Commercial Real Estate Owners Involved In Recent Debate
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Commercial Real Estate on Wednesday, May 11, 2016.
Many real estate owners in California and throughout the nation strive to find ways to generate income through their properties. For instance, a commercial real estate owner may rent out a portion or all of a building or land to others. A recent business trend has become the center of a contentious debate between those making money from the transactions and hoteliers who claim their livelihoods are at risk because of such deals.
Airbnb is a company that reportedly makes a lot of money through its home-sharing services. A hotel industry trade group has called for stricter regulations, intensifying the ongoing battle between the home-sharing business and hotel owners. Hotel supporters say that lack of regulation gives an unfair advantage to Airbnb and is causing a potentially grave decline in hotel business profits.
Private homeowners can apparently act as hosts for Airbnb, earning money for allowing others to rent their homes for short periods of time. The company draws a commission from all profits earned. However, the main sore spot resonating with hotel owners seems to be that commercial real estate owners are also making huge revenues by renting their properties as a business venture through the company. They also believe more regulation is needed for private homeowners who rent their residences for more than 180 days at a time.
Dealing with such commercial real estate property issues can be complicated and legally challenging. In California, there are business and commercial law attorneys available who can advise clients as to how best to proceed to protect business interests in court. Anyone with questions or concerns about such topics can request a consultation with an experienced business lawyer to seek clarification of the law and determine what might be the best course of action in a particular situation.
Source: chicagobusiness.com, "Hotel industry report strikes back at Airbnb", Alby Gallun, May 10, 2016