Airbnb Raising rent prices and making neighborhoods less safe?

A tenant rights group alleges that Airbnb is driving up rent prices and making the neighborhood worse.

I have not read the report but it is hard to believe that Airbnb is drastically raising the rent prices and making the neighborhoods less safe.

First, only a small percent are Airbnb units in LA. According to the US Census, LA county has about 3.46 million housing units and a quick check of LA area Airbnb units show 1,000 listings, suggesting that only a very small amount people convert their places into Airbnb units. Also, just talking about Airbnb makes you realize that people know about Airbnb but not many offer their houses on Airbnb.
Hence, it is unconceivable that Airbnb is drastically raising rent prices.

Second, I believe that Airbnb does cause some negative externalities to the neighborhood including noise, trash, and crime. But I believe these claims are exaggerated. If the negative externalities were so large then the Airbnb business model would have broken down years ago. Because those who offer Airbnb units cannot tolerate such risky behavior given the potential damages to their properties (Yes, crime rates and filth drive down housing prices). 

Furthermore, I believe that this negative externality problem can be solved through effective contracting . Airbnb may collect certain fees from both the land lord and the guest to compensate for the negative externalities in the community. Also, Airbnb may mandate temporary rest days for Airbnb units to make sure that the neighborhood is not inundated with guests. Finally, if the neighborhood really does not want Airbnb then they should enforce it using the neighborhood association.

Finally, I think the neighbors should consider the positive impact of Airbnb. First, Airbnb not only gives you a mean to make extra income but also raises the home prices as the house generates more money. Second, Airbnb guests boost the local economy by visiting and spending more money in the community. Third, Airbnb gives more opportunities to travel and expand people's mind. Decreasing the cost of traveling is overall good, as it facilitates mixing of new people and new ideas, which leads to more understanding and creativity.