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How Full-Time Airbnb Landlords Are Making The Housing Crisis Even Worse

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How Full-Time Airbnb Landlords Are Making the Housing Crisis Even Worse

BellBoi is a tiny cafe just off Brick Lane in Shoreditch – though, perhaps to call it a cafe would be misleading. It does serve coffee, and there's the obligatory peg board with prices for cappucinos, espressos and flat whites marked out in white letters. But there's barely seating room for more than two people inside, and no toilets. There is, on the other hand, a large computer terminal that the barista uses to update calendars and spreadsheets, and a wall of luggage lockers at the far end of the shop floor. BellBoi is the client-facing hub of a small Airbnb-letting empire in Shoreditch, made up of more than 30 properties in the surrounding area, plus a few in New York. Guests arrive to pick up their keys and receive a laminated map directing them from the cafe to their accommodation – a model imported from the US, where sharing economy support services have already taken hold. It's a business founded entirely on professionalised use of the Airbnb platform, and like many similar operations in London, it's operating in the grey area between what's legal and what's actually enforced.

more here....

airbnb-london-rentals-housing-deregulati

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Wonder what the company accounts look like for the coffee shop?

Fantastic way for money launderers and organised criminals to quickly hide their gains.

Pretend "rents" from lettings. Plenty of cash in hand. Etc.

Welcome to the new economy suckers.

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funnily enough i'm just looking to book airbnb for my next trip downunder. hotel prices are mental for the quality, and unless it's tax deductible on business, really cannot be justified. 250-300 bucks for what I KNOW is a bog standard room in melbourne CBD.

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I read hookers are using air bnb instead of hiring hotel rooms

Awesome .. I've been looking for a suitable location for a week long hookers n meth bender!

But seriously - I'm not sure I disapprove of Airbnb turning homes into almost hotels. At the margins I'm sure it's worth ensuring the impact on local services is handled properly if the house is being used as a "hotel," rather than for occupation with the occasional visitor. Hardly crime of the century though ... at least the buildings are in use.

The tax system in this country is hardly either progressive or fit for purpose (although the legal system is in some parts) and so long as the system isn't being abused to overcharge captive tenants like hookers/illegal immigrants I'm not going to come out swinging.

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I'm not sure I disapprove of Airbnb turning homes into almost hotels. At the margins I'm sure it's worth ensuring the impact on local services is handled properly if the house is being used as a "hotel," rather than for occupation with the occasional visitor. Hardly crime of the century though ... at least the buildings are in use.

I agree with that in principal, but I HATE the term used "The Sharing Economy" when people / media talk about Airbnb and others like them.

There's nothing "sharing" about them. They extract money from one of the parties for a service. I suppose one could argue that 2 or more parties on the other side of the transaction "share" the revenue......

If people really were sharing , I wouldn't have a problem but many rentiers now switching to this type of business as well as BTL to extract even more revenue from property. And they are avoiding tax as the taxman is unable to keep up with technology changes.

The loser, again, is the OO who only wants a roof for their family but finds they are being outbid by leveraged buyers.

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I agree with that in principal, but I HATE the term used "The Sharing Economy" when people / media talk about Airbnb and others like them.

There's nothing "sharing" about them. They extract money from one of the parties for a service. I suppose one could argue that 2 or more parties on the other side of the transaction "share" the revenue......

If people really were sharing , I wouldn't have a problem but many rentiers now switching to this type of business as well as BTL to extract even more revenue from property. And they are avoiding tax as the taxman is unable to keep up with technology changes.

The loser, again, is the OO who only wants a roof for their family but finds they are being outbid by leveraged buyers.

Quite so. It's "The Renting Economy". Renting someone a seat in your car, a bed in your flat, an hour's use of your lawn-mower....

Time to start pushing the term "Renting Economy" perhaps.

Already happening to some extent - article from the Grauniad from October last year http://www.theguardian.com/technology/2015/oct/05/why-the-term-sharing-economy-needs-to-die

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The UK is a free-for-all with ridiculous and mostly non-existent zoning bylaws.

Even more laughable for enforcement.

