Awwww, boo hoo that you can't make the rent on the 18 apts you leased in atlanta specifically to short term rent on airbnb! So sorry that your 1.5 million dollar gross isn't gonna happen this year. These people have been gaming the system and were bound to fail.
That sum would provide little relief to hosts such as Jennifer and David Landrum of Atlanta. In 2016, they started a company named Local, spending more than $14,000 to outfit apartments with rugs, throw pillows, art and chandeliers. They grossed about $1.5 million annually, mostly through Airbnb, Ms. Landrum said, renting the 18 apartments they leased and 21 apartments they managed to corporate travelers and film-industry workers.
They spend about $50,000 annually with cleaning services, about $25,000 on an inspector and $30,000 a year on maintenance staff and landscapers, Ms. Landrum said, not to mention spending on furnishings.
When Airbnb began refunding guests March 14, the Landrums had nearly $40,000 in cancellations, she said. The couple has been able to pay only a portion of April rent on the 18 apartments they lease and can’t fulfill their obligations to pay three months’ rent unless bookings resume. They have reduced pay to cleaning staff and others. Adding to the stress, Georgia banned short-term rentals through April.
“It’s scary,” said Ms. Landrum, who said she has discounted some units three times since mid-March. The Landrums have negotiated to get some leniency from apartment owners on their leases. If not, Ms. Landrum said, they would have to sell their house.
Them failing, will have a ripple effect on those of us who have been doing airbnb right with 1 or 2 listings. We are about to be busier and raise our rates.
I personally am seeing my bookings pick back up NOW. It's great! I have an $1100 6 day booking next week!
#cullingtheherd
