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Investors - JULY 9, 2018

Airbnb teams up with real estate company

by Andrea Zander

It has been an ongoing battle; the Airbnb effect is disrupting the real estate market.

Earlier this year, major U.S. landlords even announced their intent to file a lawsuit against Airbnb. The landlords claim Airbnb is purposefully encouraging tenants to break their lease, which has caused major cities to create stricter regulations.

Now Airbnb has created a new strategy to play by the rules, a partnership with Century 21 in Paris to let Parisians sublet their apartments.

Under the new agreement, a Parisian renter keeps 70 percent of the guest’s fee for staying, with 23 percent going to the landlord and the remaining 7 percent heading to Century 21.

The arrangement only applies to Parisian buildings managed by the real estate company in the city’s first through fourth arrondissements.

This isn’t the first partnership created by Airbnb, going straight to landlords and management companies.

Another recent partnership was between Airbnb China, also known as Aibiying in China, and Beijing-based short-term property management start-up City Home. Airbnb invested $5 million in to improve its apartment offering and services. Founded in 2017, City Home helps travellers find vacation home rentals in 20 cities in China and provides property management services, including apartment renovation, booking management, cleaning, and communication with guests for hosts.

And last year, Airbnb and Miami-based Newgard Development Group received a $200 million investment from the development firm Brookfield Property Partners, and it is calling itself “Niido powered by Airbnb.” At least six more Niido complexes are slated for Florida, as well as some in the southwest.

Properties include a 324-unit apartment complex in Kissimmee, Fla. (near Walt Disney World), which was the first building to open under the new brand.

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