Airbnb has long served as a company that provides accessible, affordable accommodation alternatives to its clients. When hotel pricing was reaching an all-time high, making it increasingly difficult for the average person or family to travel on a budget, Airbnb simplified the process by offering a viable, safe, and efficient alternative for people looking for a place to stay. Just as Uber or Lyft provided users with an alternative to taxis, Airbnb offered an alternative to hotels, and the competition led to more affordable rates for everyone. Now, they have their sights set on the real estate industry at large.
Two years ago, Airbnb formed a partnership with some of the largest real estate companies in the US and launched Airbnb-friendly Apartments (AFA). This was done in an effort to help renters locate apartment buildings that would allow part-time hosting, something that was previously highly difficult to regulate and communicate about. Since then, the company has been hard at work, continuing to grow the program. Now, Airbnb is announcing the expansion of AFA underneath Airbnb-friendly Real Estate, which now also includes Airbnb-friendly Condos (AFC).
Maria Hatch, Senior Director of Client Relations at Greystar, said: “Given the success of our partnership in the US, we’re pleased to help introduce Airbnb-friendly Apartments to the UK. It adds financial flexibility for residents, and our community management teams have visibility into hosting activity, which means they can help ensure everything runs smoothly and there is no impact on the wider community.”
Combating Housing Pricing Highs
With rental prices remaining elevated, 79 percent of UK renters are seeking ways to supplement their income, and 55 percent would consider home-sharing to earn extra money. Similar to the US, many UK renters face restrictions in tenancy agreements, limiting their ability to offer their place for short-term let, for example, while on holiday. To this end, AFA offers renters a solution, providing landlords with oversight to help ensure responsible home-sharing while empowering renters to earn extra income. Airbnb-friendly Apartments come with specific restrictions and hosting limits set by the company’s partners to maintain a focus on occasional hosting, helping ensure there is no impact on housing availability. All renters must comply with local short-term rental regulations, building policies, and Airbnb’s community standards.
With housing costs and mortgage rates remaining extremely high in the US, AFA has continued to grow as it enters its third year. Over 750 buildings comprising over 200,000 units across the US are now part of the program, with new partners like Geolo Capital, Roundhouse, and Villa Serena Communities recently joining. Airbnb-friendly Apartments now include 12 of the top 50 National Multifamily Housing Council (NMHC) Owners and 14 of the top 50 NMHC Managers.
“With many renters continuing to find themselves cost-burdened, AFA offers a valuable opportunity to earn income through Airbnb while they’re away. The sustained growth of AFA and the interest from partners to expand internationally demonstrate the versatility of this model. I’m excited to see it flourish,” said Jesse Stein, Global Head of Real Estate at Airbnb.
Bringing Affordable Housing to the UK and US
In addition to expanding AFA, the company has been pleased to announce the official launch of the Airbnb-friendly Condos (AFC) program. Building on successful pilot partnerships with developers PMG and Related Group, which have buildings under construction in Miami optimized for Airbnb hosting, AFC offers streamlined tools for HOAs and property managers to facilitate hosting.
Developer GFO Investments is also an AFC partner and is optimizing Airbnb hosting for residents of its recently completed Gale building in Miami. “With the tools offered by Airbnb, it made too much sense to extend the ability to host on the platform to our residents, many of whom see the flexibility and investment potential as desired amenities for their condo purchases,” said Russell Galbut, Chairman of GFO Investments.
“Our partners consistently report strong demand for flexible condo living, including the ability to host on Airbnb. Given the success of our pilot projects, formalizing the Airbnb-friendly Condos program was the next logical step. We’re excited to build more partnerships with developers nationwide and eventually beyond,” Stein added.
