Airbnb targets greater participation in the multi-family market with a plan to attract large landlords

Airbnb is working with some of the largest landlords in the multifamily industry in an effort to increase listings and increase its stake in the apartment industry.

The San Francisco-based home-sharing company has unveiled a service that will serve as a referral platform for developers including Greystar Real Estate Partners, Equity Residential and at least 10 other multi-family owners and management companies in more than 175 buildings in the United States, many of which have already banned short-term rentals in their properties.

The service plans to allow tenants of a multi-family property to sublet their unit for a set number of days each year, as determined by the building owner, who would then get a reduction in Airbnb’s revenue from sublets, usually around 20%. An Airbnb spokesperson said Wednesday that a new page on its website will only list buildings that are said to be Airbnb-friendly, starting with properties in 25 major markets such as San Francisco, Atlanta, Dallas, Houston, Phoenix. , Seattle and Denver.

Apartment renters could list their units on Airbnb the same way landlords or management companies do, the Airbnb spokesperson said, with those renters making money from listings and landlords potentially getting more. leases with tenants who wish to accommodate.

“We believe this platform will provide the right tools for landlords and residents to effectively manage short-term rental activity without affecting overall housing supply,” a Greystar spokesperson said in a statement. The Charleston, South Carolina-based company is the nation’s largest multi-family management company, with more than 700,000 apartments in the United States. He has listed about 100 of his properties under Airbnb’s latest venture, including the 525 Olive apartment tower in San Diego and the Argenta complex in San Francisco.

Since its launch more than a decade ago, Airbnb has competed with hotels for a bigger chunk of the global hospitality market and has clashed with local authorities who say the home-sharing company poses a threat for the accessibility and availability of housing. However, the company’s approach to partnering with multi-family landlords is an attempt to smooth its track toward adding more rental apartments to its platform.

“A lot of people worry that their landlord will say no, and that even bringing it up might disqualify them from becoming a tenant,” said Airbnb co-founder and chief strategy officer Nathan Blecharczyk. the wall street journal about the new service, adding that most apartment owners have in the past banned short-term rentals at their properties. Some have even incorporated the ban into rental contracts.

Apartments in rental properties accounted for less than 15% of Airbnb’s total listings in October, according to data from market research firm AirDNA. That share has been declining in recent years, dropping around 5% from the same month in 2019, even as the number of Airbnb listings around the world hit record highs.

Airbnb, which has benefited from the pandemic-related hospitality boom and remote work trends, has more than 6 million listings in 100,000 cities and towns. After a dramatic but brief drop in business in the first months of 2020, Airbnb surpassed pre-pandemic growth levels and, for the first time, posted quarterly profit of over $1 billion for the quarter. which ended in September. 30.

Despite this, widespread reckoning in the global tech industry prepared Airbnb for the worst. Brian Chesky, the company’s co-founder and CEO, recently told analysts he didn’t expect any decline in travel demand, adding that the company was “founded during a recession” and that any potential slowdown could be an opportunity.