Airbnb partners with Mega Landlords, giving them 20% back!
Real Estate Broker · Glenview, IL · Member since 2022 · 7 posts · 6 votes
Airbnb partners with Mega Landlords, giving them 20% back!
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votesQuote from @Paul Cionczyk:
Caught this article and found it to be an interesting approach by airbnb to capture more of the market by actually paying landlords for a portion of the short term rentals their tenants make, 20% back as the article mentioned. So the tenant signs a lease and has the right to short term rent the unit for a certain amount of days, all while increasing the money the landlord makes by getting a cut of the profits from Airbnb. Sam Zell's Equity Residential was mentioned as one of the multi-family landlords participating. Interesting approach?
Links here:
Sounds better than plain flat fee arbitrage. The owner should be benefiting from this as an investor after all.
8 Replies
- 3yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
Quote from @Paul Cionczyk:
Caught this article and found it to be an interesting approach by airbnb to capture more of the market by actually paying landlords for a portion of the short term rentals their tenants make, 20% back as the article mentioned. So the tenant signs a lease and has the right to short term rent the unit for a certain amount of days, all while increasing the money the landlord makes by getting a cut of the profits from Airbnb. Sam Zell's Equity Residential was mentioned as one of the multi-family landlords participating. Interesting approach?
Links here:
Sounds better than plain flat fee arbitrage. The owner should be benefiting from this as an investor after all.
- 3yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
It does sound better than a flat rate, but I don't think it would motivate me to allow arbitrage.
- 3yRyan MoyerBusiness MemberProperty Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
Quote from @John Underwood:
Quote from @Paul Cionczyk:
Caught this article and found it to be an interesting approach by airbnb to capture more of the market by actually paying landlords for a portion of the short term rentals their tenants make, 20% back as the article mentioned. So the tenant signs a lease and has the right to short term rent the unit for a certain amount of days, all while increasing the money the landlord makes by getting a cut of the profits from Airbnb. Sam Zell's Equity Residential was mentioned as one of the multi-family landlords participating. Interesting approach?
Links here:
Sounds better than plain flat fee arbitrage. The owner should be benefiting from this as an investor after all.
The owner already benefits from it. If someone came to me with a good reputation and history of reviews and offered me over market rate (as most arbitrager's do) AND offered to take care of all non cap-ex maintenance items while having the home cleaned every week and available for me to go in between bookings any time I want (whereas a long term renter often disappears into the home for years and you don't see anything until two years later when it is destroyed) I would rush at the chance.
Arbitrage is a pretty sweet deal for landlords, so long as you're partnered with a trustworthy host.
Cosmic Vacations4.9174 Reviews - 3yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
Quote from @Ryan Moyer:
Quote from @John Underwood:
Quote from @Paul Cionczyk:
Caught this article and found it to be an interesting approach by airbnb to capture more of the market by actually paying landlords for a portion of the short term rentals their tenants make, 20% back as the article mentioned. So the tenant signs a lease and has the right to short term rent the unit for a certain amount of days, all while increasing the money the landlord makes by getting a cut of the profits from Airbnb. Sam Zell's Equity Residential was mentioned as one of the multi-family landlords participating. Interesting approach?
Links here:
Sounds better than plain flat fee arbitrage. The owner should be benefiting from this as an investor after all.
The owner already benefits from it. If someone came to me with a good reputation and history of reviews and offered me over market rate (as most arbitrager's do) AND offered to take care of all non cap-ex maintenance items while having the home cleaned every week and available for me to go in between bookings any time I want (whereas a long term renter often disappears into the home for years and you don't see anything until two years later when it is destroyed) I would rush at the chance.
Arbitrage is a pretty sweet deal for landlords, so long as you're partnered with a trustworthy host.
I don't see it that way. I would want the profit sharing or way more than market rent for someone to use my property this way. Better to just self manage it as I do.
- 3yRyan MoyerBusiness MemberProperty Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
Quote from @John Underwood:
Quote from @Ryan Moyer:
Quote from @John Underwood:
Quote from @Paul Cionczyk:
Caught this article and found it to be an interesting approach by airbnb to capture more of the market by actually paying landlords for a portion of the short term rentals their tenants make, 20% back as the article mentioned. So the tenant signs a lease and has the right to short term rent the unit for a certain amount of days, all while increasing the money the landlord makes by getting a cut of the profits from Airbnb. Sam Zell's Equity Residential was mentioned as one of the multi-family landlords participating. Interesting approach?
