Category: Legal Branding

Legal Branding

5 Ways Product Labels Can Help Your Branding

Labelling is an essential part of your business process. In fact, it is a part of your product and brand. Labelling pronounces a host of conveniences during a number of core business activities such as logistics, warehousing, and showroom displaying. Not only the efforts of your staff reduce, but also the cost and time involved in the management and sorting the products repress considerably with right labelling practices.

Did you know, that more than 60% of consumers make buying decision-based on the packaging and labelling of a product?

Did you also know that 65% of products go unseen in supermarkets owing to the chaos in shelves and sections?

These facts make enough sense why a business should be focusing on adding more elements to the visual appeal of their product, packaging and labels. How to build his brand’s recognition in the market is one of the first strategies a forward-looking entrepreneur develops. When it comes to branding, quality is not the only factor that a business should be looking at. Quality without a doubt should be the focal point of any success-hungry brand. It is something that you never have to compromise on. It helps you retain your customers.

But, your packaging and labelling are two key add-ons that support your brand building efforts among your audience. If your product looks good and your label shows useful and valuable information, the customer will most likely see it, pick it, read it, and might give it a try.

Spread the word

The consumer base of an infant brand solidifies swiftly with word-of-mouth marketing done by its first-time consumers. The WOM marketing is effectively free of cost and a brand does not have to invest a single penny on this. However, there certainly are some investments required to add quality to your product and some appeal to your labelling.

Quality in your product will give you returning customers. They will then spread the word about your quality and suggest their loved ones to use your product. Here comes the application of your product packaging and labelling. Your logo or your unique label will help the ones convinced through word of the mouth find or demand your product.

Almost all brands, whether emerging or established, invest in quality and look of their product, just to ascertain that their products catch the attention of consumers at the very first glance. It is, in reality, one of their core strategies.

Increase on-shelf visibility

Not seen not bought. To be seen in the market, your product needs to look good and most importantly, “unique”.

There is a direct connection between your sales and visibility! The more you are seen, the more you are sold. There is no denying that shelf placement also plays a crucial role in your sales.

For a newly-established business, gaining visibility in the market which already is packed with countless similar brands, is among the top challenges. However, if you have got your labels designed and printed by a professional service for custom labels, things will be easier for you.

For better visibility, it is imperative that you design your product’s appeal rigorously; get the first draft printed and quality checked; and then, the final draft printed and distributed.

Display brand information

How would a customer know it is your product if there will be no information about you on your product’s label? Almost every brand makes an effective use of labelling for this very purpose.

You are trying to establish yourself in the market. The best way is to advertise on different media. Another great way is to do it through your uniquely designed labels. You can write about the brand message, in addition to your promise regarding the quality of your product, your post-sale service, or anything persuasive.

The logo also gets a place on your label, and that is how your product gets your identity. It would now become easier for your customers to find and recognize your products.

Promote your offers

What else you can do through labels is to let your audience know about your ongoing promotional offers. This is a very common practice in stores, where each shelf or section has its own label displaying the very offer applicable for that particular shelf or section.

You can get custom labels designed and printed in bulk for each of your upcoming discount-offering deals. And as per the strategically chosen time, paste or distribute those labels in the store to avoid delays.

Promoting your seasonal offers is a great way to promote your brand. Giving your customers freebies such as coffee mugs with a custom printed message along with your logo or brand name can help you establish your brand.

Product Information

So, we have talked about how labelling speeds up the effectiveness of your promotional offers, promotional messages, brand information, on-shelf visibility and consumer base. But, here is something unavoidable.

In many states and countries, the law abides businesses to give all relevant and necessary information about the product on its label. Pertinent inputs including ingredients, how to and how not to use the product, conditions, and other ins and outs about the product should get a mention of the packaging label.

Additionally, the date of manufacturing, the date of expiry, production batch number, weight, and rate should be there on the label. All such pieces of information can be codified into a barcode pattern, which has become a trend these days; plus it brings your customers to your website.

So, never ever miss giving product information on your packaging. Without that, your product might be rejected authoritatively.

Here is an informative piece that explains the step-by-step process of creating product labels.

Bottom Line

There you go. Labelling delivers noteworthy benefits. It helps you establish your brand in multiple ways. Effectively-designed and timely-distributed labels allow you to gain momentum in the market influenced by brands of the same nature. However, what is essential is putting the right label on the right product (at the right time, if it is a part of your seasonal promotional event).

