Interesting Airbnb LA Times article today;
Get this...dudes are finding apartments to rent from Landlords just to do Airbnb and turn it into a regular business for themselves. What category of REI is that?
"I almost find it painful to rent things these days," he said. "There's so much demand and so many people who are qualified and nice people who I have to turn away."
For that apartment in Los Feliz, LaFlamme said, he found a tenant in less than 24 hours.
Now peeps are saying it is driving up rents and creating more regular rentals shortages.
@Matt R. it sounds rather dodgy (Australian for sketchy) to me. As an investor I would hate to find out that my property is having an endless overturn of random out of towners.
The insurance complications would also be a nightmare to deal with if you were to make a claim I would imagine.
On the other hand you have to give them props for being creative and entrepreneurial.
It makes perfect sense that Airbnb would drive up the price of rentals in highly desirable locales. I really think that is almost indisputable; it is simple economics.
Whether that is a bad thing, on net, is an entirely different discussion.
This isn't anything new, its been going on for a while now. As a landlord can't you just put in your lease agreement that the tenant can't sublease it. When they are letting someone else stay there and they collect money, it is a form of subleasing. If they do, then it would be a breach of contract and you could keep their security deposit. Someone correct me if I am wrong here as I am not a lawyer or had to deal with this.
On the other hand isnt this good for those who dont sublease as the guys who are doing vacation rentals make more money than regular rentals. For the guys who do have regular long term rentals, this cuts down supply, increases demand and raises the rents thus makes us more money :).
Thanks for commenting gentlemen. Yeah, it is too much hassle for me personally but it is nice to know it is an option.
There was a triplex in Silverlake for sale 1.3 mil that brings in 200k. Mashvisor claims 17k month for a single family in Studio City. I think the big thing is it is making things tougher to rent in those select areas. It might be an idea to get into Vrbo areas just to get the pinched up regular monthly rents IDK.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.