Links here:
Sounds better than plain flat fee arbitrage. The owner should be benefiting from this as an investor after all.
The owner already benefits from it. If someone came to me with a good reputation and history of reviews and offered me over market rate (as most arbitrager's do) AND offered to take care of all non cap-ex maintenance items while having the home cleaned every week and available for me to go in between bookings any time I want (whereas a long term renter often disappears into the home for years and you don't see anything until two years later when it is destroyed) I would rush at the chance.
Arbitrage is a pretty sweet deal for landlords, so long as you're partnered with a trustworthy host.
I don't see it that way. I would want the profit sharing or way more than market rent for someone to use my property this way. Better to just self manage it as I do.
Obviously better to self manage. But these are LTR landlords looking for passive income. If they had the capability/desire to self manage they would be listing it as an STR, not a LTR. They list as an LTR because they don't want to be involved.
You get more money (arbitragers typically pay over market rent) AND you get lower maintenance AND the place is usually better taken care of overall. It's a win-win-win so long as you're going with someone trustworthy and a history of good reviews. The idea that STR is typically harder on a property than LTR is silly.
Cosmic Vacations4.9174 Reviews - 3yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
Quote from @Ryan Moyer:
Quote from @John Underwood:
Quote from @Ryan Moyer:
Quote from @John Underwood:
Quote from @Paul Cionczyk:
Caught this article and found it to be an interesting approach by airbnb to capture more of the market by actually paying landlords for a portion of the short term rentals their tenants make, 20% back as the article mentioned. So the tenant signs a lease and has the right to short term rent the unit for a certain amount of days, all while increasing the money the landlord makes by getting a cut of the profits from Airbnb. Sam Zell's Equity Residential was mentioned as one of the multi-family landlords participating. Interesting approach?
Links here:
Sounds better than plain flat fee arbitrage. The owner should be benefiting from this as an investor after all.
The owner already benefits from it. If someone came to me with a good reputation and history of reviews and offered me over market rate (as most arbitrager's do) AND offered to take care of all non cap-ex maintenance items while having the home cleaned every week and available for me to go in between bookings any time I want (whereas a long term renter often disappears into the home for years and you don't see anything until two years later when it is destroyed) I would rush at the chance.
Arbitrage is a pretty sweet deal for landlords, so long as you're partnered with a trustworthy host.
I don't see it that way. I would want the profit sharing or way more than market rent for someone to use my property this way. Better to just self manage it as I do.
Obviously better to self manage. But these are LTR landlords looking for passive income. If they had the capability/desire to self manage they would be listing it as an STR, not a LTR. They list as an LTR because they don't want to be involved.
You get more money (arbitragers typically pay over market rent) AND you get lower maintenance AND the place is usually better taken care of overall. It's a win-win-win so long as you're going with someone trustworthy and a history of good reviews. The idea that STR is typically harder on a property than LTR is silly.
Most people on here are investors that own their properties and build equity. They also mostly self manage their properties.
People who use arbitrage just have a job managing other people's properties.
Savy investors are not going to turn their properties over to unlicensed, uninsured individuals.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
I'm with John. I would never do this unless there were some serious financial benefit.
On the other hand, I just conversed with someone yesterday that willingly loses hundreds of thousands every year by letting someone else arbitrage his properties. To him, easy is more important than another $300,000 income. Different strokes for different folks.
The DIY Landlord Book4.7248 Reviews - 3yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesvery interesting. What each landlord must do is project if allowing STR will have a negative effect on their LTR occupancy rate and occupancy rental rate as short term rentals in an apartment building can make the apartments less desirable standard rentals. Probably not much of a consideration in areas with 0 vacancy.
Quote from @Paul Cionczyk:
Caught this article and found it to be an interesting approach by airbnb to capture more of the market by actually paying landlords for a portion of the short term rentals their tenants make, 20% back as the article mentioned. So the tenant signs a lease and has the right to short term rent the unit for a certain amount of days, all while increasing the money the landlord makes by getting a cut of the profits from Airbnb. Sam Zell's Equity Residential was mentioned as one of the multi-family landlords participating. Interesting approach?
Links here:
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