Not just your products, but also your labels and packaging – everything needs to be tested for quality stepwise. It is vital because you would never want your labels to have misleading or textually or grammatically incorrect information. One single misrepresentation can put a mark on your brand image. If you are making efforts to establish your brand, then such blunders can toughen your way significantly.

Legal Branding

Data Breaches are Soaring

2017 was a high-profile year for cyber attacks. Hundreds of millions of Americans were exposed to massive breaches at Equifax, Yahoo, and others. But while a few instances may have dominated headlines, the story of 2017 was how data breaches soared overall.

Data released by the non-profit Theft Resource Center brings the issue into stark relief. In 2017 there were 1,300 significant breaches at US organizations including businesses and government agencies. In 2005 there were less than 200 comparable instances.

The researchers are careful to point out that the numbers may not be as stark as they seem. Companies are now required or compelled to report breaches, which would inflate numbers over a decade ago. Unfortunately, there is plenty of other evidence to suggest that data breaches are becoming more common and more frequent.

The New Definition of Massive

We are used to hearing about data breaches that affect millions of consumers and involve huge amounts of stolen data. But since these massive attacks are so common, it’s hard to notice that they’re growing as well.

The cybersecurity firm Gemalto estimates that 2.6 billion records were stolen over the course of 2017, which is an 88 percent increase over the previous year. That means hackers have multiple personal records on most people in the country.

The Gemalto data also highlights that theft isn’t the only troubling issue. The firm estimates that 1.9 billion records were lost accidentally. This could be due to improper disposal, misconfigured databases, or basic human error. Regardless, the total is 580 percent higher than the previous year. Hackers are troubling, but even simple mistakes can have huge consequences.

The New Definition of Cybersecurity

Cybersecurity was already an urgent issue headed into 2017. It’s not like companies were caught off-guard by the problem and suffered larger breaches as a result. The troubling fact is that companies invested a ton of time, energy, and money in cybersecurity. Yet breaches still skyrocketed.

That is leading many to rethink the shortsighted nature of cybersecurity. Historically it has focused on prevention and deflection, basically keeping threats out of networks. But after years of failed efforts, companies are considering the other half of the equation. Understanding that incidents are inevitable, responding to problems and mitigating damage are new priorities.

That is leading companies to create detailed response plans, organize emergency IT teams, and practice crisis PR. They are also taking out cyber policy insurance in order to insulate themselves from fines, penalties, and lawsuits. Companies increasingly understand that even if they can’t avoid cyber incidents, they can avoid the worst of the damage.

By the end of 2018, we will likely have recorded some new lows in cybersecurity. Hacking is a lucrative enterprise, which is why cyber criminals are more motivated than ever. Unfortunately, there is no reason to expect data breaches to decline next year or anytime in the near future.

Investing more in protection is the only practical and prudent way to respond. The key thing is not to invest short-shortsightedly. Protecting against threats is important, but so is recovering from them on sound and stable footing.

Legal Branding

How to Prevent Your Car from Being Stolen

If you’re a new car owner, you’ve probably considered how unlucky it would be to see it stolen. Although anti-theft technologies should be keeping criminals at bay, the National Insurance Crime Bureau (NICB) claims they’re just leading criminals to become more clever.

According to their research, car theft has risen substantially over recent years. That’s why you should take all measures to protect your car. Not only will it protect your vehicle, but it might even get you a discount on your premiums. If you take preventative measures, you’re more likely to keep your car safe; while simultaneously saving money in the long run.

Here are ways you can both prevent your car from being stolen and save money.

Common Sense

There are plenty of ways to prevent theft. The first and best thing to do in order to keep your car from being stolen is to use common sense. Lock car doors, roll up windows and park in well-lit areas. Generally, don’t park in areas where cars are more likely to be stolen. The busier the area, the less likely a thief will attempt stealing your car. They tend not to like witnesses.

Technologies

Another suggestion is to purchase antitheft technologies. Although the NICB claims criminals are getting smarter, you definitely shouldn’t skimp out on things like GPS tracking, alarms or steering-wheel and tire locks. It might be a good idea to invest in vehicle identification number etching.

All of these provide a strong layer of defense and immobilize devices while simultaneously utilize tracking systems. You’re more likely to combat theft and ensure your vehicle recovery. Most alarms cost a few hundred dollars, while tire locks cost even less.

