Airbnb to increase its long-term rental market place to UK tenants | USAEMALL.com

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Airbnb is introducing its long-term rental marketplace that allows tenants to sublet homes on a part-time basis to the UK, as the platform responds to criticism that it has contributed to higher prices and housing shortages.

Airbnb-friendly apartments, started in 2022 in partnership with rental companies including Greystar, the biggest apartment owner in the US, links potential renters with landlords who are willing to allow tenants to act as hosts for a limited time to earn money when they are not using their property.

The scheme will be rolled out in London from Monday, allowing tenants in nearly 1,500 flats across three properties owned by Greystar in the capital to rent out their homes. Airbnb said it was “actively discussing” with other landlords to join the platform and extend the concept to other parts of the UK.

Prospective tenants will have to sign a contract with their landlord, establishing hosting rules such as limits on the number of nights that the property can be let out. They also have to agree to share about 10 per cent to 25 per cent of the revenue with landlords.

“It’s no secret that a lot of tenancy agreements say do not sublet [so] unfortunately, renters have had a challenge historically to become Airbnb hosts,” said Jesse Stein, global head of real estate for Airbnb. Landlords taking part in the programme were happy as long as they can “ensure that [the flats] are people’s primary homes”, he added.

Airbnb’s push into working more closely with landlords — and its emphasis that such properties are used only occasionally as short-term lets — comes amid mounting criticism that the company and rivals such as Vrbo and Booking.com are driving up rents and housing costs.

In addition to countering criticism that the surge in the number of properties used for short-term rentals is pricing out local residents, especially young people, the concept allows renters who have been hit by a cost of living crisis in recent years to offset some of their costs.

The company’s plan to extend the benefits of its platform to renters comes as many cities are cracking down on vacation rentals amid protests in some popular destinations.

Barcelona in June vowed to close down its 10,000 Airbnb-style apartments, which account for 40 per cent of visitor beds in the city, by late 2028, while Lisbon has suspended the issuance of new short-term rental licences.

New York last year started to enforce a ban on renting out an apartment for less than 30 days unless a host is present when a guest is staying, prompting Airbnb to cancel some reservations in the city.

Airbnb called on Barcelona, which started introducing restrictions on short-term lets about a decade ago, to reverse its clampdown, arguing that other factors, such as a failure to build sufficient housing to cater for a growing population, were driving rents higher.

Airbnb this month reported an 8 per cent increase in “nights and experiences” booked through its portal in the quarter through September, despite a slower start because of weak US consumer demand. But it warned that its core margin would be hurt by higher marketing and product development expenses in the next quarter.