[caseysoftware]

This looks like the exact inverse of the VC market:

VC's place tons of bets, knowing that most will crash and burn but hoping that a few percent will win out and cover all the other loses.

In the professional AirBnB host world, they place tons of bets, the vast majority pay out small amounts (individually) with the hope that they don't get any of the BAD guests that wipe out gains across their network.

[fweespeech]

Yes, that is how the rental market has always worked. It isn't just AirBnb.

You make your money on how well you screen tenants and on the "purchase" of property. [i.e. Long term lease or purchase ]