2012-06-06

Co.Labs

How Airbnb Earned Me $20,000 And A Restraining Order From My Landlord



For a heady year, cash and friendly faces flowed into my apartment, paying my rent while I scraped together money to build a startup I had dreamed about for months. My apartment photographed well and tourists love Brooklyn; before long the two spare rooms in my place were grossing a thousand bucks over the cost of my rent on Airbnb.com, the vacation-rental site that ranked 19 on FastCompany's list Most Innovative Companies list this year. The future seemed so sweet and easy that another host in my building rented a second apartment around the block just to host Bnb’rs. We wondered if our landlords had any inkling of the margins. 

The incentive of thousands of dollars compelled me to buy hotel-quality sheets, consider feng shui, and clean the shower. A girl from Australia arrived with a gift of Vegemite. A guy from Portland flew in to get some additions made to his full-body tattoo. A woman from San Francisco left a long thank-you note in very peculiar handwriting. I went to a New York Red Bulls game with a British guest, got a proper heckling lesson, and debated the appeal of Kate Middleton. In nine months, my Airbnb profile grossed me almost $20,000.  

When my reservation requests started to trail off, I got onto Airbnb to find dozens more hosts had popped up nearby, undercutting my nightly rate. Then I spotted something else: an Airbnb listing in a building nearby, hosted by a guy I recognized as my landlord’s right-hand man. My landlord had caught on. When I delivered my rent at the beginning of the next month, I found the management company’s office under construction. It's now a hotel. The “loft-style” rooms are now listed on Airbnb for $169 a night.

On Monday, June 4, about 10 days before my cofounders and I planned to push our first product into the iTunes App Store, a stranger in a blue blazer served me with a restraining order filed by my landlord. There was language requiring me to kick out my guests (a German couple) immediately after being served, but the judge had crossed out that section and initialed in the margin; I guess he found that part punitive. My lawyer later told me I would probably be forbidden to have roommates again, which in the pricey New York rental market is tantamount to eviction. Attached to the order was a complete printout of my Airbnb listing and all my reviews, included as evidence I had violated clauses in my lease. (Some leases, I have since learned, have evolved specific language prohibiting tenants from listing their pads on vacation-rental sites such as Airbnb.) I had flouted the same clauses back when I found roommates through Craigslist, but there I was just another anonymous roommate-to-be with grainy, sideways pictures of my kitchen.

The Airbnb printout looked idiotically flagrant by comparison; one page of the restraining order showed a big, pixellated image of my Facebook photo next to my Airbnb profile. I seethed at the social Web for making it so easy for the world's narcs to track me down. Then, I tweeted @airbnb about my predicament and immediately received an email that restored my faith: They graciously offered to re-book my remaining guests until I got my legal situation sorted out. I quickly wrote back: Yes, please. 

Jun 05 17:48 (PDT):

Not a problem. Our team will take care of them.

Best,

Conor, Airbnb.com/help 

I’m due in Kings County Court on June 7th, Thursday morning.

Read the conclusion of this story here: My Airbnb Biz Got Me Evicted; Here's What I Learned.

[Image: Flickr user Alex E. Proimos]


Article Tags: Essay





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13 Comments

  • Asheville Jo

    Chris...I'm surprised you wrote and published this article (part 1 and 2) with a "poor innocent me " slant- You did not own the apartment you were renting out and you broke the terms of your lease. You are lucky that your land lord was extremely nice and only evicted you instead of going after the $20,000 you made while renting out property that was not yours to rent out period. In your article you compare airbnb as an alternative to finding room mates on Craigslist...really? Everywhere I have rented has required me to sign a lease with the names of all of the tenants included. I could go on and on about why it's ethically and legally wrong....but you should know all of that yourself. You were paying almost $3,000 a month in rent- why didn't you just put that money towards a mortgage and "ride the wave" by renting out something you actually own? Just saying.... :-)

  • Asheville Jo

    also curious as to some incongruities in your article- on this page for instance you say that your airbnb profile earned you more than the cost of your rent

    "before long the two spare rooms in my place were grossing a thousand bucks over the cost of my rent"

    but on the next page as one of your facts you write that your rent was $37,000 and you "only" made $20k.................

  • HowtoGuide4AirBnB

    I see this more and more
    Some of the downfalls to everything being connected to our social profiles.
    I too have run into similar issues. It's important to bring in some privacy features and work arounds for nosy neighbors. I have specifically seen neighbors go on to airbnb only to look to find people "breaking the law"
    It also seems airbnb has opened an interesting situation where neighbor hosts are now being extorted by thier neighbor(s) as these nosy pests play off of peoples fear of their airbnb business catching un needed attention

  • Anonymous

    Can we assume any taxes were paid on that nearly twenty thousand dollars? Or is that another law you feel compelled to follow at your convenience?

  • Mr. Jones

    Tough talk for a User marked as Anonymous. Keep up the good work. You are a true patriot. 

  • JG

    Actually in this case
    the author likely is NOT required to pay any taxes.
    The rent
    (37,700 from his other article) + utilities can be considered an expense and
    his revenue can be allocated against that expense; in this case covering 53% of
    his expense and considered a net loss in terms of tax evaluation. If he was profitable then he would surely owe taxes.

     

    Don't be so butt hurt
    just because the author is trying a progressive idea and it didn't pan out for
    him.

  • janadale

    you broke the terms of your lease, as well as broke the NYC laws.  You rented out your place, illegally, and quite indiscreetly.  So why are you surprised you're being summoned to court?