General Discussion
In reply to the discussion: The Rent is to damn high. [View all]gypsy11
(341 posts)Are all the rage now. Investors are buying up all the entry level housing stock, rehabbing them and then turn them into mini hotels. In my area, a popular costal city for vacations- Ive e seen a HUGE rise in full time Airbnbs in residential housing in the last few years. The Airbnb affect is real.
I own my house and we just had property assessments, the city jacked up my property value by 40k so my taxes will increase by about 1k a year. As for rentals- a lot of landlords are seeing they can make more money with short term vacation rentals rather than long term rentals, particularly the investor types. They also get around any type of regulation that a traditional hotel needs to adhere to and will use LLCs as a way to shield their personal wealth from any exposure to liability. They pass the profit through the LLC but keep any liability on the LLC.
People are being forced out of their houses (rents getting jacked up to astronomical rates that they cant pay, when they have to move because of that, the investor landlord converts the place into a short term rental) This puts pressure on all prices, both rents AND purchases. Large corporations are getting in on this action now as well- converting entire buildings/neighborhoods into short term vacation rentals. Blackstone and Zillow come to mind immediately.
Add to the mix that many house flippers are no longer rehabbing and flipping the houses- instead theyre rehabbing and opening hotels with them, effectively removing them from housing stock for families to actually live in.
Dont even get me started on what this does to local communities.