In the last few years AirBnB has surged onto the market and revolutionized the way people vacation. Being that it’s become such a huge company, people have started to wonder how it has already started to affect the real estate industry. Here are a few ways AirBnB is changing real estate.
Landlords Are Renting Differently
It used to be the case that if someone had an extra property that they managed, for the most part they needed to find somewhat permanent renters to occupy the space and pay the monthly rent. However, that’s changing a bit. Now that so many people use AirBnB, some landlords have been shifting toward short-term renters through AirBnB that might just be staying a few days at a time. In cities that have a lot of tourism, many landlords find that they can keep their place filled very regularly. Because they can charge more per night from vacationers than they can from permanent renters, it can often be more lucrative.
Prices are Rising
In touristy cities where there is a high demand for AirBnB properties, sellers are able to charge more. If someone is selling a property in a neighborhood they know many people visit, they are able to charge more for their property, knowing the area is high in demand. This means that people who are looking to invest in a property they can rent out on AirBnB are seeing a surge in price. However, the costs can often be recouped because they can also charge a high price to stay in their property once they own it.
Property Management Companies Are Adapting
Most property management companies are used to managing long-term rental properties. However, it’s become the case that many people want to do short-term rentals with their property through AirBnB and have third party property management companies manage the property for them. This is forcing these types of companies to adapt the services they provide and re-imagine how they do business.
Laws Are Being Disrupted
Not every property is authorized to be a short-term rental property. Sometimes when people start renting out their properties through AirBnB it disrupts neighbors and the owners the building they live in. Some cities are adapting laws to keep up.