Love or Hate it Air BNB – What’s Its Future in COVID’s New Normal?
A trend I saw in the U.S., Peru and Brazil was for developers to market small micro-units in buildings located in dense urban areas to buyers with goals to become urban property owners, have hands-free management (pay the developer to manage the rental after purchase) and rely on the income to pay the mortgage. Today, this income is cut short by national and state wide bans on short term rentals and travel.
To its Lovers, AirBnB offers secondary income, a financial life line, a way to use a home to generate income.
To its Haters, AirBnB transforms residential neighborhoods to touristy, challenges apartment owners’ tenant selection (if the tenant rents its apartment on AirBnB) and undercuts rental and hotel rates by side-stepping costs and responsibilities of property ownership multifamily apartment and hotel owners have. Costs including property tax, bed night and lodging taxes, compliance with maintenance, health/safety codes and landlord tenant law. Scroll down to read Suzanne’s Comments in Millionacres!