Wed, Sep 21, 2022 1:08 PM
By SAM KEMMIS of NerdWallet, AP
Disgruntled Airbnb guests are taking to Twitter and TikTok to vent about everything from cleaning fees to misleading listings. But they aren’t the only ones with complaints: Airbnb hosts themselves have become increasingly disillusioned with the platform and its disrespectful guests.
On message boards and Facebook groups, hosts are sharing their own challenges and horror stories. One host claimed that a group of guests was unwilling to leave the property despite receiving a full refund from Airbnb.
“I went to the apartment to check what was going on, and I was in shock to discover that the tenants were still in the apartment,” the host wrote on the website AirbnbHell. “They immediately called the police on me and I was kicked out of my own apartment by a team of the police — a complete shock.”
While these anecdotes might seem like the natural byproduct of the largely unregulated short-term rental industry, they speak to larger trends impacting hosts. A 2021 report from Bloomberg detailed how Airbnb’s secretive crisis team spends millions of dollars to limit the publicity of crimes and other incidents at its listings potentially damaging to the company’s reputation. And the platform recently launched “anti-party technology ” in an effort to defray hosts’ frustrations with large, destructive gatherings.
These issues raise the question: Is Airbnb itself the problem — or are the guests?
SILLY STRING AND FOUL ODORS
In May of this year, Airbnb launched a new “AirCover” protection plan for guests and hosts . It promises quick reimbursement for hosts and up to $1 million in damage protection. And while many hosts consider this policy generous, it still comes with plenty of gray areas.
Emily Muskin Rathner, a digital marketing professional living in Cleveland, began renting her house on Airbnb in August 2021. She says that hosting has been a pleasant and profitable enterprise overall, but a few guests have caused major problems, including a family that rented the house this June.
“They left the house a mess,” she says. “There was human feces on our laundry. They sprayed Silly String all over the place. I don’t care about Silly String, but can you pick it up? It left stains, oddly.”
Muskin Rathner received reimbursement from Airbnb for most of her claims. But some damage, such as nail polish smeared on the bathroom tile, didn’t qualify for reimbursement because she wasn’t able to provide documentation for the cost of the tile. And then there was the smell.
“It really, really stunk. The air conditioning had been left off for a week — in June.”
RED TAPE EVERYWHERE
The early days of short-term vacation rentals offered hosts a simple proposition: Rent your home and earn some extra money. Yet as the industry has matured, it’s been met with regulation efforts from local governments.
Cities such as Denver and Portland, Oregon, have been cracking down on unlicensed short-term rentals, levying fines against hosts and requiring expensive permits. These policies allow local governments to collect taxes and regulate problematic behavior, but they add one more layer of complexity for hosts, many of whom have little experience in hospitality.
Furthermore, many local governments place the burden of tax collection on hosts, not Airbnb. A 2022 analysis by the National League of Cities, an advocacy organization composed of city, town and village leaders, estimated that 82% of cities require hosts to remit taxes themselves, while only 5% require the platform to do so on hosts’ behalf.
Hosts must now not only act as full-time customer service agents and hospitality experts, but also navigate local regulations and master convoluted taxation laws.
COMPETITION FROM MANAGEMENT COMPANIES
The romantic notion of home sharing as a means for homeowners to pay their mortgages has given way to management companies inserting themselves and aiming to maximize profits. And small-time hosts can’t keep up with these corporate competitors.
A study of short-term rentals in the U.K. found that the number of listings managed by hosts with a single property dropped from 69% in 2015 to 39% in 2019. And data from the nonprofit Inside Airbnb suggests that only 39.1% of properties in Los Angeles are managed by single-property hosts.
These mega-hosts are able to operate at scale, maximizing efficiency on everything from pricing adjustments to cleaning staff. Single-property hosts can’t keep up, or are unwilling to deal with the hassle, and are being elbowed out of the ecosystem.
This article was provided to The Associated Press by the personal finance website NerdWallet. Sam Kemmis is a writer at NerdWallet. Email: [email protected]
NerdWallet: Unpopular opinion: Airbnb has become terrible https://bit.ly/nerdwallet-airbnb-terrible