https://www.yahoo.com/news/airbnb-lowers-internal-valuation-26-012352324.html
I was relatively optimistic of their chances of weathering the storm, but the new round of funding makes me even more so.
It seems like Airbnb’s fate is in their own hands, so it’s not like they still can’t f*** it up, though. I definitely expect to seem some changes to their cancellation and extenuating circumstances policies in the next 3 months or so.
2 Likes
And as they can change their rules to what ever they want, when ever they want - does it really matter what they change them to?
4 Likes
I know Airbnb is getting a lot of hate from hosts and guest with how they’ve handled this whole pandemic, but I think it’s a near certainty they will survive this. Despite what frustrated users might be hoping for.
Their balance sheet was already pretty solid (around $2B cash purportedly) and now they’ve just raised another $1B from investors. If things drag on and they need more, they should have no shortage of investors lining up. Especially at a discounted price.
Because unless the short-term rental market disappears entirely, people will still consider Aribnb synonymous with short-term rentals. That kind of market dominance is invaluable, and it’s not like a competitor is going to seriously challenge them in this environment.
1 Like
What do we think this new “long-term rental” feature is going to look like?
Score one for @dpfromva
Hopefully, they are re-thinking their commissions for longer term stays. Airbnb takes around 15% just for advertising/referral. That’s reasonable for short-term, but it’s not even in the ballpark for long-term. Traditional property managers get less and they vet guests and help with evictions.
One of the smartest people on this forum.
I will be fascinated to see if they can transition from being the first one you think of for a short, hotel replacement type stay (at least in the US) to the first one you think of if you want any kind of stay. What’s next, real estate sales?
Another thought…maybe people quit renting a home in the traditional sense of move in with all your stuff. Millennials and younger who don’t want all the crap we boomers love to accumulate just move from fully outfitted home to fully outfitted home. And not just bloggers and influencers. I mean a whole generation of people willing to rent someone else’s stuff. Move every 1-3 months from place to place in the same town.
Ah, but then we’d all have to change our decor to Ikea generic. 
2 Likes
I know you are kidding but clearly that’s not true. At my age I’ve grown attached to many of my things but if I were 30 something again and it was cost effective I think living in different neighborhoods and having nothing to pack but a couple of suitcases would be fantastic.
BTW I’m not referring to the digital nomads that are around. I mean I could have been a teacher and for say $1200 a month I could live (in El Paso!) all expenses paid, no furniture to buy, utilities etc. I would have considered it.
I wasn’t exactly kidding. A majority of people between the ages of say, 20 and 50 consider eclectic or antique, i.e. anything that doesn’t look like it came from Ikea to equate with old and shabby. There’s very little appreciation among that generation for furnishings that have any history or character.
1 Like
As you may know, I don’t have kids of my own. But I did teach in a public high school from 87 to 2015. And now my former students that I’m still in touch with range from about 23 to mid 40s. Now they aren’t a random sample by any means. My school was one of the “richer” ones in a relatively poor town. The students who wanted to stay in touch or found me again after years obviously have some questionable tastes but, I would never generalize on that cohort in that way. What they don’t seem to value the way an older group does is owning a bunch of crap. But take them to a museum or grandma’s house and they appreciate it as much as anyone. Let’s not forget the aesthetics of danish modern, MCM, Bauhaus, etc orginated with folks much older than their 50s.
I think they may add a way to not only send but also sign a rental contract with the host within the software.
I hope they will put the hosts in charge of the security deposit so that it can be a real security deposit. It’s unreasonable for them to expect hosts to do LTR without a real security deposit, it’s not normal and only happens on Airbnb. They may do this as it might actually be less hassle for them overall, but who knows.
If they do those two things, I imagine a lot more hosts would be comfortable doing LTR stays on Airbnb. They could also provide credit checks and background checks as part of their services or the software, because some landlords really like those things, but I doubt they will.
And if they lower the service fee for guests, I imagine a lot more guests would look for LTR on Airbnb as well. However, they only charge 10-12% for long term stays right now and, in some markets, renters pay as much as 12-15% to a broker. But, that is also changing, even NY is squashing that practice and a lot of cities/states have laws against renters having to pay broker’s fees (mine included).
Which is a very interesting side-question: Is it even legal for them to charge guests a service fee for long term stays? In my city, that makes them tenants and it’s illegal to have tenants pay fees for acquiring a rental (it’s even illegal to charge them a fee for the application or a credit check). And I know it’s not the only place with laws like this. I think it is probably not legal and will be challenged eventually. Perhaps they get around it by charging a flat “membership” fee for guests or something.
