My City Looks Like Its Being Taken Over by Corporate BNBS

[Robin925]

Something interesting has happened since the New Year, with the Pandemic turning to Endemic, with Airbnb's IPO; going public, the climate of Hosting has changed. I see fewer of the home owner, Residential type hosts, fewer of the cute, quirky, individual type listings in my area. Some of them are still there, but there are a lot of new listings that seem to be getting visibility in the searches, (interestingly a lot of new listings and some of the hosts not even Superhosts). These listings look like they have all hired the same decorator and photographer. Yet, they are hosted by different people (some with professional branding) and the hosts names are different. Most have only a couple of listings to their profile, but the design of the spaces is so similar, and(without much imagination). I question if there is either a trend to decorate listings in a certain style, or if there are many small professionally managed listings going up or if there is a big corporate change in the scene here with a push to take the market in my City.  Has anyone else noticed the change in the landscape of competition? This is just a new thing since after the pandemic. I honestly can't say that the old listings that were once getting visibility aren't up, they may still be there, but there is definitely something happening with how searches are featuring these corporate looking spaces. 

[Normen0]

Waterfront properties here have been snatched up by out of town investors and residents have been complaining about clueless guests and guests complaining about the reaction by neighbours.
Our city is preparing to make by-laws regarding STRs presumably they want their 4% accommodation tax but also to regulate STRs being run properly.  Will that curb out of town operations? Remains to be seen. 
What I do know is that the pandemic has had a huge impact on real estate in smaller cities. Big investors snapping up properties sight unseen and jacking rents for long term and STR rentals.  So yes likely there is no coincidence that these new places all look the same.  Hoping things level out and we small operators are left standing.  

[Robin925]

@Normen0 If I were new to hosting I think the current environment would feel intimidating. When I started my Bnb it was so simple a place, and I had so many wonderful guests who came from all over. It was a joy to host them. Now with Covid, I've remade it so the listings all have private entrances.

Wow on seeing the waterfront properties bought up in your City. It must feel a little strange. I don't think the 4% tax would deter the corporations, they have money to do this. I was not aware that big investors were snapping up properties...

 I see not a lot of cookie cutter looking design in the homes that are for rent on the platform currently, and they are priced at very competitive rates (they have all the amenities for about the same price an average hosts place would rent for) but there are even some apartments that are being rented as STRs. I did not see much of that prior to the Pandemic. Yes, the guests are different now too. They are more expecting of hotel like or perfect accommodations than a casual simple place.  I also realize these big companies have the ability to work the algorithms and hope some of the little guys are doing okay... Does anyone know what Cheskey's vision for the future is? Will hosting be taken over by big corporations, or does he plan to incentivize so that the little one-off and two-off hosts can compete? I think the wonderful thing about Airbnb was when the company was started (and for years it seems) the customers came for safety of a homeowner around, the hospitality & the hosting, which included a personal touch and caring. I don't think that is possible in large scale corporate renting. While some of the newer guests may not realize this (after the pandemic reset) the model of mutual  respect for host and traveler is what gave Airbnb a special place in a market. I  think the original hosting model requires something special and intangible to work. I'm wondering what the future holds...

[Normen0]

The City, following the lead of other cottage country cities and town near us, are considering other measures such as licensing, fire and health inspections and  having to be the primary residence for owner or at least a resident of the City. All remains to be seen.  I don’t worry too much about the Corporations personally. No one near us and they attract a certain set. We have a great reputation and our own certain set of guests. We respect our neighbours, live on site and don’t allow rambunctious behaviour. That’s put out there to potential guests when they book, when they arrive and it’s in the rules. And we turn people down if there is any inkling of trouble.  
What is bothersome is the places being snapped up next to other residents and changing the quiet serenity for those neighbours.

For a couple of years I’ve been feeling the AIRBNB bubble is going to pop. As you say, it’s gotten away from it’s roots. Too big and basically become hotels or resorts now and the residents don’t like it.  Pretty sure we will still be standing at the end of it. 

[Ryan2352]

I can't speak for your area, but I get regular mailings from companies (even one sponsored by the City of Los Angeles) that will help you buy an investment property, stage and market it, specifically for Air B&B.  I also regularly get calls on my long-term rentals by people wanting to either host it or do arbitrage (I shut them down before they get more than a sentence out, so I don't know their exact end-game).

