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Episode 065 - Interview with Napa Valley Chris (Young) on His $6k Airbnb Settlement - Part 2



Part Two of our interview with Napa Valley Chris, Christopher Young.

Links to his Facebook Page: 


Links to the interview ABC News did with Chris:


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Recommended Podcast Episode that is paired with this one like a Fine Wine:

Episode 064 - Seven Things You Can Do to Prevent Parties in Your Short Term Rental



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Show Transcript

[00:01] Over the last two centuries, nearly 90 percent of the world's millionaires have created their wealth through real estate. Here to tell you how you can ride this wave with less risk and less capital while creating greater income, is your host, best selling author and Speaker, Michelle Russell.

[00:21] Hi, this is Michelle, the Master of Money Mindset, and you are listening to the Short Term Rental Revenue Podcast...

and in today's episode, Speaker 3: (00:29)
we are continuing our interview with Chris now Napa Valley. Chris, Chris is Chris young and he is now famous. Yes, the TV stations picked him up. ABC in San Francisco picked up this story and played the little games with him, so I posted that on our website, on our Facebook page. You'll be able to check those interviews out. They were really good, pretty awesome and fun. I wish they had shown his property a little bit more because when people see it from all over the world, they were like, Oh, I will. I want to go to Napa Valley. But anyway, we get to continue this. But first I wanted to remind you that our podcast today is brought to you by audible. You can get your first audio book for free by going to audible, forward slash S T R revenue.

Speaker 3: (01:21)
That's audible, forward slash S T R revenue to get your first audiobook for free and 30 day trial into the audible membership. You download this really cool app and there's all kinds of channels there. Your books will come on. You can buy books on the audible app now, which is really, really cool and remember, you can speed it up and listen to it anywhere you go. I sync the app on my phone to my car as soon as I go in and turn on the car, my audible book comes right on. Love it. And you will too. So let's get back to this interview with Chris. The first part was really good. Now we're really getting into it and so we're going to continue that conversation right where we left off and joy.

Speaker 1: (02:10)
So, you know, I mean it's, it's just,

Speaker 3: (02:13)
yeah, it is what it is that it's part of doing business that we should realize that this is part of our business. We're in the hospitality industry. It's not our job to police people or what they're doing inside our homes. It's not any of our business. Once they close those doors, they're renting our space. We do obviously ask that they treat our properties with respect. But at the same time, like you said, you can't watch them. We're not babysitting.

Speaker 1: (02:41)
Yeah. And that they're run in our space thing. That first property we bought in Vallejo where we had problems, you know, we put noise where sensors in there and I got after I spoke with the neighbor, said, Hey, I need, I need to know that there's an issue going on. I got a call on two different events where there being loud as hell. And I went down there and I mean they were being loud. I go down there, I'm like, this shit's got to stop. You know, and I forget what happened, but Mike was like, go down and kick them out. And you know, I was driving down to my truck and Mike's like fuck them, kick them out. Cause I think they were given one of our, uh, I think they're given Michelle who was, who was a young lady, worked with us at the time.

Speaker 1: (03:20)
I think they're giving Michelle a bunch of shit on the phone. Mike like out kick them out. So I called wlel PD and the way down there and to Hey, you know, I gotta go over and talk these people. I don't want a big bite to ensue, you know, can somebody just be there so you know, these guys don't come out and murder me. And I get down there and it's like there is a fucking party going on. Oh wow. And I'm like, Oh shit. So I just waited outside. I told him, I said, I told him Leo PD is like, we got to get these, we gotta get these folks out of here. And he's like, I'm going to tell you right now. He goes, if they don't, if they don't want to leave, they don't have to leave. And this is shit I fully expected cause I used to get this crap in the repossession business all the time. It's a civil matter and this is the problem that um, Airbnb is going to have with this new, uh, knit the neighbor hotline and you hadn't heard about this. So they're going to have this neighbor hotline and it's going to be, you know, a body is going to actually answer the phone. It's going to be 24, seven, three 65, and it's going to be globally. And any neighbor can call it any time about a disruptive home. Um, this isn't gonna do shit.

Speaker 4: (04:25)
Yeah, because police can only do so much.

