You don’t understand what we are saying when we say legal. I would like to know when I make a reservation 7 months out that the landlord will not have shut down the operation in six months because you don’t have a lease that allows short term subletting.
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“Care” or “would it influence” a booking?
If I am interested in booking a spot via airbnb and I’ve checked reviews, etc., I feel no need to vet them further. However, if at any time, whether on the listing or after I have booked, I see or am told to lie about my status related to airbnb, I would not do that. That would be a deal breaker for me.
As for a booking being more secure if at a mortgaged unit vs a rental unit, probably a better bet to go with an owner. But if in foreclosure, there is no guarantee. Sometimes landlord tenant rights can buy more time that owner rights. And unless you are going to check with the clerk of court in that jurisdiction to ensure no legal actions and/or what stage of legal action (foreclosure/eviction), you will never have the assurance of a reservation at a Hyatt.
And what is the definition of “legal”? Pay IRS? Pay state taxes? Own? Rent? Have a mortgage? Have a lease? In compliance with HOA or condo governing docs? Once all is said and done, airbnb is about instinct as much as anything, IMO. And from posts on this site, It appears that Airbnb is quick to “rehome” a guest when problems arise.
i think you’ve got it all turned around and misunderstood. I think what she meant is that Airbnb is NOT faceless but maybe sometimes is not in compliance with their lease or local laws whereas staying at the Sofitel is legit but is a faceless corporation.
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As an Air guest, which I have been, I must admit that I have not been concerned about whether the host was an owner or rental. Having been on this site, you bet I will ask in the future! What is legal or legit?: can the city or other government body shut them down? Does their landlord know and, therefore, allow the STR? Does the HOA know? If not, can they shut them down. Taxes on a local level may play a part only if the unit is licensed according the local ordinances and the owner is not paying them; then they could be shut down (but I suspect this is rare). Non-compliance with Federal Income Taxes would not affect the rental – the Feds could put a lien on the property, but that’s it (I think). Foreclosures in this economy are rather rare (I know because I buy foreclosed properties) and rarely is a property in pre-foreclosure in any shape to rent to guests.
In conclusion, in the future, I will ask a potential host – "Are you compliant with your local STR ordinances, lease (if applicable), and HOA (if applicable)? That’s all I need to know.
You left off the most important question: Are they violating their rental agreement by subletting their apartment.
I think that would be covered under “Are you compliant with your lease?”
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But probably better the way you put it – no wiggle room!
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Pardon me. I read too fast and didn’t see you’d mentioned lease. And speaking of which, it amazes me that I’m seeing an ever increasing number of obviously rented apartments being advertised by the tenants on Air. It’s such a bold move, or else people are just naive in thinking they can get away with it, especially in this rental market where landlords are looking for any excuse to boot a tenant out and double the rent.
Last year a girl in the next block got caught by her landlord and was evicted (60 day notice I believe.) She was devastated and outraged and angry, which I did not understand since she signed the lease saying no subletting.
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I think a lot of renters get sucked in by Airbnb’s promotions. I just googled, “Airbnb helps with your rent”, and the first post was fro Airbnb – “Learn all about hosting your extra space, apartment or vacation home on Airbnb. … Your listing helps guests get a sense of what your place is like. Who can …”.
Of course they do, and I can’t blame them; especially when rents are so incredibly high in my area. And they keep going up. It’s just unfortunate that people are forced to do something that is most likely going to backfire on them.
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I am starting to see more and more of this in my area as well, and that was specifically one of the reasons I started this thread. Since I’ve been marked down in the Value category several times recently, I started to look at why that might be and how I could combat it without lowering my price. My rates are a bit higher than some of my local competition, and I think part of the reason is because I’m paying my state’s 9% transient occupancy tax as well as a hefty homeowner’s insurance policy with a rider to cover guests. If I were to subtract those costs from my rate, I’d be priced lower than most of my competition and I’d look a lot more attractive compatibly against the whole apartment listings that belong to renters. So, I wondered if I could influence guests to choose my listing over others if my listing pointed some of this out. As of yet, I have not come up with any wording I like, but I’m still thinking about it.
With respect to an earlier comment about renters and Airbnb, I do feel Airbnb is acting in an incredibly irresponsible manner with their advertising to potential hosts.
