Wall Street's Growing Influence on Airbnb: From Couch Surfing to Corporate Takeover
Wall Street firms, including private-equity giant TPG, are increasingly entering the short-term rental market, buying up properties to rent on Airbnb. While short-term rentals can be more lucrative than annual leases, the corporatization of hosts has changed the guest experience. Large companies can offer cheaper prices by outsourcing property management, but guests are more likely to leave lower scores for companies than for individual hosts. However, relying on Airbnb can be risky for both individual hosts and big-money investors, as there is no guaranteed number of bookings and high property prices make recouping investments challenging. TPG has already paused buying additional homes due to changing market dynamics.