Employing anti-theft devices like these will typically get you a discount of about five percent off your comprehensive car insurance premium. In the event that your car is stolen, some insurers may still offer a reduced deductible on the claim if there was an anti-theft device installed.

Use Your Garage

This one’s easy. So many people have houses. So many of these homes have garages. Yet, we tend to use them to store our junk. A good piece of advice is to clean out the garage and use it for your vehicle instead of parking the car in the driveway.

Insurance

If all else fails and you do get your car stolen, it’s important to have the best insurance out there. You can compare car insurance rates that fit both your budget and needs, one of them getting help if and when your car gets stolen. No one wants to be stuck in a situation where their vehicle is stolen and they’re left empty-handed.

As previously mentioned, one of the benefits of taking safety precautions with your car is that your insurance might offer you a discount on your premium. If we’re being honest, the key to paying less on your car insurance is minimizing possible risks to the vehicle and to yourself. You can do this with anti-theft devices and winter tires.

Drive with Confidence

If you follow these steps, you’re sure to keep your car safe and sound throughout the year. Remember to always use common sense, utilize the garage, and go the extra mile with anti-theft devices to ensure safety and save some money in the process. Drive with confidence!

Legal Branding

Auto Insurance As A Part of Everyday Life

If you live in the United States of America, chances are that auto insurance is part of everyday life, at least for car owners. Driving a car is a privilege which comes with some sorts of responsibilities in the form of auto insurance policies.

Proof of insurance is basically an indicator that you are willing to take responsibility for your driving and you care about other drivers’ safety and welfare. Most states in the country make auto insurance compulsory; similar to a driver license; you must be an auto insurance policyholder to be considered the legal driver.

There are, however, several states where auto insurance is not state-mandated requirements including New Hampshire, Wisconsin, and California. 

New Hampshire

Since 2010, residents of New Hampshire are no longer required to purchase auto insurance. This regulation applies to any driver who has not been involved in a road accident, convicted of DWI (driving while intoxicated), or convicted of any serious traffic violation.

However, if you are involved in any road accident, you have to be responsible for covering damages both for bodily or property injuries. If you cannot fulfill this responsibility, the state will probably revoke your driver license. In other words, your responsibility is required only in the event of an accident; you do not have to pay a premium fee, but you need to cover all the damages for the injured party when required.

Viking insurance company of Wisconsin 

There is no compulsory law requiring drivers to purchase auto insurance in Wisconsin, but the state does require you to prove responsibility is some other ways.

You can do this by placing a cash deposit of $60,000 with the WisDOT (Wisconsin Department of Transportation) as liability insurance for vehicles or filing a bond with the department. If in any case, a police officer stops you while you are driving, the officer will check to determine if you have any of those. 

California

California has similar regulations to those of Wisconsin. Drivers can prove their responsibility not by purchasing insurance but simply covering for damages in which case they are at fault in road accidents. The compensation can reach up to $30,000 for injury or death in a single accident.

For property damage, the compensation can reach up to $5,000. Since you do not have to purchase insurance, you should place a deposit of $35,000 or file a bond of that amount with California Department of Motor Vehicles.

Although insurance is indeed not compulsory in some states, drivers are still required to be responsible and prove it by covering damages of the injured party in the event of accidents. Proof of financial responsibility can be done by placing deposit or filing bond with the state.

Legal Branding

Benefits Of Business Commissioning

Commissioning for business has a number of benefits in many areas of work. 

As per the definition, it is the process by which an equipment, facility, or plant (which is installed or is complete or near completion) is tested to verify if it functions according to its design objectives or specifications.

This post aims to show you how it can benefit you.

Tenant/Owner

1. Performance criteria are established and benchmark goals are verified.

2. The working environment is improved including lighting levels and indoor air quality.

3. Lifecycle building costs are reduced.

4. Documents clearly project process.

5. Minimizes disputes among all parties in both the design and construction processes.

6. Establishes operation and maintenance policies.

7. Baseline expectations for the Owner’s Program Requirements are identified.

8. Represents the interests of the Owner independent of the contracting teams and design.

Facility Managers

1. Equipment post-warranted is verified

2. Improves installed systems documentation

3. Documented testing procedures verify building controls and operations of systems

4. Verifies that staff training goals have been achieved

5. Maintenance schedules are established

Design Team

1. Verifies benchmark goals and establishes performance criteria

2. Lifecycle building costs are reduced

3. Project processes are clearly documented

4. Disputes between all parts involved in the construction and design processes are minimized

5. Establishes operation and maintenance policies

6. Baseline expectations for the Owner’s Program Requirements are identified

7. Represents the interest of the Owner independent of the contracting teams and design

Contractors

1. Warranty calls backs from field issues are reduced

2. Punchlist items are minimized when the project ends

3. Contract documents are reviewed for bidding that is more competitive

If you want more tips on commissioning then read this post from Quanta.

