The online marketplace that allows the users to list their property, find and also rent the vacation properties for a certain amount of processing fee. This privately owned online marketplace was founded in 2008 and has its headquarters in San Francisco, California.
European chief denies the disputed claims
The officials claim that the online rental marketplace is responsible for the housing crisis in London and are also the main reason for the increase in the property valuation. The European managing Director of the online rental marketplace, Olivier Grémillon said that some of the studies that were done by the universities reported that the rental site is not responsible for the shooting property prices, but the shortage of housing property in London is not because of Airbnb, there are many other factors that are responsible for the increased property price. He also said that the online rental marketplace frequently checks the official records of the company to determine whether any of the activities that are done by them affects the economy of the society that includes the tax policies of regulation factors or data relating to it.
Sadiq Khan, the Mayor of London received a written complaint from the Chairman of the skills, innovation and business committee, Iain Wright that highlights the negative impact of the online rental companies in the temporary letting operations that leads to the increase in the prices. He also pointed out that many of the landowners are illegally operating the system where they even rent the property for more than ninety days in one year that is actually in need of special permission. In the last capital year, the Airbnb’s rentals had generated 1.3 billion pounds of economic activity, where the hosts were able earn three thousand five hundred pounds by simply renting a room for not more than fifty days in a year.
The British Hospitality Association claims that the online rental site gives the landowners the food, safety and health regulations, competitive advantages and help the landlords with the circumvent taxes. Commenting on this, the Managing Director said that the rapid growth of the company in the United Kingdom raised concerns among the competitors which are quite normal for any business. This does not mean that the regulatory policies must to stern on the rental companies. He also said that all the companies under the rental ecommerce business must join together and spread about the importance and the aspect of the regulation that will create awareness about the regulation policy among the public.
The company released a report that shows that there is about eighty five percent increase to 1.6 million guests visiting the country in the month of July and August and it is higher when compared to last year where it was the only eight million sixty thousand.
‘Anyone can have a go’ approach transforms the capital
The online rental company allows the people to rent their rooms and the process has become very easy because of the sharing economy. Many cities like New York and Paris are in a chaos about the sharing economy concept, while the people in London have opened their business and it also shows that there is a steady increase of twenty seven percent in the listing in the city between February and June.
For one and a half years, the people in London were allowed rent their housing property for a temporary stay up to ninety days without the need of the planning permission. Those who fail to obtain the permission are imposed to pay a fine of twenty thousand pounds. The online marketplace follows the necessary steps to intimate the hosts about the modifications that take place in the local regulation policy. The head of the Public Affairs, Pete Huntingford said that they will inform their hosts about the rules relating to the regulation over the year and at the meetings with the host. Earlier, when there was a change in the ’90 days’ rule, the rental site held a meet up and discussed about the regulations with the community. On the official site of the rental marketplace, there is a webpage that highlights the key aspects of the regulation policy so that the hosts can be on up to date when it comes to renting their housing property.
A large number of participants on the rental site are not the professional landowners, but are the regular house owners of London who are ready to share their housing property to increase their income so that they can live in the city because London is one of the most expensive cities to live in. The information about letting the space and the regulations are discussed with the hosts through the online portals, meet up and other sources.
Benefits the landlords
Unlike the traditional approach, the rental site allows the landowners to rent a condo or a room for a short period of time and at the same time the tourists can get a room for a cheap stay and they even have the chance to meet and speak with the locals. In general a person who earns one thousand three hundred pounds in a month can earn three thousand pounds within a month by listing their property in the online rental marketplace. By letting the rooms for 5 to 7 days the hosts have ninety eight percent of occupancy rate that is against the regulation.
If the landowners maintain the property and employ cleaners and builder, the rental marketplace will increase the popularity of the listing and thereby by increases the income for the hosts. But the process of maintaining and acquiring good name and increasing the booking requires a tremendous amount of hard work. People from the outside world might think that the option is an easy way to earn money, but in the real time scenario the host or the landowner has to prepare ahead before listing the property and also they have to maintain the goodwill of the customer to increase the booking.
David Smith, the Director of the RLA is against the tightening of the regulation policy in the rental marketplace in London and he also said that the policies under the regulation policy must be slightly loosened under the sharing economy.
New idea by the RLA
Instead of the strict regulation imposed by the legislatives, the RLA proposed a simple option for the online rental websites, where the host has to simply check the box to state that they have the permission to rent the property for ninety days. So, if the box is unchecked, this means that the host does not have the requisite permission and that they can rent the property only for a specific period of time.
By following this process, the local officials can cross verify the properties that have the planning permit and enable the authorities to identify the unregulated locations in the market. A recent report stated that the Westminster Council is investigating around one thousand two hundred properties for over renting and they have served 2 notices that are used to cease the renting. Many Londoners signup with the rental program to earn extra cash to pay their bills .
Author Bio :
Anand Rajendran is the Co-Founder and CEO of Zuket. He is a writer and coffee lover. He has is a graduate in Computer Science and Post Graduate in Entrepreneurship and leadership from Ulyanovsk State University, Russia. He is a passionate blogger & SEO Specialist. Zuket is a Software Development company which has launched Trubnb Script which is an Airbnb Clone Script with Mobile apps.