when I bought my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

The cleaning fee is what cracks me up, and that's after they require you to clean it yourself before you leave. Cleaning is what's known as overhead.

Just an informational correction: SB584 is not a law going into effect in California. The first committee hearing for it was cancelled at request of the author of the bill in June 2023. It’s not been voted on by our legislator and has not been signed by the governor. It was pulled.

Non click-bait title. "Why I might quit AirBnB, in 2025, depending on how things go."

New home developers also tend to want to only build high end expensive homes. Where I live, no one builds basic, inexpensive homes anymore. There seems to be no more starter homes being built, and any such homes on the market are bought up as investment property.

The fact that you and your neighbor are turning your Airbnbs into long-term rentals show SB 584 is having the desired effect - more long-term housing for the city. But I agree, it doesn't seem like a holistic solution.

Even without this tax, it seems like a long-term rental makes a lot of sense now that you have the option to stay with your family! I am so glad to see you aren't planning to sell- I love the house too.

Literally the policies working: “I will just turn it into a rental” lol I can’t even

Ahh its the end of an era! I've followed this airbnb process since the beginning and I always had hope it was going to work out, so it kind makes me sad it didn't! Either way, I am very happy you decided to keep it. You worked so hard and put so much into making that home so beautiful!! (also, love the shot at 5:51)

took an L on the property... just admit it

I don't live nor have I ever lived in CA, but I feel the people that decide what affordable means are the people that have never had to wonder if they can afford rent/mortgage before.

I love that you are honest about your experience with Airbnb. I tell my friends all the time understand how Airbnb works. Working as a realtor and understanding law, permits, building codes, etc. It might not benefit you depending on where you are at. You have to also think about how many bookings you could possibly get, location, management, cleaning, etc. All these fees could add up to where you are losing money instead of making money. I tell people break everything down before you just jump in listening to these "Airbnb Gurus" online selling you classes and not making their money off the Airbnb. Instead, they are making their money off the courses people are taking. Again, thanks Shelby for being honest and transparent about your experience.

The government across-the-board doesn’t know how to handle our effing money. They need the audits

Boss Babe moment

Thanks for digging in to find the facts and sharing your research! I found this very interesting

This is the death of airbnb. The fees are already insane, and this is even more ridiculous! Who is going to pay an extra $1500 in fees?!?

Airbnb hosting is not for everyone, and not for every area it seems. We have done very well, but I can understand why some people would want to quit. Every situation is different. Best to do your due diligence before you invest. I hope you are doing well on KZfaq Shelby! I trust that you are, and Konnichiwa from Japan!

Sadly homes have gone from a roof over your head to investment properties where the costs get jacked up to where people can't afford the homes. Everyone want to sell their home for a profit, even when it's not worth it. Sadly AirBnB have removed so many homes from the market which makes in nearly impossible to find affordable housing. And since most wages do not increase at the same amount as other expenses, people just can't afford basic housing.

I love seeing your perspective on this!

Very informative, thanks!

Looking at it from a neighborhood perspective. I don't live next to a hotel, but essentially airbnb can make your neighbor's house a hotel where people are checking in and out every day or every other day. I could see why cities and towns are trying to put an end to some of this. And this house is taking away from a family being able to buy it and make it their own and becoming part of the neighborhood. I live in a place where it makes zero sense to do airbnb, so thankfully don't have this issue. Does anyone here live next door to an airbnb house? Are the people loud and obnoxious? hahah

The other day I checked out your AirBnB to see what a typical night would cost and I was shook by the additional expenses 😳Affordable housing is a tough subject, it's also quite a problem over here. As with many problems like this, there is not a single, simple solution.

Thanks for this awesome video. Really good stuff.

Great video.. Love hearing you express your opinion.

I know you were discussing some serious stuff but wanted to say I liked how integrated the sponsor was. The floating 3D graphics were noticeable but didn’t interrupt the topic which allowed me to continue paying attention and didn’t lose focus

Shelby girl, your transparency is a gem!! 💎💎

I really love the content you've been posting, its very helpful.

nice to know for holidays .. thanks for sharing

Ugh, well said. Totally agree with the affordable housing stuff you mentioned - it's so frustrating!!

This is such a good video. Between the information you gave to the editing cuts it really captivates me! Keep it up

Great insight and very informative!

