A Comparison of B&B and STR
traditional Bed & Breakfast
A traditional Bed & Breakfast (B&B) has long existed as a way for a resident to make some income from an extra bedroom or an accessory dwelling and for tourists to vacation in ‘non-hotel’ settings. The owner and manager are typically the same person and they live on-site. The owner may provide a meal and guidance on sightseeing in addition to the room. The accommodation is advertised in a local or regional tourism website, and complies with all local zoning laws and ordinances.
Short-Term Rental
A Short-Term Rental (STR), exemplified by Airbnb, most oftens includes the entire home and the owner doesn’t live on-site. In absence of supervision, more guests can stay than the home can accommodate, which in turn leads to an excessive amount of parked cars, noise, and trash. The listing is advertised globally and the payment method is streamlined, which helps the property to maximize the number of guests and bookings. The STR is therefore busy, rotating guests in and out as frequently as possible. In the case of absentee ownership, the property is serviced by a local property management company which provides cleaning services and responds to the concerns of the visitors. These qualities describe a hotel, not a quaint B&B owned by friendly members of the neighborhood.
B&B: Long existed as a way for a resident to make some income from an extra bedroom or an accessory dwelling and for tourists to vacation in ‘non-hotel’ settings.
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STR: Began originally as a way for residents to make extra income from an extra bedroom, but quickly morphed primarily into whole-house absentee owner rentals
B&B: Owner and manager are typically the same person and they live on-site.
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STR: Most STRs includes the entire home and the owner doesn’t live on-site, i.e., no supervision. What supervision there may be comes from a third-party management company.
B&B: Owners provide strict guidance and enforcement on numbers of guests.
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STR: In absence of supervision, more guests can stay than the home can accommodate, which in turn leads to an excessive amount of parked cars, noise, and trash. The listing is advertised globally and the payment method is streamlined, which helps the property to maximize the number of guests and bookings. The STR is therefore busy, rotating guests in and out as frequently as possible.
B&B: The accommodation is advertised in a local or regional tourism website, and complies with all local zoning laws and ordinances.
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STR: Most STRs operate in residential neighborhoods and some are not compliant with residential zoning ordinances and expectations. Example: Only 2,500 of the 10,000 Austin short-term rentals are licensed (2019 article)
See other Myths versus Facts on STRs for additional insights.