Legal Branding

Don’t Miss Out On Business In Countries With Bad Reputations

Say you’re a value-added reseller (VAR) who wants to broaden your reach and grow your profits by expanding into foreign markets. You’ve heard horror stories about the seizure of every item in Brazil. You’ve caught word that India is highly protective of their local production and has begun raising duty on certain imports. But is throwing up your hands and giving up on huge markets the wisest choice for you?

Below are a few examples of tricky nations in which it can be a challenge to do business, as well as some important tips on what you can do to expand your presence in any country – including how to reduce costs when importing items and making smart partnerships to maximize efficiency.

Brazil

South America is appealing to IT manufacturers and VARs because of its large population and growing consumer middle class. Brazil is the eighth largest economy in the world, but shoppers often complain about their goods getting seized and stuck at customs. Brazil requires multiple tax ID numbers to be registered there. Firms spend many man hours filing the tax forms required. Rumors of corruption and items ‘disappearing’ certainly aren’t encouraging, either. Hearsay? If true, is it worth the hassle?

Russia

They have some of the lowest electricity bills in Europe – appealing for a VAR pushing a variety of hardware – but it also takes businesses several months to get an electricity connection.The country has a bad reputation for the time it takes to export goods, but if you’re the seller, this isn’t a problem. American companies face troubles trying to export to the nation because of tariff and non-tariff trade barriers making it difficult to ship some goods, e.g., alcohol. In 2014, U.S. food and agricultural exports were banned after Crimea’s annexation.

Indonesia

It’s incredibly hard to start a new business here because of the 1.5 month minimum launching time for a new business. Infrastructure issues cause many new companies’ hopes to crumble. They’re begging for investors to drop billions in their bucket. They do have some appealing natural resources like coal that has caught China’s eye. Some of these issues are potential problems for new businesses to set-up shop, but are they necessarily a problem for your company’s specific expertise and products?

So what?

If a country has a bad reputation for doing business, you’re automatically going to have decreased competition because of the number of lazy companies who will check out. The nation’s problems might not have much to do with your goods, either. Often people won’t take their time to look into rules and regulations before they spread bad word-of-mouth. There’s a simple way to handle much of this –get an expert to do it for you.

Hands down, the best choice you can make if you want to expand globally into any country is partnering with an importer of record (IOR). TecEx, for example, has a long record and presence in any country where you might want to conduct business. How can an IOR help? Well, to start, you might be legally required to use one. They’ll look after all required import permits and arrange brokerage, clearance, and local delivery to your destination. There’s no need to worry about import compliance and your shipment will clear smoothly through customs. It’s also important to find an importer of record who can provide full tax recovery services for all of the indirect taxes incurred. TecEx specializes in shipping electronics and IT equipment abroad, and these items usually suffer import VAT, customs taxes, co-location taxes, and taxes on purchasing local goods.

Some nations might be tricky to conduct business in; however, if you make smart partnerships with companies who can streamline the process, and if you do some research into whether these nations are actually troublesome for your specific type of business and product, you’ll find the barriers were just a smokescreen, providing your partner with the right IOR services.

Legal Branding

5 Types of Insurance You Didn’t Know Your Business Needs

When it comes to protecting your business, insurance is a must-have part of your risk management plan. You know that you need general liability insurance to cover you in the event of a lawsuit, and property insurance to cover any premises that your business owns, but there are other vital types of insurance coverage that you’ll want to consider for your business. Here are five types of insurance coverage that you might not realize your business needs.

1. Cyber liability insurance.

In 2014, attackers targeted small businesses 34 percent of the time, which was an 11 percent increase from just three years before. It makes sense; small businesses are less likely to have the resources or time for top-of-the-line cyber security. Cyber liability insurance covers your liability in the event of a cyber attack, and in some cases can even cover liability if your company devices (such as cell phones or computers) are stolen. You’ll want to consider this type of plan if you conduct any business online, have a website that collects customer information, or store sensitive customer data online – to name a few scenarios.

