Rentals Flood the Market Ahead of the Super Bowl
Digested from MarketWatch
When a big event, such as the Super Bowl, comes to town, a common perception is that it presents opportunities for rental owners (or people who just want to rent out their homes).
And if the numbers are any indication, people are acting upon what they see as an opportunity in Minnesota for the week leading up to the big game on Feb. 4.
“Airbnb, the largest online home sharing service, now has 3,300 active hosts in Minneapolis and St. Paul for Super Bowl week,” writes MarketWatch’s Chris Farrell. “That’s up from just 1,000 last February when the company launched its PROJECT 612 initiative [612 is the Minneapolis area code]. Other online home-sharing businesses, such as VRBO, are also busy signing up hosts.”
While conventional wisdom says people make a big profit leasing their homes for these big events, that is not always the case. First, there are regulatory hurdles, such as Minneapolis law that requires hosts who leave their homes when guests stay to obtain a $46 annual license.
Then, there are simple market limitations. In Minneapolis, high-end condos near the stadium are on the market for $15,000 a night. But those are the exception, not the rule.
“Airbnb bookings are averaging $173 a night during Super Bowl week,” Farrell writes. “This is about 2½ times the typical rate for the area, though hardly a sum that fantasies are spun from.”