Airbnb is trying to lure apartment landlords with the new Friendly Buildings Program. If landlords allow tenants to lease units within their buildings on Airbnb, they have an opportunity to take a cut of the nightly revenue at a suggested rate of 5% to 15%.
The program has the potential to add millions of apartment units to Airbnb’s inventory of short-term rental properties, especially as the new offer comes with extra insurance and information about which tenants are renting units out on the site. But to date only around 1,000 units have been added, and especially larger landlords are steering clear over concerns around lawsuits, municipal regulators and hassles with other residents.
About 40% of landlords previously taken action against a tenant who used Airbnb, including a warning letter or lease termination, while a recent survey found that nearly 40% of residents would be significantly less likely to renew their leases if the company allowed tenants to rent out units on Airbnb.