Speaker 1: (04:29)
Well, if we rent a house somebody and they're having a party, I mean as long as five people aren't getting shot, if they're having a party and the police go over there and they say, Hey, you gotta go and they quiet down and they refuse leave, there is nothing the police can do. It is a purely civil matter that they'll say if you want them out, you need to get a court order. And that's just the way it is. I mean it's,

Speaker 4: (04:53)
I think that's the state too because in the state of Arizona we can get them out. Um, then you get them out that night. Absolutely. We can go in there. That's our property. We can get the guests out as well because it's our property. And so they only had the right to stay. They're following the house rules. If they're breaking any of the house rules, we can kick them out of lucky because in California there's there, but like you said, it is, it's, it's a matter of the, you've got to know all the laws of the different municipalities of where you're hosting because every state, every city, they have their own rules and laws. And also too, there's always a difference between police officers. Most people don't realize and Sheriff's department, what they will do, one upholds the constitution as the Sheriff's department and the police officers uphold the city laws. So there are differences. Even when you have like who's going to be coming to the house, find out is it a sheriff or is it the police? I know stupid stuff like that. But you should know when you have these things just in case something happens.

Speaker 1: (06:03)
Well, and then you know, also if you're in a hyper liberal state, like we are, I mean the police department, they, they, it's like, you know, we really don't want to get involved in this shit. You know, we don't want to kick them out and have them, you know, it's like, eh. Yeah. So it's going to be interesting to see what, what happens with um, yeah, with their hotline. Well yeah, yeah. With the hotline and how that goes. And then how that works into the algorithm on the property. Is that gonna then if the property is getting repeated calls, how is that gonna affect the algorithm within Airbnb system? Cause you know, Chesky has been saying, you know, since day one, you know, we're going to harness technology, we're gonna harness technology and harnessing technology and operating, you know, with reasoning are two completely different fronts and they've been harnessing technology for a really long time and now they're gonna start, it looks like operating with a degree of reasoning because these high risk reservations, which is another thing we'd get into, they are saying that these are going to be handled manually.

Speaker 1: (07:07)
They're going to handle them by hand. And one of the things Chesky says he was at this deal book, uh, interview and he says, you know, if somebody books a house, a five bedroom house and there one person that's going to trigger a manual review inside of the company, well that should already be triggering a manual, you know, that shouldn't be triggering some sort of review before now. And what leads me to believe that they've known this as existed is that they were, they were, well, they're so quick and coming up with solutions. So my opinion is it's, it's been there for a while. You know, Chesky is a smart guy. I mean you know mean you'll hear me say it in the videos. Chesky is not a stupid guy. It's the, the problem is is that Airbnb is, I've said it before, it's a tech company. They operate very, very reactively, especially in California, especially in the Bay area. They do not operate proactively. I don't know why they don't.

Speaker 4: (08:06)
There's things that we need to do though as hosts, like you said that we can use technology. You said you use noise aware. There's things like party squasher. There's a bunch of different technology you can even get it from right from Cox cable that will measure the number of people attached to your internet so you can tell how many people are there. You can see a party's coming. We've been, we've done an episode here because when the super bowl came through here, we'd had the super bowl a few times. We always have the Fiesta bowl come through in Arizona and what that brings is prostitutes and pop up brothels and so and where you have prop up brothels. What else do you have? You have a lot of drugs and trafficking and so there's always things that we need to be aware of as hose. What should we look for? And I love how you, you said about the neighbors because you, you had a good relationship with those neighbors. As long as you've got a good relationship with your neighbors, that's important too because they can call you and say, Hey, something's not right. There's like a ton of cars coming in or there's a line of cars coming in and leaving and then coming in and leaving things that Airbnb can't do anything about and wouldn't know anything about. Um, you know, there's no way for them to detect that.

Speaker 1: (09:24)
No. It's funny you bring up the neighbor thing. So at the same house, we had heisted Halloween night the same night as the Orinda shooting. So the horrendous shooting from, from what I've read, his, it was a organized house party. There were posts on Instagram, you know, going to have this mansion party, all this, it was an organized house party. And they said there was a hundred people there. Well guess what? That same house. We got heisted Halloween night. There was an organized house party at our house and we were kind of still real and after the the heist and we get this one night booking from a brand new guest. Okay. And Mike's like, I don't know about this, I don't have a good feeling about this. But being we're super hosts, we're on instant book. Evidently if you try to cancel it, there's consequences and you know, I don't know that piece of it.

Speaker 1: (10:21)
People always asked me, it's like I don't know that piece of it. Fuck, I don't know. I know how to put the house back together when it gets fucked up. So everybody, there's some, there's some negative consequence of canceling that booking. You'll lose your Superhost status if you cancel more than one. That's, that's what I've said. And people like, no, you don't what the hell you're talking about. So anyway, so this deal is probably going to fall in, in under a higher risk reservation, but it's not going to be until later on in maybe, I think December that's going to get rolled out. If they'd had this going as they should have, which a lot of people agree they should have had this going, this would've got flack. So we get a booking by a young lady, brand new profile books for one night books on Halloween night, young girl, and they have a fucking full on house party.

