Gainseses Rethinking Contracts - Fixer Upper Homes on AirBnB

[sfy]

HGTV ‘Fixer Upper’ homes listed on Airbnb causing Gaines to rethink contracts
Ashley May
USA TODAY 3:34 p.m. EDT August 17, 2016
At least six Fixer Upper homes are available to rent on Airbnb and VRBO, causing the HGTV show to rethink client contracts moving forward.

The Waco, Texas rentals range from $195 a night at The Chicken House to $1,277 a night at Barndominium, both from season 3.

A quick search on Airbnb pulls up the Shotgun House, Mid-Mod House and Mailander House. On VRBO, it's easy to find the Harp House from season 1. This home was a special project for the Gaines because it was renovated for Magnolia House's carpenter, Clint, and his wife Kelly Harp.

Chip and Joanna Gaines, the show's hosts, flip old or dilapidated homes in the Waco area. Chip handles construction and Joanna manages design. Their work has become wildly popular, and in Texas, they are local celebrities. The couple only works in Texas, making the idea of renting a Fixer Upper home desirable for fans outside the area.

Magnolia Homes spokesperson Brock Murphy told USA TODAY in a statement the company doesn't have problems with clients using the services to rent their homes, but will be "more strict" with Fixer Upper client contracts moving forward.

“We want to honor our national viewing audience," Murphy said. "We want to do remodels for clients’ homes. That’s the true intent of our show, and we want to ensure that does not get lost in this new vacation rental trend."

Source:  www.usatoday.com/story/life/nation-now/2016/08/17/hgtv-fixer-upper-homes-listed-airbnb-causing-gaines-rethink-contracts/88889564/

[stretchad]

I don't understand why they would really care? Once they've released a home to the owners, the owner can do whatever the hell they want with it.

[Pom]

I saw this earlier and my thought was "good luck trying to stop them".

[ECB]

Aug 17, 2016 17:36:09 GMT -5 stretchad said:

I don't understand why they would really care? Once they've released a home to the owners, the owner can do whatever the hell they want with it.

To follow on this- they, Chip and Joann, are cashing in on EVERY opportunity they can to make more $$.  The B&B.  She created that KNOWING that people would flock to stay there.

I don't blame them one bit- this is their 15 minutes.  Get what you can.

BUT to then be upset that others want to also take advantage of that 15 mins?  Eh, I just can't get it up for this.  

[genet313]

Yeah, sorry guys.  You don't own the house and you don't get a say.  Good luck to the producers trying to limit post-reno marketability for clients.   I'd never agree to that, no matter how much I may love me some Fixer Upper.

[sfy]

Aug 17, 2016 17:36:09 GMT -5 stretchad said:

I don't understand why they would really care? Once they've released a home to the owners, the owner can do whatever the hell they want with it.

The only thing I can think of is that the prices seem so low to me that maybe they aren't charging for (all) their labor? If they are doing that in part to help the homeowners, then I can maybe see why they wouldn't want them using the properties as commercial ventures.

[sfy]

Aug 17, 2016 18:38:00 GMT -5 ECB said:

Aug 17, 2016 17:36:09 GMT -5 stretchad said:

I don't understand why they would really care? Once they've released a home to the owners, the owner can do whatever the hell they want with it.

To follow on this- they, Chip and Joann, are cashing in on EVERY opportunity they can to make more $$.  The B&B.  She created that KNOWING that people would flock to stay there.

I don't blame them one bit- this is their 15 minutes.  Get what you can.

BUT to then be upset that others want to also take advantage of that 15 mins?  Eh, I just can't get it up for this.  

True.

[krystee]

Is it because it's competition for their B&B? But surely they have enough money that they don't need to care about this much?

[ellipses84]

Aug 17, 2016 20:47:16 GMT -5 sfy said:

Aug 17, 2016 17:36:09 GMT -5 stretchad said:

I don't understand why they would really care? Once they've released a home to the owners, the owner can do whatever the hell they want with it.

The only thing I can think of is that the prices seem so low to me that maybe they aren't charging for (all) their labor? If they are doing that in part to help the homeowners, then I can maybe see why they wouldn't want them using the properties as commercial ventures.

It has crossed my mind that the show must be paying for some of the design and renovations or Chip and Joanna are donating some of their services. I heard they were not going to re-sign a contract for the show. I'd like to think that they are down to earth enough, that they are happy with their success which has helped them reach other goals, and they want to quit while they are ahead, but I bet they'll spin it into another show.

