In a recent article I
wrote about the effects Airbnb and other short term rental websites
create on the construction industry. In a nutshell, I suggested that
these short-term rentals are taking regular-long term rental units off
the market, because landlords, home owners and many other "short-term
rental managers" are using regular long-term units for short term
rentals. This creates two effects.
One; the need for more long term rental units, i.e. more apartment
buildings, and there is a boom in multi-unit entitlements and
construction, which is great for us design professionals. Two; cities
losing money because of the lack of collecting hefty hotel or transient
taxes. And you know money talks.
I did not think action would be taken so fast.
Case in point, recently the city of Santa Monica outlawed short-term
rentals of less than 30 days, period. The effects of this, of course,
are yet to be seen. Proponents of home renting state that enforcing such
a law will be extremely difficult and instead of forbidding a very
lucrative money making opportunity in this "sharing economy" a
compromise should have been made.
I don't think this is the end of this story. I think people will find a
way around this "obstacle", but it highlights the challenge cities will
face as they try to impose traditional regulations on a fast evolving
industry. It may be a short sighted old method of trying to deal with a
new world digital technology. I think it is under estimated, how quickly
this digital world can adjust. As they say: "Follow the money..."
In 1974 Peter Erdelyi started working as a professional engineer in California. To present day, after more than three decades, Peter Erdelyi continues to actively supervise projects from launch to completion on a daily basis, although he lost count of them somewhere around 10,000. This blog is a collection of his professional, educational or simply delightful engineering stories gathered throughout the decades in business.