Speaker 1: (11:16)
Wow. We get a a, a message over the uh, Airbnb message deal. And the girl's like, yeah, I fell down and I, I hit the wall with my high heel and there was a little hole and Mike's like, Oh yeah, that's not a big deal. We'll fix that. And you know, Mike's like, Hey, you know, sends our management and he's like, Hey, run down there and let's get, you know, take a look at this whole and let's see what we need to fix it. We go down here and I mean it's, it's fucking huge. It's, I mean, I mean it's, I think it's like three foot wide and two foot tall or something and it's just the walls caved in and somebody put a person through the wall, not a heel. Exactly. And like there and it's like we think there was a fight. Okay.

Speaker 1: (11:57)
So I go down there and it smells like reefer in this house. I mean the whole thing smells like weed. I'm like, Oh, okay, there's something weird going on here. And the ceilings all scratched up and I'm like, yeah, there was a party here. So I start watching the cameras and I'm watching the camera on the front door and I don't really see a whole hell of a lot to begin with. You know, there's a young man comes in, there's a woman that booked it and like, well that's kind of weird, but maybe that's just her boyfriend. He comes in, comes in the front door, which is actually on the side of the house. So you've got a camera on that side. We've got a camera over the other side, so down the two sidelines of the house. Then we've got one over the garage and I watch that camera first and he comes in and then all of a sudden there's more people in the house.

Speaker 1: (12:41)
I'm like, how the hell these people get in the fucking house? They're not coming in the front door. And then all of a sudden there's all these lights and shit going and every time somebody opens the front door triggers that camera or anytime anybody walks up the walk, it triggers that camera. And at one point in time there's a bunch of lights and shit go. I'm like, what in the fuck is going on here? And then there's one point in time where somebody goes outside and comes right back inside, but they, they go outside and for some reason the audio didn't pick it up right when they, right when the camera came on. So the audio is down, you know, you can hear the music through the door, the door's closed and they opened the door and it's like, you are at a fucking rave.

Speaker 1: (13:19)
I'm like, shit. I'm like, the neighbor there is gonna fucking kill me. She's gonna be so pissed. I'm like, Oh, this is not good. I'm like, we, we got a fucking problem here. So I start watching the other camera down the other side line of the house and that's where they're bringing the people in. And then so, so I'm trying to watch the camera chronologically and I'm watching the camera shooting down the one sideline of the house by the gate and I can hear all the way at the front of the house. This guy's talking about, okay, so it's this much. If they have a costume, it's just much that they don't have a costume, you know, we're still going to be charging a cover charge here at this time. I'm like Holy shit. So I go to the front camera at the same time and he's standing right out of sight of the camera talking about this.

Speaker 1: (14:11)
And it's a ring camera they have, they have microphones and I don't think, I don't think you realize it and you can hear it clear as day. I'm like, Oh shit. So then what I do is I get off of that camera and I go to the front camera and go all the way to the beginning of when they got there. And it's like, Holy shit. They're bringing in the speakers and the stands and the the guy who's the guy who's the organizer shows up in his E-Class Mercedes. And he puts that thing in the garage. Oh my God. And then the door man shows up with his wife and they're putting the chairs out there, you know, cause they're gonna, you know, they're going to be running, they're going to run at, you know, the, the, the door through these. And then at one point you, you hear them say, okay, you've got a camera by the front door and you've got a camera back here and you've got a camera right here. So we're gonna run the people in right here. And I mean it's just, it's just group after group after group. And I'm, I'm telling you, they had, they had to run more than a hundred people through this house. Oh my God.

Speaker 4: (15:10)
Can't even believe. And they were so organized to know too, here's how we're going to do this.

Speaker 1: (15:16)
So, and this is just another unfortunate event that we experienced and it just happened to coincide with the same night as the horrendous [inaudible]. So, you know, I think this house party deal was bigger than anyone really knew. And I think it was being from a host perspective, and I think it was really big and Airbnb knew it and either they were either they didn't care about trying to control it or they were maybe hopefully trying to figure out a way to do it quietly, but they weren't doing a very good job about it. Right. And then our Renda happens and it's like, okay, everything's getting fast tracked because it's, I mean, any reasonable thinker can sit down and look at it and think through it logically and say, okay, they're coming out with these all these possible new policies really, really fast and they're reacting to this really, really well. Well, they're not reacting to it really, really well. They reacting to it very, very poorly. Yeah. And it's just like, okay. They had to know, they had to know this shit was going on.

Speaker 4: (16:21)
There's wherever kids figure out how to make money, they'll do it over and over and over again. So this could be a problem that we can't see from the outside that has been going up along and maybe in several communities all in the San Francisco Bay area or you know, up in running all down that coast or maybe everywhere in the country. Who knows?

