Airbnb has announced the expansion of its “Airbnb-friendly Apartments” model to the UK, through a partnership with Greystar, a leading property manager and investor. This new model, which was originally launched in 2022 in the US, offers renters the opportunity to sublet their apartments through Airbnb when they are not using them, creating new sources of income for themselves.
What are Airbnb-friendly Apartments (AFA)?
Airbnb first introduced the Airbnb-friendly Apartments service in 2022, working with more than 250 buildings in cities including Houston, Phoenix and New York. This program allows renters to sublet their homes while maintaining rules and controls from the owners.
Greystar, one of the first companies to participate in the program in the US, has now expanded this partnership to the UK. As of today, November 27th 2024, tenants of 1,500 apartments in three properties in London can participate in the program, giving them the opportunity to earn extra income.
Participation requirements and subletting rules
Renters who want to sublet through the Airbnb-friendly Apartments program must:
- Sign a special contract with the owner that sets out basic hosting rules.
- Share a percentage (10%-25%) of rental income with the owner.
- Respect restrictions on the number of days they can rent their apartment per year.
Airbnb’s strategy and the response of local communities
This expansion comes in response to concerns raised globally about Airbnb’s impact on local communities. Many argue that the platform contributes to rising rents and housing shortages.
The company, through Jesse Stein, Global Head of Real Estate, recognises that traditional rental agreements often prohibit subletting. The new model offers a legal and regulated alternative.
Financial flexibility and benefits for tenants and landlords
Greystar, through Maria Hatch, said the US experience was successful, offering tenants financial flexibility. At the same time, landlords have full visibility into subletting activity, ensuring compliance with the rules and preventing negative impacts on local communities.
Airbnb long-term goals
Airbnb plans to expand the program to other areas of the UK, and is in discussions with more landlords to participate. At the same time, the company is trying to promote friendly short-term rental policies so that tenants have more options.
The new Airbnb-Friendly Apartments program creates opportunities for tenants to increase their income and for landlords to make better use of their properties. However, it remains to be seen how it will affect local rental markets and whether the new rules will be able to balance the concerns of communities.
