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Real Estate

Airbnb utilizing real estate market to bypass regulations

Announces partnership with Century 21

Airbnb has a rough history with landlords and even homeowners, and many cities continue to crack down against the short-term rental company.

But now Airbnb found an interesting way to begin avoiding these regulations: the real estate market.

Many apartment landlords struggle against Airbnb, which they say encourages tenants to break their lease through subletting, creating unsafe conditions for other tenants. Some major U.S. landlords even announced their intent to file a lawsuit against Airbnb early last year.

Some experts worry that Airbnb could be disrupting the housing market, and some cities have begun cracking down on stricter regulations.

But now, Airbnb announced it is partnering with Century 21, at least in one European city, to try to work with landlords to keep its short-term rentals alive.

In Paris, regulations are especially strong against Airbnb, but the city is also one of the company’s most popular short-term rental destinations. Airbnb turned to the real estate industry for help.

Now, under the new agreement, landlords can allow renters to sublet their apartment on Airbnb, and the landlord and Century 21 will get a cut of 23% and 7% respectively.

“The goal is to make it easier to sublet so hosts can welcome guests up to 120 days per year on Airbnb,” Airbnb stated. “A win-win deal as tenants, landlords and the agency all share the income when a booking is made on Airbnb.”

“With the Airbnb-friendly lease, subletting will be much better supervised,” the company continued. “Moreover, this deal does not dry up the supply of housing in tense areas but encourages subletting of occupied homes.”

Currently, the new partnership is only available in Paris, but if successful, it could be only a matter of time before Airbnb expands the program to other major cities.

But while this program could benefit landlords or even the tenants who rent out their rooms through Airbnb, other tenants could suffer the consequences. Horror stories have surfaced surrounding apartment complexes that are filled with Airbnb rentals as other tenants complain about noise at all hours and the depreciation of the property.

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