Speaker 1: (16:43)
Well, so, so this is what's interesting. Last night I was sitting on the sofa just reading stuff on the internet and I come across this Orenda Airbnb violence fits pattern. At least 42 people shot at short term rentals in last six months. This is a San Francisco, the San Francisco Chronicle bear in mind. And what happened was one of the neighbors to the Orinda house started doing some research and started figuring out that people have been shot at short term rentals. This is not uncommon. It's just not talked about. So this is not good for Airbnb. And especially if these are all Airbnb accommodations, if they can prove these are all Airbnb combinations, this is not good. But this also isn't good for us as hosts. Not that this is anything that's gonna roll up. You know, this isn't a sewer that's going to back up in our mouth. The guy that owns a house in Orenda is digging to end up in court.

Speaker 1: (17:45)
Yeah. He's going to end up in court over this deal or he's going to end up getting sued and hopefully he has property insured correctly where he can give it to the insurance company, let them roll with it. But the only reason I think from having an insurance background that he's attached is so they have access to Airbnb because Airbnb has all the money. Yep. This is where this is going to get really, really dicey for everyone in the community. It's going to get dicey for hosts because you're going to have insurance carriers that are going to scrutinize how hosts are handling their listings, their accommodations, and you're going to see a bunch of new underwriting guidelines coming down. They're going to be asking more questions at the renewals and it's going to make it more problematic for us to find insurance. I mean, it's something a lot of people don't think about because I think I read somewhere that that uh, Airbnb a signally in listings. Does that sound right?

Speaker 4: (18:42)
Right. Airbnb has 6 million listings worldwide. 6 million.

Speaker 1: (18:47)
Yeah. So you have 6 million listings worldwide and you know, that's a lot of insurance coverage. That's a lot of exposure. As we in the insurance business. Say there's a lot of exposure there. So how the insurance companies handle this as hosts, that's something that tend to get very, very interesting because you could, you could have a carrier just completely pull out, you know, we're, we're insured of proper proper is underwritten by Lloyd's of London. Lloyd's of London writes really, really high risk shit. If Lloyds is writing a program, it's sometimes the end of the road for a lot of shit. And I can tell you from being in the insurance space, I used to, I used to insure towing companies and towing companies is a very, very high risk space and the programs get burned down all the time. And w and what I mean by burned down is you have more payout than you have premium.

Speaker 1: (19:51)
And when you have these really, really high risk program, we had these really, really high risk endeavors and these programs get burned down. Then the administrator of the program, they have to go find a new market for it. They have to find a new carrier that's willing to write in a space. Well this is a very, very small space and you know, I have an aversion to attorneys and claims, you know it, a lot of people don't like a fuck it, you know, I've got insurance, Lynn's going to turn this claim in. And it's actually pretty, pretty bad. It's very, very bad behavior because every one of those contributes to the burning down of

Speaker 4: (20:26)
exactly. And most of the time it has to be way we've our deductible with proper as a thousand I think. And so we won't even, I mean there's the majority of the claims that we would have would be just around or around a thousand or under it. It's usually televisions, small things are missing, right? Towels, things like that. But we never, we never make those claims. Why would you? You're like, why wouldn't you?

Speaker 1: (20:56)
You know? So we were talking about the 6,000 our claim here in the office and Mike is, you know, Mike's like, well why don't we just turn that into our insurance company? I'm like, I'm not turning a $6,000 claim. And he's like, well they can get it back from Airbnb. This is what a lot of people don't understand about insurance companies and subrogation, proper insurance is not going to go back and subrogate against an Airbnb for $6,000 to put things into perspective, I had a towing company insured in central Missouri at one point in time and they had a tire failure, a Goodyear tire failure on a truck on a big heavy wrecker, big heavy steer tire, steer tire, went out and he put the truck through the cable barrier, did $100,000 in damage to a heavy wrecker, a hundred grand, did everything but roll it over on the side and they had took everything out down one side. It was a hundred grand and fixed truck. My insured was so pissed that the insurance company was not going to subrogate back against Goodyear and I had explained it's going to cost them more to subrogate than they're going to get back. And they're like, I don't give a shit. I'm paying insurance premium. Doesn't matter

Speaker 4: (22:07)
when you're talking to attorneys and time and all this stuff that goes with that.

