

It’s become a complete dice roll, and it steams me when they try to screw you over. Why put up with it? Eff ‘em. 

Edited by Dbeasy
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One block over from us, a neighbor is still under construction.  They are putting an 800 square foot apartment above their garage with a separate entrance and staircase.  They rent their house out to AirBnB/VRBO about 200 nights a year.  Their two side neighbors and back neighbor were protesting to the HOA and City of Austin about the noise, parties, bunched up cars, etc.  They were about to just move, but then compromised and said, "If we build an apartment and are here for each rental...okay?"  So everybody within 150 feet of them signed off on it.  I'm guessing their construction and interior refresh to add more beds for renters is probably costing $500k+.  By the sounds of this thread, they may have made a huge mistake.  We are in a great proximity to Zilker and downtown, but I'm assuming they'll bake in a big chunk of their construction costs into their new, higher rates.  And the market already seems at a tipping point.  

That said, we're using one later this week, but only because it's a somewhat remote area with few hotels.  And it's a large party of 11 of us.  But like most of y'all, I'm coming back around to team hotel real fucking fast.  We got a great one in Eagle, CO last year for like 12-15 of us.  But it advertised that it slept something like 24  and it probably did, it was massive.  But the "caretaker" who had his own little studio apt. out back had his own driveway spot, so you were only allowed one parking spot, and the undulation of the front, you couldn't safely park a car on the street and not block it or have your car roll over.  I don't understand how you say "sleeps 24, parks 1" with a straight face.  My BIL's and I spent 2 hours reorganizing one of the garage bays to squeeze in one more car.  And of course the owner threw  a pissy fit about it.  But she ended up thanking us on her review last winter when she could finally park a car in her fucking hoarder garage.   

Edited by YGIFS
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I used to love AirBnB/VRBO but more and more have decided to go back to hotels for all the reasons people have shared.

Rented an Airbnb for one night recently. The cleaning fee was almost $200. I book, then the property management company sends instructions for the house, including starting laundry, doing dishes, taking out trash.

Go fuck your own face. 

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2 hours ago, Biff Tannen said:

The cleaning fee is set by the host and 99% of the time is reflective of the actual fee they are charged by their cleaning crew.  That said, high fees of other kinds (admin fees, etc) are an industry wide problem, mainly because hosts tend to not understand that high fees drive away prospective travelers.  

 

ETA: this is why you are seeing a shift to showing the actual full price (instead of the nightly price) before you go to book on sites like Vrbo and Airbnb.

Our fees are actually less than what the cleaning crew charges us. People bitch about cleaning fees and wonder how it can be expensive then come your home and leave cigarette butts and beer cans everywhere outside, track sand in by the truckload from the beach, spill shit everywhere, let their kids draw in the doors, etc. 

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3 minutes ago, UT_OB1 said:

Our fees are actually less than what the cleaning crew charges us. People bitch about cleaning fees and wonder how it can be expensive then come your home and leave cigarette butts and beer cans everywhere outside, track sand in by the truckload from the beach, spill shit everywhere, let their kids draw in the doors, etc. 

Just like AirBnB hosts often suck, so do guests. Pretty much everyone sucks. That’s why I’ve barricaded myself into my bedroom and am not coming out. 

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Having so many short term rentals cannot be good for locals in resort towns.  They get priced out.  I know it's a big problem in Colorado ski resort towns. I rent in summers in Colorado but do so on a monthly basis through a local company.

It does seem like the value is not what it once was.  I remember doing VRBOs 15 years ago and being shocked how cheap they were.  Now I am shocked how expensive they are when you include all fees.

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Does the data show this to be an AirBnB issue or a short term rental issue?

Are all STR portals experiencing 50% drops in revenue or is it just AirBnB?

I would think that the increase in numbers of STR options would cause a decrease in AirBnB to go along with their higher fees and every other negative brought up in this thread.

But I don't see that equating to a "wave of forced selling" of STR properties.

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I mainly use AirBnB for out of the way places like when we took the kids to Fredericksburg over Easter Weekend. We found a nice ranch style house outside of town that sat on a nice wooded acreage with some goats. It was nice. We're using it this weekend so we have a spot to go to state parks and rivers around Johnson City. We used it a few years back for a San Francisco trip and it was nice since we wanted to stay around Golden Gate Park. Got a nice 2nd floor apartment with plenty of space that was centrally located. I have had bad experiences like when I had a bitch tell me her home was unavailable the morning I was flying out to LA for an event at the Rose Bowl. So I had to scramble to find something else but was able to get something close by. I asked CS why something like this doesn't negatively impact the host as she had double booked me with someone who obviously had more money or was willing to pay more and then cancelled on me. Thankfully, there was a person who even though he was out of town, was able to get someone to come by and get me the key. Awesome place too up in the hills above the Rose Bowl so it worked out and AirBnB didn't make me pay the extra amount the guy's place had cost. 

I know they're looking at banning them in Plano because the parties have gotten out of control and I think some were used as bang houses for escorts.  

Edited by mdmost
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7 minutes ago, Hook1997 said:

How do you fuckup a business with minimal overhead?  Charge crazy fees vs the price you advertise….  

Covid helped create the boom also.  It was the perfect solution when people wanted to get the fuck out of their own house but still stay away from large groups of strangers.  That's not a factor anymore.  There will still be a market, but it's going to be smaller.

Edited by kevwun
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3 minutes ago, YGIFS said:

Go on about these "bang" houses.  

According to a presentation to council members back in July, there were nearly 50 official complaints made about 23 short-term rental properties in Plano between January and May of this year. Nearly half of those complaints, which range from noise violations, parties, and drug or alcohol use, stemmed from just six specific “problem properties.”

On Sept. 23, investigators from the Plano and Dallas police departments executed a search warrant at a home on Las Palmas Lane after multiple tips came in about an alleged sex trafficking ring being operated out of the house.

Police arrested two women, one for the promotion of prostitution and the other for an outstanding assault warrant, and questioned and released several other women who were believed to be victims of the sex trafficking ring.

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