2. Car insurance.

This entrepreneur learned the hard way that you risk voiding your personal insurance policy if you’re also using your vehicle for business purposes – even for something as simple as making a few deliveries. Make sure you advise your car insurance provider that your vehicle is also being used in the operation of your business to make sure you are properly covered in the event of an accident or theft.

3. Business interruption insurance.

In the case of a disaster, even if your business’ property and contents is insured, you’re still at risk for losing profits – and your business – if you don’t have a source of income during the time it takes to get your business back up and running. In the summer of 2017, wildfires in British Columbia caused concern for entrepreneurs in the region, as they continued to pay operating costs in the wake of the disaster, without having the opportunity to make money. One way to protect yourself in a similar scenario is through business interruption insurance, which covers the loss of income you could experience in the wake of a similar disaster.

4. Partner or key person insurance.

It’s not pleasant to think about what would happen to your business in the event of your death, or the death of a partner or key employee, which is probably why less than 30 percent of small business owners have a succession plan.  Part of your plan could include an insurance policy that protects your business in the event of tragedy. That could include partnership insurance, which would allow you to purchase your partner’s shares of the business so you can continue to run it, or key person insurance, which protects you in the event that you lose an individual who is integral to your business operations.

5. Accounts receivable insurance.

What would happen if a major client of yours went bankrupt or refused to pay their invoices? Would you be able to pay your employees and vendors? How would you cover the cost of the goods without the income from selling them? Accounts receivable insurance can help protect you from that risk. If you’re dealing with international markets, the risk is often higher – meaning you’ll definitely want to consider this type of coverage.

After reading the list, are you confident that your business has all the insurance it needs? If you’re worried about the cost of insurance, make sure you’re shopping around for multiple quotes, since different providers could offer different plans and prices for the same business.

Obviously, not every business will require each of these insurance options, so carefully consider the unique risks facing your enterprise and make sure you have the proper coverage to protect you in case of emergency.

Legal Branding

The Purpose and Significance of Finance in Business Operations

Finance is the solution that helps in the production of new businesses and enables enterprises to take advantage of possibilities to expand, hire more local workforce and in turn help other companies and local, as well as the federal government over the payment of income taxes.

The necessary application of financial means, such as investments and loans, is crucial to the prosperity of every industry. Financial courses also determine the status of the economy on a global standard so central banks can propose suitable financial policies.

Types of Finance

Venture capital is a field of investment that focuses on funding new businesses and their development efforts. Trade finance makes worldwide trade feasible by declaring Letters of Credit (LOC) utilized to buy goods from abroad businesses.

A Letter of Credit finances the production of products when a business applies the LOC as insurance for a company’s credit. Bank loans help investment accounts receivable, and credit cards help fund a business’ entertainment and travel expenses. All this exercise, in turn, works to keep bills running throughout the global market.

Roles in Investment

Finance is the method of producing, running and using the money, allowing the flow of funds through a business in the much similar way it expedites the flow of global funds.

Money, mostly generated by the sales unit when they sell the services or goods the business produces, it then proceeds into production where it will be spent to produce more goods to sell.

What remains is used to adjust payrolls and finance the organizational costs of the business. If you need important advice concerning cash flow analysis, you can visit Ashe Morgan for helpful information.

Essential Benefits

The flow of finance begins on the financial district with the generation of fund used to finance business through issuing general stock to produce bonds to accommodate capital,  and derivatives (packaged combinations of agreements to prevent financial uncertainty and replace the cash banks given to borrowers).

Public businesses and towns utilize this funds to help finance their procedures, and banks use it to give to companies, municipalities, and people to fund the procurement of services and goods.

Notable Significance

In reality, it is unlikely to accomplish your short-term and long-term intentions without efficiently handling your finances. Unproductive control of finances could drive to liquidity deficits. You will need funds for business development, dynamic market competition, and to keep your business operational and secure your client base.

When a few components of the process of finance collapses down, corporations go out of business, and the market goes into bankruptcy. For instance, a large-scale bank loses a considerable sum of funds and faces the possibility of bankruptcy, other corporate clients and banks will end lending or saving funds to the bank facing problems.

