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In a “Nixon to China” development, Airbnb aims to legitimize your apartment sublet.
The vacation giant announced on Wednesday that it was launching a new service to allow renters in more than 25 U.S. cities to find apartments to sublet as Airbnb hosts, tapping into the increasingly attractive rental market then. that mortgage rates continue their trend of volatility.
(Sub-)Let go
Airbnb, like many of its app-ified compatriots in Silicon Valley, has had a difficult relationship with regulation. It has been accused of neglecting both hosts and guests, driving up rents in places already in the throes of a housing crisis and acting as a tacit vessel for illegal subletting. In recent years, Airbnb has pulled on its grown-up pants, cracking down on parties and raising fees for unstable hosts who cancel at the last minute by $100 to $1,000.
As part of this quest for legitimacy – and taking advantage of a market where home ownership looks like an increasingly impossible dream – the company partners with 12 major landlords, including Equity Residential and Greystar Real Estate Partners , to create a base of 175 apartment towers. Of course, Airbnb needed to sweeten the pot:
- Airbnb has promised partner landlords up to 20% of revenue generated from sublet bookings.
- The company will also help market apartments by creating a “Zillow-esque” listing platform where potential tenants can search for “Airbnb Friendly apartments”. Airbnb’s selling point to these renters is that they will be able to earn spending money while they are out of town.
If you can’t beat them… Greystar CEO Bob Faith told the the wall street journal landlords are fed up with trying to stem the tide of illegal subletting and prefer to team up with Airbnb to legitimize the practice. “The reality is that it was very difficult to restrain him,” Faith told the WSJadding: ‘People would meet someone at the cafe down the street and give them the key.’
Water World: Americans aren’t the only market suffering from mortgage fatigue. According to a new report from Bloomberg. Although river boats can be a bit cramped and mooring costs add an annual outlay of up to £20,000, the average sale price of a central London home is now £1.35million of £, and that’s enough to send just about anyone Wind in the willows.
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