Mounting Problems with AirBnb: Should You Switch to a Long-Term Rental?

AirBnb guests have taken to Twitter and TikTok in recent months sharing horror stories and vowing to never vacation in a short-term rental again. Mounting fees, inconsistent host experiences, and even dangerous situations are among their reasons, all understandable. But what about the AirBnb hosts? 

It turns out that hosts around the world are souring on short-term rentals as well. A 2021 Bloomberg report revealed that AirBnb spends millions of dollars annually to make “nightmares” go away for guests and hosts alike. Meanwhile, local governments are fighting back against short-term rentals, which reduce the amount of available housing for full-time residents and raise rent and home prices for everyone. 

4 ways owning a short-term rental creates real problems

Short term rental problem #1: Taking on more work than you bargained for

Got a short term vacation rental? Congratulations, you now work in customer service! AirBnb hosts don’t get to sit back and collect passive income, they also take on the majority of communication with guests, are responsible for managing their own listing, setting and enforcing property rules, cleaning in between guests, and generally keeping guests happy. All too often, when something goes wrong, hosts are the ones left responsible for remedying the situation and dealing with angry (sometimes even dangerous) guests.

The payday that can come from a popular vacation rental becomes a lot less attractive when you factor in the number of hours you’ll spend working as a frontline customer service agent for your own property.

Short term rental problem #2: There’s a maze of convoluted tax laws and local regulations

NerdWallet’s Sam Kemmis reported earlier this year on the growing number of complaints from AirBnb hosts. Sam pointed out that in addition to the hospitality burdens placed on hosts, they also have legal obligations that can be difficult to understand and comply with. 

“Many local governments place the burden of tax collection on hosts, not Airbnb. A 2022 analysis by the National League of Cities, an advocacy organization composed of city, town and village leaders, estimated that 82% of cities require hosts to remit taxes themselves, while only 5% require the platform to do so on hosts’ behalf.”

Short term rental problem #3: The income is unpredictable

Even if everything goes well with your vacation rental, in most places vacation season is limited. You’re likely to experience booms and busts in your rental income, in contrast to long-term rentals, which are predictable and, in some cases even guaranteed income. 

Short term rental problem #4: Homeowners have limited protections

Even with all the liability insurance in the world, AirBnb hosts are opening themselves up to risk by allowing strangers to stay on their property. AirBnb’s insurance only covers limited property damages, and can’t give you back your time or your sanity if you’re faced with a squatter or criminal activity. Are you willing to take on that risk?

Ready to switch to a long-term rental?

The good news is, switching your property from a short-term rental to a long-term rental is easy, especially if you work with a partner like Belong. Belong is a full-service residential network that takes care of your home and your residents for you, so those AirBnb headaches? Forget them.

Belong homeowners enjoy predictable, passive income with transparent management fees that often result in higher cash flow than even your best vacation rental months. 

The average Belong home is rented in under 17 days. That means you could say ‘bye-bye’ to AirBnb and ‘hello’ to guaranteed rent and passive income in just over two weeks.

Not sure if your home is an ideal long-term rental? Schedule a consultation with our team to discuss pricing and placement of your property so you can understand how much you’d earn with Belong.