Reading the article, it sounds much like a new tax. Can cities add taxes at will? 60 $ per unit - per day/per year? Maybe I read it too fast, but did not see that. The idea that buildings are on a list if short term renting is forbidden there, is not bad, but it will drive prices down. Anyway, it seems only fair if buyers / renters get an advance warning, if their new home comes with less rights than they expect. It will reduce the appeal of the units concerned. Or else the people who want to stay only with the same people can build their ghettos. No risk of any black guy or drag queen crossing their hall. No Mexican family on holiday with 5 kids will ever enter.
Post by Inanna (Shaun) on Jun 16, 2016 1:17:02 GMT
You make a great point, Helga. The neighborhoods that are against Airbnb are the ones where everyone is homogenous. In my neighborhood, we NEED Airbnb to thrive. The little taqueria around the corner has much more business because of us. My landlord can make a little extra. We hire cleaners from the neighborhood. What may not work in hoity toity Chicago works very well down here in the barrio, thank you very much. They should not make a citywide regulation. Let each neighborhood decide how they want to live.
They have also added another tax, on top of the 60 bucks and the hotel tax of 14%. They've added an extra 2% that the hotels don't have to pay, to pay for affordable housing (as if the city cares about that.) guests pay taxes to IL, as do hosts. It is very expensive now to use Airbnb. Say I have a small room with a closet, desk, window, shelves and twin bed. And I want to rent it for 800 dollars a month. I provide a lot of value, so that is fair. The guest ends up paying almost 1,000, or close enough that they see it as 1,000. And they tend to think that I am charging 1,000. Since they added all these fees, it is a bit of an issue to explain this to long term guests.
My prices as suggested are down 20-30% this summer. That might be the extra competition or it might be that with the taxes, it is just too expensive to charge the guest what I used to charge.