Las Vegas is currently experiencing a staffing shortage. Tourists are complaining that wait times are exceeding 45 minute for most restaurants, even fast food. There are not enough restaurant workers, primarily servers. This is an indication that the clientele visiting Vegas is not tipping because service industry workers are indicators. Servers move to places that have the most money. As a result, many workers in Las Vegas have moved away.
Weekly rentals are called "suites". They are a common place for temporary housing; they do not require credit checks, or a security deposit, or the first months and last months rent. If you have $300 cash, proper ID and a clean record (no prostitution, drugs or felonies) you can get a furnished room within minutes for as long as you need. Many restaurant employees, construction workers and sex workers opt to live in these apartments for the convenience.
The closest apartments to the Las Vegas Strip you can get are weekly rentals. Perfect for restaurant employees.
Many restaurant employees move to Las Vegas for a season. This saves them the hassle of signing a 12 month lease. The construction workers come from California and Arizona. They don't live in Las Vegas. They work there for the job and then head back home. As a side note, these weekly rentals are paying the stadium tax.
The tourism industry is seasonal. Las Vegas has two major industries : tourism and construction. However, construction is completely dependent on tourism. I used to joke that every weekend a new town of 350,000 people would come to the strip. The vibe of Las Vegas was determined by who was visiting. The rodeo crowd in December gave Las Vegas a very different vibe than the Consumer Electronics Show in January.
Many cocktail servers work in the sex industry during the off-season. The pandemic closed all casinos restaurants for about 3 months. The bars and restaurants opened at 25%, then 50%, now they are at 100%. The strip clubs and brothels were closed for over one year. Closing the strip clubs in Las Vegas for over a year essentially forced every sex working girl in Las Vegas to move to Florida, Texas or New York.
One of the main reasons the ballers choose Vegas over Orlando is because of the selection of working girls. Let's be adults. This demographic is not going to like the new Las Vegas
The restaurants opened at 25% capacity. Servers and back of house employees were laid off by the dozens. Many servers went to Only Fans, a website where women charge $5 per month for their followers to see their sexy posts. The servers who were not sexy enough to be sex worker, could not pay rent. While the Governor placed a moratorium on evictions that allowed tenants to stay in their apartments without payment, it did not stop the greedy rental corporations from demanding back rent. Back rent could be anywhere from $7,000 to $15,000.
The weekly rental companies such as Emerald Suites, The Budget Suites of America and the Siegel Suite received millions of dollars win federal bail out money to cover the cost of tenants who could not pay rent. Instead of discounting the amount owed for back rent, these corporations were trying to force their weekly tenants into a contract to pay back the money. That’s collecting double rent. The landlords made more money during the pandemic than without pandemic.
$300 a week does not sound like much until you must pay back 6 months in a lump some or a payment plan. Most restaurant employees do not have $7,200 cash lying around. The landlords of the weekly rentals wanted them to make payments. Instead of $300 a week, they would now get $450 or $500 a week. $2,000 a month for a crappy Siegel Suites is insane. You can get really nice 2 bedroom apartments in Las Vegas for $900 a month.
Siegel Suites, Budget Suites, Emerald Suites and others received federal bail out money to cover the rent for tenants who could not pay during COVID. However, instead of passing the federal money on to the tenants, the Emerald Suites, Siegel Suites and the others wanted double rent. They did not even offer a discount.
That’s why all everyone left. All the workers moved away. What else could they do with the landlords demanding rent and threatening eviction?