That goes for housing, accommodation, and obviously for banking.

Why is it any surprise that the AirBnB model works so well?

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The UK is a free-for-all with ridiculous and mostly non-existent zoning bylaws.

Even more laughable for enforcement.

That goes for housing, accommodation, and obviously for banking.

Why is it any surprise that the AirBnB model works so well?

London is only 3rd in the city rankings based on raw figures. Paris has nearly twice as many listings.

In terms of number of listings per 1,000 inhabitants, London isn't even in the top ten.

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Wonder what the company accounts look like for the coffee shop?

Fantastic way for money launderers and organised criminals to quickly hide their gains.

Pretend "rents" from lettings. Plenty of cash in hand. Etc.

Welcome to the new economy suckers.

??? All payments are electronic and logged on your and "guests" account.

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??? All payments are electronic and logged on your and "guests" account.

I've seen this in action in Vienna last summer. Room booked for 7 nights. Turn up to be told it's been double booked. Asked if ok to cancel this and they'll get me into another one of their places nearby....and it's cheaper.

Realised they probably only have 1-2 flats on the website then funnel clients to other unregistered flats.....limiting the money trail.

We refused and found another place.

And the coffee shop sounds a good one as well....

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I wouldn't mind airbnbing full-time but because this country is so behind the curve on transient workers rights (need a permanent address to be on electoral roll to vote, a permanent address reqd. to get a mortgage, job etc. etc.) it simply wouldn't be possible. Airbnb hotels would expect you to already have an address. Ditto for living in a hotel full time and round robin at friends or family at the weekends. Same for living in a camper. It's all geared to having you at a fixed abode. In ordinary times this needs changing, in a country with a biblical housing crisis it should have been sorted long ago.

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I've used airbnb in a few places and don't have a problem with it.

It's invariably cheaper and better than hotels. The descriptions, hosts and photos are checked and vetted. I don't think it's competition for local housing, only local hotels. It's not permanent accommodation.

People have offered holiday lets and taken in lodgers for donkey's years. They did not create this crisis.

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The UK is a free-for-all with ridiculous and mostly non-existent zoning bylaws.

Even more laughable for enforcement.

That goes for housing, accommodation, and obviously for banking.

Why is it any surprise that the AirBnB model works so well?

A free-for-all is good. The last thing I want in my life is more government inspectors and council clip-boardwielders turning up to tax us.

If someone owns a flat (or a car, or a bicycle, or whatever) then what they do with it or who they let use it is not the government's business.

AirBnB works well, I suspect, because it has very responsive quality control. I've not used it but presumably it has a rating system that would catch out crap place far faster than any council inspector on his annual rounds.

While I strongly, strongly disagree with "zoning" (it's the A-bomb of destructiveness when it comes to urban planning), I do think we've lost the ability to self-enforce nuisance caused by others. It's a private civil claim but we've become reliant (once again) on the council sorting everything out. Which, of course, they fail to do.

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Well it certainly seems to have reached saturation stage in Edinburgh. Same with all these 'easy money' ideas.

Pal just bought a place with his burd. Away travelling for 10 weeks so planned to air bnb it. Got everything set up - then put up online. Fairly quiet season for Edinburgh, but still always lots of tourists about. Their place is ok - but a wee bit out of town. Only 3k's or so though. Only asking £60 per night for a 2 bed flat.

Were only going to put it up for 3 weeks - had it sitting there for 2 weeks prior to them leaving. Nowt. Nothing. So decided after that response to take it off.

I did a look for next week in Edinburgh and there were almost 400 available. At all various rates and locations. I also did a check on a city centre premier inn for similar dates. £60 per night for a twin or double.

Unless the price is much cheaper - most people are just not going to bother with the hassle of an air bnb -finding where it is - getting the keys sorted - reading through the rules - putting down the deposit - working out how to work the shower and the heating - paying a 'cleaning' fee that most appear to add onto the nightly rate - when they can just rock up to a hotel for a similar price - make a mess - and ****** off in the morning zero hassle.