[Marmee]

I get why it's upsetting especially to Joanna. But I'm a designer too so maybe that's why I empathize. You put a lot of heart and sole into something for a specific client/use and then it was based on a...kind of lie(?). That'd upset me. Design is like art to the person...it's hard to detach. And maybe they just rather "help" people who sincerely want a home (to actually live in) by them. It's all at will relationship so if the client has an issue with the contract, they can find another designer/contractor.

[sfy]

Aug 17, 2016 23:06:35 GMT -5 ellipses84 said:

Aug 17, 2016 20:47:16 GMT -5 sfy said:

The only thing I can think of is that the prices seem so low to me that maybe they aren't charging for (all) their labor? If they are doing that in part to help the homeowners, then I can maybe see why they wouldn't want them using the properties as commercial ventures.

It has crossed my mind that the show must be paying for some of the design and renovations or Chip and Joanna are donating some of their services. I heard they were not going to re-sign a contract for the show. I'd like to think that they are down to earth enough, that they are happy with their success which has helped them reach other goals, and they want to quit while they are ahead, but I bet they'll spin it into another show.

I hope this is just a rumor !

[ECB]

Aug 18, 2016 0:30:25 GMT -5 Marmee said:

I get why it's upsetting especially to Joanna. But I'm a designer too so maybe that's why I empathize. You put a lot of heart and sole into something for a specific client/use and then it was based on a...kind of lie(?). That'd upset me. Design is like art to the person...it's hard to detach. And maybe they just rather "help" people who sincerely want a home (to actually live in) by them. It's all at will relationship so if the client has an issue with the contract, they can find another designer/contractor.

First, I can understand why Joanna is upset.  I don't discount her reaction of being disappointed.

But - I suspect, that at least initially, no one hired her with the express intention of renting their home out.  But then once she really took off - and especially with the flood of tourists to Waco now and staying in her B&B - they saw an opportunity to make a little $$ while they can.

And as I say that - I can actually see why they want to more seriously vet their clients now. NOW they want to make sure that the people applying aren't doing it because of who chip and Joanna are and to make $$ off of them.   

[imojoebunny]

Aug 17, 2016 23:06:35 GMT -5 ellipses84 said:

Aug 17, 2016 20:47:16 GMT -5 sfy said:

The only thing I can think of is that the prices seem so low to me that maybe they aren't charging for (all) their labor? If they are doing that in part to help the homeowners, then I can maybe see why they wouldn't want them using the properties as commercial ventures.

It has crossed my mind that the show must be paying for some of the design and renovations or Chip and Joanna are donating some of their services. I heard they were not going to re-sign a contract for the show. I'd like to think that they are down to earth enough, that they are happy with their success which has helped them reach other goals, and they want to quit while they are ahead, but I bet they'll spin it into another show.

I would not be surprised if they do what the "9 by design" family did.  Basically, took their success and now do high end private design, their own lines in stores (Novogratz), and public speaking engagements.   

Commercial design is real money is, designing products for chain stores.   I know two people who do this, one designs lighting, the other various things for Anthropology, and they are set for life if they invest well, after only a few years of those contracts.  
 

[Deleted]

Eh, it would kind of annoy me to pour so much into personalizing a home for a family so they could turn around and capitalize on my fame.

From everything I've read about them, they truly love designing a dream home for families, so it's probably a bit of a downer to see these places become short term rentals. But at the end of the day, that's kind of the price of fame, I guess. People get money however they can. That's life.

I want to know what kind of person vacations in Waco. Worst.vacation.ever.

[ECB]

Aug 18, 2016 7:41:34 GMT -5 papiercherri said:

 

I want to know what kind of person vacations in Waco. Worst.vacation.ever.

LOL.  As much as I'd love to see her store, I then think "but... Waco". 

[mrshandy]

Yeah, I haven't read any nasty stories about them, but I think they really put a lot of thought and effort into custom designing a home for this family. It's sweet, at least it looks like that on TV. She seems to pick people with stories or who need help, like single moms or young families. So yeah, I think it would be a little annoying and don't blame them for having a contract. As artisans, it's their right to put whatever limits she wants on her work. Her clients can take it or leave it. 

I think Nicole Curtis, Rehab Addict, does something similar for people that buy her houses. They can't undo the hard work that she has done to restore the historical touches to the home.

But damn it would be really cool to stay in one of those homes on Fixer Upper. Can't say I would travel to Waco for it though.

[drloretta]

Aug 18, 2016 0:30:25 GMT -5 Marmee said:

I get why it's upsetting especially to Joanna. But I'm a designer too so maybe that's why I empathize. You put a lot of heart and sole into something for a specific client/use and then it was based on a...kind of lie(?). That'd upset me. Design is like art to the person...it's hard to detach. And maybe they just rather "help" people who sincerely want a home (to actually live in) by them. It's all at will relationship so if the client has an issue with the contract, they can find another designer/contractor.

