Host Price Gouging and Discrimination

[Patrick613]

I recently, like three to four hours ago, found a listing: https://www.airbnb.com/rooms/20698858?wl_source=list&wl_id=292116149&role=wishlist_owner&adults=1&ch...

I inquired to the host, about doing a long term rental via message. To be precise, "I'd like to see about renting your place. Would you consider renting it out long term, such as 6 months or longer to one person?" At the time of the message and found listing. A month of renting came to less than 440$ for the term of March 10, 2018 to April 9, 2018. 

After a short time, I checked the message using refresh to see if I got a reply. I did not get a reply, but I did find that upon my inquiry and saving the host for a 1 month rent listing. She had changed the rent all the way up to 585$. 

While it's already highly common thing to deal with being turned away from renting an apartment due to being foreign, or being charged extra absurd fees. (Here in Japan at least). It's completely illegal. 

Overall, I see the person has a total of between 17 listings, to 30 total. If they are going to gouge and manipulate fees in such a way. They should be removed from the ability to host. And those 30 listed locations black listed to ensure they don't do these types of things through a reputable site such as AirBnb.

[Gordon0]

Airbnb isn't really the platform for 6+ month bookings. Many hosts would raise their prices to deter longer bookings. 

[Patrick613]

That's illogical. In any scenario - the length of the rental increases the profit maximized. Any days that the listing isn't rented drops profit. Even more so, it cost more to rent out for short amounts because you have to do maintenance, either your own personal time, or pay someone to clean the listing, between the varying guest. 

Please try to contribute stronger arguements if you are going to place negative input. On a neat note, you look like Louis C.K. 

[Gordon0]

@Patrick613 The Airbnb model allows you to maximise your profits due to shorter, more lucrative bookings. Also, many of us don't want a guest lingering too long, especially if you don't much care for them.

As for Louis C.K (who I had to Google), yes, we both have beards. 

[Patrick613]

By all means, show me the math. Account for additional time spent cleaning and reviewing the listing before each booking. There is zero factual data behind your claims. 

[Matthew285]

@Patrick613 hello!

Many hosts may not do any mathematical calculations at all when they set their price. As a lot of hosts are just homeowners who are renting out for the first time, many do not even know *how* to do what business majors can do easily.

Based on conversations here, a common way for hosts to set their price is: let me see how much I can charge and still get enough bookings to meet my goals.

If they don't get enough bookings, they lower their price. If they get a lot of bookings, they raise their price.

There isn't a lot of math involved.

[Patrick613]

That's really insightful. I don't know what it's like to host, and humans are prone to make mistakes. And with so many listings as they have in this case, it could be an simple error. 

I can understand a bit more about trying to play around with the prices and such to land the most out of the listing. As with most things, it's always hard pressed to find the ebb and flow of maximizing potential. 

[Helen3]

@Patrick613  Please try not to be so rude to those who respond, when you come on this forum looking for help.

If you aren't happy with the price charged you can look for other places on Airbnb within your budget.

It will most likely be cheaper for you just to get a short term lease through a local estate agent and you will have better legal rights too.

[Patrick613]

I wrote this nice long poignant reply. But, I got an error upon hitting submit. 

Summary of it. Don't be condescending. "I don't like my guest all the time", and "Look at other places in your budget". That's rude, making remarks about people whom can't defend themselves, or taking shots at peoples finances? Does that make you feel better?

[Inappropriate content hidden]

It's simple, I posted this for an AirBnB employee to see, and possibly investigate. Misunderstandings occur. Could be the case here.

[Inappropriate content hidden]

[Gordon0]

>>It's simple, I posted this for an AirBnB employee to see, and possibly investigate. Misunderstandings occur. Could be the case here.<<

Yes, you've misunderstood this forum and its purpose.

