In the recent past, there are many peer-peer sharing economy organizations which are going through a rough patch. They are being accused of many different reasons from different cities around the world. It is said that these companies are not abiding by the law in the respective jurisdiction. There are many cases which are getting filed against them and they are finding it hard to fix it.
Airbnb has recently been jolted by the Apartment Investment & Management Company (AIMCO). They possess around 50,000 properties around the United States. This organization has stated that the online vacation rental service providers have deliberately made the property owners to violate the lease terms and conditions.
It is said that AIMCO is claiming for compensation from Airbnb for the damage of the properties and loss in its earnings. Apart from that, it is also seeking for a dominance to make sure that Airbnb is not listing the houses, where the landlords are violating the lease agreements. This is for the very first time that a property owner of the magnum has petitioned against a company.
It has given a prospect to look at the rules and regulations which are being imposed on the people. In the past, Airbnb had issues with the number of days a landlord is listing on their site. They came to terms with the city law authorities and were willing to abide by the laws. Finally, they did set the limit for days a house can be listed as a vacation on the rental.
If the house is found to be completed the limit of days, by default it will be removed from the listing. This happened in the cities like New York, San Francisco, and Berlin. We are expecting that this particular day limit will be put into action in other cities as well. In the past, it is said that the company has increased the prices for the rentals which are located in the most buzzing cities.
There are many speculations made against Airbnb by AIMCO, it is not one or two, but many others as well. For example, it stated that the people are being coaxed to break the lease agreements they have agreed to abide by. This will, in turn, lead to, the renters unable to lease out their properties for a shorter period of time, as in for subleases.
The properties which are listed in the listings in the Airbnb sites are also being damaged by the outsiders and travelers who come to spend their vacation time there. It is a fact that, there is compensation available for each property which is been listed on the site. The compensation is available up to 1 million dollars for the landlord to claim if they find the property to be in a damaged condition.
AIMCO chief executive officer made a displeasing statement, stating that the conditions in which the travelers are residing are not safe and contemptuous as well. This means that the houses are really not safe for people to stay in and on the flip side, the property owners cannot be assured of the fact that, their houses will be in a good state and condition, without any kind of damage occurring.
It is a fact that, there are hundreds of people who use Airbnb when they are traveling to different countries. Apart from that, there are a few who get an Airbnb Villa to hold parties for their friends. If we consider that, then there are possibilities for the property to be damaged by any means. It is an undeniable fact that we are giving our house to a stranger at our own risk.
The guests who use the properties which are listed on Airbnb are considered to be invaders and they are the least bit concerned about keeping the ambiance and atmosphere calm and harmonious. There other incidents which has been allegedly claimed against the company, stating that, the guests created a complete mess of the houses and a havoc where it leads to riots amongst the people around.
Meanwhile, the spokesperson of Airbnb cleared all the accusations stating that it has created possibilities for the people to be able to earn by renting out their properties at reasonable prices. For a few of them, they were able to make the ends meet and ensure that they are able to build savings as well. It has been a great boon to the families who come from a middle-class background.
The listings which are listed on the Airbnb site predominantly belong to the investors and property owners who own the properties specifically to use on short term rentals. So, stating the fact that, the lease agreements are being violated can be considered as not a valid point in the first place. But, according to the lease agreements which are provided by AIMCO, renting out the houses for short term rentals is against the agreement.
The people who rent the house through AIMCO should go through complete background verification and it is said that none of the renters who list their houses on the Airbnb site go through any such kind of background verification in the first place. Hence AIMCO noticed that the guests create a complete mess and the renters keep the space to be not a safe one by any means.
It is said that Airbnb is purposefully making the residents to violate or breach the lease agreement. Apart from that, it is said that the guests who arrive at various Airbnb location create a chaos for the people who live in the vicinity and are permanent residents. This is why; AIMCO wants Airbnb to compensate for the debts which it has incurred due to a breach of the leases.
AIMCO also wants Airbnb to refrain from any kind of activities which are considered to be illegal on its properties. They want to make sure that, the vacation rental provider follows this and the residents who follow the rules and regulations set by the law, will be able to have a high-end living to experience without any kind of nuisance in the ghetto.
This litigation is done after; AIMCO observed that the houses in the listings of Airbnb breached the lease agreements which have been processed. Airbnb has seen a lot of accusations made against it in the past; it was successful in fighting through all the odds and making to the top. Recently, the company happened to make changes in the limit for the number of days a particular house can be rented out on the listing of Airbnb.
They were able to convince the law authorities with the terms and each city set different limits and they are glad that the business is going well. The official from Airbnb stated that this is clearly an intrusion for the people who are trying to make a living through this. It is said that this accusation does not hold anything strong enough to oppose the people and breach their lease agreements.
Talks have been going on between the two companies to share a part of the profit with the landlords of AIMCO. We are not sure enough to what extent is this going to work out in real. But, it is evident that they are very much willing to file a lawsuit against Airbnb. It is clear that Airbnb is going to back down and it is going to fight back. Let’s hope for the best. Fingers crossed!!!