To all those who wonder why Airbnb is problematic for landlords and for tenants, I have created lists that will help you understand the difficulties and implications linked to this type of rental.
Please read the following lists:
Why Airbnb is a problem for landlords:
1. Increased traffic causes increased wear and tear and damage.
2. Insurance issues, in that landlord’s insurance likely does not cover Airbnb types of uses.
3. Occupants who are unfamiliar with the building and a specific unit are more likely to cause damage by reason of their unfamiliarity with the operation of appliances, locks, utilities, etc.
4. Exposure to fines and penalties with the City of New York.
5. Possible insurance policy cancellation.
6. Lessened security, as Airbnb customers are unfamiliar with security policies and are also more likely to allow unauthorized persons to enter the building.
7. Increased risk of personal injury as Airbnb customers are unfamiliar with safety precautions, safety exit routes, staircases and fire escapes.
8. It is possible that Airbnb customers will use utilities in a greater volume than regular tenants such as hot water for showers, laundry, and electricity for AC; transient users are less likely to be concerned about conserving energy.
9. It is disconcerting for a landlord to have a tenant who is making more money on his real estate investment than the landlord himself is, and in such event the landlord is usually motivated to find reason to evict the tenant who is doing Airbnb.
Why Airbnb is a problem for Tenants:
1. You are risking a loss of your apartment as doing Airbnb in a residential apartment is illegal. This is particularly harmful if you live in a rent regulated unit, or a coop or condo as your apartment is likely very valuable and could be irreplaceable.
2. You need to declare any income to IRS as it is taxable and residential tenants who are doing Airbnb often do not declare such income and wind up getting audited and penalized.
3. You are exposing your apartment to damage/vandalism/theft.
4. You are under the risk of the Airbnb customer not vacating on time.
5. You are under the risk of being fined by the City of New York and or having the landlord making efforts to pass along any fines that the landlord receives to you.
6. If the landlord takes no action against you during the term of your lease, you are still under the risk of the landlord opting to not renew your lease due to your Airbnb activity, requiring you to move and pay another broker’s commission and moving expenses.
7. If the landlord does commence an eviction law suit against you, you will be on the rental registry and when your record is subject to being searched by a new landlord that record will be viewed as a negative incident, which may prevent you from obtaining an apartment or the apartment of your choice.
8. Airbnb may be a violation of your lease, entitling your landlord to evict you.
9. If the landlord starts an eviction you might have to pay the landlord’s attorney’s fees.
I am certain others can think of additional reasons to not participate in Airbnb activities.
In conclusion, don’t assume your landlord is not aware of your Airbnb activities. Landlords are trolling social media, the Airbnb site and have cameras, supers, etc.
Don’t assume because your neighbor is doing Airbnb that it is okay for you to do the same.
If you have any questions or concerns don’t hesitate to contact me.