Speaker 1: (22:12)
Yeah. So, so, so proper or a B and C or foremost or whoever, the insurance carriers, they're not going to subrogate back for $6,000 now is $6,000 a hit to some hosts. $6,000 is a giant hit to a lot of hosts. And those are the hosts that would turn that in. And you know, if that's what they want to do, that's fine. If they have, if they have the opinion that, Hey, I have insurance, I'm gonna turn it in. But when the program is gone and it's vaporized, you know, this is the shit that burns down programs here in California, we're having trouble with insurance carriers, not just for STRs, but for all homeowners home because of the wildfires.

Speaker 4: (22:54)
Exactly. Same with Florida. With the hurricanes. There was a few years after David that you couldn't, all the big major companies pulled out, state farm, pulled out, um, all state. I mean all the big companies pulled out and the only thing we had were mom and pop insurance companies that were popping up overnight. It felt like, I mean it was, there was so much crap insurance out there. It was crazy. It took it years, literally years to adjust and get some good companies in there again. But where you have high what of a of a hurricane or hurricane or the wildfires, I mean risk of lost. Yeah, exactly. They won't obviously those companies that, that's their business, they can't do it

Speaker 1: (23:40)
in the, and then out here you have, you have, you know, the liability component of it. I mean, you know, exactly. I was shopping the insurance, uh, earlier in a year and I was talking to our agent. I was like, Hey, you know, can you shop it, you know what other markets are there because it's a very, very limited appetite for insurance com. And he said, there's a lot of folks don't want to write it. And I was talking with her, I'm like, Hey, who else is out there? And she's like, well a B and C's out there, X, Y, Z is out there. I'm like, well can we, can we quote it to them? And they said, yeah, but you know you're going to have like, you know, I think like through foremost we've got a pool at one of the house. We have a pool and a hot tub at one of the houses. Well a hot tub triggers you down to a five 500 K liability. The pool pushes it down to 300 K you can't even get, you can't even get the liability coverage out of some of these carriers. We're, I mean, we're with proper, I've got a $2 million, not $2 million aggregate. I've got a $2 million per occurrence liability limit with proper, so there's [inaudible].

Speaker 4: (24:39)
Yeah, my proper insure guy was trying to talk me out of the, having the redoing and pool in one of my places. I was like, well, the pool is empty now. And he goes, fill it in, fill it in. He goes like Arizona, it's hot. It's like it's going to cost you so much, Michelle. You know, the,

Speaker 1: (25:01)
the pool. I mean for us and me, I don't think the pool is really that much more risk. I don't think it's any more of a risk than being in California. I mean, I, I think, I think, I think just being California to higher risks and having a pool.

Speaker 4: (25:14)
Yeah. I think just the location with the kids near the university, how they sneak into pools and stuff and different, you know, that's there. They're just thinking about it. Because think about this as hose. If you have a guest who comes to your town and they get mugged, you can be sued. They will Sue you. You didn't how dangerous the town was. Well, they can, they can Sue you, but in order to be awarded anything, they're going to have to prove it. They're gonna have to prove negligence. Right. And then the parties too.

Speaker 1: (25:48)
Yeah. If the host was no, mine was by no means negligent. Like the, the, the, the host at Orenda. I don't know how the hell anybody's going to prove he was negligent. I mean, have there been, have there been other parties

Speaker 4: (26:01)
who knows, right? I mean I'm, yeah, but there have been other parties there, but I mean, did anybody think a shooting was going to go down? No. No way. And they did everything they possibly could do. I'm sure people are trying to make Olivia if that was his only place, he had the nights opening and somebody booked for two nights, I could see why people take the bookings. People are like, why would they take the bookings if it's a nice high monthly rate? You had a slow month and yeah, if that was your only property, I could see how somebody would do it. I could see.

Speaker 1: (26:35)
Okay. So I'm, I'm glad you bring that up. I think we run very, very few um, vacancies. Yeah, you have a very low vacancy rate. Mike is very, very diligent about getting every night booked and he's always adjusting prices and, and getting it and, and getting nights books. So, I mean, it's not unusual for us to have four or five orphan nights that are single stay nights at any one of our properties. And you know, we have a two or three, you know, two or three night minimum and we've got an orphan night. I mean our Napa Valley property's booked for some pretty good dough. So we're going to do everything we can to optimize those bookings. No different than, you know, you know, if we're, if we're managing a property for somebody else, if we're, if we're managing a property for some other party, we are going to do everything we can to ensure that we are making that property owner as much money as we can.

Speaker 1: (27:30)
It's our obligation and it's our obligation to our company and our, you know, a P and L that we make as much money as possible and we are going, we are going to book orphan nights and you know, and Napa Valley look and orphan nights isn't really a problem in Vallejo and maybe it's going to be more of a problem. I mean this, this house parties our first big deal and you know, it is what it is. There's crap. You can avoid this crap. You can't man, that was one that, you know, we may have been able to avoid. Um, I don't see how we could have unless we, unless we kicked it and then we, and you know, and then, and then we got the, these, the Superhost deal kicked on us. I don't know. Yeah.

