This is something that landlords have generally banned, but the program offers them a new source of income and a feature that could help them attract new tenants.
The partnership covers 175 buildings in more than 25 US cities, including Atlanta, Houston, Miami, Pittsburgh, Portland, Oregon and San Francisco, according to an Airbnb statement. No Chicago properties are participating. Other owners of the program include Greystar, based in Charleston, South Carolina, and UDR, based in suburban Denver.
Founded by Zelle, its president, Equity Residential is the sixth largest owner of apartments in the United States, with more than 79,000 units, according to the National Multifamily Housing Council. The company began to explore a partnership with Airbnb in 2015.
A spokesperson for Equity Residential, a real estate investment trust, did not respond to requests for comment. A San Francisco-based Airbnb representative did not return a phone call.
Because most apartment landlords prohibit short-term sublets, tenants who want to earn a little extra cash by renting out their homes short-term often have to do so on the sly. Many building owners do not like vacation rentals in their properties because they fear they will disrupt or cause security issues.
The new Airbnb program brings the practice to light. Under the deal, owners who participate will receive a share of total booking revenue from Airbnb rentals, typically 20%, according to the Wall Street Journal.
The program could also give landlords a marketing advantage, reaching out to renters who want to earn a little extra cash when they’re away from home.
“I think buildings see this as an opportunity to attract tenants and really differentiate themselves from other buildings,” Airbnb co-founder and chief strategy officer Nathan Blecharczyk said in an interview with CNBC. .
Shares of Equity Residential fell 54 cents to $63.04 by midday. Including dividends, stocks have returned -28.6% this year, compared to 31.4% for an index of apartment REITs, according to Bloomberg. Zell also runs two other Chicago-based REITs, Equity Commonwealth and Equity LifeStyle Properties.
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