Airbnb over traditional landlords?
Airbnb is starting to compete with traditional landlords, but do they pose a real threat? Judging by recent policies released by Airbnb they certainly seem to be targeting long-term tenants. So, what does this mean for the rental market?
Long term rentals
Long-term rentals are bookings for 28 days or longer, these types of bookings now make up 20% of Airbnb business. Since launching the new service back in 2020, it has been the platform’s fastest-growing category. They have labeled ‘monthly stays’ clearly on the website making it easy for people looking for long-term rentals. The website allows users to search for stays up to 12 months making the search appealing for people looking for a more traditional type of let.
Which is cheaper Airbnb or traditional renting?
Airbnb hosts can offer monthly percentage discounts on stays lasting 28 days or longer. These discounts vary, but long-term stays are generally discounted from 5% to 50% off. However, for long-term stays, guests pay a big chunk of their total booking cost at the time of reservation. Then, they pay the remainder a few weeks into their stay. For stays longer than 2 months, the remaining total is charged as monthly instalments. For some renters paying a large amount upfront isn’t possible, so a traditional type of rent is better. Generally, renters are familiar with the more traditional long-term model, which is longer stays of six months or a year. Not only this but renters are used to the standard lease agreement and both parties are clear of the landlord’s responsibilities.
Overview of both
For anyone looking for a long-term let, both options are viable. Airbnb is clearly making moves to enter into the longer-term market. However, they’re not at the point of being able to offer the same leases as the more traditional type of renting.
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