How the Real Estate Industry Reacts to Airbnb’s Threat to the Rental Market
There has been rumours of a familiar rival that is aiming to rattle the property management industry.
Property managers are now working to showcase their skills to both landlords and tenants alike, emphasizing the importance of their professional skills and knowledge of the legislation. This is in preparation to plans that Airbnb is planning to enter the long term rental market.
The rapid growth of this business has brought about more ideas of expansion. Hence, they have been entertaining the thought of fully venturing into the property rental scene.
In fact, just last week, it has been reported that this online marketplace and hospitality service has hired a leading consulting firm to investigate the long-term trend of the rental market.
Nevertheless, this looming threat hasn’t shaken up the industry leaders just yet. If anything, they’re facing it with a “Let’s see what they’ve got” attitude. Despite Airbnb’s ongoing success with the short-term home sharing service, experts believe that they won’t be able to make an impressionable dent to the long term leasing industry.
Airbnb is notoriously known to disregard laws, sometimes even trying to bend them to their own benefit if possible. This market is strictly legislated and the Residential Tenancies Act must be adhered to.
Whilst Airbnb is known for short holiday lettings, it must be regarded that if they ever decide to involve themselves fully in long-term tenancies, they would be obliged to comply with the legislation. Regardless whether via Airbnb or not, the same rules and legislations still apply.
Nonetheless, we still cannot ignore this threat, therefore, property managers need to brace themselves and be ready in case Airbnb pushes through with this venture. On a different note, this may be taken as a way to motivate property managers and real estate agents to up their game even more by being more meticulous with their management processes and prove that they can add value to the client’s property investment strategy.
The real estate industry cannot prevent this move so the best that it can do is to face them head on. This threat has been brought about by investors buying properties in the inner city mainly for the purpose of renting it out via Airbnb. Some properties are even built not to be made as a home but solely for short-term accommodation only.
Landlords of this type of short-term rental are trying to create their own industry by renting out multiple properties by using an online platform and it has been proven to be a promising venture, only that sometimes it is operated illegally.
Due to its somewhat unregulated operation, people planning to rent out, be it long-term or short-term, or for property owners thinking about putting up their properties for rental on Airbnb, should be aware of the risks.
