Why airbnb Does Not Want to Give Up “Entire Place” Rentals

At Airbnb, growth brings scrutiny, regulation

From the Los Angeles Times, June 11, 2015

While the company touts “home sharing” — the spare-room rental — in its advertising and political campaigns, nearly two-thirds of listings in L.A. and other big markets are for whole units, according to a recent study by the Los Angeles Alliance for a New Economy, a labor-backed think tank. Those units generate 89% of the company’s revenue in Los Angeles, the organization estimates.

The company charges a 9% to 15% fee on each listing, making bigger rentals a lot more profitable. On a $360-per-night three-bedroom apartment in Venice, for instance, Airbnb’s cut on a two-night stay in June would be more than $100. Rent the same dates in a $95-per-night spare bedroom nearby, and the company collects just $29.