The only "flaw" I find with this logic is that all the stuff they put in the house is just for the show. It's all from her shop, and goes back there once taping is done, unless the client wants to buy it. I mean, the actual layout of the house isn't going to change, but the furniture, decor, etc. is going to be gone unless the client can afford the ~$20K to keep it in their house.

[sadlebred]

I've gathered this from what has been published about other HGTV shows, what a local radio DJ that was on one of the HGTV design shows about 3 years ago said and what someone I know who was on a local-Atlanta based HGTV show told me. The clients are chosen by the designers and producers. They have to have a good story first and foremost. For the major design shows the clients must be willing to put up $xxx thousands of dollars. The DJ said her amount was $30,000+/- for "Elbow Room." The person I know confirmed that they put up an unspecified amount for the reno on the same show (they couldn't discuss b/c of the contract terms); the person was pleased overall with the reno. The amount is based on the scale of the renovation & work to be done. HGTV provided free design services and some of the materials at cost or free from sponsors. In exchange, the homeowners had less say in the reno than they would if it was not on tv but could veto some things.

There are quite a few links to the DJ's story because she told it on the Bert Show on Q100 in Atlanta. Google Kristin Bert Show HGTV to listen to the segments if you are interested. It provides a lot of insight into what goes on during the weeks or reno and afterwards. HGTV episode: www.hgtv.com/shows/elbow-room/episodes/turning-unsuitable-rooms-into-classically-vintage-great-rooms

[sfy]

Aug 18, 2016 8:13:59 GMT -5 drloretta said:

Aug 18, 2016 0:30:25 GMT -5 Marmee said:

I get why it's upsetting especially to Joanna. But I'm a designer too so maybe that's why I empathize. You put a lot of heart and sole into something for a specific client/use and then it was based on a...kind of lie(?). That'd upset me. Design is like art to the person...it's hard to detach. And maybe they just rather "help" people who sincerely want a home (to actually live in) by them. It's all at will relationship so if the client has an issue with the contract, they can find another designer/contractor.

The only "flaw" I find with this logic is that all the stuff they put in the house is just for the show. It's all from her shop, and goes back there once taping is done, unless the client wants to buy it. I mean, the actual layout of the house isn't going to change, but the furniture, decor, etc. is going to be gone unless the client can afford the ~$20K to keep it in their house.

Oh no!  Seriously?  I didn't know that!  What about the things she has custom made for the family, like from Jimmy Don?

sadlebred, I didn't get the impression that Kristin was overall pleased.  I mean, I didn't get the impression that she hated it, but it seemed like she (and Bart, in particular) had issues with the workmanship.  I was pissed because I never was able to catch the actual episode.
Save

[ECB]

Aug 18, 2016 8:42:25 GMT -5 sfy said:

Aug 18, 2016 8:13:59 GMT -5 drloretta said:

The only "flaw" I find with this logic is that all the stuff they put in the house is just for the show. It's all from her shop, and goes back there once taping is done, unless the client wants to buy it. I mean, the actual layout of the house isn't going to change, but the furniture, decor, etc. is going to be gone unless the client can afford the ~$20K to keep it in their house.

Oh no!  Seriously?  I didn't know that!  What about the things she has custom made for the family, like from Jimmy Don?

drloretta that's a very good point too.  The furniture etc doesn't necessarily stay.

sfy- the custom stuff they do get to keep.    

[sadlebred]

sfy That is what I remember. She wasn't pleased with getting rid of the staircase or the workmanship & unfinished items. I never understood why she agreed to do it when her fiance is a contractor. If I recall, he may have been injured and out of work at the time (??).

[sfy]

Aug 18, 2016 9:00:19 GMT -5 sadlebred said:

sfy That is what I remember. She wasn't pleased with getting rid of the staircase or the workmanship & unfinished items. I never understood why she agreed to do it when her fiance is a contractor. If I recall, he may have been injured and out of work at the time (??).

RIGHT?

I think you're right that he may have been injured, but I still thought it was odd.
Save

[genet313]

Aug 17, 2016 20:47:16 GMT -5 sfy said:

Aug 17, 2016 17:36:09 GMT -5 stretchad said:

I don't understand why they would really care? Once they've released a home to the owners, the owner can do whatever the hell they want with it.