Next, it will then stop lending to its clients, and they will not be able to buy the goods or settle the bills for which they were trying to fund. The stream of funds during the financial transaction will either slow down or stop as an outcome.

Particular Considerations

Every aspect of the global market depends upon a systematic method of investment. Capital markets give the funds to support business, and the company gives the funds to assist individuals.

Also, the arts benefit from the business method because they draw their funds from individual sponsors and corporate supporters as well. Capital markets produce money, businesses disseminate it, and institutions and individuals utilize it.

Achieving Financial Goals

Every company proprietor has a vision for his business, and that particular vision will continuously face manipulation by maintaining and prioritizing the management of financial resources.

Since you have a fixed amount of investments, your business goals and expectations will shape how you utilize your company reserves. For instance, your primary intention may be to boost sales by funding discounts, or you may have a long-term goal of developing your production capacity for cheaper average values.

If you draw most of your investments from loans, paying the maximum price and interest should worry you. If you get investment from your investors’ funds, your role in providing them the best potential returns must be a vital purpose.

Takeaway

Companies require finances for everyday transactions and to satisfy significant payments and expenses. In establishing a business, legitimate and sufficient funding is vital regarding your company’s operations and procedures.

The best way to acquire fundings is to present your company’s realistic goal platform that will undoubtedly lead to a more income return. By doing so, you will unquestionably get the trust of the people that will help fund your business, and in addition to this, when your company has an excellent cash flow, it only means expanding the business and more growth.

Legal Branding

4 Ways To Keep A Construction Site Secure

On a construction site, any number of things could possibly go wrong – injuries, disputes, mishandled jobs, civilian complaints… the list goes on. On top of all that, you have to worry about theft on a worksite, both during on- and off-hours, as oftentimes the materials and tools kept onsite are valuable and not properly secured. Copper theft alone – one of the more notoriously targeted materials – can cost a construction project a lot of time and money, as well as avoidable headaches. There are, however, ways to keep your construction site secure, each of them a worthwhile investment, offering protection and assurance at a small price tag.

1. ID Card Access

This is a must-have for large and small sites alive, as ID card access can serve a few unique functions that could be costly to achieve otherwise. For starters, it obviously restricts the access of outsiders from entering the site, ensuring that only approved employees and certain visitors are allowed access. Also, within the site, it can be used to secure certain areas that may contain expensive machinery, tools or materials. As ID Card systems continue to grow more sophisticated, do your research on what the latest options for making your business more secure are, and what kind of ancillary benefits the cards could have for your specific site.

2. Lights

Partly as a deterrent, and partly to aid the next item on this list (peek down if you must!), round-the-clock lights are a very good idea for a construction site. Psychologically, if a potential thief sees lights on at a site, no matter the time of night, they’ll think someone could be there. At the very least, they’ll think the risk of someone being there outweighs their potential gains. And if they do still choose to try and break in (against all odds, since you have an ID card system in place), they’ll be caught by the…

3. Cameras

It’s the opposite of the old movie director saying: on a construction site, it’s lights, camera… no action! If you have a properly lit construction site, along with visible (but unreachable) cameras, you should have enough of a visible deterrent to ensure that no one would risk breaking in. And if they do, you know that you’ll footage to hand over to the police in the hopes of retrieving what was stolen.

4. Storage Container

Barring the success of the two previous items, make sure you lock your valuables overnight in a storage container with a very good lock. This could potentially tie into the first item, ID cards, if you wanted it to – the point is that you don’t want to lock your tools in a lock box that itself could just be carried away, and individual lockers are easy to break into with a crowbar. A large storage container, however, with a quality lock or ID card access system, is going to keep even the savviest thief out.

Don’t let theft ruin the worksite morale, and cost you time and money. Being proactive about construction site security will pay off in the long run.

Legal Branding

Professionals Discuss How Is Airbnb Affecting The Real Estate Industry

According to Inc., the vacation rental market will be worth roughly $170 billion in the next two years. As for Airbnb, Fortune projects that the community marketplace will go up in 2020 to $3.5 billion. Still, Airbnb has made tremendous growth this year; Fortune further indicates that Airbnb spent $300 million on expansion efforts. While this could be seen as a positive sign for a booming real estate economy, some say Airbnb could reel in suspicious individuals and activity.