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no I don’t think they care or have time to care - they’re here for travel or business
I wouldn’t bother mentioning anything in your listing about these “behind the scenes” issues. Guests want the best place for the cheapest price. They don’t want to hear any politics 
The increased numbers of “illegal” listings I’m noticing in my area are either renting out an extra bedroom or, like me, offer a space in the living area. Some of these listings look very spur-of-the-moment with unappealing photos, but they are cheap!
I can’t imagine they’ll last long before they get caught, but then there will be another dozen or so pop up that do have an effect on our pricing.
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In Washington, DC, where I list a one bedroom in-law suite in my row house, getting in compliance with the local laws meant going through the following hoops:
1.) Getting a Home Occupation Permit OR a Certificate of Occupancy from the DC Regulatory Affairs/Zoning office
2.) Registering my tax ID with the DC Tax Revenue Office
3.) Getting a basic business license to operate a short-term “bed and breakfast”
I did all this because AirBnB does collect the 14.5% local hotel tax on my behalf and forwards this to the District, so any basic audit could instantly flag tax revenues coming in from unlisted sources. (I guess some people might be getting away with not getting audited and fined because the city only has a handful of inspectors covering the city)
And whether guests care about hosts being legal or not, I’m still required by law to post the business license and tax certificate prominently in the unit. For all the trouble I had to go through, I’ve put a discreet statement in the detail section of the site that “We comply with local tax laws and our business license number is …” It’s not a central selling feature, but it’s there to reinforce that my listing isn’t sketchy, and that I won’t make you lie to a landlord or a city inspector.
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I agree. Anyone who’s asking me to lie - what else is up with them and their listing? I wouldn’t ever ask a guest to lie. I don’t need to, it’s my property, but I still wouldn’t. Just a bad idea.
Besides what happens if the neighbors or whomever is suspicious and then they ask even more questions? If I were a guest that would make me super nervous and it would make me nervous about approaching the house or leaving the house walking around the neighborhood you name it. Because what if somebody asks me something that I can’t answer? No way.
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I care about this issue because my husband and I specifically bought our new house because we can make a legal STR out of a finished basement apartment. However, my town has a ton of illegal listings. I have noticed that some other legal units include a photo of their certificate from the city as the last photo in their profile. I wonder if that helps them.
Most guests, ( people searching for a place ) dont give a 2nd thought as to whether a listing is legal or not. Even folks here on this site, who are airbnb hosts, will rent an illegal listing.
I am just down the road from you, in Charleston.
Most listings…hundreds of them, …are not legal in Charleston.
They are fully booked.
It is in Your best interest at least to make sure that abb is automatically collecting the tax for all hosts in Asheville. At the least, it levels the playing field between the illegal listings and the legal listings.
There is a massive legal battle taking place in CHS right now, where a legal host is personally suing the illegal listings for loss of income.
Good luck and share your listing when you are ready.
Thanks, Georgy! Fortunately, Air does collect taxes here. And while there are no lawsuits here that I know of, the city of Asheville does have a way for people to report illegal listings, resulting in fines. It seems like a slimy thing to do, but I wonder how many times that happens, especially if the legitimate, full B&B inns lose bookings. Probably not so much when there’s a ton of business for everyone, but I wonder what will happen down the road when more of the new hotels they’re building open up.
I did a search in Houston for the weekend of the Superbowl Feb 5 next year. Just to see what was still available. The area near the stadium is somewhat depressed - older infrastructure and neighborhoods of small homes from the 1950s-60s. There were a few such homes listed, but when I zoomed into specific areas I noticed that almost 80% of the listings were apartments. Then I went to the really expensive parts of town like River Oaks and Memorial and again, almost entirely apartments. One could argue that people who can afford a home in River Oaks have no need to rent out their house, but we all know that celebrities Airbnb for such occasions and I doubt they stay in a 1450 sq ft house built in 1962.
Anyway, I was surprised at how many listings were apartments. Houston is a giant, sprawling city with endless subdivisions of one-story ranch homes, so I was expecting to seem more of those.
Wow. That’s a hefty amount. I’m a little concerned because I just accepted a booking for next year for our Palm Desert condo where Air is going to be forwarding taxes to the city. Darn it. I only hope they too are short handed and don’t notice.