Worried and even frightened by suggested new policies that the Government is creating for the rental market, APPII recommends dropping the “IRS” tax rate on 5-year contracts, rather than 10 or 20 years, as has been proposed. The association president considers the shorter period to be more realistic in achieving the goal of stimulating the rental market.
The holiday accommodation platform, Airbnb, is interested in offering long-term lets to help its customers base find homes to live in. This initiative builds on the company’s already existing experience. Since 2011, Airbnb has included a sub-lease section on its website in more than 5,000 cities, listing houses and apartments for rent by the month.
The gradual end of rent control is still creating market distortions according to a comprehensive report recently published in the Financial Times. While the number of frozen rents (with contracts signed before 1990) is constantly shrinking, many are still skeptical that property owners will someday prefer long-term leases over the lucrative Local Lodging option, even in a completely liberalized market concludes the FT report.