Personally, I think this is cool and props to the author for pulling it off. However, the thing that strikes the more scrutinous side of me about all this - the elephant in the room, if you will - is that what the author is doing almost certainly conflicts with her rental agreement and were she to be brought to court over it, it would probably be a clear case in the favor of the lessor and she might even have to pay back what she had earned. I feel like this is sort of the dream airbnb sells and here's a model case of someone achieving that dream but at the end of the day it's only possible because she's breaking a legal agreement; this probably wouldn't work if she were responsible for the higher cost of the mortgage and maintenance that comes with owning the property.
In this case, the fan falls from the ceiling and she likely just calls her landlord to fix it. So the landlord assumes the cost to fix it and she continues to profit by subletting the apartment for significantly more than she's paying.
Airbnb is basically facilitating a situation where the tenant gets to double dip. They profit off of an asset they don't own and don't assume much liability for and the owner is ultimately the loser. I wonder how this will all play out for airbnb on a larger scale over time.
You're right, and on top of that, her behavior artificially inflates rental prices (by shifting some of her rental costs to tourists).
In practice, illegal Airbnb's seem somewhat rare, especially compared to the millions of Ikea-furnished semi-professional rat holes that have taken over the platform.
There are tools that landlords can pay for that detect illegal sublets based on location and supposedly photos too.
Prices going up would be neither natural nor artificial. Some people would gain (the people renting and tourists) and others would lose (long term renters).
I think it's enough to say that it shouldn't happen without the landlord's consent.
> Prices going up would be neither natural nor artificial.
By artificial, I meant that the rental market would be distorted by Airbnb hosts.
Good example: a friend of mine had parents who loaned him money to qualify for a lease. He couldn't afford the lease, so he used Airbnb to make up the difference.
This meant that non-Airbnb hosts were now competing with Airbnb hosts for the same leases, which is what I was labeling "unnatural".
In fact, anything anyone does to earn extra income to afford a better home distorts housing prices. It'd have the same effect if they made the same money running a software consulting business in their extra bedroom.
Housing prices in desirable downtowns are mostly distortion these days. It's been a long time since they corresponded to the cost of construction.
In fact, many residential leases prohibit running a business out of the premises [0]. But these clauses are rarely enforced unless you're causing complaints.
AirBnB is a new source of income for some, but its effect on market prices is the same as any other way of getting a higher income, like getting a higher salary. So I don't see this as market distortion either. It's just a more competitive market.
But it's still bad for other renters competing for spots, and there are all the other reasons neighbors don't like AirBnB.
It’s more likely that it only works because the author is reaping the benefits of rent control. The landlord is forced to rent to her at sub-market rates, meanwhile she sublets at market rates capitalizing on the difference.
The way this will play out in the longer run is that the leasing company will want their share of the double dip and write and agreement with Airbnb directly
Am I the only one who thinks all the effort just isn't worth it?
She said she made "tens of thousands of dollars" over 5 years, so like $10k a year probably?
Is $10k worth all the strangers rooting around your apartment, sleeping on trains, sleeping in hostels, dodging your landlord, etc, etc.
Couldn't all that time and mental effort be used to earn money in more lucrative ways than shitty real estate arbitrage? I get that Airbnb makes sense on occasion, but the level this person took it to is just stupid. All this article shows is that the writer is a fucking moron.
No, not stupid at all. The author was pursuing her dream of being an author. Without AirBnB this would not have been possible. 12-16k would definitely support an international life style in much cheaper countries.
Not everyone can be a millionaire software engineer in Silicon Valley coming up with apps to pitch to venture capitalists.
I'm going to assume you are the author of this piece since you have a brand new account and this is the only thing you have ever commented on.
First of all, you need to understand that no one is entitled to enjoy an "international life style." Secondly, it is not ok to engage in ILLEGAL activity that violates local laws, lease agreements, and residency agreements in order to fund such lifestyles. Not to mention the undue stress and risks placed on your neighbors, your community, and your landlords property for your own personal enrichment.
Thirdly, there are plenty of ways to earn an extra $10k a year that doesn't involve an illegal hustle or sleeping on a subway car to save money. If you add up all the time and energy spent managing an Airbnb and as someone who has done it legally, I know there are a lot of little things that take your time, that if taken into account, dramatically reduce the profitability of short term rentals.
My point is that the author (you) never does an analysis of all the time and energy spent (not to mention risks taken) to realize that the hustle really isn't that good of a hustle. And that same energy could have been spent building more lucrative skills. But that takes time and investment and does NOT have an immediate payoff. It's clear that all the author (you) wanted was an immediate payout, instant gratification, and wasn't willing to invest the time and effort into themselves for much greater rewards.
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[ 3.0 ms ] story [ 51.4 ms ] threadIn practice, illegal Airbnb's seem somewhat rare, especially compared to the millions of Ikea-furnished semi-professional rat holes that have taken over the platform.
There are tools that landlords can pay for that detect illegal sublets based on location and supposedly photos too.
I think it's enough to say that it shouldn't happen without the landlord's consent.
By artificial, I meant that the rental market would be distorted by Airbnb hosts.
Good example: a friend of mine had parents who loaned him money to qualify for a lease. He couldn't afford the lease, so he used Airbnb to make up the difference.
This meant that non-Airbnb hosts were now competing with Airbnb hosts for the same leases, which is what I was labeling "unnatural".
Housing prices in desirable downtowns are mostly distortion these days. It's been a long time since they corresponded to the cost of construction.
Not everyone can or will take that risk.
[0] See clause 7 at https://cozy.co/blog/8-important-lease-clauses-for-landlords... for typical terms
I also had a friend who was evicted for leasing a rental.
Running a business out of the premises is rarely enforced, but it also rarely creates risk or loss for the landlord the way Airbnb does.
But it's still bad for other renters competing for spots, and there are all the other reasons neighbors don't like AirBnB.
Yeah like this.
https://en.wikipedia.org/wiki/Orinda_shooting
Truly a corruption of the law.
She said she made "tens of thousands of dollars" over 5 years, so like $10k a year probably?
Is $10k worth all the strangers rooting around your apartment, sleeping on trains, sleeping in hostels, dodging your landlord, etc, etc.
Couldn't all that time and mental effort be used to earn money in more lucrative ways than shitty real estate arbitrage? I get that Airbnb makes sense on occasion, but the level this person took it to is just stupid. All this article shows is that the writer is a fucking moron.
Not everyone can be a millionaire software engineer in Silicon Valley coming up with apps to pitch to venture capitalists.
First of all, you need to understand that no one is entitled to enjoy an "international life style." Secondly, it is not ok to engage in ILLEGAL activity that violates local laws, lease agreements, and residency agreements in order to fund such lifestyles. Not to mention the undue stress and risks placed on your neighbors, your community, and your landlords property for your own personal enrichment.
Thirdly, there are plenty of ways to earn an extra $10k a year that doesn't involve an illegal hustle or sleeping on a subway car to save money. If you add up all the time and energy spent managing an Airbnb and as someone who has done it legally, I know there are a lot of little things that take your time, that if taken into account, dramatically reduce the profitability of short term rentals.
My point is that the author (you) never does an analysis of all the time and energy spent (not to mention risks taken) to realize that the hustle really isn't that good of a hustle. And that same energy could have been spent building more lucrative skills. But that takes time and investment and does NOT have an immediate payoff. It's clear that all the author (you) wanted was an immediate payout, instant gratification, and wasn't willing to invest the time and effort into themselves for much greater rewards.