The way to notice these places in somewhere like Edinburgh is to look for the wee secure key locks on the communal front doors of blocks of flats. Once you start doing that - and I have mentioned this to my pals - you literally notice them everywhere.

Apart from summer/festival and over Christmas - and of course depending on location and price - it looks like anyone getting into this in Edinburgh right now is going to be in for a surprise. Not a good one.

Oh well.

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The UK is a free-for-all with ridiculous and mostly non-existent zoning bylaws.

Even more laughable for enforcement.

That goes for housing, accommodation, and obviously for banking.

Why is it any surprise that the AirBnB model works so well?

I am open minded......cutting out the middle man, dealing directly with people that have something to offer or swap, kind of like that idea if both parties benefit......I think I would use it.....at the end of the day we are all looking to do things differently, freely, openly and more cost effectively.....sharing resources. ;)

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Well it certainly seems to have reached saturation stage in Edinburgh. Same with all these 'easy money' ideas.

Pal just bought a place with his burd. Away travelling for 10 weeks so planned to air bnb it. Got everything set up - then put up online. Fairly quiet season for Edinburgh, but still always lots of tourists about. Their place is ok - but a wee bit out of town. Only 3k's or so though. Only asking £60 per night for a 2 bed flat.

Were only going to put it up for 3 weeks - had it sitting there for 2 weeks prior to them leaving. Nowt. Nothing. So decided after that response to take it off.

I did a look for next week in Edinburgh and there were almost 400 available. At all various rates and locations. I also did a check on a city centre premier inn for similar dates. £60 per night for a twin or double.

Unless the price is much cheaper - most people are just not going to bother with the hassle of an air bnb -finding where it is - getting the keys sorted - reading through the rules - putting down the deposit - working out how to work the shower and the heating - paying a 'cleaning' fee that most appear to add onto the nightly rate - when they can just rock up to a hotel for a similar price - make a mess - and ****** off in the morning zero hassle.

The way to notice these places in somewhere like Edinburgh is to look for the wee secure key locks on the communal front doors of blocks of flats. Once you start doing that - and I have mentioned this to my pals - you literally notice them everywhere.

Apart from summer/festival and over Christmas - and of course depending on location and price - it looks like anyone getting into this in Edinburgh right now is going to be in for a surprise. Not a good one.

Oh well.

I guess AirBnB was new and exciting.

Couple of murders, scams, rapes and the shines come of bit.

Wierdly, my mum was talking to a B+B owner in my home town.

Massive grip about the changing habits - Everybodies doing AirBnb or waiting til the last minute.

I was quite surprised at the number of places listed on AirBnb. A lot are existing holiday rentals but theres a fair few rooms in houses (non-B+B).

I think he right on the last minute thing. The UK weekend holiday is becoming very fickle. People wait to see what the weathers like and then take a gamble on getting a place. If they dont get the town they wanted they go elsewhere.

Previously, people used to book a place and take a gamble on the weather.

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Yes - I did notice a huge amount were just rooms in people's houses/flats. I know you get paid - but I can't say I would fancy doing that with where I lived. Random people, random times - coming and going. Hearing them snoring - going for a piss at 2am. Coming in drunk. Having to constantly clean beds and change sheets. And for £30 a night ?

I suppose if you are desperate for cash them fine - but otherwise seems a lot of hassle for not very much.

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Yes - I did notice a huge amount were just rooms in people's houses/flats. I know you get paid - but I can't say I would fancy doing that with where I lived. Random people, random times - coming and going. Hearing them snoring - going for a piss at 2am. Coming in drunk. Having to constantly clean beds and change sheets. And for £30 a night ?

I suppose if you are desperate for cash them fine - but otherwise seems a lot of hassle for not very much.

Having a short stay, private apartment appeals to me.

B+B are always run by gay blokes or nuts women. v. unappealing. And the whole greasy English is pointless as Im a veggie.

Something thats cheaper than a hotel and more private than a B+B is great.

Premier Inn with no breakfast is pretty much there.

But I do like the idea to self cater - not talking cooking just zapping food from supermarket.

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I guess the miserable B+B onwer was also correct. The sray away amrket is not growing. Just new places competing fro the same business.

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