By Lira Mercer and published on claytoncountyregister.com
Related article: https://www.brisbanetimes.com.au/national/queensland/brisbane-enlists-big-data-and-ai-in-crackdown-on-airbnb-style-rentals-20221018-p5bqpy.html
The founders of Deckard Technologies, a property tech start-up, are hoping to address the rental affordability crisis by assisting local governments in collecting taxes from short-term rental operators such as Airbnb. With the increasing number of short-term rentals around the world, governments and local councils have become concerned about the impact these rentals have on housing supply and the ability to capture excess rents from short-stay visitors.
In Australia, the number of short-term rentals has grown by 10% to 200,000 since 2019, leading to significant rent increases in places like Byron Bay, where rent has risen by 46% in five years. However, regulating platforms like Airbnb and Stayz has proven to be challenging for councils and governments, as it can be difficult to track which properties are operating as short-term rentals.
Deckard, on the other hand, claims to have the solution. The company’s data platform uses artificial intelligence to scrape the internet and identify properties that are being used as short-term rentals. It also assesses if these rentals have complied with their tax requirements.
According to Deckard’s co-founder and president, Craig Brown, their platform has helped client councils achieve a compliance rate of 95% among short-term rentals within their jurisdiction, ensuring that taxes are paid.
One example is the Brisbane City Council, which has increased rates for short-term rentals by 65%. By using Deckard’s platform, the council has recorded significant returns on investment.
Mr. Brown explained, “We can identify a property for $50 and they can hike the rates by $1000. So it’s a pretty good return on their investment.”
Deckard has seen significant uptake in the United States, with around 170 municipalities using their platform to tax and manage short-term rentals. The start-up recently raised $6.5 million in funding, led by EVP and supported by Synapse founder Michael Loeb’s personal vehicle, Commonweal Ventures. In total, Deckard has raised $18 million so far.
With the growing backlash against platforms like Airbnb, Mr. Brown is confident that more Australian governments will turn to Deckard’s services. Cities like Melbourne and Hobart have already implemented measures such as registration fees and rate increases for short-stay accommodation providers.
Deckard’s platform provides a much-needed tool for governments to effectively regulate and enforce compliance among short-term rentals, ensuring that taxes are collected and housing supply is protected.
Sources: – The Australian Financial Review
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