Airbnb is teaming up with mom-and-pop investors to win the war — but is it too late?

when new york city Short-term rentals prohibited (less than 30 days) or less Local Law 18 In September 2023, 15,000 landlords suddenly found themselves without income, many Trying to pay off the mortgage. Those who continue to operate under the radar are was fined heavilyand hotels lack competition, Charge Record Rate. Meanwhile, unregulated underground venues try to fill the void, often deceive visitors.

Guess so Cities around the world have lost $2.4 billion tourism taxAmong them, the United States alone contributed US$2.2 billion. New York City Already set $1.1 billion in tax revenue is lost because tourists don’t go to New York. this This gives short-term rental sites an opportunity to fight back.

Other short-term rental sites such as Airbnb and VRBO have decided to take to the streets without resorting to legal action, which has resulted in Facts have proven to be basically unsuccessful, but there are also lobbyists and activist landlord groups such as Rent Responsible, a national network of short-term rental landlord groups funded by VRBO owner Expedia. A grassroots landlord coalition has emerged as a powerful force for mom-and-pop owners against state lawmakers and the hotel industry.

Vermont and Colorado deliver big wins for STR landlords

These activists were so successful that A Vermont bill proposes establishing a short-term rental registry veto. Across the country, defiant landlords protested at state capitols and packed community meetings.

“Professionalization of host advocacy efforts is real leading to a change in trends a lot of Noah Stewart, head of U.S. communications for Expedia Group, told the media wall street journal.

The Colorado Lodging and Resort Alliance (Clara) originally launched in 2019 as a community information sharing resource for small landlords. Later also joined and this Vacation Rental Management Association and hired a lobbyist to help defeat proposed short-term rental regulations. The group cites economic impact studies hold a meeting Lawmakers have advanced a new bill through the Colorado Senate that would quadruple property taxes on short-term rentals. The bill died in committee.

The battle lines have been drawn

For small landlords who rely on real estate, the pushback could not come at a worse time. short term rental Generate additional income.

On one side, a powerful coalition of hotel companies, unions and community groups worries that rising rents are leading to a shortage of rental housing and neighborhoods turning into makeshift zones filled with party houses. On the other side are small mom-and-pop landlords who believe the short-term rental industry can boost tourism, create jobs and generate tax revenue while allowing homeowners to pay their bills.

More hosts means more features

As evidenced by the slew of cities preparing to close their doors to short-term rentals, the fight has so far most It’s already one-sided. However, despite the ban, the number of consoles in the United States continues to increase.

According to vacation rental data and analytics website Air DNAIn 2023, the STR market revenue reached $64 billion, with more than 2.4 million listings and 785,000 individual hosts. Loss of such a huge source of income cannot yes lost For city accountants, there’s an urgent need to fill revenue gaps amid the loss of office workers and vacant commercial space downtown.

Airbnb’s charm offensive

In an effort to counter claims that an increase in short-term rentals is depriving cities of rental accommodation, Airbnb recently announced It promotes long-term tenants sharing their space to earn extra income to meet rising rent costs.

The company states on its website:

“Move forwardAirbnb will work with cities and states to advocate for short-term rental rules that allow renters to share homes. Some Cities including Raleigh, North Carolina, San Diego, California, and Tulsa, Oklahoma, have taken a leadership role on this issue by passing tenant-friendly short-term rental policies.

Earlier this week, Virginia’s governor signed into law A bipartisan, statewide bill to require all localities to issue short-term rental licenses to property owners must issue the same allow Open to tenants with permission of owner.

It should be noted that tenants must also Some When they host guests, they generate extra income for the landlord.

The Achilles Heel of Short-Term Rentals

While most short-term rental business transactions go without incident, when something goes wrong crime problemwhich grabbed headlines and prompted cities to legislate against it.

For example, in 2022, a fire and shooting at an Airbnb in a fledgling Pittsburgh neighborhood left two people dead and the city Act quickly to enact legislation Limit the development of Airbnb in cities. Legislation has not yet been introduced passed. In June 2022, Airbnb announced Permanent ban on gatherings Among its properties around the world, Use artificial intelligence (AI) Help it do so.

Short-term rental sites are leveraging the power of people, not companies

“If Airbnb walked through the door, no one would support them,” said Julie Marks, a short-term rental activist in Vermont. wall street journal. “But if Julie Marks and her three friends, also from Vermont, walked in the door, they would listen.”

The boarding giants achieved their goals by staying behind the scenes and funding short-term landlord advocacy groups to further their cause.

“they said truly because they are not employed “They’re a consultant, not a PR firm,” said Jay Carney, Airbnb’s head of global policy and communications.

final thoughts

There are dozens short term rental advocacy group Located across the United States, providing valuable reports and resources to landlords. Although these groups receive significant funding, most Including mom-and-pop businesses that use short-term rental income to help pay bills.

However, they have the advantage of getting STR tech housing giants to fund their agenda. That support doesn’t make their argument — to allow unrestricted rental of a room or second home — any less credible.

Many cities fail to take into account in their sweeping legislation that not all Airbnb hosts are same. Of course, there are some large corporations that own large apartment complexes and rent them out Completely at the expense of the city’s long-term tenants. However, many landlords desperately need the money they can make out of their rental unit, spare bedroom, or basement and provide quality service to visitors at a reasonable price. Ready It costs money to visit these cities.

Therefore, a distinction should be made be made This allows mom-and-pop landlords to maintain financial solvency while in the same way limiting landlords to a certain number of units. That tax credit given Developers who agree to use some of their units for affordable housing. Why does it have to be one or the other? it seems hard Believe that compromise is impossible achieve This not only satisfies the city’s agenda, but also that of property owners struggling to make ends meet.

I own an Airbnb property and can appreciate how painful it can often be to rent to full-time tenants, especially in cities where evictions take a long time and “professional” tenants can wreak havoc on a landlord’s bottom line. Small landowners should not be forced into a corner and gasping for survival. A city should care about all property owners, no matter how big or small.

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Notes on BiggerPockets: These are the opinions written by the author and do not necessarily represent the views of BiggerPockets.