Nice! Single Family residences have absolutely been overtaken by corporate interests & AirBnB has been a massive drain on the available housing market. When most young people are expecting to never be able to own a home in their lives, we'll take any wins we can get.

Having owned several rental properties, my experience leads me to this conclusion: I wouldn't do it again at gunpoint. The 2am maintenance calls. The non-paying tenants. The eviction process. Unless you're willing to give most of your profit to a "Property Manager". If you're looking for true passive income, invest in the stock market.

My old boss had 12 single family homes on airbnb in Denver. Lots of times some of those houses sat empty because they didn't book. For this one guy to have TWELVE houses in his possession so he could list them on an app is crazy to me! How many other people are hoarding homes for short term rentals?

Hey Shelby! Thanks for being transparent and having a REAL.

Didn't your sister say that she's paying $500 a month for that house? So are you actually breaking even?

BEST Decision Shelby! You should put into action now at the $5,000 price point. You will have a long term renter in there in a hot minute!!! My friend did the same with his condo a long time ago with a very affordable price point and has the most amazing family living there for years with zero issues.

Great video! Your so talented and hard working ❤

Love your videos

It’s definitely a spending/skimming problem like you said. For different reasons, CA will join Vegas in being un-AirB&B-able. Thank goodness for long-term rental options!

Inflation has a greater impact on people's cost of living than a crashing stock or housing market, resulting in an immediate and tangible effect. This explains the current high level of negative market sentiment, and our need for assistance in surviving this challenging economy. The financial markets have underperformed due to fears of inflation, causing stock and bond prices to plummet. Despite sounding basic, consulting a financial advisor has enabled me to outperform the market and achieve a profit of $850,000 since June 2022, making it the ideal approach to enter the financial markets today.

Very informative and thought-provoking video.

I heard Shelby is a boss babe, keep it up Shelbs

Well done! You did some great research here.

I’m so happy this came out soon after your last vlog!! 🙌🏻 was curious why 👀

Such a great video! Really enjoyed your insight and agree with you, I think this will make more airbnb's choose other avenues like long term rentals. I am curious though, with this happening what does it mean for your build in Joshua Tree?

As a California Airbnb owner, it’s so frustrating trying to do any business in this state. I always feel that just when I start to hit a stride and make a profit, California quickly intervenes to stop it.

Love the honesty

I am glad you have come around. Long term rental is where it is at.

It's not just to take the tax money to build affordable housing; It's also to discourage people from buying up the properties just for the purpose of churning out more short-term rentals. So by you quitting Airbnb and turning to long-term rentals, it's already serving its purpose LOL. Others are proposing higher property taxes on 2nd or 3rd homes so that would also help. But I think places like Palm Springs which are like tourist/vacation destinations should maybe be exempt - just my personal opinion.

This mortgage amount is quite low for the beautiful house you have. Even if you break even as a rental (which I think you will get more anymore), you won't have the headache. If in the future you want to return to short term rental, you can do that. Never get rid of real estate.

Thanks for keeping us up to date. I’m going to be a renter in 2023. But save to eventually be a home owner.

Yeay new journey 🎉

Chiming in on what you said about TX as a TX homeowner… while Texas has its own issues with housing availability, it was admittedly affordable to buy a home here. However, the property taxes are so high! In my new development, so many people had to SELL AND MOVE after the first year because the property value jumped up so much due to updated appraised value. There is no cap on how much property taxes can increase in a single year in Texas. This is true for all residential homes and that cost is passed onto renters too.

When I was apartment hunting, I just couldn't understand why there was such a shortage of 12-month lease apartments to choose from. I was looking around in the city and seeing so many apartment buildings, but couldn't understand why that wasn't translating to availability for new people to move in. Then I eventually discovered that these places are being rented out short term on Airbnb.

On to the next journey shelby !

And this is why millions have left California, our home is no longer the same. And why our family left. The politics and cost is so awful now. It’s just so so sad.

Taxes are high in FL also. Humidity is terrible, it's like you're walking around in a sauna. Then hurricanes and power outages. Insurance is high that is if you can get someone to cover you. I could go on and on, if you didn't figure out, i hate FL.

Mexico has an 18% tax on Airbnb's in some states, it can be upwards of $500 bucks on a month long stay in taxes alone.

