During the Great Lockdown, attractions across Los Angeles ended up shutting down due to the global COVID-19 pandemic. These include attractions from the Universal CityWalk to Rodeo Drive. As a result, visitation numbers took a dive. Now that car and air travel are quickly picking back up with the ending of quarantines for many, let’s take a look at the pros and cons of the Airbnb model for those interested in owning Airbnb properties and renting them out in the months ahead, according to travel expert Brian Ferdinand in a recently published article.
What You Should Know About The Airbnb Model
As a general rule of thumb, Airbnb is viewed as the Uber of lodging and travel. It has disrupted hotels and impacted how we discuss lodging and travel. After all, prior to Airbnb, renting anything for more than 30 days was viewed as a rental scheme. However, Airbnb enabled guests to easily rent out whole homes or rooms in both rural and urban areas for various time periods. Still, these days, the model that Airbnb uses remains controversial for landlords.
The Challenges With Airbnb
According to Brian Ferdinand, Airbnb’s policies pertaining to renting homes and apartments recently faced scrutiny because the company allowed people to rent out properties without completing background checks. As a result, house parties became common in these properties. In light of this, company in July 2020 introduced rental restrictions for people below age 25.
In addition, Los Angeles has made more of an effort to cite short-term rental properties that are not compliant with the city’s established rules. It has also added brand-new regulations aimed at curtailing negative outcomes related to Airbnb. Still, these steps don’t remedy the flaws that continue to characterize Airbnb’s processes, according to Ferdinand. As an example, the company still hasn’t take steps to check the backgrounds of renters. As a result, property owners are vulnerable to costly and negligent behaviors in the homes they are renting.
Considering the above, if you’re interested in being a landlord, becoming a corporate housing landlord may be a better choice. Corporate housing providers can easily use background checks to avoid renters who may be problematic. And you have the liberty to incorporate the prices of background checks into your tenants’ rental fees. In this way, you protect your bottom line while also protecting your property from preventable nightmarish scenarios when dealing with travelers long term.