Speaker 4: (28:10)
And super host is very important. What do you think about these high risk reservations that they knew about that that's where they're doing that damage control. Yes.

Speaker 5: (28:20)
The high risk reservations.

Speaker 4: (28:22)
I sat there and when I saw that they had three of those, they let them instant book with you. Yet there were three, you said three reviews that had drugs and stuff in them. So why were they not, I'm like, why were they not kicked out as guest?

Speaker 5: (28:40)
So see, so that, that goes back to to what I'm saying about them being a reactive culture. Yeah. If Airbnb was being as mindful of the status of the guest as they are of the host, then that would've been on someone's radar. And the problem is, I don't know if the, if the team or the body didn't exist at the time for that to actually be on someone's radar. I don't know. You know, I don't, I don't, I don't operate down there, but I know how much Airbnb scrutinizes hosts when a guest makes a claim, you know, be it, you know, I went there and there was two beds instead of three or whatever. Another interesting thing I saw Chessy say on that deal book interview was that they are going to, they're going to start requesting more information on guest reviews about host properties.

Speaker 5: (29:36)
And you know, I've stayed, I stayed at a couple of Airbnbs and you know, thought that the follow up review was pretty comprehensive. I mean, you know, I've done them and they said, okay, how does the entry system, yeah, was there a washer and dryer? Was there all this stuff? And I thought that was, I, you know, I S I saw that and that's kinda one of the things that lulled me into this sense of security was like, well, these guys are asking a lot of questions so they must really have their shit together. Yeah. The problem is I don't know how you, how you vet that on a guest when a lot of us host have no personal contact with them. You know, there are hosts like, Oh, I'm going to meet everyone that comes into my property. That's great. If I tell you want to run it, that's great.

Speaker 5: (30:23)
But when you're operating the scale, you can't do that. And there are a lot of guests that just don't want to have contact. They just want to come in book or they want a book come in, you know, check in, drop all their stuff and uh, and leave and go, you know, go do it. If they're going to do, you know, they don't, they don't want, uh, you know, they don't want to host. Exactly. So from a, from a high risk reservation deal, I can see how they can control that. I can see how they can get better information on the host. I'm more concerned with how they can get better information on the, on the guests. Exactly. 60 million is how many, how many people they have on the platform. That's guests and I think host 7 million is a number of accommodations they have, so I don't know how you, I don't know how you vet 60 million people when there's no personal contact between the host and the guest.

Speaker 5: (31:28)
The average Airbnb host lives 350 miles away from the property. Yeah. That means for the, you know that there's a majority of hosts who live right there on their property and then they take the other ones live thousands of miles away, which gives you that average, but there's such a diversity between the types of hose with the gas. Anybody can just go in and sign in, upload any document that says, this is my government ID. It can be theirs or not. They could have stolen a wallet, you know, how do they check and verify this? There should be a verification system. It's actually funny you bring us up because something came up on one of the, one of the pages I was reading today, this is a screenshot somebody posted and it is, how do I edit my account settings or profile? And they, they went down here and they highlighted something and says, guess, and this is right on Airbnb site.

Speaker 5: (32:28)
Okay, write in somebody's profile deal. It says guests are not required to upload a photo when they join air B and B that are required to upload a photo to book. Unless the host requires profile photos, guests can remove profile photos from their profile at any time. So for hosts that are meeting their guests, naturally, those people want to know who they're meeting. But this speaks to another issue that Airbnb has internally. There should not be two sets of rules. There should be. The photo needs to be there and it needs to be you, you know, and it kind of goes back.

Speaker 4: (33:12)
You match your identification damn well better mentors.

Speaker 5: (33:16)
It kind of goes back to what I was saying about, um, you know, the hosting, Oh, they've got their picture of their cat. Well yeah, I see what they're saying, but it, it, it is, it allows guests to be anonymous and allowing guests to be anonymous is kind of how the horrendous shooting happened. Cause I can dare, I can guarantee you they didn't have on there. I'm a DJ and I, I go in, I rent places and I make dough and we, we trashed the house.

Speaker 4: (33:45)
Very true. But that, yeah, you're right. I mean, they really can't have that anymore. I can understand how some people wanted it, but it's not, it doesn't work both ways.