I imagine that these companies would be as you describe, all the same decoration style and the same photographer.

[Robin925]

@Ryan2352 Very interesting. Companies that are in the business to help people start their own Airbnb business. I've heard of this kind of thing. I've also heard of big corporations that buy small guy Bnb's and might include in the contract that they would manage the property for a while. I would imagine they have decorators and photographers and that the look that sells is pretty well figured out by now. Just a thought though, my first Airbnb was a mattress on the floor and I got rave reviews for this room. It was quiet and so basic, and the price was right and I just had the most awesome people come through.

I can't wait to seeif someone would do a corporate model of Bnb's that feature all mattress on the floor (Cheskey style)....I'm making a joke but not entirely. Wasn't there a news article that featured an Airbnb with a mattress in the middle of a field. Ha Ha That would be great to flood the market with listings that have mattresses on the ground or on the floor in really cool places. I'm thinking a blow up raft style float on the beach, a camp roll mattress hanging from the side of a mountain, a cushion on a boat. My imagination is getting away with me and I'm now getting a laugh out of this...

[Pat271]

In the area in which I own a condo on Maui, hotels are also getting into the STR and Airbnb game. They are becoming property managers for individually-owned units. This is happening on a large scale in my complex. Here is an example:

https://www.destinationhotels.com/destination-residences-wailea/condos/condo-search?resultFilterValu...

Notice at the top it says “Destination by Hyatt”.

[Robin925]

@Pat271 Thank you for sharing that link. I like to see what could be up the road, in the way of competition. 

@Ryan2352 @Normen0 @Pat271 I'm still inspired by Cheskey's first BnB with air mattresses on the floor...

[Helen744]

Helen@744Its a thing it is happening just exactly as you say . There is also a big push for new home buyers from the bigger city to buy properties and set up as Airbnb with a 'boutique ' group of two or three houses and a hotel/motel look. Their prices are very high and even tho they have gone to a lot of expense they seem not to be offering more than a hotel type room.As we have all seen it is not a 'liscence to print money". If you are not on your toes to impress your guests personally then you will lose eventually because here there are not enough travellers. The reality of Aibnb and the incredible amount of dedication required cannot be outsourced sucessfully without losing the magic. Many hosts around me have gone already. H.

[Robin925]

@Helen744 Hi Helen, I'm hearing you exactly. It really is a kind of magic that is so amazing about the original business model.  This is what I am seeing, the 'boutique' business model (although some of them may be corporate owned) and I'm concerned that some of the cool quirky style places may not be as visible! Don't the big companies use hosting apps that ramp up visibility in searches? About a year or two ago there were these rather simple looking places that always came up in the search for stays in my City, but now the places are so well decorated and outfitted and they have all the amenities. Some of them feature branding like "A such-and such property" And Logos too!  I know it was not the greatest year for hosting, so what's happened to the little guys? I sure hope they will hang in there...

On another note does anyone know if there are host circles that meet in various cities and how to find out if one is in my city? 

[Helen427]

Hello @Robin925 
It sounds like it's the same Homestaging company in on the take.

Grab a local Real Estate Guide and see if you can spot the same furniture in Homes for sale and it's a dead give away who has had their homes decorated like that.

Personally I find home staged homes boring and bland.

Give me a taste of how a home is really lived in  any day, a lived in look which is what a Home is, not a clinical sterile look of a bland motel room.

[Helen744]

Helen @744 Hello @Robin925 Yes Both of your thoughts helped me clarify to myself what we are all trying to offer. Its that feeling for travellers of belonging in the neighbourhood Everyone seems to be saying the same thing. We want our guests to step into our world but increasingly they are finding it more difficult to rise above the accomodation itself and to realise what the neighbourhood has to offer. Probably because they have been shut inside too long.I think outside areas and big windows and large rooms will become more important along with safety ,good fences private parking  and good company and indoor old fashioned activities. Thank you to everyone for making this very clear H.

[Helen744]

hotels /motels havent got a chance nor have these boutique arrangements. Promote the 'immerse yourself in my  neighbourhood ' experience