Property owners once saw short-term rental listing sites like Airbnb as a threat, but now some are embracing them, The Wall Street Journal reports.
Startups like Sonder Corp., Domio Inc. and Lyric Hospitality Inc. are leasing blocks of furnished apartments on the same floor or even entire buildings under long-term deals with property owners. Then they turn around and rent them out to travelers for stays of a few weeks or as short as one night.
These apartment operators aim to appeal to travelers who prefer larger accommodations than a standard hotel room but want a more predictable experience than renting from an amateur host. For property owners, these firms offer the prospect of renting out a large number of units at once, as opposed to waiting until a new development gradually fills up with individual tenants.
Property developer Greystar Real Estate Partners recently agreed to lease 100 units in a San Diego development to Lyric, part of the 26-year-old firm’s recent push into the short-term rental market, says Greystar chief executive Bob Faith.
Local regulatory issues are a sticking point. Airbnb has run into increasing trouble as local governments in many cities crack down on these rentals, placing limits on apartment rentals for less than 30 days, and others could follow suit.
These actions followed complaints from neighbors who object to hordes of tourists trampling through the halls, and housing advocates who say short-term rentals are limiting the available rental stock. But startups like Lyric and Domio say they make sure their apartments comply with local laws. Property owners acknowledge, though, that regulations could become stricter in the future. Read the full story.
