What’s Wrong with Airbnb?
What’s Wrong with Airbnb? | Considering Its Impact on the Corvallis Community
Airbnb and VRBO have revolutionized travel. Guests enjoy the convenience of finding and booking unique lodging, while
homeowners can supplement their income through medium and short term rentals. But, more and more people are asking
whether that convenience comes at a cost.
Controversy surrounds these third-party platforms, as people question their impact on the community. Meanwhile, guests
have found their experience inconsistent because quality varies.
Any conversation about the pros and cons of Airbnb requires nuance and careful consideration. As a seasoned traveler,
licensed property manager, and longtime Corvallis community member
Alexandra Eder understands the issue. She founded Fernwood Circle Guest Houses to offer well-appointed furnished rentals
for people who visit the community for a few days to a few months.
Although she has been an Airbnb Superhost and VRBO Premier Partner, she has concerns about the impact of these
platforms.
The Pros: How Short Term Rentals Often Boost Local Economies
Before we dive into what’s wrong with Airbnb, let’s first consider one of the upsides of short term rental platforms.
Thanks to Airbnb and VRBO, guests can find lodging even in tiny towns lacking hotels and bed and breakfasts.
Airbnb guests seek out local, independent restaurants. Nationwide, restaurants in communities with Airbnb rentals saw an
average of 12% revenue growth, according to researchers at the University of San Diego. While it may seem obvious, it’s
not just restaurants that benefit. Guests spend money shopping, dining out, attending events, and visiting attractions.
Airbnb and similar platforms offer several benefits, including:
- Convenience, guests from almost anywhere on Earth can book accommodation.
- Since the homes are privately owned, hosts may offer unique experiences like lodging in a houseboat, treehouse,
vineyard, etc. - As mentioned, guests boost local economies by shopping, visiting attractions, and eating out.
- Many local communities collect lodging tax just like they do from hotels.
With this in mind, let’s explore some concerns many have about the impact of VRBO and Airbnb on communities like
Corvallis.
Fernwood Circle Guest Houses in Corvallis offers well-appointed furnished accommodation for people staying in Corvallis
for a few days, a few weeks, or even a few months.
The Cons: What Might be Wrong With Airbnb
Airbnb-style Rentals May Decrease Community Livability
It’s every homeowner’s nightmare. Imagine living next to an Airbnb home where new guests arrive every weekend.
Sometimes, it may be a group of friends who arrive in several cars, adding to traffic and competition for on-street
parking. Perhaps they are celebrating and partying throughout the night.
Home Owners’ Associations (HOAs) often pass rules against members renting their home out on Airbnb due to concerns about
noise, traffic, parking, property maintenance, and other neighborhood livability concerns.
Alexandra shares this concern, so she carefully considers the infrastructure, flow and neighborhood of each guest house.
She primarily focuses on well-appointed furnished rentals with guests staying at least 30-days. These guests may be
professionals working in Corvallis on short contracts who need a quieter environment than a standard hotel or people
relocating to Corvallis who want a taste of neighborhood life.
Inconsistent Guest Experience
One of the upsides of Airbnb and VRBO is they remove some of the barriers to hosts who want to occasionally offer their
homes to guests for a few days or weeks. From the guest’s perspective this provides unique experiences like the ability
to spend the night in a treehouse, on a houseboat, or even in a real neighborhood rather than in a standard hotel.
However, it also means that guests may sometimes encounter less-than-professional hosts and unsanitary, awkward, or even
dangerous situations. Unfortunately, not all Airbnb rentals are well-managed and as a guest, you don’t always know what
you are getting before you arrive.
Alexandra Eder extensively studied and observed world-class hotels and guest accommodations before she founded Fernwood
Circle Guest Houses. She pays special attention to every detail from the way the room flows, the placement of
furnishings, and little details like freshly pressed sheets that add up to a cozy experience. This consistently
delightful experience attracts repeat guests. (If you’re curious feel free to check out the 5-star reviews our prior
guests left!)
Sometimes the platform’s policies get in the way of providing a great guest experience, this is one reason Fernwood
Circle Guest Houses is more focused on direct bookings. If you are looking for Corvallis lodging, consider booking
directly whenever possible to ensure a good experience and to save money on third party platform fees.