Nonetheless, this could be a key investment opportunity for individuals looking into breaking into the industry—as well as for landlords looking to up their game. With Airbnb’s expansion, landlords may have to turn to the third-party housing rental company to bring in more cash flow.

With Airbnb expanding across the real estate market, it is looking like the monopoly could push out their smaller competition or force them to consider including the third-party community company in their efforts.

Will regulations stop them from expanding? According to Inc., it is not looking like it. The company continues to grow despite regulations—such as, as Inc. reports, rental companies needing to register with San Francisco (should they want to provide rental services to customers).    

Not sure if Airbnb’s efforts are great for the real estate industry? Can’t make a decision? Are you considering on cashing in on Airbnb’s expansion efforts? In this article, you’ll learn 6 different opinions from real estate professionals (spoiler: be prepared to be surprised by how diverse they are). From reading this, we hope you gain a better perspective on how Airbnb’s future expansion will affect the real estate industry, and whether this is seen as a welcoming sign or a future pain in the neck.

Read on to learn what real estate professionals are saying about Airbnb’s expansion impact.

www.appfolio.com

“AirBnB is definitely growing in the industry as tenants try to make additional money on the side. That said, large MFRs are cracking down on this as they find it disrupts the resident’s experience at the property and leads to higher turnover of units. Virtually across the board this type of sub-leasing violates the signed lease. I anticipate Airbnb continuing to struggle to gain traction in the MFR space.” – Nat Kunes, VP of Product

www.authoritypm.com

“We own and operate a property management company in Redding, CA that offers long-term rentals but stays out of short-term rentals such as Airbnb. We have seen a huge spike with regards to people looking to have a single family home rented out under Airbnb and managed by a third party such as a property manager. In our community, we don’t have any third party companies that handle management of Airbnbs, leaving property owners to handle them on their own. Vacation rentals require much more energy to manage than a traditional rental. In recent times, we have experienced several property owners converting AirBnB rentals to traditional rentals. Many have expressed frustration due to the much smaller cash flow on a traditional rental vs. Airbnb. We believe the Real Estate market has had additional players picking up investment properties as vacation rentals that may not have jumped in the game otherwise.” – Aaron Robertson, Authority Property Management

www.rpmservice.ca

“Recently, the Ontario marketplace has seen a lot of changes around the laws and these sort of disruptive technologies like Airbnb. People are taking residential suites and making them something they are not setup for and this causes a lot of problems for neighbours, property managers and the facilities, while offering no protection for these parties. Some of the municipalities are setting up rules and regulations, however, enforcement will be a very difficult course— how long till the next UBER comes along.” – Jason McGuire, Owner at Real Property Management Service

www.barrettpm.com

“I think this question must be answered with a specific community/county in mind due to the dramatic differences Airbnb could have on certain areas. Some factors that play into whether Airbnbs affect a community can include: Is tourism big in the community? Are there vacation destinations in the community? Does the community have recurring annual events that attract a large crowd? And does the city/county government allow for Airbnbs? The more “yes” answers to these factors, the more Airbnb will affect the real estate industry in that community.” – Amelia Barrett,President at Barrett Property Management, Inc.

www.sparkrental.com

“In larger cities and destinations with heavy tourist traffic, some homes can earn significantly higher returns on Airbnb than through long-term leasing. That’s good news for landlords (and some entrepreneurial tenants), but it can mean even stiffer competition for limited long-term rental housing.

One problem is that the areas with perfect conditions for Airbnb leasing are also usually those with already-tight rental markets. These tend to be the most desirable urban neighborhoods, with the most competition for housing supply. Airbnb rentals pull more inventory from that supply, constricting supply even more.

With that said, the market will fix this problem over time. For example, some not-as-well-managed hotels will likely go under due to the loss of business to Airbnb, and that space will likely be converted into additional residential housing supply. Or consider the retail apocalypse – this is more valuable real estate that can be rezoned to its highest and best use (in many cases, residential). It may also push lumbering city bureaucracies to approve more new housing permits to increase supply.” – G. Brian Davis, Director of Education

www.skypropertiesinc.com

“As a management company, we are both for it and against it.. For it, because our clients make money doing it. Against it, because it may bring unknown people who could cause a noise disturbance, have criminal intent, or even be a criminal, into an unsuspecting apartment community.” – Kari Negri, Chief Executive Officer at SKY Properties, Inc