Your Next Airbnb Host Could Be a Private-Equity Firm. TPG has started buying single-family homes in Florida to rent out on Airbnb.
Private-equity giant TPG has started buying single-family homes in Florida vacation markets, where it is renting them out nightly as alternatives to hotels and short-term rentals on websites like Airbnb.
Other private-equity firms, publicly traded companies like Invitation Homes and many institutional investors have been active buyers of single-family homes for years, leasing their properties for a year or longer.
TPG is the rare large investment firm to buy up homes expressly for the purpose of renting them out daily. The firm hired Kasa, a New York-based hospitality firm that manages about 75 properties for daily lodging across the U.S., to manage the Florida homes.
A representative for TPG said that the Florida home-buying project is a “pilot program” and wouldn’t necessarily scale to large numbers if results fall below expectations. But the firm also said that Florida was the test ground, and if the program proved successful it would look to expand to other vacation markets.
OP are you an AI bot or just copy/pasting from a news article that you didn't link?
AirBnBs are scams anyhow. The amount of fees they tack on are absurd. I am fully back to staying in hotels.
Look at my profile and you’ll see I’m not an AI bot. I’m posting good real estate related content for all of us on here to discuss and give their thoughts.
At least link to today’s WSJ article that you copied this from…
and who tf is on ur profile pic lol
I mean, this is probably a good thing? Bring a level of professionalism and accountability to a sector of the market that has not had that. Airbnb is little more than a scam anyway. So what if some homes which are currently owned by shady individuals for the purpose of renting out, are instead owned by less shady corporate entities for renting out? Probably fewer hidden cameras in the bathroom, more accountability for guests looking to go after their "host," and more certainty and uniformity around fees.
That’s what you’d think with the points that you made, but the typical consumer is scared that these PE firms will purchase homes at scale and then set the market price at a rate much higher than what used to be market since they now have pricing power.
And they should be
But that's been happening for a while now already for single family rentals and isn't going to slow down any time soon
Well, sounds like Floridians have some work to do at the ballot box, then.
As I've said before, no PE firm is even remotely capable of having pricing power like that in anything but the smallest possible geographic area. The US housing market is simply too vast to have any kind of impact. If consumers are worried about corporations buying up housing and pricing them out of the market, they should encourage newer, denser development. The fact is that homeowners are the stumbling block to cheaper housing, not corporate entities, and even in the meaningless context of this forum I don't think we should give the shortest shrift to the narrative that someone other than NIMBYs are responsible for the housing shortage.
Why would we want more short-term rentals and less long term housing
How do you know one is replacing the other? You're making a lot of unfounded assumptions, here.
All we know is that the Florida market's best use for single family housing is short term rentals. If Floridians don't like that, they're welcome to legislate to change it, or to encourage more housing.
Do you have an article for this? Can't find anything.
https://www.wsj.com/finance/investing/your-next-airbnb-host-could-be-a-…
Thank you!
Anytime Duke
I’m skeptical that an institutional investor like TPG would be able to execute in this space. Many folks have mentioned AirBnb astronomical fees and such but honestly if you are looking for more of an experience driven cabin in the woods, or villa type vacation airbnbs are still great. I don’t think of the value in the same way as a hotel, if you just looking for a place to sleep it’s not a cost effective choice. A corky host renting a kitchy house with cool amenities is not really something a big institution can execute well in my opinion - that and a lot of privacy is really the only appeal of Airbnb today compared to hotels.
I’ve had the best experience with airbnb internationally - hosts picking you up from the airport, providing services like setting up transportation (I had one that came with a rental car), Landry service etc. really 5 star - makes me think that the absurd fees here are more indicative of the US just having terrible service across the board.
I also think that Vicasa already plays in a similar space already (I think there are a couple other competitors to them as well).
lol, this is clearly the new fad thing to talk about.
I feel dumber for having watched just a fraction of the video
yeah i watched about 30 seconds...
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