Nonetheless, I really think the service fees are going to be the big issue for them (and us 
) as they figure this out (bottom line and all ,) They are going to want to make as much as they do on STR but it’s hard to see how they will. Perhaps they could split the fees between the guests and hosts. Right now they charge guests 10-12% for long term and hosts 3-4%, making it 13-16%. They could probably get away with charging 7% to each instead. Just brainstorming 
That being said, guests don’t seem too concerned about paying the service for long-term stays. I’ve had numerous inquiries this week, all for long term and two of them actually wanted 12 months. I also had several inquiries for 3+ month stays at the end of March. So, it may not dissuade guests for LTR anyway.
I, OTOH, am not willing to do 12 months or even 3 months on Airbnb. I could have them sign a contract as I do have in my house rules that stays for more than 27 days may require one. But it is just too too long to not have a real security deposit. I’m not comfortable with that and ultimately the “contract” would not be as secure as a lease as long as Airbnb is operating in the manner that they are currently. I did accept a 2 month stay today but that is my personal limit right now.
Craigslist is currently a better option for these longer stays, IMO. But if Airbnb, made it easy to sign a real lease through the platform and gave me complete control over the security deposit, I would be willing to pay a much higher service fee than I do now. And I’d be willing to pay extra on top of that for a well-vetted, well-reviewed guest who wanted a long term stay.
And one extra thought As a renter, I can see the value of finding LTR on Airbnb. Not only is it the best place to find furnished and turn-key rentals but it’s really the only place that landlords (hosts) and properties are vetted and reviewed. As a renter, I would definitely pay a fee to know more about someone and their property before renting from them. I kind of hope they figure something out that works for everyone. Perhaps they can revolutionize LTR the same way they did STR. We tend to mostly cover the STR world but the LTR world could certainly use some updating as well.
3 Likes
Nothing compared to the loss bourne by Hosts, some of it rather directly at the hands the same mega corp.
My sympathy is for the hundreds of thousands (millions?) of hard-working hosts with various home stays.
IMO, every host should chip in $10-20 to a fund to build our own bnb.com - without the 99% guest centric policies, EC bs, etc.
Crisis = opportunity …
Great point. There are lots of crappy hosts/landlords.
Gosh, I’m not sure who you’re hanging out with 
This doesn’t ring true to me.
First, you’ve basically included every generation younger than your own
I think Ikea is a bit associated with youth, and that’s because it’s cheap. And it’s typical that younger people have less money as they are just starting their careers and such. “Spare and Modern” is an affordable style. Also, boomers are living longer and so you guys are holding onto the antiques longer, instead of passing them down. And antiques aren’t cheap. However, that is why thrift stores and vintage shops are so popular. This same age range of 20-50 is particularly known for their love of thrift and vintage and upcycling. And then the other cheap furniture place is Urban Outfitters, another bastion of youth, which is completely stuffed with the best (cane back chairs) and the worst (macrame wall hangings) of furniture and home decor from the 1920s to the 1970s. Other than Ikea, nothing else really points to Ikea. And for that matter, Ikea does a lot of dupes and inspirations from signficant designs from the past. And again, is affordable. Because I think we all know that Design Within Reach is not particulary in reach, lol. Meaning, even folks who like a lot of Ikea, do indeed like design and furnishings with history and character.
It’s actually 3 generations (Z, Millenial and X). I guess it could be one generation: “The NotBoomers”
Of course younger people aren’t all like that. I know plenty of hippie types in that age range who appreciate antiques and eclectic stuff and they are certainly into thrift store shopping for clothes and rare finds and retro. I have 3 daughters, ranging in age from 37-47. The 47 year old isn’t into much Ikea type stuff- she has fairly expensive taste, but waits until things are on sale, and tends to follow the latest home decor trends. But it’s a pretty spare aesthetic- lots of empty space. She arranges the books on the bookshelf by color-coordinated covers. You’d never find a book with a tattered cover there. She isn’t even slightly interested in the family heirlooms. Middle daughter will take whatever you give her, pretty much, and is into being the keeper of the family treasures. Youngest is a minimalist- up until Oct, when she had her first baby, almost all the stuff she felt she needed or was attached to, fit into a couple of backpacks and maybe one box. And she isn’t interested in any of the old family keepsakes, either, except for a few choice items, mainly things her dad made, who passed away a couple years ago. She’s the type who would appeciate moving into a furnished place.
Should be illegal 
1 Like
I am super interested in what they have to say about longer-term stays, especially since I can no longer host stays less than 30 days, but I have doubts that they will provide or even allow the services hosts need for long-term stays.
1 Like