Short-term rental

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Short-term rental (STR) describes furnished self-contained apartments or houses that are rented for short periods of time. [1] They are usually seen as an alternative to hotels. "Short stay" rentals are an offshoot of the corporate housing market, [2] and are also offered by private owners and investors via online platforms such as Airbnb. [1]

Popular uses include vacation rental [2] and relocation. [3]

This industry is seen as the most affordable option for month-long stays. They might be 25–50% cheaper than a hotel room, and the apartments typically offer additional amenities such as kitchen/kitchenettes, washer and dryer. Some companies permit pets. Booking procedures may include credit checks, damage and holding deposits, and departure cleaning fees. [2] Rentals from online platforms such as Airbnb are a common form of access to these rentals. [1] Contact with the landlord or agent is recommended, as online photographs and descriptions can be misleading. [4]

The proliferation of short-term rentals can affect those in the area who are looking for long-term rentals. [5] Through short-term rental, landlords can make upwards of 30% more than they would on a rent controlled property.[ citation needed ] Thus landlords convert their properties into short-term rental units, and there are fewer long-term housing options available to permanent residents. Landlords also sometimes pressure and coerce people out of their homes, particularly if residents are of low-income. [6] In Australia, short-term rentals have contributed to the rental crisis occurring in 2022, although STRs diminished during the 2019-2022 COVID-19 pandemic. [1]

Neighborhood community groups have voiced concern that these temporary residents do not have a stake in the community and therefore are less likely to be conscientious about how their behavior effects those around them. [6]

Short-term rental properties place the responsibility of following zoning and municipal requirements onto residents using short-term rental services like Airbnb. This leads to illegal short-term rentals that violate many of these codes. Fire codes, safety codes, workers' benefits, and transient occupancy taxes are often avoided by illegal short-term rentals. [6]

Short-term rentals can pose a policy challenge to local lawmakers, who have to find a way to mitigate the problems that they cause for permanent residents. For example, in Santa Cruz, California, local supervisors have discussed parking restrictions in the areas where there are many short-term rentals, in order to discourage people from staying there, and prioritize the local residents' ability to park. [7] Some governments have taken measures to combat the rise in short-term rentals—for example, as of 2019, London short-term rentals were restricted to 90 days. [8]

See also

Related Research Articles

<span class="mw-page-title-main">Lodging</span> Industry and type of residential accommodation

Lodging refers to the use of a short-term dwelling, usually by renting the living space or sometimes through some other arrangement. People who travel and stay away from home for more than a day need lodging for sleep, rest, food, safety, shelter from cold temperatures or rain, storage of luggage and access to common household functions. Lodging is a form of the sharing economy.

<span class="mw-page-title-main">Apartment</span> Self-contained housing unit occupying part of a building

An apartment, flat, or unit is a self-contained housing unit that occupies part of a building, generally on a single storey. There are many names for these overall buildings. The housing tenure of apartments also varies considerably, from large-scale public housing, to owner occupancy within what is legally a condominium, to tenants renting from a private landlord.

<span class="mw-page-title-main">Renting</span> Payment for temporary use; hiring

Renting, also known as hiring or letting, is an agreement where a payment is made for the use of a good, service or property owned by another over a fixed period of time. To maintain such an agreement, a rental agreement is signed to establish the roles and expectations of both the tenant and landlord. There are many different types of leases. The type and terms of a lease are decided by the landlord and agreed upon by the renting tenant.

<span class="mw-page-title-main">Lease</span> Contractual agreement in which an assets owner lets someone else use it in exchange for payment

A lease is a contractual arrangement calling for the user to pay the owner for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial or business equipment are also leased. Basically a lease agreement is a contract between two parties: the lessor and the lessee. The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for regular rental payments. The lessee also agrees to abide by various conditions regarding their use of the property or equipment. For example, a person leasing a car may agree to the condition that the car will only be used for personal use.

A leasehold estate is an ownership of a temporary right to hold land or property in which a lessee or a tenant has rights of real property by some form of title from a lessor or landlord. Although a tenant does hold rights to real property, a leasehold estate is typically considered personal property.

<span class="mw-page-title-main">Vacation rental</span> Furnished dwelling for short-term stays

A vacation rental is the renting out of a furnished apartment, house, or professionally managed resort-condominium complex on a temporary basis to tourists as an alternative to a hotel. The term vacation rental is mainly used in the US. Other terms used are self-catering rental, holiday home, holiday let, cottage holiday and gite.

<span class="mw-page-title-main">Single room occupancy</span> Low-cost housing format

Single room occupancy is a form of housing that is typically aimed at residents with low or minimal incomes, or single adults who like a minimalist lifestyle, who rent small, furnished single rooms with a bed, chair, and sometimes a small desk. SRO units are rented out as permanent residence and/or primary residence to individuals, within a multi-tenant building where tenants share a kitchen, toilets or bathrooms. SRO units range from 7 to 13 square metres. In some instances, contemporary units may have a small refrigerator, microwave, or sink.

A slumlord is a slang term for a landlord, generally an absentee landlord with more than one property, who attempts to maximize profit by minimizing spending on property maintenance, often in deteriorating neighborhoods, and to tenants that they can intimidate. Severe housing shortages allow slumlords to charge higher rents, and when they can get away with it, to break rental laws.