Speaker 5: (33:55)
Yeah. I, I, I think I really honestly believe that Airbnb, they are going to have an uphill battle here for a long time. This, this Orenda thing is going to ripple through the entire space. A lot of people are going to feel it and I just, it's going to be interested in seeing where the whole thing goes. I mean, there's gonna be a bunch of people jumping out of the space. Uh, there was this thing in New Jersey that just tapping this week. Let me find that article. Um,

Speaker 4: (34:27)
well, air DNA sent us some stuff too about I've put in for, we're buying another property and it was a new zip code and so I paid extra for the report and when it came back it was seen that the, there was a stall in the, uh, reservations in that area. We're seeing just lately we're seeing a stall, a reservation, something's going on with Airbnb and we were like, what's going on? What do we not see? What do we not know about what's not on the news? How there's so much hidden stuff that we as hosts need to know about, especially when it comes to market and demographics. What I loved about Arab DNA is they're really forthcoming with their information. Here's everything we know and we can see something strange is going on and they'll let us know that like, I wish Airbnb was that way with us.

Speaker 5: (35:19)
Well. Yeah, I mean, you know, they, well they want to do is they, they want to get the, they wanted to get the listing on the, on the books and get it to get it earning money. They don't, I mean, they honestly don't care how much money you make or how much money you don't make. They'd like to see you make more money, but they're making money on every time your place gets booked. So if there's, if there's a city and 10 listings and they're each doing three nights a month, well, you know, yeah. Or you know, if there's one listing and it's doing 30 nights a month there, they're kind of making the same money. So there's deal in Jersey, in Jersey city. Evidently Airbnb just got a big punch in the mouth there because evidently whereas this, I made this thing just got voted down, so there was a bunch of listings there that look like they're going to go away. And I think that this deal here in Jersey city is because it's right after this Arenda thing like, you know what, you got this horrendous shooting and it just kind of changes the temperature of folks immediately.

Speaker 4: (36:19)
Marathon instead of it says Jersey said had console approves Airbnb regulation, marathon meeting. Oh, the meeting lasted forever is what they're saying. Yeah, yeah, but now they're firing back

Speaker 5: (36:33)
and they, they poured a ton of money into that thing.

Speaker 4: (36:37)
Wow. See and that's where these regulations come in. It's, I mean they love to slap people with regulations and there are some regulations I can absolutely completely understand you as a homeowner, you want to make sure that your property is, that it's protected and that the value is protected. Where I don't see a problem with that is you and I both know that the better our property looks as an Airbnb host, whereas a short term rental hosts, the more it's likely to rent out. So it's not that we don't want the same things that regular homeowner would want. You know why? Obviously the government wants to be able to regulate it so that it can make sure it gets its taxes. The state of Arizona works directly with Airbnb, so our taxes come out of our listings. We don't have to. RTO T is right there.

Speaker 4: (37:30)
It's pay it out. And so there's no, um, there's no hiding it, which is really great. Which could have avoided all that mess with Hawaii. Hawaii had, what did they have over eight thought they estimated at one time over 10,000 illegal Airbnbs, but they let that go for years. Chris, come on. If you're, if you're watching how many people are flying in every day and the number of hotels and resorts aren't building by, you know, this small percent, how did it take them like five years or whatever it took them to figure that out. Like, Hey, where are these people saying

Speaker 5: (38:09)
know? I don't think, I don't think they really cared. The economy was doing good. They're getting there. Well, whatever, what the hell man? Who cares? It's like they just ran away, ran away like everything else does. I mean, that's one of the reasons that we like being in a regulated market. I mean there's, there's a limited number of, of licenses, you know, and you know, we, you know, we run it, we run an business on, we've got a full on operations center with a, you know, and we've got everything vertically integrated from our housekeeping to our laundry. I mean, we've got a commercial laundry facility here in our building, you know, this is how we run. So I mean, if Airbnb wants to go out and verify hosts, I'll put them up in Napa. They can come here and very, I don't care. Cause we've got nothing to hide.

Speaker 5: (38:56)
I mean, we're, we're so anal about it that we did a, uh, a renovation on a property and we changed the flooring upstairs and we changed like the sofa and the chair. And we took all new interior pictures because we didn't want people to come in, be like, well there's a red sofa in the picture and this is a Brown leather sofa. Very good one. He just didn't want, you know. So, I mean it's, it's I invited, I mean it's, you know, if, if, if, if they want to get down in the weeds and verify, I think it's a great thing. I think it's something they,

Speaker 3: (39:31)
I have no problem. Nobody has a problem when they're following the letter of the [inaudible].

Speaker 5: (39:34)
Yeah, yeah. Cause like go ahead. What? Once again, I don't know how you get, you know, because Jesse saying by the end of next year they want to have all guests and all hosts verified. I don't know how you verify the guests.

