How Airbnb is changing the world and how much is now housing in America

Millions of people around the world use the Airbnb short-term rental service. This can both positively and negatively affect the cities where housing is rented. In some countries, the government is trying to intervene in the relationship between service and homeowners. And that's what comes out of it.

Фото: Depositphotos

In August, Airbnb turned 10 years old, at which time the company's capitalization amounted to $30 billion.

Local authorities are constantly trying to restrict the service - from Tokyo to Berlin and San Francisco.

Restrictions usually concern:

• the number of nights per year for which housing can be rented;
• rental houses in full;
• licenses for delivery;
• taxation;
• how the rules of service should be followed.

And although Airbnb opens up new places for more tourists, sometimes locals are not happy with it. In addition, many fear that property owners will mostly switch from long-term to short-term rentals, which is much more profitable.

It is in New York is preparing bill, according to which the owners will be required to provide information about themselves. According to city officials, this will help fight illegal housing, and will also prevent the increase in long-term rental prices for residents of the city.

Restrictions on short-term rent in the world

• Amsterdam: renting a whole house is limited to 60 days per year to be divided;
• Barcelona: licenses are issued for short-term rentals, new ones are not issued now;
• Berlin: property owners must obtain permission to rent out half or more of their basic housing;
• London: the whole house can be fully rented for a short time only 90 days per year;
• Palm: the mayor of the city announced a ban on short-term rental apartments;
• New York: illegally renting apartments on 30 for consecutive days if the landlord is not in the house;
• Paris: you can rent housing in the short-term rental 120 days per year;
• San Francisco: owners must receive a business registration and a certificate of short-term rental, you can take on 90 days per year;
• Singapore: the minimum rental period is limited to six months;
• Tokyo: renting private housing for rent is limited to 180 days in a year and became possible only in 2017.

Sources of: Airbnb, Amsterdam City Council, Balearic Authorities, Reuters, New York Times.

Affordable housing and a sense of community

Although the overall percentage of Airbnb rental housing in a city is probably small, it can increase and become more significant in certain areas, for example, in the historic center of Barcelona.

A 2015 study concluded that 9,6% of housing in the city is rented out on Airbnb, compared to 16,8% in the Gothic Quarter.

Barcelona has stopped issuing new licenses for short-term rentals, without which it becomes illegal. The city council says illegal housing "creates speculation and an illicit economy, bringing nothing positive to local residents and causing only nuisance and complaints."

Studies in Boston, Los Angeles and across America have found a link between the concentration of Airbnb rental housing and long-term rental prices.

In Los Angeles, for example, nearly half of Airbnb listings in 2014 were concentrated in seven neighborhoods, and rental prices there were rising a third faster than the city average. A broader US study found that a 10% rise in prices on Airbnb led to a 0,42% increase in rental prices and a 0,76% increase in home prices.

Of course, many factors affect the housing market. And the author of a study on Los Angeles suggests that the growth of Airbnb may be the result of deeper housing problems.

It is noted that the company’s profits from illegal rentals could lead to “higher prices, decreased supply in the market and worsened segregation.”

In addition to access issues, some worry that the rapid proliferation of short-term offers may affect the atmosphere of the districts.

Edinburgh's heritage authority is concerned that the "character of the Old Town is particularly altered" by short-term rentals, although it acknowledges that it boosts tourism and helps business.

Фото: Depositphotos

Another study was based on surveys of residents of the Hawaiian island of Oahu about attitudes towards short-term rentals. They noted both positive and negative effects - the latter were much more numerous.

Their biggest concern was a disruption to their sense of community, cited more than twice as often as housing affordability and value issues.

"It changes the feel of the area, like there's a revolving door of strangers," one resident said.

Many are also concerned about the problem of “overtourism”. Barcelona and Venice, for example, attract more than 30 million visitors each year, prompting ongoing debate about the impact of the influx of tourists.

Many locals also complain about the behavior of short-term tenants, who organize noisy parties and clutter up parking.

Airbnb and other services for short-term rental housing can offer a positive experience to both guests and hosts.

Guests are hoping to save on hotel costs while still getting more authentic accommodations in less touristy areas. My research found that about 90% of Airbnb guests say they were “satisfied” or “very satisfied” with their stay.

The owners get the opportunity to meet people from all over the world, also earning money.

In a broader sense, Airbnb helps to accommodate more tourists and attract new customers and businesses in mostly residential areas.

Airbnb was the official partner of the Fringe festival in Edinburgh this year and claims to help the local economy. Photo: Depositphotos

The company itself believes that it helps to diversify tourism, as it promotes the places that need the most visitors, reducing overcrowding in tourist areas.

Airbnb claims that the money earned on the delivery of housing turn into social and economic benefits for families, local communities and authorities.

“With the travel and tourism industry growing faster than most of the economy, it is critical that residents and communities benefit from people traveling to their city,” says a company spokesperson.

He adds that the company is working with authorities around the world on transparent rules to ensure that hosts and guests can be confident in and trust the platform.

The rapid growth of short-term rental companies, as well as the development of drones and self-driving cars, is a rather unexpected phenomenon that is forcing authorities to consider regulating them.

Airbnb promises to host a billion visitors each year for the 2028 year. The level of the company's ambitions means that disputes over regulation in the near future will only get hot, and many will begin to try to control its influence.

Further we may see more stringent restrictions - this happened in Japan, as well as in Barcelona and Palma.

Even those jurisdictions that choose conciliatory approaches may prohibit exposing certain homes or requiring them to share rental data.

It can put a stick in the company's growth plans, but it can also help formalize and legitimize Airbnb’s presence as a regular player in various areas around the world.

What is happening in Russia and in the post-Soviet space?

In Russia, local authorities do not regulate the delivery of housing through Airbnb. Moreover, the service is becoming increasingly popular among landlords.

There are no restrictions on the days of delivery; the owner of the property can choose how to pay taxes: either 13% as an individual, or 6% as an individual entrepreneur. At the same time, it is unclear how to control the payment of this tax - the owners themselves take responsibility for this.

Airbnb was particularly popular during the 2018 World Cup, when housing was rented in large quantities and often at inflated prices.

According to the company, since 14 of June more than 277 thousand guests rented accommodation in Russian cities through Airbnb, which is four times the figure for the same period last year.

The hosts in Moscow received the most guests - more than 97 thousand; in second place was St. Petersburg, which received 82 thousand tourists. As noted by Airbnb, 58% of hosts rented out housing through this service for the first time.

In Kazakhstan there is a tax system for short-term rentals similar to the Russian one. The easiest way is to rent out an apartment as an individual and pay a 10% tax on income.

In Belarus, this year, simplified conditions for the delivery of housing for rent. Now the landlord does not need to register as an individual entrepreneur. He only has to pay a flat tax on short-term rent; in each region it is different. In Minsk, for example, it amounts to 62 Belarusian rubles per month (about 30 dollars) per room.

In Georgia, the owner, who rents out housing, must pay the state 5% of the rent. If he receives income over 40 thousand lari (about 16 thousand dollars) during the year, he also pays income tax in the amount of 0,2-0,8% of the amount of income.

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