You really are the 🐐 please continue to do what you do!!!

Love the video! I am born and raised in the Coachella Valley, and currently run a property management company here for the last 7 years... STVR's have been suffering for the last year and a half and this bill will definitely kill Short Term Rentals for sure.

I am currently renting a cabin in Blue Ridge, Ga with VRBO…same with me. It’s about $1000/4 nights then ADDITIONAL fees are around $900/..CRAZY FEES… NO MORE.

My guess is it's more about getting rid of Airbnb from people's neighborhoods. I still think people would rent it. Long term rentals are better in the end, it is more stable. If you live in a nice neighborhood like I do we don't want to see new people next to us every day, that's not normal, we don't want our wives, kids, parents put in potential danger. Additionally investor buyers tend to drive up house prices and deprive people that want to be actual residents of somewhere to live.

Hey Shelby, very fascinating. You seem very passionate and informed about this subject, and rightly so. At the end of the day, presumably, it is still just a bill and not a law yet. Maybe it won't pass. It's nice to see that you have a Plan B just in case. You know, after watching this vid, it seems like you could be an effective advocate for other meaningful causes as well. Best wishes always.

I love this video, planning on investing here in Cali but having second thoughts about it.

CA doesn't get enough water consistently to support a larger population. That's why they don't build more. Therefore the state is limited in how many people can live there sustainably. I'm sorry, but prohibiting short-term rentals is a better solution than building more homes that are unsustainable.

Regardless of the possibility of a new tax, I actually think a long-term rental is overall less stressful for you and is likely to still make you the same if not more money. That said, it can be risky if the tenant stops paying rent. We all have seen videos of how hard it can be to evict someone.

Thanks for the video. Zoning laws have been the biggest challenge to affordable housing in CA. Especially in Silicon Valley. Too many home owners are wary of multifamily buildings “next door”. It’s unfortunate. Not sure when this will ever change. Too much lobby

Great explanation video! I'm glad you're holding onto it and especially planning far enough out to know thay you want it for your future (retirement)! But bestie, you gotta rip those last few nails off lol 😂

The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!

I live in a beach vacation destination town in Florida that has restricted expansion opportunity due to Military bases surrounding the area. Housing is already limited and that is compounded by people with the money to buy a 2nd, 3rd or 4th home to turn them into Airbnb's. Flippers arrent flipping anymore but Airbnb'ing them. People with investment money are paying well over asking so they can list on Airbnb. A tax like that here would be an amazing boost for locals so they could actually buy the homes that become available. I know this isn't the situation everywhere but Airbnb is crushing families here.

That sounds great.

3K+ for 4 nights. There are lot pf palces in the wordl that this is their salary for year. Only rich people can afford AirBnB.

Fantastic video Shelby. I'm from Canada and love every time I come to PS. Just the perfect getaway place. Keep up the PS content.

Airbnbs switching to long-term rentals seems like a win for pretty much everyone.

Best wishes to you, Shelby! Looking forward to see how the new venture works out! Thanks for sharing your journey :) Also, California is notorious for blocking affordable housing from being built, so this tax bill is laughable. Government has made it difficult to address the homelessness dilemma because of their policies.

Shelby, Loved your commentary on the tax plan and affordable housing:)

Way to be agile Shelby!

Long-term rentals are considered 30 nights or more in CA, so I think there would still be enough business for STRs to convert to LTR and still give the owners the flexibility to enjoy it themselves as a second home. I'm renting for a month in PSP next year because of the discounts given to LT renters. I did reach out to Shelby to rent her house because of her awesome videos, but unfortunately, she never got back to me after she said she'd talk to her real estate rental agent. Maybe I'll have a better opportunity in 2025 considering what she said here... :)

the craziest takeaway for me is that someone would pay $6200 a month in rent.... Surely if you can afford that, you can afford to buy a house no? or am I just a naive European?

From what you say, you are making a logical decision. The benefits are there to be grabbed now before everyone else starts doing it. Let someone else pay for the heated pool. In Australia long term rentals are encouraged. I have two houses that bring in $35,000 per year. Get a good tenant and there are no problems at all. The benefit, truly little expenditure is required.

As a family of 8, airbnbs make way more sense whenever we visit the desert. It’s usually about 4k-6k for a week for a 4-5 bed house

Love this transparency and breakdown as a fellow millennial homeowner in PS. I don't know about how the market is for it nowadays, but have you considered medium term rentals, like 1-6 months at a time?