[Kristin910]

The guest pays the cleaning, not the host 

[Jessica-and-Henry0]

@Patrick613

Long-term hosting has a different set of risks that ABB is not properly equipped to support hosts on. So the pricing and many aspects of house rules are geared toward short-term lets. Even for long-term, I think on ABB long-term stays are usually somewere around 1~2 months or up to 4 months. I host a lot of long-term guests and the longest for me was 4 months - an exchange student for 1 semester. If I had an inquiry for a stay longer than 6 months from a guest who was NOT an exchange student in Seoul on a student visa, I'd have to add things to my house rules AND I'd probably ask the guest to sign a separate lease contract too.

About the pricing, maybe the host was not thinking 6 months in advance when setting their price and "updated" accordingly. Also, depending on type of guests that hosts "usually" get pricing could be different. Someone staying long-term will definitely spend more time at home, cook, do laundry which equals to a higher utility bill, and regardless of "length of stay" the cleaning fee is only charged once so there are many aspects that could make the host look at the monthly payout and decide they are not being paid enough for a long-term guest. 

From the guest's point of view, I can see how this seems unfair, but realistically, "month of renting came to less than 440$ for the term of March 10, 2018 to April 9, 2018" - I'd think something was really off with the pricing. Even 585$ still seems a bit low to me. How is 585$ a month for a studio apartment seen as "price gourging"? Just my 2 cents 🙂 

[Patrick613]

The price gouging is due to the way the situation was taken on. If you are upfront and say, as you have, a long term listing will incur additional cost of utilities you are not sure who to anticipate. OR, drawing up a contract regarding such added fees you don't expect, which utilities are a viable understanding raised cost. All of this is ok.

But when I request to rent the listing and no response is given at all. And a price raise is seen. It's seen as a deterent. It's already highly common and illegal, that non-japanese people are discriminated against in the housing area, within Japan.

$440~ to $585 is $145~ increase. If I'm also inquiring about leasing for a term of 6 months. That turns to nearly $900. The listing is also fairly above priced at $440. This listing is a studio listing. I cannot say I know the exact area of the listing, but using Craigslist as a source of units to review. Studios in the outer reaches are right under $400/mo. 

[Jessica-and-Henry0]

@Patrick613

A rental lease means the renter pays for all utilities and internet. Also prices differ depending on whether it is furnished or not. I'm sure most studio apartment rentals don't provide any towels, bedding, or amenities. I don't know what rental prices or real estate is like in Japan but just based on my limited knowledge of renting in Asia in general, considering all the things which would normally be inclusive in an ABB listing, 585$ a month for a studio (even if it's not a central location) with internet/wifi and utilities all inclusive still seems like a really good deal. 

FYI, in Korea for a NOT central location, a normal, clean, furnished studio rental would require a min. 10,000$ deposit and 450$ rent per month - utilities and internet not included (utilities & internet would cost at least 120$ a month.) For a central location in Seoul it's more like a 20,000$ deposit and 1,000$ rent per month. Also, even these furnished places would not provide any bedding, towels or amenities (plates/cups/utensils/pots/pans/shampoo, soap etc.) I don't know how Japan and Korea differ but I would assume it isn't all that different. 

I was told that places that cater to foreigners (in Korea) tend to have higher rents because they are asked to provide more amenities, ovens (which are not common in Asia), and often need to find someone who speaks English to help with communication about resident rules, trash disposal, and when there's an issue. 

[Reiner15]

I also had a similar situation. I booked an apartment in London and paid the requested amount. A few hours later I got a message from the host telling me to cancel because it was already booked for the same period to someone else. I asked for more explanation and didn't receive any. I cancelled it through Airbnb and will be refunded in 10 days but the exchange rate loss will stick with me. Today, to my surprise I went looking for another option and the same apartment is free for the period that I had booked but with an increase in price. In my opinion, Airbnb shouldn't allow this host to use their website anymore. https://www.airbnb.com/rooms/17603066?location=London%2C%20United%20Kingdom&adults=8&check_in=2018-1...