<span class="mw-page-title-main">Apartment hotel</span> Type of serviced apartment complex

An apartment hotel or aparthotel is a serviced apartment complex that uses a hotel-style booking system. It is similar to renting an apartment, but with no fixed contracts and occupants can "check out" whenever they wish, subject to the applicable minimum length of stay imposed by the company.

Landlord harassment is the willing creation, by a landlord or their agents, of conditions that are uncomfortable for one or more tenants in order to induce willing abandonment of a rental contract. This is illegal in many jurisdictions, either under general harassment laws or specific protections, as well as under the terms of rental contracts or tenancy agreements.

<span class="mw-page-title-main">Casa particular</span>

Casa particular is a phrase meaning private accommodation or private homestays in Cuba, very similar to a bed and breakfast, although it can also take the form of a vacation rental. When the meaning is clear, the term is often shortened to simply casa. Today, many casas particulares are rented through online agencies, some specifically Cuban, and others that work worldwide.

CitiApartments was one of the largest real estate companies in San Francisco, California, which at its peak owned and managed more than 300 buildings directly and through a number of affiliates. In recent years the companies suffered a financial downturn, and have been the subject of intense criticism and litigation for allegedly illegal business practices as a residential landlord.

<span class="mw-page-title-main">Corporate housing</span>

Corporate housing is a term in the relocation industry that implies renting a furnished apartment, condo, or home on a temporary basis to individuals, military personnel, intern groups, or corporations as an alternative to a traditional hotel or an extended hotel stay. According to Corporate Housing Providers Association (CHPA), the industry's trade organization, corporate housing revenue was $10 billion in 2019 and $2.47 in 2010. The corporate housing industry has been a significant growth segment of the lodging industry for the past 20 years. As of 2015, the revenue generated by the industry reached $2.93 billion in the US, after a 7% increase over 2014, with an average stay of 84 nights.

<span class="mw-page-title-main">Australian property market</span> Overview of Australian property market

The Australian property market comprises the trade of land and its permanent fixtures located within Australia. The average Australian property price grew 0.5% per year from 1890 to 1990 after inflation, however rose from 1990 to 2017 at a faster rate and may be showing signs of a contracting economic bubble. House prices in Australia receive considerable attention from the media and the Reserve Bank and some commentators have argued that there is an Australian property bubble.

<span class="mw-page-title-main">Airbnb</span> Online platform for rental accommodations

Airbnb, Inc. is an American company operating an online marketplace for short- and long-term homestays and experiences. The company acts as a broker and charges a commission from each booking. The company was founded in 2008 by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia. Airbnb is a shortened version of its original name, AirBedandBreakfast.com. Airbnb is the most well-known company for short-term housing rentals.

FlipKey is an online vacation rental marketplace. It is a subsidiary of TripAdvisor. In 2016 the company listed more than 300,000 properties in 179 countries. Its headquarters is in Boston, Massachusetts, United States.

<span class="mw-page-title-main">Oyo Rooms</span> Indian hospitality company

OYO Rooms, also known as OYO Hotels & Homes, is an Indian multinational hospitality chain of leased and franchised hotels, homes, and living spaces. Founded in 2012 by Ritesh Agarwal, OYO initially consisted mainly of budget hotels. As of January 2020, it has more than 43,000 properties and 1 million rooms across 800 cities in 80 countries.

CanadaStays was a Canadian online marketplace for short-term vacation rental properties, with over 250,000 cottages, cabins, chalets and condos available to rent across Canada, the US, the Caribbean, Mexico and South America. Founded in Toronto in 2008, CanadaStays became Canada's largest vacation rental marketplace, with over $24MM in bookings reported in 2017. In August 2019, CanadaStays was acquired by Expedia Group and integrated into its VRBO vacation rental brand.

Vrbo operates an online marketplace for vacation rentals. It was originally known as Vacation Rentals by Owner or VRBO. It is headquartered in Austin, Texas, and is owned by Expedia Group.

Sonder Holdings Inc. manages short-term rentals, such as apartment hotels, in North America, Europe, and Dubai. It was founded in Montreal, Canada in 2014 and since 2016 has been based in San Francisco, California.

References

  1. 1 2 3 4 Sas, Nick (28 December 2022). "The influence of Airbnb on Australia's rental crisis, as experts call for focus on 'real issues' at play". ABC News. Australian Broadcasting Corporation . Retrieved 28 December 2022.
  2. 1 2 3 Dempsey, Bobbi. "For Short Stays, a Home Away From the (Costly) Hotel". New York Times. Retrieved 11 July 2010.
  3. ↑ Bramley, Pat (30 October 2003). "Short-stay renting". Croydon Guardian. Retrieved 11 July 2010.
  4. ↑ Levin, Ann (28 March 2010). "Vacation rental? Ask questions". NBC News. Retrieved 14 November 2023.
  5. ↑ "Most Airbnb-style short rentals in Tasmania used to be long-term leases, study finds". the Guardian. 28 December 2022. Retrieved 29 January 2023.
  6. 1 2 3 "What is Short-term Rental Abuse?". Keep Neighborhoods First.
  7. ↑ Gumz, Jodi (30 March 2017). "Santa Cruz County supervisors want rules for hosted rentals". Santa Cruz Sentinel. Archived from the original on 4 July 2018.
  8. ↑ "Airbnb backs call for mandatory registration system for short let properties". Letting Agent Today. Retrieved 25 November 2019.
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