Amanda Nicolle Kotch_ Rethinking Platforms
The ubiquity of social media platforms in 2020 is hardly worth mention— humans crave ease and accessibility in all aspects of daily life. Yet as this prevailing phenomenon relates to affordable housing, there is ample room for growth and development, particularly in the Los Angeles area. Research into the intersection between existing housing models and digital platforms, such as Airbnb, confirms that an app-based approach to be desirable to users, however it’s one one plagued with bias, fraud, and inconsistency. But a platform based around central ownership and management of property, rather than short-term rentals, would fill a significant gap in the current market.
Airbnb, the online homeshare platform, does not own any of the properties listed on its site, but rather acts as a middleman between homeowner and temporary tenant, taking a percentage of a fee on each transaction. In operation since 2008, the company has found success in catering to a public searching for diverse options of places to stay at low cost. They have also been at the center of criticism and debate regarding exceptionally lax regulation and exploitation by a certain sect of its users.
It’s easy enough to see how scammers might exploit the policies. Airbnb’s refund policy is based on a complicated rubric that doesn’t dictate that guests need written evidence in order to obtain a full refund, the company does note that it has “final say in all disputes.”
The Better Business Bureau has received around 200 complaints about Airbnb through its “Scam Tracker” in the past three years, and about half of those were regarding fake profiles.” For those looking to profit off of the decentralized model, doing so is remarkably simple. It is not uncommon for users to report being taken advantage of, with the company doing little to intervene. Despite glaring inconsistencies in corporate practices and management structures, the popularity of Airbnb remains relatively stable. Users cite diversity of locations and typologies, and above all low cost. One user states, “If I had another choice, I would not use Airbnb again... I was very put off by getting scammed. But at this point, I feel like if I want to travel, there’s not really much else I can do.” Despite risk factors that accompany the platform, the fact remains that people need places to sleep, and ideally these places are cheap.
Combine this with an understanding of the housing crisis in Los Angeles, and a gap appears that would benefit greatly from a fresh approach in which the pitfalls of Airbnb are redesigned for optimal decency.
Learning from Airbnb, one might consider rethinking the platform and adopt a new model that eschews the broker mentality. In its place, a digital platform where ownership is centralized, properties are managed and maintained by the company, and landowners and tenants are able to easily search and match depending on quantitative and qualitative criteria. Cost stays low for tenants and income continues to generate for landowners, while risks to human users are sincerely monitored and significantly mitigated. Perhaps it is time we embrace the tinder for affordable housing.
With the new Accessory Dwelling Unit (ADU) laws in effect as of 2017, homeowners are able to more easily build secondary units on their residential properties. “An Accessory Dwelling Unit (ADU) is a residential unit that can be added to a lot with an existing single family home…. Because ADUs are rental units, they produce additional household income.” While many Los Angeles homeowners may be ready and willing to begin the process of building or converting an ADU, going about the process can be difficult and expensive. A centralized ownership model would significantly streamline the process and reduce the cost for homeowners. An ease of implementation would encourage more homeowners to consider the ADU as a viable personal option, thus creating more affordable units for renters across the city.
A social media platform would be a successful means linking these affordable ADUs with those in need of a home to rent at low cost. These platforms have the ability to connect people and populations that might otherwise remain out of communication, and the creation of one aimed at bringing together homeowners who wish to rent out secondary units to generate income and those in need of an affordable home has the ability to greatly benefit both groups. An app could allow homeowners to input data on what type of renter they are looking for and what number of occupants their unit can accommodate, and those in need of a place to rent would be able to include data on what type of unit they are searching for, including information on size, location, and amenities.
A social media platform operating via central ownership and management could provide a welcome update to existing rental models and create an affordable housing model based on matching algorithms, benefiting renters and property owners alike.
1 Conti, Allie. “I Accidentally Uncovered a Nationwide Scam on Airbnb.” Vice , 31 Oct. 2019, www.vice.com/en_us/article/43k7z3/nationwide-fake-host-scam-on-airbnb.
2 Ibid.
3 Jane Blumenfeld, Jane and Dana Cuff. “Building an ADU: Guidebook to Accessory Dwelling Units in the City of Los Angeles.” UCLA CityLab . Version 1.0, Summer 2017.
