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Airbnb gives landlords a piece of the pie by allowing tenants to list homes

Bruce Brown
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Airbnb wants to help tenants go legit, according to Fortune. In theory, unless they have an exceedingly unusual lease, renters are not supposed to sublet their places without explicit written permission from the landlords.

If someone wants to list their home or room with Airbnb, the home-sharing service has no reasonable way to check for the lister’s legal right to do so. But landlords know it is happening. And Airbnb knows. Neither group is happy about what are essentially illegal short-term rentals through the service.

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So Airbnb is doing something to help tenants who want to list properties and help property owners at the same time.

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The new Friendly Building Program lets property owners sign an agreement to work with Airbnb, assuming short-term rentals are legal in the towns or areas where the properties are located.

The landlord, as the property owner, decides the terms of any potential rentals. For example, a property owner may specify which units can be rented and for how long. The revenue split between the landlord and the tenant is also determined by the agreement with Airbnb. The landlord also alters tenant leases to reflect the conditions of the Airbnb agreement under the Friendly Building Program.

Airbnb then handles all the funds received from renting and distributes payments to landlords and tenants, per the agreement the landlord made. According to Airbnb, landlords typically get between five and 15 percent of the Airbnb distribution.

By giving landlords control and some extra money from the arrangement, Airbnb hopes to quell animosity and disputes arising from tenants listing their rental without permission. After initial pilot programs, Airbnb says there are now between 1,100 and 1,500 units either in the Airbnb system or in process of becoming part of it. The participants range from single-rental properties owned by individuals or couples to units in huge complexes.

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Bruce Brown
Bruce Brown
Contributing Editor
Digital Trends Contributing Editor Bruce Brown is a member of the Smart Homes and Commerce teams. Bruce uses smart devices…
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