my former next door neighbors–dear dear people-- ran an upholstery repair business from inside the carport. The noise was horrendous but i did not have the heart to complain.
There’s a building a few blocks away that used to have long-term renters in 8-10 units. Last year, tenants were vacated and there was a major rehab – trendy wideplank hardwood floors, stainless kitchens, Central Air and heat. The building now consists of 8 Air units which is in violation of a new city ordinance that deems that only 25% of units in a building this size can be for short-term rentals. The units were being finished when the new restrictions were passed by the City. It appears that they are going to try to fly under the radar with this. I see lock-boxes and key-safes all over the neighborhood now and I do feel badly for the young professionals, recent grads, etc. looking for a decent and affordable place to live.
Report? There is a thread for this.
1 Like
I can hear the pow pow of the electric stapler …
1 Like
If they literally mean single family homes for families only… How would they know who’s a family member or not? What are they going to do? DNA testing?
1 Like
We are having the same problem in my west-coast city. I’m lucky I was able to buy during the recession, but young folk just getting started or those my age (~30) who traveveled and explored after college instead of saving no longer can find an affordable apartment or even room in a shared house. Most people blame the tech industry for bringing too many people to the region faster than apartments can be built, but I think AirBnB is a factor too, since a lot of people my age lose their housing when their landlord converts the home or building into a STR. I am predicting these hosts will realize there is a over saturation of hosts in our city and will return to traditional tenants, where they can count on a consistent monthly income.
I don’t think landlords are going to voluntarily return to long-term renters. Even a 50% vacancy unit in the slow season brings in more money than a long-term renter and in the high season, a 2-3 br apt can generate 10k. The only thing that will keep units on the long-term rental market is legislation. It’s not like long-term renters in Chicago or in W Coast cities are paying low monthly rent! A 2 br apt in Chicago is over 2k/month, twice what I paid when I moved here for my first job. But compared to tourists who are paying by the night, it’s an easy choice for investors and landlords who want to make as much money as possible.
1 Like
Sadly this is true here in Hawaii too. Even if my place stays empty the entire summer it still makes more yearly than a short term renter does. I can admit I did that. Took away some available housing. However, I am not sure I would have even rented to long term tenants, unless it was the exact right person.
1 Like
You could be right! I took a look at AirDNA and if I’m reading it right, the average 1-bedroom in my city is making $37,000 a year, and even though rent is $1,500-2,000 for a 1-bedroom permanent tenant, that still isn’t coming close to 37k.
In my case, I can’t rent long-term without a variance but the code-enforcement officer specifically told me that we could let people stay short-term all we wanted! So sure, I’ll make more money with short-term and not have the hassle of a long-term tenant who will get to comfortable and trash the place like my brother did…
1 Like
I’m afraid chicagohost is right but then again if the supply of hosts continues to grow faster than the supply of guests prices may drop enough to make LTRs more appealing.
1 Like
Markets have a tendency to eventually find an equilibrium. I’m keeping our LTR the way it is because I don’t have to go and clean it all the time. Of course there’s more money in STR, but to do it right it takes more time and expenses as well!
1 Like
How interesting ~ my stats fall right in there. My small Air condo brought in just over $39K last year (but will probably be closer to $37K this yr.), two of my furnished 1-bdrm LTR’s rent at $1,500/$1,800 respectively, and the others (partly furnished) rent at $1,100-$1,200.
Call me…average. : (
@konacoconutz, @xena, @sandytoes… I think comparing gross revenue from short-term rentals to gross revenue from long-term rentals is not apples to apples. Short-term rentals require a lot more work and overhead costs for the time you and/or a property manager is communicating with guests, marketing, cleaning, supplies, risk mitigation, etc. Net net, I still think STR’s bring in more than LTR’s but the difference is not nearly as high as most people think or perceive it to be. LTR’s are a passive source of income and STR’s are a fairly active one.
3 Likes
@kasage00 Sorry – I’m very late to this thread. Update? Here is a link that might help you. A number of judges around the country are saying that STR is NOT a commercial business: http://globalhosting.freeforums.net/thread/1456/court-cases-short-term-rentals
Sandy
there hasn’t been anything since then. It’s like the issue disappeared into thin air (which is fine by me) however I saw in the Airbnb forums that other hosts in my county (but not in my township) got hit with C&D notices and are fighting them.
I sort-of had the same issue with my HOA. From the very beginning, they have known that I have been doing Airbnb (in fact, two of the board members toured my remodeled unit). After my city enacted a licensing ordinance, which requires that the unit be an owner’s primary residence (renters are not allowed to do STRs, even with a landlord’s permission), these same two board members told me I was illegal – after I have been doing this for almost two years. I told them that I am licensed and in complete compliance with the ordinance and am paying taxes. After I told them that my teenage daughter and I would simply spend more time in the unit (between guests), I haven’t heard another word from them. I never got a letter from the HOA that they said was coming. The issue just disappeared. I did make the argument that I have quiet, respectful guests and that the four college guys in one unit make more noise and garbage than all the other units combined – but we are all stuck with them because they have a long-term lease. I’m only guessing but I think the board consulted their lawyer and was told that since I do not violate the HOA rules and I am compliant with the city’s ordinance, there is nothing they can do. (I also pointed out to them that many of the landlords are allowing dogs, which is against the HOA rules – they know that if they go after me, which they really can’t, they are opening a huge can of worms.) Anyway, the problem just went away. Knock on wood …
I thought maybe that at the time I was reported, the township was not aware of the many other listings in the community. They tried to make me apply for a variance, but I asked if the other hosts in town are applying for one too they said “no, because you are the only one who got reported”. They did not realize there were many other listings. That would have been too many variances for the same issue.
My guests are also well-behaved and never disturbed anyone. The neighbor who reported me lives a few doors down, and just happened to have found my ad. This neighbor was overly paranoid about the “many strangers” coming into the neighborhood and reported me. How ignorant. It was none of their business, and if my guests were not causing harm to them, they should have just stayed out of it, and let the sleeping dog lie.
I think that is what occurred to one of the board members that actually lives on the property (the other doesn’t) – I am not hurting anyone and LTRs have guests and, quite frankly, neither of those woman have ever made an attempt to know the tenants in any of the units (and admitted to such). I really am not hurting anyone. Maybe the psychology world should come up with a new phobia regarding luggage. If it weren’t for the luggage that my guests role in from the parking lot, no one would know the difference.
I live on my property, too. Probably the code officer didn’t realize that. Maybe the neighbor who reported me didn’t either. I don’t interact with my neighbors and they don’t know who lives in the house and who doesn’t.
No, neither I or my Airbnb “business” is hurting anyone. The neighbors stuck their noses where they didn’t belong.
It could be that these neighbors were jealous because they thought I made good money, while they could be financially struggling. They probably can’t do Airbnb because they may not have any room to spare.
1 Like