Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
I'm sad to say I don't see how Airbnb can survive this.
Airbnb.com says that Brian Chesky is making an announcement tomorrow (4/28/20) at 3pm pacific. We were hoping for good news. I guess we can assume this is the news.
USA Today - "Airbnb is about to go on a cleaning binge.
The home-sharing service, under pressure from the coronavirus crisis, said Monday that it is establishing a new "cleaning protocol" with the goal of reassuring both those who rent their properties, which it calls "hosts," and their guests.
Airbnb said in a statement that the protocol will offer guidance on the best and safest practices for cleansing a residence's various rooms. It will include a manual more than 40 pages long establishing the standards, as well as specifying particular chemicals and other products to do the job."
Real Estate Agent · Sevierville, TN · Member since 2017 · 165 posts · 137 votes
6y
@Julie McCoy . I am right there with you. I do not need Air BnB policing my cleaning practices. That is what the review system is for. I too have started looking very hard at how to get off their platform. I have reached out to my VRBO rep to see if they are considering something equally as draconian. This is a great opportunity for another provider to come in and steal Air BnB's lunch right out from under their nose.
@Julie McCoy . I am right there with you. I do not need Air BnB policing my cleaning practices. That is what the review system is for. I too have started looking very hard at how to get off their platform. I have reached out to my VRBO rep to see if they are considering something equally as draconian. This is a great opportunity for another provider to come in and steal Air BnB's lunch right out from under their nose.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
6y
I have stayed at enough STR that I can tell you cleaning practices vary greatly. Some do a great job, but half the owners only clean if it looks dirty. They can publish a 100 page cleaning guide if you want to, but nobody is going to change their cleaning practices. This is just for AirBNB to protect themselves from liability. There is no way to ensure compliance, therefore this is worthless.
STR owners have been hit hard enough by this. Anyone traveling now knows the risks.
I have stayed at enough STR that I can tell you cleaning practices vary greatly. Some do a great job, but half the owners only clean if it looks dirty. They can publish a 100 page cleaning guide if you want to, but nobody is going to change their cleaning practices. This is just for AirBNB to protect themselves from liability. There is no way to ensure compliance, therefore this is worthless.
STR owners have been hit hard enough by this. Anyone traveling now knows the risks.
I agree with you 100%. The compliance is going to come from guest expectations when leaving reviews. If it is on your listing that you are complying with Covid-19 cleaning or whatever AirBnb calls it, a guest is going to expect hospital grade cleanliness. They will look for any little sight of dust, bugs, etc...and use that to call out the homeowner.
Lender · Central Florida Markets · Member since 2017 · 137 posts · 135 votes
6y
@Lucas Carl- Lets think positive — The 24 hour holding period may be a very good idea. By adding this rule millions of guests will now feel safer in an AirBnB than other facilities like Hotels and other platforms . Use this added “ sanitization period “ to your benefit .
You may also charge a Higher cleaning fee, Guests will understand it costs more and pay extra for their added protection.
And any concerned about guests who will checkout only Friday or Saturday disrupting the next guests weekend plans - I suggest to raise the rates for Thursday’s and Fridays. It’s not an exact science , but you be able to recoup some of the revenue you will loose from the lost day. Get Creative & Think Positive.
Rental Property Investor · Nashua, NH · Member since 2014 · 587 posts · 477 votes
6y
“Dear partner, we don’t trust you to run your own house, so we’re telling you how to do it ourselves. Also, never mind the the cleaning rating you earned, protocols you’ve established, or type of rental you have, we know best what’s right for you. Don’t worry it’s a voluntary program that will only result in you never showing up on the first page of search results if you do not comply. Please raise your hand now if you’d like to volunteer. Also, here’s our list of preferred cleaning product partners that we receive a kickback on to sustain our extremely high overhead that never had a profit margin to sustain since it was only ever funded through VCs whose goal it has been to establish a platform monopoly by bankrupting the others guys so we can set the rules all by ourselves. Who’d like to volunteer? We love you and value you as a partner, which is exactly why we don’t trust you do to anything right.”
