Airbnb is rolling out a new service in the US to help people find apartments where they can rent out their space and use their personal property as collateral with Airbnb.
The announcement comes at a time when people are struggling financially. They’re trying to figure out ways to make extra cash, and anything that can help them stay afloat is worth it.
Airbnb is partnering with major landlords and management companies in order to allow renters to offer short-term sublets within those buildings listed on the site.
Today, the company announced an update on its website. They said that they have a new page listed on their website where they will be listing so-called “Airbnb-friendly buildings.” This will give tenants the option to list their apartments and rent out space as homeowners do.
In most buildings, tenants aren’t allowed to rent the property out while they’re in it.
Currently, Airbnb is hosting 175 apartments in 25 major US markets, including Los Angeles, San Francisco, Atlanta, Dallas, Houston, Denver, and Phoenix.
Markets like Washington and New York are still not included due to the local laws that restrict short-term rentals.
The platform helps tenants host their rentals and gives buildings the opportunity to get new tenants who want to rent a property. The amount that you could make off of your rentals will vary according to each building.
It depends on the building, the location, and other specific conditions. There are a lot of different assumptions to be made when trying to estimate Airbnb’s revenue.
Nathan Blecharczyk, the co-founder of Airbnb, explains how these variables make it difficult for investors to determine how much money renters can earn from hosting each room.
As rents have skyrocketed in the past few years, tenants are turning to other ways of supplementing their incomes. Moreover, rent prices were up 10% last year from December 2016.
Airbnb is introducing a calculator that helps users understand how much money their Airbnb listings could be making, given the number of bedrooms and nights allowed, as well as the range of asking rents for various buildings.
When an Airbnb user stays in an apartment building, the building can charge up to 20 percent of its rental value as a fee.
For buildings that have been preparing for this new model by having test users, Airbnb said our average tenant had hosted approximately nine nights per month with an average monthly income of $900.
To participate in the program, a host must live at the property. There’s a limit of roughly 120 days per year that an apartment can be rerented out as well.
The building owner or management company also has the right to review the listings before they go live. They can also mandate that all potential subletters provide a government ID.
The new apartment rental development, Airbnb, is causing quite a ruckus in the real estate market. There are a bunch of major names in the mix, including Equity Residential and UDR, which yields apartments with host privileges.