Airbnb Now to Build its Own Apartments
Sara Ashley O\\\\\\\'Brien | October 18, 2017
Airbnb, a short-term rental startup, plans to overcome its disputes with cities over short-term leasing by building its own apartment buildings. The company plans to build a 324-unit apartment building near Walt Disney World Resorts in Kissimmee, Fla., and says it plans to build more in the near future. Read more: Airbnb, realtor.com® Team Up The first building in Florida will be called Niido Powered by Airbnb and will open in early 2018. Tenants will be able to rent out their units for up to 180 nights every year. Tenants will have access to an app to manage guest stays remotely, oversee check-ins, and arrange for cleaning and linens services. Tenants who rent out their apartments on Airbnb will share revenues with their landlord. Tenants keep about 75 percent of the revenue they bring in from renting it out. “This partnership shows how landlords, developers, and Airbnb can work together to create value for everyone and better serve tenants,” Jaja Jackson, Airbnb’s director of global multifamily housing partnerships told CNNMoney. Airbnb has encountered critics in several cities recently that have argued its service is turning some apartments and homes into unofficial hotels. By building its own apartment, Newgard CEO Harvey Hernandez, the developer of the building, says he hopes it’ll eliminate “barriers by encouraging home sharing and creating solutions that work for everyone.” Airbnb says it is planning a series of developments to support its home-sharing model. The firm plans to first target the southeastern U.S. and then expand to markets like Nashville, Charleston, and cities in Texas, Hernandez told CNNMoney.
Source: CNN Money