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!
Article #1: Airbnb Books First Full-Year Profit in 2017 as China Business Takes Off
- 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
Article #2: Airbnb Wants to Build Apartments Throughout the US
- 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
Article #3: Airbnb Releases 2018 Travel Predictions – Do You Agree?
- 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
Article #1: cnbc.com/2017/12/18/airbnb-profitable-as-china-business-takes-off.html
Article #2: mercurynews.com/2017/12/18/new-housing-brought-to-you-by-airbnb/
Article #3: forbes.com/sites/johnnyjet/2017/12/12/airbnb-releases-2018-travel-predictions-do-you-agree/#3d3e62cf753f
Connect with Jasper
Airbnb News Facebook Group
This episode is sponsored by Aviva IQ. Aviva IQ automates messages to your Airbnb guests. It's also free!
To subscribe to the podcast, please use the links below
Click Here to Subscribe via iTunes
Click here to Subscribe via Stitcher (Android users)
If you like the show, please consider leaving the show a review in iTunes or Stitcher. A couple minutes of your time can help the show immensely! Thanks!