At Fernwood Circle Guest Houses, our guests enjoy a consistently delightful experience, as demonstrated by our five-star
reviews!
Airbnb Diverts Money Away From Local Communities
There are two parts to this concern. The first is that Airbnb rentals undercut local hotels and bed and breakfasts.
Communities like New York City found that sometimes hosts found loopholes to avoid paying the local taxes that other
lodging providers pay. These days, Airbnb and VRBO collect state and local lodging taxes, however, some individuals may
fly under the radar.
While we are on that topic, we just want to point out that Fernwood Circle is a lodging intermediary tax collector
registered with the City of Corvallis. For each short-term stay, the city, state, and county receive the same tax
revenue they would receive from a hotel. Fernwood Circle is also the only locally-owned lodging intermediary registered
(March 2024).
Not only does Fernwood Circle Guest Houses comply with local regulations and taxes, but founder Alexandra Eder buys
local and Oregon products and hires local vendors whenever possible. When you compound this with the boost guests bring
to local restaurants and other businesses,
Each Fernwood Circle Guest Houses bookings brings revenue to the community whether the guest books directly or through a
third-party platform.
Does Airbnb Drive Rental Housing Prices Up?
Perhaps the biggest ethical issue is the potential negative impacts of Airbnb on rental housing markets. You may have
seen reports that Airbnb reduces affordable housing in the community. Researchers have looked at this, and it primarily
impacts areas with a dominant tourism industry as homeowners may find it more lucrative to rent their home on a short
term basis than a standard year-long lease.
Of course, each community has its own set of factors that contribute to the demand for housing, property values, and
rental prices. Staff at the City of Corvallis studies and compiles a detailed report covering Housing Affordability &
Cost Burden periodically. They note a mix of factors, including:
- Rapid population growth in Oregon.
- Increased enrollment at Oregon State University, which is one of the biggest drivers of housing demand in
Corvallis. - Broader economic issues like mortgage rates, wage stagnation, and inflation impact the cost of building
materials. - Local and state land use and development policies.
- State-wide housing shortages due to underbuilding between 2000 and 2015.
While the City of Corvallis didn’t factor short term housing in as an issue, they did note other surprising trends such
as how remote work increases housing prices. The Federal Reserve reported that for every 1% increase in remote work,
there is a .9% increase in housing prices. When people don’t need to commute to work, they may opt to move close to
family, friends, and their favorite recreational activities.
Short-term rentals can exacerbate the problem, especially in regions that attract travelers. Corvallis happens to be the
most rent burdened city in Oregon, according to the state’s Department of Land Conservation and Development. Oregon
State University and Linn Benton Community College students tend to fill available rental units at specific times during
the year. Throughout the rest of the year, vacancies are less frequent.
While short-term rentals don’t appear high on the city’s list of affordable housing concerns, it is a bigger issue in
other Oregon communities that rely more on tourism. Short-term and medium-term month-to-month furnished rentals both
serve an important role for renters who need more flexibility than the standard 9-month rental model. It also benefits
local homeowners who are traveling or will temporarily live out of town but can’t commit to renting it out for a full
year.
Due to the need and demand for student housing, rentals tend to be filled at specific times each year with one-year
leases. Extended stay furnished rentals serve an unmet need for people who need a place to land for anywhere from
30-days to a few months. Fernwood Circle Guest Houses offers short term rentals but primarily specializes in monthly
furnished rentals. We found this option attracts the following:
- Professionals in town working short-term contracts, including visiting healthcare providers working through Good
Samaritan Regional Medical Center, visiting professors and scholars on sabbatical working at Oregon State
University, and others. - People who were displaced by forest fires, floods, or other unforeseen events. We have hosted guests from nearby
communities who rented a guest house while waiting for their home to be ready to return to. - Those relocating to Corvallis who need a convenient place to live while looking for long-term housing, buying,
or building a home. - Family members of elderly residents who live in one of the local nursing homes or retirement communities, as
well as parents of Oregon State University students.
If you are planning to visit Corvallis for a few days, weeks, or months, consider booking your accommodation directly
through Fernwood Circle Guest Houses. You will save money on third-party platform fees while receiving a high-quality
experience.