Doug Bibby, NMHC

WASHINGTON, DC—As Airbnb has announced a revenue-sharing program for apartment landlords, the National Multifamily Housing Council says one-third of its members surveyed would be open to implementing such a partnership, although 42% said they wouldn't be interested. Airbnb's Jaja Jackson gave an exclusive briefing on the program, known as Airbnb Friendly Buildings, to an audience of leading apartment executives at NMHC's fall board of directors meeting Tuesday.

“Many in the apartment industry have been watching the growth in the short-term rental industry through platforms like Airbnb, VRBO, HomeAway, FlipKey and others with mixed feelings,” according to an NMHC blog posting. “There's question over the legality of such activity in certain jurisdictions, as well concerns related to liability, insurance and community security, to name a few. But there's also potential opportunity to leverage the trend to grow ancillary income and reduce vacancy costs.”

Airbnb, which has had the Friendly Buildings Program in the works for more than year, says it's intended to provide apartment landlords with transparency regarding home sharing activity in their buildings, including notification of upcoming trips booked at their properties, pertinent reservation and guest information and commission details. It's also meant to provide control over home sharing activity through lease addendums, which can set parameters and restrictions, and activity reports; and to offer an opportunity to capture ancillary revenue through customizable commission percentages.

The home-sharing leader's announcement comes as the NMHC survey finds that 43% of members surveyed say their residents have listed homes on short-term rental sites. “Short-term rentals have sparked lively debates among multifamily firms, and reactions cut across the spectrum,” says Doug Bibby, president and CEO of Doug Bibby. “We appreciate efforts from Airbnb to work with our members in trying to address the myriad of legal, regulatory and operational issues that come from home sharing.” He says the Airbnb initiative shows “a maturation of this new industry.”

Rick Haughey, VP of industry technology initiatives at NMHC, cites “the safety and liability concerns” in short-term rentals, as well as NMHC members' desire to “preserve a carefully curated quality of life for their residents.” (For a commentary on this issue, read “Airbnb: A Risky Situation for Building Owners” by clicking here.)

Another issue facing the use of home sharing is the patchwork of local laws that provide varying levels of restriction. Among those interested in participating in a home sharing program, a quarter, or 9% of all respondents, would consider home sharing if their jurisdiction allowed it. Thirty-five percent identified violation of local laws as a top concern with their residents listing their apartment homes on home sharing platforms.

The survey also asked about how NMHC member firms respond to residents violating their leases by using home sharing platforms; 39% reported taking action for lease violations. Among those taking action, the most common enforcements were verbal/written warnings, used by 86% of respondents who have taken action, and lease termination (54%). The survey was conducted between Sept. 7 and 12, and includes responses from 79 firm leaders, representing a third of the NMHC 50 largest apartment owners and managers and more than one million apartment units.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

Doug Bibby, NMHC

WASHINGTON, DC—As Airbnb has announced a revenue-sharing program for apartment landlords, the National Multifamily Housing Council says one-third of its members surveyed would be open to implementing such a partnership, although 42% said they wouldn't be interested. Airbnb's Jaja Jackson gave an exclusive briefing on the program, known as Airbnb Friendly Buildings, to an audience of leading apartment executives at NMHC's fall board of directors meeting Tuesday.

“Many in the apartment industry have been watching the growth in the short-term rental industry through platforms like Airbnb, VRBO, HomeAway, FlipKey and others with mixed feelings,” according to an NMHC blog posting. “There's question over the legality of such activity in certain jurisdictions, as well concerns related to liability, insurance and community security, to name a few. But there's also potential opportunity to leverage the trend to grow ancillary income and reduce vacancy costs.”

Airbnb, which has had the Friendly Buildings Program in the works for more than year, says it's intended to provide apartment landlords with transparency regarding home sharing activity in their buildings, including notification of upcoming trips booked at their properties, pertinent reservation and guest information and commission details. It's also meant to provide control over home sharing activity through lease addendums, which can set parameters and restrictions, and activity reports; and to offer an opportunity to capture ancillary revenue through customizable commission percentages.

The home-sharing leader's announcement comes as the NMHC survey finds that 43% of members surveyed say their residents have listed homes on short-term rental sites. “Short-term rentals have sparked lively debates among multifamily firms, and reactions cut across the spectrum,” says Doug Bibby, president and CEO of Doug Bibby. “We appreciate efforts from Airbnb to work with our members in trying to address the myriad of legal, regulatory and operational issues that come from home sharing.” He says the Airbnb initiative shows “a maturation of this new industry.”

Rick Haughey, VP of industry technology initiatives at NMHC, cites “the safety and liability concerns” in short-term rentals, as well as NMHC members' desire to “preserve a carefully curated quality of life for their residents.” (For a commentary on this issue, read “Airbnb: A Risky Situation for Building Owners” by clicking here.)

Another issue facing the use of home sharing is the patchwork of local laws that provide varying levels of restriction. Among those interested in participating in a home sharing program, a quarter, or 9% of all respondents, would consider home sharing if their jurisdiction allowed it. Thirty-five percent identified violation of local laws as a top concern with their residents listing their apartment homes on home sharing platforms.

The survey also asked about how NMHC member firms respond to residents violating their leases by using home sharing platforms; 39% reported taking action for lease violations. Among those taking action, the most common enforcements were verbal/written warnings, used by 86% of respondents who have taken action, and lease termination (54%). The survey was conducted between Sept. 7 and 12, and includes responses from 79 firm leaders, representing a third of the NMHC 50 largest apartment owners and managers and more than one million apartment units.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

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