Since 2008, Airbnb has been helping homeowners earn some extra income by renting out their homes, bedrooms and in some cases, their couches. In doing so, they’ve also given customers an alternative to booking a typical and often pricier hotel while travelling. But the company’s now trying to make timeshares cool by expanding their rental model.
According to a press release, Airbnb has partnered with the Miami-based Newgard Development Group to build a 324-unit apartment building in Kissimmee, Florida that will feature “home sharing and flexible living.”
The building will be called Niido Powered by Airbnb, and the company will retain ownership of all units. Tenants will sign 12-month leases that will allow them to rent their bedroom or entire unit for up to 180 days a year. This is good news for tenants who travel often or don’t have enough income to rent their own apartments (many residential buildings don’t allow for renters and homeowners to rent their units to strangers).
Niido Powered by Airbnb will come equipped with amenities that will assist tenants in renting out their units for extended periods of time. According to Airbnb’s press release, these amenities include a keyless entry that will allow for easy apartment handover to new renters, common spaces that make the units optimal for home sharing as well as access to a new Airbnb app that will assist with linen and cleaning services.
For tenants who decide to take advantage of Airbnb’s Friendly Buildings Program, the tenant hosts and Airbnb’s landlords will share the revenue earned from renting out bedrooms and units.
Harvey Hernandez, the CEO of Newgard, stated that the new partnership is intended to help tenants lessen the burden of monthly rent payments. “As the cost of living increases, apartment renters are under intense financial pressure,” said Hernandez. “Together with Airbnb, 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.”
So it’s an apartment and a hotel all in one.
Although the new business idea sounds promising, living in a building full of short-term rental guests comes with its risks. After all, they won’t be subject to the same screening process as full-time renters are. It’ll be interesting to see whether the new venture in Kissimmee will be successful or not.