If you are spending more than 30% of your monthly income on rent, you fall into the category of rent-burdened—and one popular way to earn the extra cash for high housing costs is through Airbnb. Unfortunately, most apartment lease agreements were drafted long before short-term rental platforms were a thing, and the guidelines rarely allow tenants to list their units.
Airbnb is taking a proactive approach to this issue through its Airbnb Friendly Buildings initiative, partnering with real estate developers to build units specifically designed for short-term rental. This week, the platform reported a big win on this front by landing a $200M investment in a Florida project: Niido Powered by Airbnb. Hostfully VP of Strategic Partnerships, Nicole Prentice-Williams, joins Jasper to discuss this initiative and the upside for landlords when lessees rent their apartments on Airbnb.
Nicole and Jasper also answer your questions about early check-in and late check-out, explaining how to handle those requests. They celebrate Airbnb’s first full-year profit, a remarkable feat for a tech startup, and delve into the company’s 2018 travel predictions. Listen in for insight around the top trending cities and experiences and learn why you might want to book a yurt in Da Nang this year!
- Tech startups typically take decades to turn profit (i.e.: Uber, Amazon)
- Remarkable for Airbnb to turn profit in under ten years
- Bookings up 50% from 2016 despite rise in regulations
- 180% third quarter growth in China
- Valuation at $31B, more than Hilton or Hyatt
- Brookfield Property Partners investing $200M in Niido Powered by Airbnb
- Tenants can rent out up to 180 days/year, landlord receives portion of revenue
- Apartments designed for home-sharing (i.e.: keyless entry, custom facilities)
- Helps rent-burdened millennials afford housing
- Program in San Francisco allows renters to list on Airbnb, share revenue with landlord
- Total of 13K units eligible as part of Airbnb Friendly Buildings initiative
- Forecast, trends based on 2018 bookings already received
- Surprise top cities include #3 Osaka, #10 Lisbon
- Gangneung, South Korea, up 2175% for Winter Olympics
- Edmonton, Indianapolis and Columbus also trending
- Nature lodges, RVs, ryokans and yurts gaining popularity
- Lisbon ‘best flavors’ tour listed as #1 experience
Q1: I often receive requests for early check-in or late check-out. How should I handle this? Should I accommodate such requests? Can I charge more for this service?
- Consider offering as complementary service to build reputation
- May charge more after established as host on Airbnb
- Request fee through Airbnb system or tools like GuestBook or YourWelcome
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This episode is sponsored by Aviva IQ. Aviva IQ automates messages to your Airbnb guests. It's also free!
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