“The Airnb … just an intermediary for some unscrupulous people to flout the law and make huge profit renting out their (often multiple) properties.”
And your objection to making a profit or owning multiple properties is what? Through the process of ownership and profiting you have an incredible number of units to choose from. As for flouting the law, no one supports that.
“When the externalities/costs to third-party owners don't get figured into the equation, these bystanders have to bear the cost of constant turnover of nearby units to short-term renters.”
I have never met or come in contact with a permanent occupant who had a complaint about the short term renters in his building. I have met permanent residents who have welcomed guests to the town they are proud of. But I am certain that there are those who have issues with holiday renters in their building and I am certain that there are inconsiderate people renting those holiday apartments. It may even be a significant problem in some places. All of the apartment blocks that I am familiar with have an association that sets the rules for the apartment building. I would imagine that if they wanted to they could outlaw holiday rentals. Sometimes the association will classify those apartments as commercial and levy a higher commons fee, providing more income for the apartment association to do upkeep and repairs. It can be a win – win deal.
“I wonder how much can a private person really police the behavior of their renters unless they physically live in the building and simply share their home - this was how Airbnb was touted to be like in the beginning. Now, it has evolved well beyond a "sharing economy" - it's often used as a money-making ruse run by real estate agents and other property owners.”
“ruse” implies some sort of hidden agenda. Its no “ruse”, its exactly what it is; a profit making business. As for policing the guests? If it’s a problem the apartment association can put an end to it.
“I was looking at hotels in Nashville, TN the other day and noticed a condo owner with multiple properties was charging well over $250-300 per night - this would not only cover the monthly mortgage but well above.”
And if someone is willing to pay that much than that is the value of the rental. Good for him.
“In my own condo, short-term (less than 6 month) rentals are not allowed at all. That hasn't stopped one management company (actually, a trust of some sort) from using them as corporate housing using very flexible terms.”
If they are meeting the letter of the condo rules, the problem would be? Petition your association change the rules if need be..
“It would be great if everyone would just play nice so this could be a win-win for everyone, but there's a lot of evidence out there that this is not the case in some markets and some properties.”
Define “play nice”? Not be profitable? Buy an apartment and then give it away at a loss so more people can afford to share in your private property?
“Given the ethical issues with Airbnb”
I would agree that knowingly renting illegal apartments is an ethical issue that all the renting marketing companies should address or be liable for.