Long-term profits seen in short-term stays

Success of Airbnb model prompts more building owners to consider limited-term rentals
By E.B. Solomont | October 20, 2015 09:00AM

From the October issue: Stellar Management’s Larry Gluck was not pleased to learn earlier this year that tenants of his Chelsea apartment building were renting out their $3,500-a-month apartment via Airbnb on an almost nightly basis. Charging $375 a pop, the tenants were poised to net $11,000 a month, according to a lawsuit filed by Stellar in August, which detailed how the firm monitored short-term rental sites to quash such behavior.

But even while landlords like Stellar crack down on tenants renting through Airbnb, the home-rental site’s spectacular rise has breathed new life into the city’s short-term rental market, despite local housing laws that prohibit sublets of less than 30 days. [more]