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by abannin 3644 days ago
I'm surprised that this argument gets so much traction without any supporting data. It just plays on fear.

First, nothing you listed is an externality but rather direct results of poor behavior. An externality would be something like 'decreases property values of neighboring properties' or 'increased rents due to lower supply'.

Second, what data do you have that proves these scenarios are more likely in an AirBnB than a long term tenant? You're only supporting evidence is inference; if people are going to behave poorly then it makes sense for them to rent an AirBnB away from home. But there's an easy counter argument: pressure from neighbors will keep these incidents to a minimum. Sure, there will always be hosts are not sensitive to neighborhood pressure, but that same logic can be applied to long term tenants who have bedbugs, throw parties with loud music, litter, engage in criminal activity, etc. Simply put, all of negative scenarios you outline can occur with long term or short term tenants, and there is no evidence that these behaviors are more common from short term tenants.

Third, comparing all AirBnB's to skeezy motels is like saying all restaurants are roach-infested mold-filled 50-point scoring health hazards. This is a classic straw man argument. What about Marriot or Hilton? Embassy Suites or DoubleTree? Do they fulfill the reputation of "skeezy/short term motels"? This is an argument for better inspections and code enforcement, not prohibiting AirBnB.

No one expects neighbors to file daily lawsuits, but neighbors can notify the police if there is a noise violation, etc. Once again, there is no difference here between long term and short term rentals. AirBnB requires more identification than any hotel I've stayed at, so this argument actually supports AirBnB as a platform.

Lastly, your bank analogy is frightfully off base. First, a bank's intrinsic motivation for monitoring large transactions is fraud and not criminal activity. Second, banks are compelled by law to monitor and report specific types of activities that are likely to be criminal activity, but this is defined by organizations like the FBI, not the banks themselves. Third, you still have yet to prove, beyond casual inference, that AirBnB promotes criminal activity any more than long term tenancy.

2 comments

Decreased property values near hotels, student ghettos, and other nuisance areas are very commonly depressed, and often have elevated police dispatch rates. It's hardly an uncommon phenomenon.

Not all restaurants are roach-infested mold-filled hazards - but we have to treat them all like they potentially are, in the sense that we need to register them and inspect them to prove that they aren't hazards. Marriott and Hilton hotels get inspected all the time and they pass with flying colors because they do all the things they're supposed to do - unlike unregistered fly-by-night flophouses working under the radar.

You've obviously never gotten bedbugs from a neighboring unit or hotel. Trust me, they suck like crazy. You do not want to go bundle everything you own into trash bags, move out for a weekend while you wash everything you own, and have the house fumigated (heated to a crisp). It sucks.

Fraud/money laundering is a form of criminal activity, and (just like hotels) banks are compelled to report on specific types of activities that are likely to be criminal. Hotels don't define this; legislatures do, just as they define (or delegate) what they consider to be suspicious financial activity. The Hilton is not deciding that the guy paying in cash every night with a dozen visitors every night or the guy bringing in a bunch of drain cleaner every day is a suspicious individual, they let the FBI investigate that just like financial crime.

Sorry to break it to you but the FBI is on to your no-tell-motel dealing scheme. They're not stupid.

Ah, yes! Decreased property values are an externality! However, judging based on police dispatch or crime rates seems to rely a bit more on correlation than causation. It's pretty easy to argue that hotels are typically built in areas with increased police dispatch rates, not hotels causing the dispatches. Unless you have data that shows that the hotel itself has a higher rate than surrounding areas? Furthermore, there are plenty of examples of short term rentals (typically in the form of hotels or resorts) that are tied to increased property values.

Once again, your arguments support better inspections and code enforcement for health issues not banning short term rentals.

I'm not sure why you assume my history with bedbugs. You are correct that I have never had to deal with a bedbug infestation, but I've helped friends who have. I have lived through multiple other infestation of other insects and rodents because of my neighbors. I've also had neighbors who felt the need to party all night every weekend, and have lived across the street from meth houses and drug dens multiple times. However, all of these experiences were dealing with long term tenants, not short term rentals. I am not discounting the inconvenience of these situations, just questioning why we conclude that they are unique to short term rentals.

It seems that you're confusing the impacts of property values with short term rentals. Long term rentals can occur in very wealthy neighborhoods as well as economically depressed areas. I'm no fan of slum lords, but a slum lord can have long term or short term tenants! Furthermore, they tend to set up shop in economically depressed areas if for no other reason than the overhead is too great in nicer neighborhoods.

Regarding criminal activity, I fail to see how 1) this is isolated to or increased activity from short term vs long term rentals and 2) it assumes that the landlord/host does not care about the activity. While same may not care, it seems quite presumptuous to conclude that all AirBnB hosts will encourage criminal activity. But this presents a really interesting question: why hasn't the city of San Francisco taken steps to train hosts on potential threats if this is a concern?

I know that near the major universities in my region properly values are far lower because they're often rented to groups of students who are rowdy so their neighbours property values are lower since people are reluctant to buy a house that's for sale unless you're willing to either put up with it, or rent it out yourself.

The amount of off-campus housing needs increased dramatically through the 2000s as the universities expanded enrolment so many areas that weren't being rented now were. Many of the long time homeowners who lived in those areas long before student housing came there have been up in arms.

Wonderful point. Student housing is a great example of long term rentals with tenants that don't always respect the property or neighbors.
They're not exactly long term, though. In my city, they're turned over every 4 months or possibly 8 months. The biggest university has 4 month terms and their co-op programs alternate 4 months on 4 months off.
In SF, 32 days or more is effectively long term.