It seems unlikely that SB584 will get passed as it stands now. It barely got through senate but still needed a 2/3 assemble vote. Which was far from secured. Senator Limon pulled it from vote. They'll probably rework it/dwindle it down but overall feels DOA.

If you decide to make the house a long term rental, what would you do with the furniture and everything? Would you keep it there and maybe charge more for rent since it’s furnished?

love how you have sunglasses on your head and on your shirt. haha

Doing some quick Googling, I think this bill may have stalled. It looks to have only passed the Senate. It went to the Assembly on 6/1/23, was read then held at the desk. The last activity recorded was 6/29/23 where the first hearing that was set for June 28 was cancelled at the request of the author.

I'm over AirBnB... I am NOT paying hundreds of dollars for someone to tell me to do chores around their house and pick up after myself by taking out the trash on my vacation. I'd rather stay at a hotel 🏨 Then on top of that they charge a cleaning fee when I'm like... why am I being told to wash dishes!?!?

Haven't watched you in about 10 months. Remember when you did a video about top rooftop bars in down town LA? Now we're talking about tax legislation. Are you getting 'old' on us? lol Love the channel. Glad to see you're doing well now, months and months after the surgery! Keep it going girl!! :0 A Supporter from the beginning.

Taxes across most states are super ridiculous!!! It's not having enough money through taxes as the problem, It's having the WORST money managers who blow most of it away. They always want to increase taxes to blow more of it, instead of fixing the main reasons why nothing gets done nor fixed!!!

Smart. We personally turned our long term rental in north austin to a midterm/str. Its been doing so well. For us its less wear and tear on the property due to less occupancy but its more cashflow. . BUT if we had to we could always go back to long term on just be mid term and I think this is important when investing in STR. If it can only be a vacation rental this things go side ways you don't have options. We actually do so well with 30 day plus stays. I'm so glad you're keeping the property as an asset. Once its paid off that will be cashflow and its a tax write off and you never know things can always change with airbnb.

I really don’t know how to say this nicely and in the most respectful way possible… I think it’s a bit hypocritical of you to say that “teachers should able to afford a house, “ when you plan on charging 6k in rent.

One of your best videos… Informative and you spoke confidently about your thoughts on the bill after doing research. Interested to see more on this as you finalize your next steps with your house

I do actually like your opinion on these things. I'm not from the US, but I like learning from people like you and Graham so I'm like you're in Cali, you're into the renting industry, your insights are interesting!

Makes sense to hold on and long term rental and build your own equity 👍

You should sell and do a 1031 if you have 30-40% or more equity, buying a small four-plex building (affordable in the outlying areas of Inyo, Riverside or San Bernadino county). You return will be greater then renting the house. Discuss with your accountant.

Why wait Shelby? If the bill ever passes, it just makes it worse for everyone. Why not just rent it out now long term and not have all the worries and challenges of AirBNB especially when you said you do not always even break even? To many great points you have made to just do a long term rental now! Either way, good luck!

So crazy! I see a comment saying that the bill was pulled which is great. I remember living in Palm Springs before there were so many strict vacation rental rules. At that time, property management companies were overwhelmed because they were the ones who had to respond to disruptive or destructive renters. During that time, it was introduced that the city wanted to instate the 20% rentals cap in each neighborhood. I'm not sure about the nightly rental contract cap, that may have already been a thing. I remember everyone being furious and fighting to keep nightly rental restrictions at bay because like you said, Palm Springs survives on tourism. Restricting nightly rentals ultimately screws with the local economy and the people who live there permanently. Law makers do not comprehend that when you enforce restrictions on nightly rentals in Palm Springs, you're potentially messing with the livelihood of a large group of people. Housekeepers, landscapers, property managers, personal chefs, the list goes on. I lived there on and off between 2011 and 2017, crazy to see how everything has changed and that there is now a cap on how many rentals are allowed in each neighborhood. While this bill you mentioned has been pulled, I'm sure California will find another way to overtax their residents in the name of "good".

Love the attitude! Where did that come from? I understand your decision and I hope you find good tenants!

Shelby, the direction you are moving toward makes sense. Does this mean you will not be developing the Joshua Tree property also?