Airbnb is a boon to mobile travelers – but soon might benefit from immobile, old-school renters too. The $60 billion shared-housing platform run by Brian Chesky is partnering with property management giants Equity Residential, Greystar Real Estate Partners and others to help rent out apartments. The arrangement will allow tenants at their big housing complexes to sublet on Airbnb’s platform. 

The agreement paves the way for some of America’s largest landlords to list their empty abodes for traditional long-term leases on Airbnb. Lessors who snag the apartments can then post their places for shorter-term rentals.

In exchange, Airbnb will give the property managers extra visibility and control over who is doing this, and for how long. It’s an acknowledgment by the landlords that a critical mass of their tenants wanted this flexibility, whether they liked it or not. It also helps them to benefit from the growth of short-term rentals: The landlords get a cut of the host’s revenue from sublets posted on its platform.

The partnership may face snags. Local municipalities have pushed back on Airbnb’s traditional business after permanent residents complained about messes or raucous parties. Airbnb says that renters only sublet nine nights per month, on average. But if a meaningful number of tenants make their apartment into a hotel room, companies might alienate their most lucrative, permanent renters.

Still, Covid-19 has fundamentally changed people’s habits in a way that could benefit both Airbnb and the apartment rental firms – if they innovate. Among other things, companies have implemented policies that allow for longer-term remote working as a benefit, even as people go back to the office. Plus, the average number of adults per household at Equity Residential have fallen about 5%, to 1.57, compared to the pre-pandemic era. Lockdowns encouraged more adults to live alone – and solo dwellers might want to exercise their freedom to move around more.

Apartment leases, most often a year long, are notoriously difficult to sign and hard to exit early. In the past, that has enabled apartment companies to hold their tenants hostage to an extra couple of months’ rent. Airbnb reminded people there’s another option. By joining forces, both parties are embracing change in a way that works for everyone.

Source: The Edge Markets