What AirBnB looks like in San Francisco

Question

Here is an interesting article on the cities own research into the impact of AirBnb

http://www.socketsite.com/archives/2015/05/analysts-airbnb-findings-and-recommendations-for-san-francisco.html

Account Closed · Answer

"About 71.9% of SF rental housing is rent stabilized". That single line defines the problem. The reason rents are high in the BA is that there are far more renters than apartments. Thats it. How fixing the price at some arbitrary level will make that improve is totally beyond me. At the same time "Community" groups are up in arms about new condo developments in the Mission. So lets get this straight. The problem is not enough housing but we protest new housing? Huh? Rent control REDUCES available housing. Nobody in a rent control apartment will ever move. WHy should they? So there is no turnover and inventory of available houses shrinks even more.

Josh L. · Answer

SF used to do studies and research on rent control, but then stopped doing them because they didn't like the results they were finding.

I bring up rent control because Airbnb is just the latest whipping boy to distract people from how disastrous rent control has been as Airbnb  gets blamed for high rents. The thinking goes if only Airbnb didn't exist or if you could pass a state law to get rid of the Ellis Act, then rent control  would finally work in SF.

Its like those people who still clinged to communism, who said communism would have worked if only this happened or if that happened.

Account Closed · Answer

I'm an investor and Airbnb host in San Francisco. I only have a rental on Airbnb that I would not have traditional long-term tenants in- like the inlaw unit in my home. The laws in many states and towns will soon prohibit you from having more than one property as a homestay per city, and possibly require it to be your primary residence.

It can be a lot of work to do daily/weekly housekeeping, guest check-in & out, and the HOSTING that i provide like touring them around the city or making breakfast. I tried having a service do it, but without my management, it was not a 5 star experience for my guests.

I do this almost aside from my REI business, because I love to have guests and connect with people from all over the world. That is the spirit of Airbnb and why I am a host & guest. Big business and labor unions around SF are driving a smear campaign to stop Homesharing, but it is one of the oldest hospitality experiences in many countries & cultures, pre-dating hotels and boarding houses. My suggestion to you investors who are thinking of Hosting, is to go be a Guest somewhere you would like to be a local for a few days. See what the experience is like and try to duplicate it if its positive.

Ryder Meehan · Answer

AirBNB could be a game-changer for real estate investors.  Next time a tenant moves out of one my Dallas multi-family properties I'm going to try posting it on AirBnB for a month.

One of my 1BR/1BA goes for $700/mo ($23/nt) in the desirable Lower Greenville neighborhood so if I can get just $75/nt and rent it 15 nights of the month I'm pulling $1125/mo.  That's $425 more yall.  I'm not necessarily expecting this but it will be a fun little experiment.  Anyone else tried switching from tenant to AirBnB?  My guess is it works better in SF than in Topeka, KS.

Mark Spidell · Answer

I have a variety of properties including duplex, tri plex, SF and condos.  I live in a summer tourism location.  My location also currently has a medium term and long term rental shortage problem.  I utilize ABNB and VRBO with some of my units and the increase in revenue is very real.  However, you can't discount the time involved.  If you are good at multi tasking, using their systems, and have cleaning help, it is not too difficult.   One surprise for me has been demand for corporate type housing.  I have a couple of condos that I only rent on a monthly basis at a $250 to $500 per month premium.  They are furnished and the price is all inclusive of utilities, cable, WIF, etc.  It is a nice in between and easier to manage.  Also nice as payment source is better and tenant problems are fewer.

What AirBnB looks like in San Francisco

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