All of the above makes total sense (to me) when you realize that people don't know how to price rentals at all - just like the average person doesn't know how to price restaurant food.
When you know truly how to price (and cost!) something, you know when and where you can offer discounts. If cost to acquire a tenant is $2k, then the discount to preserve a good tenant should be about $2k per tenant turnover time.
Almost like Uber was marketed, AirBnB was not initially sold as a "make primary income off this". It was a way for people with excess assets (spare car and some time, spare room in a big house, etc) to make some money and the companies were the broker.
Turning Airbnb into a full-blown rental market with people and LLCs buying houses just for AirBnB was the downfall. At least, that's my interpretation.
I think Paris tried to curb this buy allowing Airbnb, but you can only rent out max 50% of the year. This makes it so local owners can make some money, but corporations wouldn't be able to get the yield they need at 50% occupancy.
I'm on one collector group on Facebook and people come and list their items for thousands of dollars even though the average price on eBay is about $1. You'll point them to the sold items and they will say "OK, I see that, but I really think you are wrong and mine is worth $6500 + shipping, and also you are very rude telling me my price is wrong."
I think they're referring to estimating what restaurant food "should" cost, based on what it is. Rule of thumb I heard years ago was aiming to sell for about 3x what your ingredients cost you plus tax, but that may have increased since.
Perhaps it's a bit pedantic, but that seems less like pricing restaurant food and more like pricing food in general, which is totally valid if you're on a fixed budget and considering how much to spend for food.
Not that I always could or would care to go to the effort for a fancy meal, but in general it's going to be a lot cheaper to prepare most meals at home. Or maybe I'm misunderstanding you.
The lawsuit is about helping them using non-public data from other companies. Nothing stops the platform from making all the rental data public and giving the same recommendations.
If I had a group of graduate students at my beck and call I'd love to try to factor out what effect single-family rentals have had on the rental market in toto - because once you remove appreciation, they're often losing money each month, which means they're subsidizing the renters (and willing to do so because they're making it up on highly-leveraged appreciation).
> because once you remove appreciation, they're often losing money each month
I'm curious if you have a source for this? Intuitively, it makes sense, but I haven't actually seen any figures that support this. Although my guess is that data would be hard to come by.
Why would the math be different for apartment buildings? They also appreciate and they usually have better accountants to make sure no money is left on the table if it's available.
