Monday, October 2, 2023

Landlords were stuck with Airbnb, it is already unprofitable

The Airbnb platform began imposing strict rules that have hurt the landlords who profited from this revenue.

According to the consulting firm RDA, Airbnb occupancy in Colombia has fallen sharply. the city of Medellín recorded a decrease of 13%. The number of apartments on offer also increased by 38%.

Airbnb is no longer as profitable

This is worrying Landlord income fell 3% last year. This decline in Airbnb’s profitability is repeated in various Latin American countries.

Homeowners have gone from earning extra income to making Airbnb a real business.

It all started with renting out a guest room, but gradually the business expanded to renting out apartments and houses on a daily basis.

In other cities around the world Airbnb has become a monthly apartment rental. It serves the same function as a rental fee.

The platform began charging users for cleaning services, asked visitors to take care of homes without consuming energy and basic utilities, and additionally set more complicated rules to follow.

New rules have devastated the Airbnb business, which had boomed, particularly in seaside cities and Medellín, Colombia.

The best located properties are the most profitable, the occupancy rate of these properties can reach up to 90%.

“The problem is that certain rules that the owners set are absurd. I’ve had some with illogical rules,” said an owner who rents through Airbnb.

In Colombia, it was reported that owners installed hidden cameras to make more profits. Another problem is that rents have increased exponentially for the local community.

This decline in Airbnb could once again bring cheaper rental prices to Colombians.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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