Many apartment leases and co-op agreements restrict residents from subletting–especially for short-term rentals. Airbnb seeks to change that with a new home sharing and flexible living complex.
Airbnb’s first-ever “home sharing” project was announced earlier this month, in collaboration with Miami-based Newgard Development Group. Niido, the 324-unit building in Kissimmee, Florida, will allow residents to rent out their space for “up to 180 days per year,” says Airbnb.
What’s unusual about this project is that the building will be entirely designed to support a home sharing community – something that’s never been done before. The units are designed accordingly, featuring keyless entries, large common spaces for travelers, and tenants will even be able to access an app to remotely manage guest stays. A “Masterhost” assigned to the property will help assist renters with cleaning services and guest check-ins.
Jaja Jackson, director of Global Multifamily Housing Partnerships, emphasizes the “community” benefits of such a project. “This partnership shows how landlords, developers and Airbnb can work together to create value for everyone and better serve tenants,” he says. “The team at Newgard is leading the way and we’re thrilled to work with them. Together, we’re making it easier for more hosts to share their space, and giving guests access to more affordable options when they travel.”
In an increasingly nomadic, on-the-go society, this home sharing model appeals to the travel-savvy generation, particularly for millennials who work remotely and don’t want to limit their lifestyle options according to a rental agreement. In cities where short-team rentals are illegal (like New York City), having an entire building dedicated to home sharing could be a viable alternative to traditional subleasing.
But in all fairness, this model perhaps wouldn’t work in a dense, urban area. New Yorkers love the idea of making a buck by renting out their apartment now and again, but the idea of building a new complex that’s both a hotel and home feels a bit off, especially when there’s a serious affordable housing shortage to contend with. But for states like Florida, which relies heavily on tourism and is known for its “snow birds,” this new housing model is actually ideal.
At the very least (or the most important), this new home sharing model is a way of driving income for all parties involved – the developers, Airbnb, and the tenants. Real estate developer and CEO of Newgard, Harvey Hernandez, highlights this aspect: “The Niido model will provide additional income to landlords and tenants while enhancing the experience for Airbnb guests. Niido eliminates barriers by encouraging home sharing and creating solutions that work for everyone.” According to Airbnb, the average Miami-Fort Lauderdale resident is spending 53 percent of their household income on rent.
“As the cost of living increases, apartment renters are under intense financial pressure,” Hernandez added. “Together with Airbnb, Niido’s unique multifamily home-sharing model provides a powerful solution to this ongoing problem by delivering extra income for tenants while creating enhanced experiences for their guests.”