Airbnb is Getting Involved in Apartments
Airbnb in 2008 with the idea of letting strangers pay people sleep on their couch as a way for people to make extra money towards rent. A little over years later Airbnb is a $25 billion company. However, the last nine years has not been easy for Airbnb as they have faced a slew of obstacles including lawsuits by local governments, steep penalties for those that use their service and pushback from landlords.
However, Airbnb has formulated a new business strategy that could be great for landlord’s tenants and the company. As Airbnb makes inroads to become more like a travel agency, where users can book vacations, create restaurant reservations and travel activities they are also expanding their business model by connecting directly with large property management companies and developers.
As reported by the American Apartment Owners Associations Airbnb has recently got into business with “Newgard Development Group to allow for short-term rentals in a 324-unit building in Kissimmee, Florida”. According to the agreement with Newgard, Newgard tenants will be able to put their units up on Airbnb for up to 6 months if they agree to share the Airbnb income with Newgard.
The tenants also benefit from the deal because they will be able to utilize tools for renting out their units such as the Niido app which helps Airbnb guest and has options for cleaning and linen service. Furthermore, according to the report, in the Airbnb and Newground plan to build short term apartments that will include keyless entry and shred common spaces specifically for Airbnb customers.
As Airbnb and similar companies work with local governments and landlords to create a business model where everyone benefits, these types of deals could lead to extra revenue streams for both landlords and tenants. Working within local laws, the Newgard model could be a good example of how landlords and tenants can benefit from Airbnb.
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Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.