Speaker 3: (39:49)
Ooh, I'm a little bit tricky because there's a good conversation coming up for the last part of this interview with Chris, but you won't be able to hear it until next week, but don't worry. Next week I'm going to give you a double dose of Chris and a special Thanksgiving podcast. You guys are going to love. It was taken from our Monday mindfulness. If you're a member in our membership, you will know that every single Monday morning we do something called the Monday mindfulness and a motto comes on and he and I go back and forth with whatever Amato's got. But it's amazingly funny because it's very synchronistic. We'll start talking about like, how was your day? How was your weekend? How's this going? And then no matter what, it just turns into a thing. And then he goes, okay, start it now.

Speaker 3: (40:46)
And so we start recording right at those specific moments. So we do like a little recap, but this last Monday was all about gratitude. We were talking about the things they were grateful for, and if it's so well into Thanksgiving, but not only is it a gratitude thing, it's a mindset thing, but it has a lot, a lot to do, probably everything to do with your success in your business. And so I thought, you know what? We've got to share this one, this one. We're not just going to put in the group. We're going to share this with everyone because it was so incredibly good. So next Thursday is going to be Thanksgiving and I will put that out and it will drop on Thanksgiving morning so you can listen to it while you're getting things ready and dressing the Turkey and getting all this stuffing in and everything is done.

Speaker 3: (41:37)
You can do that. You can listen to the gratitude one and my special guest will be a model of VA lie. He has a very dear friend of mine. He and his wife Chris are deep, deep, deep in my heart. I cannot wait for you to get both of these because you'll have a special week. It'll be like getting two podcasts in one week. And then the following week we've got a really great guest who is coming on and his name is Jim and he's a host in New Orleans and he's amazing. So I wanted you to get to talk to Jim and listen to his story about hosting in New Orleans and the fun that we had when we were down there. But his hosting cyl is quite unique to what we do. And so I wanted to go back and forth and kind of give you the different benefits of the different hosting styles.

Speaker 3: (42:28)
So that's what we're going to be talking about the very week after Thanksgiving so that we'll drop on the Monday after Thanksgiving. So remember you guys. Hey listen, set your budget. Okay. And if you want to, we're not doing our prosperity process Christmas group that we usually do. We usually do this Christmas program every year, but this year we're not doing it. But if you guys want, you can message me on Facebook and I'll put you inside our old group and there's still some people left in there. But we really had a great time each and every year in the prosperity process around this time, just around Thanksgiving and just before where we set up a budget so that we didn't overspend and that we didn't go out and buy ourselves a bunch of crap because that's how people go in debt instead of buying for other people. They see a TV and they are like, Oh my God, this TV is only 50 bucks.

Speaker 3: (43:21)
I got to get it. It's a big-screen TV and stuff. They lower those prices, but they end up getting really bogged down with debt around the holidays. Remember that is not what the holidays are about. The holidays are about something completely different and we want you to remember just, you know, the peace of God be with you and during this Christmas season. And so we want to make sure that you don't put your family in harm's way by going deep in debt. And we've got inside of our site, all these studies that I had read about, about how they trick you to buying stuff. You know, they'll put three TVs next to each other, one super-expensive, one's really cheap. And then the middle one is the one that they're targeting you to buy because they'll make it just a little bit better. And it will be like, wow, for only $50 more than the cheap one.

Speaker 3: (44:14)
I could get all these cool, you know, now this one's fourK and it's got this and it's got that. And so they literally do that on purpose. They where they placed items and aisles and I mean all of it means something because the longer you stay in the store, the more money you spend. So I want you to do us a favor and make sure that you're being smart this Christmas season and if you want to hop in that group, we're still gonna have posts in there and things to help you. It's not going to be the whole course that we have online, but definitely we'll be able to post a bunch of stuff. And we also get into games and things that we do to really make this season bright. Not just the gift giving, but decorating the house and decorating the yard and wrapping up presence and baking cookies and being with your family.

Speaker 3: (45:03)
That's the most important thing. So if you're interested in that, just get on our Facebook page and private message us or even leave it in a post comments somewhere and we'll invite you right in there. It's not going to cost you a thing. Just come in and we'll help you create a budget. I'll put out a bunch of free stuff for you guys and we'll maybe make a group where we meet and talk a couple of times a week so that everybody can keep to the budget, not overspend, and really spend Christmas doing what's the most important part of Christmas. And that is being with your family and being grateful for all the amazing blessings that we have in this absolutely amazing country of ours. So let's hear it for the episode today. Thank you Chris, and go to the page too and watch those videos and Chris's interview with ABC. You guys are going to love that. So have a great day. God bless you guys. We'll talk to you next week. Go and grow.


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