Subleasing is usually something landlords do not prohibit because it’s often a high-risk low-reward situation. But that is not the case for a Newgard Development Group, a major real estate development company out of Florida. Earlier this month, CNET’s Dara Kerr reported the announcement of Airbnb’s new partnership with Newgard Development Group that will be branded as “Niido.”
The partnership will allow Newgard tenants of a 324-unit property in Kissimmee, Florida to utilize short-term leases and sublease their apartment on Airbnb for a maximum of 180 days per year. In return, Airbnb has agreed to share some of the income generated through the listings with Newgard.
The partnership aims to “eliminates barriers by encouraging home sharing and creating solutions that work for everyone,” stated Newgard CEO Harvey Hernandez. Furthermore, Hernandez stated the new business plan should help tenants relieve some financial pressures as cost of living increases by providing extra cash flow through Airbnb listings. “Niido’s unique multifamily home-sharing model provides a powerful solution to this ongoing problem by delivering extra income for tenants while creating enhanced experiences for their guests.”
Beyond their intial Niido project, Newgard and Airbnb plan on furthering the partnership by building new apartments with the sole purpose of subletting to short-term tenants and tourists.