Airbnb launches platform allowing renters to host apartments

Short-Term & Vacation Rental Discussions
3yFollow

Airbnb launches platform allowing renters to host apartments

Evan DeZaldo
Real Estate Agent · Delray Beach, FL · Member since 2016 · 2 posts · 0 votes

Hey there, 

I figured this was worth sharing since a lot of us here have been learning more about STRs and the STR 'arbitrage' space. Check our Airbnb's new updates that will allow for people to actually partner with other landlords: https://www.cnbc.com/2022/11/3...

Key Points:
- The company (Airbnb) said a new page on its site will list so-called Airbnb-friendly buildings that let tenants host their apartments just as homeowners do.

- Typically, rental buildings prohibit tenants from subletting for short stays.

- To start, Airbnb is showcasing 175 apartment buildings in more than 25 major markets.

    0Reply
    33 views

    Most Popular Reply

    Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y

    I saw that yesterday. It's going to increase the number of arbitrage units, which I think decreases the quality of the product. I am disliking the AirBnB platform more and more.

    The DIY Landlord Book4.7243 Reviews
    WebsiteView Page
    1Reply
    See this reply in the discussion

    10 Replies

    Jump to latestLatest
    • Nathan GesnerBusiness Member
      Moderator
      Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
      3y

      I saw that yesterday. It's going to increase the number of arbitrage units, which I think decreases the quality of the product. I am disliking the AirBnB platform more and more.

      The DIY Landlord Book4.7243 Reviews
      WebsiteView Page
      1Reply
    • Don KonipolBusiness Member
      Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
      3y
      Quote from @Evan DeZaldo:

      Hey there, 

      I figured this was worth sharing since a lot of us here have been learning more about STRs and the STR 'arbitrage' space. Check our Airbnb's new updates that will allow for people to actually partner with other landlords: https://www.cnbc.com/2022/11/3...

      Key Points:
      - The company (Airbnb) said a new page on its site will list so-called Airbnb-friendly buildings that let tenants host their apartments just as homeowners do.

      - Typically, rental buildings prohibit tenants from subletting for short stays.

      - To start, Airbnb is showcasing 175 apartment buildings in more than 25 major markets.

        I thought that’s how Airbnb started?
        Private Mortgage Financing Partners, LLC
        WebsiteView Page
        0Reply
      • Evan DeZaldo
        OP
        Real Estate Agent · Delray Beach, FL · Member since 2016 · 2 posts · 0 votes
        3y

        Agree'd, and we know STRs aren't going anywhere... But, with this - in addition to AirBnB's algorithm update earlier this year - I think it'd be wise for anyone relying solely on AirBnB for booking to diversify where you are listed (consider creating a Direct booking site, list on VRBO, etc.) OR become extremely good a branding your stay experience. 

        0Reply
      • Kenneth Woodruff
        Investor · Lancaster, PA · Member since 2022 · 74 posts · 104 votes
        3y

        As the space matures it is going to be a matter of survival to direct list.  

        On a side note, do I now market a multi property as an AirBNB arbitrage friendly property, increase the rents because I know the renter will use it in that way and sit back and collect?  Every action has a reaction !!!

        On a side side note lol, I see this bringing even more regulation scrutiny. 

        0Reply
      • John UnderwoodPro Member
        Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
        3y

        This is why I like the vacation rental space over just some place to lay your head. 

        Your not going to see as much poorly managed arbitrage from someone that "manages" from some other state in true vacation rentals.

        0Reply
      • Paul Sandhu
        Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
        3y

        I can envision someone getting injured or some fatality with this setup.  It's going to be hard to place the specific blame on one party.  I'm still waiting for someone to rent a car for a month and then rent it out in 24 hour increments to someone that will Uber it.  If the Uber driver injures a passenger in a crash, who is to blame?

        0Reply
      • Leslie Anne Morris
        Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
        3y

        very interesting. Definitely makes me glad I’m focused on a direct book and retarget strategy. Hard to do if you’re self managing a unit or two. 

        0Reply
      • Michael BaumPro Member
        Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
        3y
        I thought that’s how Airbnb started?

         So AirBNB started with people renting rooms in their own homes. I am not sure how much arbitrage was going on at that time.

        0Reply
      • Easton Hill
        Phoenix Arizona · Member since 2017 · 65 posts · 70 votes
        3y
        Quote from @Evan DeZaldo:

        Hey there, 

        I figured this was worth sharing since a lot of us here have been learning more about STRs and the STR 'arbitrage' space. Check our Airbnb's new updates that will allow for people to actually partner with other landlords: https://www.cnbc.com/2022/11/3...

        Key Points:
        - The company (Airbnb) said a new page on its site will list so-called Airbnb-friendly buildings that let tenants host their apartments just as homeowners do.

        - Typically, rental buildings prohibit tenants from subletting for short stays.

        - To start, Airbnb is showcasing 175 apartment buildings in more than 25 major markets.


           Here are my thoughts at a high level! 

          (1) This isn't "traditional arbitrage" - Arbitrage is where you lease then sub-lease a dedicated unit. This is something else. Depending on the apartment building you may be limited to renting out only 60-90 nights a year. So it allows traditional long-term tenants to legitimately rent out their apartments on a part-time basis. The key difference is that the host will live in the unit when not subleasing it on a short-term basis. 

          (2) This will increase the supply of STR apartments which will drive down average daily rents as more sellers compete for the same number of buyers.

          (3) I predict that the quality of these units will be much lower. Most travelers don't want to see pictures of the host's family on the wall when they travel or see "last week's" leftovers in the fridge. 

          As an "Arbitrager" myself, I see a variety of problems that could come up for the building owners and staff, but hey, they didn't ask me before launching! 

          0Reply
        • Scott Mac
          Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
          3y

          Renters are screened, letting a third party book unscreened users to reside in your apartments will probably increase turnover.

          0Reply
        Join the conversationCreate a free account to reply, vote on answers and follow this thread.
        Log InJoin for Free