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Largest San Fransico Landlord Partners with Airbnb

Not long after inking a deal with Florida landlord, Newgard Development Group, Airbnb has signed a deal with San Fransico’s largest landlord, Veritas Investments, and Pillow Residential, a San Fransico-based startup that helps apartment owners turn units into short-term rentals.

According to the partnership, Pillow will now become the preferred partner for landlords enrolled in Airbnb’s Friendly Buildings Program, which allows landlords and tenants to share the revenue generated via home sharing.

Pillow’s services have made short-term renting a more mutually beneficial option for landlord and tenants than ever before. This is achieved by providing tools to each party that helps automate the home sharing process.

For tenants, Pillow’s tools help create Airbnb listings that automatically inputs specific building information such as access codes, emergency contacts, and shared amenities.

For landlords, Pillow automates onboarding tenants and educating them on home sharing, and also provides information about creating and executing home sharing lease addendums.

In addition, landlords are given a dashboard that monitors short-term rentals throughout their properties and indicates if a unit is occupied or available to rent.

It will be worth monitoring how much skin in the multifamily game Airbnb gains as short-term renting become more prevalent via home sharing.

Click on the links below for more information on Airbnb and their transition to the apartment game.

Airbnb Florida

Airbnb San Fransico

Airbnb Entering the Apartment Industry

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.

Airbnb - EPIC Asset Management Group

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.

Click here to read the full CNET article covering the Airbnb/Newgard partnership

Airbnb and its Impact on Real Estate

If there are any Airbnb listing located near an apartment community, odds are that multifamily property has experienced some benefits.

According to a new academic study conducted by researchers from MIT, UCLA, and USC, a 10% increase in Airbnb listings would lead to a 0.39% increase in rents and a 0.64% increase in home prices in a zip code on average, meaning neighborhoods with listings are becoming more valuable. Data was collected by MIT Research Assistant Kyle Barron, UCLA Professor Edward Kung and USC Professor Davide Proserpio, as they compiled research from resources such as Google Trends, Zillow, Airbnb, and the Census Bureau.

While the report proves an increase of Airbnb listings has an effect on home prices, perhaps the most noteworthy finding from the report, especially for the multifamily industry, is Airbnb’s  impact on rents appearing to be linked to the availability of commercial listings in a particular market.

Fast Company’s writer, Ruth Reader explains, “They found that the percent of non-owner-occupied units listed in a given region determines the rate at which rents will increase. Rents rise more heavily when there is a preponderance of home listings that the owner is not living in.” More specifically, the study shows rental rates increase when landlords/owners take long-term inventory and move them to short-term markets like Airbnb.

As services like Airbnb and VRBO become more popular, it is only a matter of time before this new form of housing market has a larger effect on residential, commercial, and multifamily real estate from a monetary and regulation standpoint.

Read the entire Fast Company article here