What began as a genius idea has turned into a real estate nightmare.
From MHFIN:
The Catastrophic 2024 AirBnB Bubble Crash.
The concept of short-term rentals was a simple one. Turn your home into a money-making machine by providing people with an alternative to traditional hotels. Started by a group of young entrepreneurs in 2007, AirBnB was essentially the birth of this concept.
It was simple. List your room, apartment, or house on a website and let strangers book it as if it were a hotel.
Originally met with skepticism, the idea took off, and now dozens of companies compete in a 100 billion industry commonly named as the STR industry or Short Term Rental.
While the popularity of the industry has exploded, in recent years many are changing their opinions.
The truth behind AirBnB, Vrbo, and all the other STR companies is starting to come out, and now people and municipalities are rebelling.
Watch video above.
STR’s are commercial businesses operating within a residential zone.
Ventnor Mayor Landgraf
STR owners and shore towns face substantial liability with risky STR’s. In Brigantine, Atlantic City and Ventnor, restrictions and enforcement are weakest thus attracts more investors / speculators.
Most Jersey Shore towns have 7-night rental minimum. Brigantine has 2-night rental minimum, Ventnor has 3. Atlantic City has no restrictions. City of Brigantine may be facing STR litigation now.
Brigantine, Atlantic City and Ventnor have limited enforcement of short-term rental law. This provides for ability to operate a motel business within a residential zone. This encourages inflated home valuations.
When shore towns have spotty compliance with land-use law and Master Plan, they place all homeowners at risk.
- Are they properly insured?
- Financed with appropriate mortgage type?
- Are all occupants listed on the STR lease?
- Do towns know total # of STR’s?
Are short term rental properties listed as a commercial prooerty?
One woman wrote recently ,that if it were not for her renting she could not afford the home.
Is she and others running a motel in a residential area?
Do they have commercial insurance and licenses?
?????
I think we all know the answers.