Folks, it’s time to find another platform. Are any of us really that surprised? AirBnB has had this chip on their shoulder from the very beginning, this crisis is just allowing the leopard to show its stripes. Other than SEO, there is nothing this platform provides that independent owners cannot setup themselves in about 1 hour’s time through any of the direct booking sites/services we’ve discussed ad nauseam here in the BP forums.
I’ve said it before and I’ll say it again: if you don’t own the relationship with your customer, you don’t own your business, you’re just renting it from someone else. And renting someone else’s business I don’t think was the reason any of us got into this thing in from the beginning.
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
6y
@Lucas Carl well they just raised a couple billion dollars in equity and debt and will probably raise a lot more. Assuming they start cutting staff, then they can probably cut expenses pretty greatly.
I don’t think Airbnb is going anywhere. By that extension, do you think Uber will go out of business? Their business model relies on travel to. I think both will stick around for a while.
That being said, Airbnb is probably wishing they had their IPO last year.
Rental Property Investor · Nashua, NH · Member since 2014 · 587 posts · 477 votes
6y
@Account Closed AirBnB didn’t invent STRs, they just popularized it by flooding the sector with VC funding and modern design. Many of us here were involved in STRs long before them and will be doing it long after. It’s not a matter of anything changing suddenly, as much as the reality of how this company views it’s customers, which is an awareness that many of us have been coming to for some time now. If anything is a change it’s how many, many hosts trusted a company like this in the face of repeated examples that the trust was not reciprocal.
Danville. CA · Member since 2017 · 313 posts · 220 votes
6y
There shouldn't be an virus' in the AirBNB I'm renting but my guess is that cleaning fees will get raised. I also find it funny people here are acting like AirBNB is the devil, it's the platform that gave many of you wealth. And if you were doing STR before AirBnB then they popularized the market and provided you another stream of income. Google tracks everything you do on the web but you still use it. It is what it is, you don't own AirBNB, you don't own Google so be happy you acquired some wealth. At the end of the day, the extra day thing "if real" is a joke but you're not in the board room, what are you going to do? Pull your rental and go to VRBO? Lol they'll be following the market leader soon.
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Lucas Carl
I’ve been hearing from other hosts they’re switching to other VBRO platforms after AirBNB pulled their last stunt that hurt their hosts. This might be another nail in that coffin.
Investor · West Islip, NY · Member since 2014 · 48 posts · 44 votes
6y
Is Lowes, HomeDepot and grocery stores shutting down for 24-72 hours after a patron enters a store? NO!! People are free to enter the store, get what they need and leave. There is no one cleaning the shelf after a patron has touched it, preventing disease from spreading. In our homes we have people that go in and wipe down most, if not all surfaces, change sheets, etc...This effectively makes our homes safer than going out to stores. AirBnb is going to ruin itself with this policy. I am already seeing an uptick in my direct bookings with my website.
I’ve been hearing from other hosts they’re switching to other VBRO platforms after AirBNB pulled their last stunt that hurt their hosts. This might be another nail in that coffin.
There are many people who are loyal to AirBNB and many who are loyal to VBRO. These companies are seen by guests as the brand. Just like when you stay at a Hilton or a Marriott hotel, you don't know (or care) who owns the building. It is the chain experience that you buy into. I am assuming from AirBNB's perspective, they care more about the customers. In the end, it is customers that make the platform appealing for owners. More customers means more demand and opportunity for lower vacancy and higher rates.
So even if XYZ short term rental company offers a great deal to hosts, they need guests or the platform is useless. I would argue guests are more likely to work with a trusted brand. Would people rather go through AirBNB that has a between guest waiting period, or XYZ company that puts guests back to back? I don't know the answer, but my point is look at it from a guest perspective.
