Getting rid of competition

A lack of regulatory clarity is incredibly annoying when you want to start a new business venture like you’re talking about… it’s impossible to plan ahead and invest when you have no idea whether the government will shut you down at any moment. In my city the municipal government has no laws regarding STR, but the bureaucrats are very slowly weighing whether to ban certain types of rental and/or levy taxes on operators. In the meantime Airbnb is filled with crummy apartments furnished at low cost because nobody wants to spend thousands of dollars only to be regulated out of business. Of course this makes STR look bad because these fly by night operators rent to irresponsible guests who cause trouble in apartment buildings. Very frustrating!

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No, pretty pointless to waste my time with that. I would rather make my place great and just take their business

I said no because I think this may be a loaded question. If my next door neighbour was offering exactly the same as myself in terms of space, utilities, service etc, I’d be looking for ways to out market/service him.
If I were a hotel owner, and saw my business going down because I saw local AirBnB members were doing very well, I would be asking myself if this were really true that they were affecting my business, was their customer base the same as mine? and how could I change my approach/offering to compete? or should I get out or change the direction of my business.
I live in a small City, holiday business in my City is booming as is AirBnB. There are numerous projects under way to add hundreds if not thousands of apartments to the City center. New hotels are going up to cater for travelers. Is it affecting my little AirBnB spaces,? not much, but I’m having to be smarter and work harder.

But there is never a level playing field in Business.

I don’t understand what this means at all, but please don’t feel obliged to explain.

Apartments are located in buildings. What’s the difference?

(Guthend - this wasn’t directly to you - it’s just an observation of the themes in the thread and I didn’t know who else to respond to)

It’s been really interesting to read all of the responses. A lot of the responses have phrases like “I’ll just beat them being better than they are”. Why do people assume that someone not paying taxes or hosting when they are not allowed to host basis local regulations is going to run a shabby business?

What it does mean is that they have more money in their pocket to either lower their rate (thereby taking business from a host that follows the regulations) or offer BETTER amenities. And if someone gets hurt or complains at their property, then the regulations get even tighter, putting the squeeze on those who do follow the rules.

I’m one of those that believes that the STR business should have some level of regulation to protect the public. One of the reason tax rates go up or schools get their funding cut is less tax revenue - if the STR doesn’t pay accommodation taxes to the city but the hotels do, the rest of the community is harmed when a traveler chooses the STR over the hotel. (Yes, I know someone will say that the guest might not be able to afford to go if the STR weren’t available, but I’m talking about the incremental cost of the tax, not one industry vs another)

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I too follow the same policy, maybe I may have to correct, but live and let live

The apartment next to our rental is a STR and there are three Airbnb rentals in the building right next door. So we do exactly what you suggest.

One theory is that those who host ‘illegally’ aren’t in it for the long term. Those who are more careful may provide a better hosting experience because, being in the business for the long haul, they are more concerned about getting repeat business and recommendations.

Just a theory…

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No problem ! I will try again :slight_smile:

Think of a city center that is densely populated and densely built:

On 90% of the plots of land there are already apartment buildings (7 to 19 stories high).
=> The municipality does NOT allow ANY hospitality service (B&B, hotel,…) in these buildings.

On 10% of the plots there are still one family houses (or commercial functions, hotels,…).
=> The municipality DOES allow hospitality services. But the detail is, that these plots are crazily expensive because zoning allows for building apartments on them. And a hospitality service can NEVER EVER reside in the same building where someone else is living permanently.

In case it’s still not clear, just tell me, I will have another go :relaxed:.

I’m not really getting what you are saying here.

Don’t you believe that it’s the obligation of every government to create a level playing field and maintain it? And don’t you think that governments in civilized countries do there best to attain this?
Everything that is not government related should be considered the team you bring to the field.

The very notion of a level playing field is a myth. There never has been a level field and there never will be. The market will decide for itself. Government interference only makes the issues more complicated. The idea of “fairness” is alien to competitive business. Small businesses never will be on a level playing field with big business that has millions in resources , to launch new products or services."
Who decides what is “fair”? Vested interest?

I think you are talking about the teams, not the field.

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I feel like there’s a bit of camaraderie along with the competition. I might want to ask their help someday, they might refer someone to me, etc. So I’d probably not say anything.

I really don’t care if someone else follows the rules, but feel it unfair to those that are above board & treating it like the business it is. It also means that in order for my listing to remain competitive (charging equally) the net of my booking would be substantially less due to the fact that I net less than those not paying licensing & taxes. Taxes in my area run 14.7%. My insurance runs around $2500 yr.

I am a firm believer in abiding by the rules & regulations set up by HOA’s, city, county, state & government when it comes to owning a business…which is what you have when you do short term rentals. I am licensed, insured to do business & pay all taxes due. By doing this it sets a good example of how the ‘sharing’ community can contribute to the cities in which they live.

Needless to say, I know people in the same neighborhood that aren’t. Just this year, Airbnb began collecting taxes in behalf of homeowners & remitting them to the appropriate entities. Sure makes my job easier.

One of the disadvantages of not being above board is you open yourself to being reported, having your homeowners insurance refuse to pay a claim or cancel your policy if they find out, personal liability & more. I personally have worked hard for the home I have & share with others & would not want to deal with the possibility of losing everything I have, should a legal issue arise.

So, even though I live in my home & it is my primary residence, I still choose to be transparent. I am not trying to make a living, just trying to help pay my mortgage & have a little left over to do some traveling on my own.

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Read out all the replies enjoyed so much plz keep updating.

I said No, because fascism. (And also, “Mind your business” is the neighborhood culture.)

That said, I bumped into a fellow host on the street, and he was managing to make extra money booking stays at illegal airbnbs, documenting it, and then ratting them out to some other group (I assume financed by the hotel industry but he didn’t give details and i didn’t want them).

I accept that he’s playing by the rules, but i don’t have to play that game.