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US apartment investment management company sues Airbnb over alleged financial problems

Author: Mash Yang
2017-02-19
in App, Market dynamics, Life, network, Topics
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AIMCO, an apartment investment management company that owns more than 5 rental properties in the United States, filed lawsuits against Airbnb in California and Florida earlier, arguing that Airbnb's service not only affects its business development, but may also pose security risks to landlords and tenants who rent houses.

US apartment investment management company sues Airbnb over alleged financial problems

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Just as Uber has impacted traditional taxi services, Airbnb, which provides a house rental matching platform, has also become a thorn in the eyes of many hotel operators and traditional house rental companies.

The Wall Street Journal reportedIt was pointed out that AIMCO, an apartment investment management company based in Denver that owns more than 5 rental properties in the United States, formally filed lawsuits against Airbnb in California and Florida earlier, claiming that Airbnb's services have significantly affected its business development, and demanded compensation for related business losses, and even asked the court to prohibit the continued operation of Airbnb services.

AIMCO CEO Terry Considine emphasized that Airbnb's services could pose safety risks to both landlords and tenants, potentially impacting the development of existing rental businesses. AIMCO stated that it has previously discussed its relationship with Airbnb and emphasized that the service violates the principles of home rentals. It also stated that providing short-term rentals can pose safety risks because credit checks and identity checks are not conducted on tenants. This could result in landlords being unable to reclaim their properties and potentially putting co-tenants and neighbors at greater risk.

As for Airbnb's view, it believes that AIMCO's position in filing the lawsuit is based on the fact that market interests are facing competition. At the same time, it emphasizes that its service provision makes it easier for ordinary people to rent houses that meet their budgets according to their needs, thereby avoiding the concentration of housing resources in the hands of specific real estate companies.

From the perspective of Airbnb-related services, although the quality of rental properties is required, and landlords and tenants are also reviewed through a rating mechanism, many projects that require safety guarantees are mostly handled through post-event complaints. Therefore, it is inevitable to question whether the rights and safety of landlords and tenants are fully protected.

Especially when offering vacant rentals in residential areas, many people may still be concerned about the impact of Airbnb's platform model on the identities and lifestyles of potential tenants. However, from the perspective of the apartment rental management business, even if personal identification and financial status can be used to screen tenants before actual rental services are provided, safety cannot be guaranteed. Even large hotels cannot guarantee that paying guests will not pose any danger. Therefore, many in the market believe that AIMCO and other businesses' allegations against Airbnb are based on the perception that their existing interests are being squeezed, leading them to file lawsuits against Airbnb.

In fact, Airbnb not only continues to provide platform operations to enable more vacant houses to be successfully matched with actual housing needs, but also continues to adjust its operating model for landlords who provide rental resources. For example, it allows landlords to adjust rental terms. Under the condition of meeting the review results, landlords can provide more flexible housing rental models and screen suitable tenants. In terms of tenant use, it also continues to strengthen the evaluation mechanism and complaint channels, allowing tenants to select houses with more comprehensive evaluation results. At the same time, they can avoid having no way to complain if any problems occur during the rental process.

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Tags: AIMCOAirbnbsharing economy
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Mash Yang

Mash Yang

Founder and editor of mashdigi.com, and student of technology journalism.

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