Dive Brief:

• Airbnb has launched a new program that lets prospects find apartment properties that allow them to earn extra cash by renting out their units on the platform.
• Prospective renters can view 175 Airbnb-friendly apartment buildings at different price points in more than 25 U.S. cities, including Houston; Phoenix; suburban Washington, D.C.; Charlotte, North Carolina; Dallas; Denver; Jacksonville, Florida; and others, with more markets to come, according to Airbnb. The site allows prospects to browse available apartments, view floor plans and photos and see what each building and neighborhood offers. Building management may also be available to answer specific questions on the platform.
• Airbnb also offers prospects an earning calculator, which is designed to give them an estimate of how much money they could earn by hosting part-time. Renters can input details like apartment size and how many nights they want to host to get an estimate of how much they can earn per month.

Dive Insight:

Airbnb’s new program has potential benefits for renters facing a higher cost of living. By putting a spare room or their entire apartment on the platform, renters can earn extra income. 

For instance, at the Latitude in Arlington, Virginia, which is managed by Charleston, South Carolina–based Greystar and has a starting rent of $2,064, a resident who rented out a studio apartment could earn an average of $635 for a week-long rentalon Airbnb. At The Athens in Ardmore, Pennsylvania, which is managed by Wayne, Pennsylvania–based Berger Rental Communities and has a starting rent of $1,706, a one-bedroom unit could fetch about $684 a week on Airbnb.

“As the cost of living continues to rise, renters can use the extra income earned by hosting part-time on Airbnb to contribute to their rent, save for a home or pay for other living expenses,” said Nathan Blecharzyck, Airbnb co-founder and chief strategy officer, in a news release.

Other considerations

The flip side is that some residents would prefer to live in buildings without short-term rentals. For those residents, Airbnb’s new site might serve as a list of apartments to avoid. In one Dallas high-rise property that allowed Airbnb rentals, residents described problems with noise, trash, parking and nuisance in the amenity areas after Airbnb arrived. 

“The whole vibe has changed [after Airbnb],” said former resident Kirsten Jackson, describing her time at the building. “When you go to the pool now, there are large groups. People bring speakers and there is a competition to play music. It’s not relaxing anymore. It's a hassle.”

Ultimately, Jackson didn’t renew at the property. Stories like hers are the reason that some owners won’t allow or offer short-term rentals at their properties. Chris Finlay, founder and CEO of Vienna, Virginia–based apartment owner, manager and developer Middleburg Communities, is one of those owners who has eschewed short-term rentals. His primary concern is safety.

“When you rent a home, the No. 1 thing you want is safety and security,” Finlay said. “You want something where you feel safe and recognize your neighbors. If you have different people walking down the hall every day, that’s not something most residents want.”

In its release announcing the new program, Airbnb said that apartments in the program are designed to be a renter’s primary residence and that they are expected to follow local short-term rental rules. The company also cites a poll it commissioned showing that three-quarters of adults support allowing renters to share their apartments on a short-term basis.

However, apartment owners cite other data points. “If you look at a lot of the resident surveys that have been done, those residents do not want short-term rentals within their community, particularly with anything that has secured corridors,” Finlay said.

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