Rental Property Investor · Westerly, RI · Member since 2016 · 80 posts · 59 votes
6y
@Lucas Carl A lot of us got into this business to work for ourselves and now Air BnB is suddenly making me feel like I’m being micro-managed once again. These reactive policies being set forth are not sitting well with me.
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Joe Splitrock
From that perspective, yes it does make since for AirBNB to look out for the guests. AirBNB relies on their hosts to make their business happen too. I don’t think I’m the only host that will expand to different platforms instead of just sticking to AirBNB after their decisions during the Coronavirus. Great for other VBRO platforms but bad for AirBNB.
Real Estate Agent · Park City, UT · Member since 2016 · 113 posts · 112 votes
6y
@Joe Splitrock
Well said Joe, I agree that most guests would prefer to use a trusted site like airbnb who has put out these clean practices as opposed to a mom and pop operation. It's all about the guests, we are moving into a new reality and if you cant adapt, you may not get any guests at all. I know I'd rather have 5 days of bookings and a mandatory 24 hr cleaning period than only a few guests that I can funnel through my own website.
One thing that might help is having a longer minimum stay, I'm currently at a 3 day minimum but might push that up to 5 days or something. But that might narrow my renter pool.
Airbnb has been a great source of income for me but for the time being, I've transitioned to monthly rentals at least for the summer and have tenants moving in on Thursday.
Real Estate Agent · Park City, UT · Member since 2016 · 113 posts · 112 votes
6y
@Nick Rutkowski
It's just a guess but I think other platforms will follow this trend and put out their own policies that are similar, but that's just an assumption and we all know how those can work out.
From that perspective, yes it does make since for AirBNB to look out for the guests. AirBNB relies on their hosts to make their business happen too. I don’t think I’m the only host that will expand to different platforms instead of just sticking to AirBNB after their decisions during the Coronavirus. Great for other VBRO platforms but bad for AirBNB.
Do you host with AirBNB because of their fees and policies or their ability to get your unit rented? I honestly don't run a STR so I don't know how much success one platform has over the other. I do know AirBNB was founded in 2008 and VRBO was founded in 1995. AirBNB has twice as many listings, so they clearly have scaled their business faster and must be doing something right. On my mobile phone right now, I have the AirBNB app. Not only do I not have the VRBO app, but I have never even looked at their listings. I probably would not try a different STR company, unless I had trouble finding what I wanted on AirBNB. How many other people think like me?
I am not saying AirBNB is right with what they are doing. I am just saying they may be dominant enough in the STR market that hosts will just accept it. Starting a new STR company sounds great, but at a time when the existing ones are struggling to attract customers, seems impractical.
Rental Property Investor · New Orleans, LA · Member since 2018 · 716 posts · 555 votes
6y
Airbnbs are hurting right now. I hope people have been following the rules that you shouldn't buy a property that NEEDS to be an Airbnb for the numbers to work. If you can't turn into a normal rental over this Corona period and the reduced tourism that is going to follow you are in trouble. On the flip side there is opportunity to buy some good deals from distressed Airbnb owners.
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Joe Splitrock
I use AirBNB because their process is more streamline, better advertising and low fees compared to other VBROs. I use Craigslist and Facebook too, I get some bookings that way but the ad power is better with AirBNB. I cant really compete with a billion dollar company.
I agree with you about not using other VBRO companies, Id rather use AirBnB as a host. I’m not a fan of more regulation and I think other hosts aren’t as well. I’m adapting by expanding to other platforms that will give the host more autonomy. What others do is up to them.
This hurts AirBnB because they need hosts as much as they need guests, it’s a huge balancing act for them. When they’re more in favor of regulation, some hosts will leave but more guests will come. Hosts will make more money but they’ll be under stricter rules. Other platforms that offer less regulations will get more hosts but less guests. Think of it like investing in NY vs Texas.
Now don’t get me wrong, I love a clean house. Look up my house “The Green House” in Cortland, NY and my most ratings are about how clean my house is. That’s the wonderful part of the rating system AirBnB has. Plus a clean house is more money, especially during these times.