The only thing I can think of is that the prices seem so low to me that maybe they aren't charging for (all) their labor? If they are doing that in part to help the homeowners, then I can maybe see why they wouldn't want them using the properties as commercial ventures.

They may not be charging for labor or charging materials at cost, but they are reaping other benefits they would not have without the show, which will lead to more moneymaking opportunities, which we've already seen.  A B&B, a book, more high end clients.  That's the trade-off, and I bet it's been more than in their favor.  I really like them and the show, but I don't have much sympathy here. 

[sfy]

Aug 18, 2016 9:12:43 GMT -5 genet313 said:

Aug 17, 2016 20:47:16 GMT -5 sfy said:

The only thing I can think of is that the prices seem so low to me that maybe they aren't charging for (all) their labor? If they are doing that in part to help the homeowners, then I can maybe see why they wouldn't want them using the properties as commercial ventures.

They may not be charging for labor or charging materials at cost, but they are reaping other benefits they would not have without the show, which will lead to more moneymaking opportunities, which we've already seen.  A B&B, a book, more high end clients.  That's the trade-off, and I bet it's been more than in their favor.  I really like them and the show, but I don't have much sympathy here. 

That's very true, too.

I also agree with imojoebunny that it won't be long until they have a line of decor accessories in Target or somewhere.
Save

[munkii]

Aug 18, 2016 7:32:47 GMT -5 imojoebunny said:

Commercial design is real money is, designing products for chain stores.   I know two people who do this, one designs lighting, the other various things for Anthropology, and they are set for life if they invest well, after only a few years of those contracts.  
 

Product design, you mean? When I first read this, I thought you meant commercial design, which they cannot get into since neither of them is a registered designer in TX, which requires a degree and passing the NCIDQ. 

Designing products for stores, though--if YHL can do it, so can Fixer Upper. They're products would probably also have more appeal since they have an actual show and store, not just a blog.

[ladyk]

Aug 18, 2016 8:03:10 GMT -5 mrshandy said:

(Rehab Addict)

She puts in deed restrictions that only allow for owner-occupied properties (as well as not tearing the houses down). That is a completely different animal than what the Fixer Upper people are trying to do. (At least in my opinion).

[Deleted]

Aug 18, 2016 10:10:59 GMT -5 munkii said:

Aug 18, 2016 7:32:47 GMT -5 imojoebunny said:

Commercial design is real money is, designing products for chain stores.   I know two people who do this, one designs lighting, the other various things for Anthropology, and they are set for life if they invest well, after only a few years of those contracts.  
 

Product design, you mean? When I first read this, I thought you meant commercial design, which they cannot get into since neither of them is a registered designer in TX, which requires a degree and passing the NCIDQ. 

Designing products for stores, though--if YHL can do it, so can Fixer Upper. They're products would probably also have more appeal since they have an actual show and store, not just a blog.

They already have a line at Value City and Nordstrom under the name Magnolia Home. Her Value City line is pretty huge- entire bedroom and living room sets and stuff. They have surpassed YHL.

ETA: it appears her line is available at a lot of stores, chains and private stores. It appears they've actually started their own brand and aren't just collaborating with chain stores. Like Ashley furniture or something (I heard Pom loves that brand.)

[Poppy]

Here's an interview with someone who was on the show, and she talks about what she kept and what she didn't: www.rachelteodoro.com/2016/02/exclusive-interview-with-fixer-upper.html

www.rachelteodoro.com/2016/02/inside-fixer-upper-clients-home-after.html

[Wanderista]

I don't have a huge opinion on this since I've never really gotten into this show. I do like HGTV but I tend to watch House Hunters or the various exotic shows like Island Life or other property hunting shows. I do like Love It or List It. 

I actually didn't know that Fixer Upper takes place in Waco, TX since I never got into watching it. I do agree with the people who say that a home owner can do what they want with their property within the constraints of municipal ordinances and state and federal laws. You can't really prevent someone from doing what they want with their property after the show but I can understand wanting to search for certain criteria for being on the show. Their ability to set limitations would probably be restricted to the numeric value of the service that they provide. That could get a little bit legally messy.

Sounds like a hot potato that I wouldn't go near. I don't really understand the problem with the owners going on to market their properties via Air Bnb or VRBO. It's just a rising form of investment. That said, I don't watch the show. I never get worried about how "real" HGTV shows are either.

[Pom]

papiercherri Oh yeah, you know I am headed to Ashley Furniture's next sale of disappointments. I adore paying for misery. LOL.

Is Value City different than I remember growing up as a kid? It seems like that was pretty discount back in the day. I'm sort of surprised. Targeting price points for all consumers I guess?