Airbnb is Asking Congress to Bailout Hosts and Property Managers
It's just been announced that Airbnb is trying to work with Congress to bailout hosts. This comes after hosts have lashed out against the company and started looking for alternatives. A few people have speculated on social media that the 10,000's of Airbnb Arbitragers that sublet rentals on Airbnb are quickly going out of business and this might cause another housing crisis if they aren't bailed out.
This comes after Brian Chesky, a cofounder and CEO of Airbnb tweeting this in response to the host backlash:
Historically, most bailouts have been to big corporations. However, there is more political pressure this time around to bailout individuals and not corporations. Sharing economy companies like Airbnb have the negotiating power to make this a reality. Ultimately a bailout of hosts and management companies will be the best bailout Airbnb could receive
Key Highlights From Letter to Congress
U.S. hotel companies are seeking $150 billion in direct aid for their workers for what they say is an unprecedented fall-off in demand because of the new coronavirus.
Airbnb is also asking Congress to put in place measures that would help the entrepreneurs that list accommodations on its site as part of the body's broader coronavirus relief efforts.
The company is urging members of Congress to pass a collection of tax relief and loan-related proposals targeted at its property-manager customers.
Airbnb's proposals follow its moves last week and this weekend to allow guests around the world to cancel their reservations due to the COVID-19 outbreak.
Hosts were livid because this move overrode its hosts own cancellation policies, and the cost of them will be largely borne by property managers and property owners.
In its letter, Airbnb said it has 1.1 million active listings in the U.S., and a majority of its hosts depend on Airbnb for their monthly income.
Airbnb is also asking for a tax credit or deduction for income earned by hosts and access to small business disaster loans for hosts. Congress should also give lenders tax incentives for providing low-interest loans to hosts, the company said.
A copy of the full letter to congress can be found here
What do you think about this? Comment below 👇with thoughts on how Airbnb & Congress can help VRMs