Airbnb is advocating for renter-friendly short-term rental policies in cities across the United States, including Raleigh, North Carolina; San Diego, California; and Tulsa, Oklahoma. The company aims to help renters become hosts on Airbnb and ease some of the financial burden associated with renting. By pushing for measures that allow renters to put their apartments on Airbnb with permission from their landlords, Airbnb hopes to provide opportunities for individuals to supplement their income and cover the rising cost of living. This represents a shift from the early days of Airbnb, when renters were encouraged to bypass local regulations and lease provisions that prohibited them from using their apartments for short-term rentals.
In an effort to support renters in financial distress, Airbnb has pledged to donate $100,000 to the Flagstone Initiative, a non-profit organization that offers financial assistance to struggling renters to prevent evictions. Additionally, the company is implementing programs like Airbnb-friendly apartments, which help renters find accommodations in buildings where hosting on Airbnb is permitted. This commitment to supporting renters reflects Airbnb’s roots, as the company was founded over 15 years ago with hosts opening their homes to cover rent expenses.
Short-term rental arbitrage has been a common practice among homeowners and renters who lease properties and then rent them out on platforms like Airbnb for short-term stays. Cities like Charleston, South Carolina; Providence, Rhode Island; Jacksonville, Florida; and Nashville, Tennessee have seen high premiums for short-term rental arbitrage. In the first half of 2021, the strong demand for short-term rentals combined with limited supply resulted in high premiums as high as 179%, according to AirDNA data.
By advocating for renter-friendly policies and easing local regulations, Airbnb’s efforts could lead to an increase in the supply of short-term rentals. Whether renters are offering their apartments on Airbnb while they are away or engaging in short-term rental arbitrage, the potential increase in supply may impact the premiums that renters can command. Ultimately, Airbnb’s push for more lenient policies could create more opportunities for individuals to share their spaces and generate additional income.
Airbnb’s North America policy director, Mike Signer, emphasizes that homeownership should not be a barrier to entry for individuals looking to share their homes as hosts on Airbnb. The company’s focus on developing sensible short-term rental policies in partnership with cities highlights its commitment to creating opportunities for hosts, including renters. By working with local governments and advocating for renter-friendly regulations, Airbnb aims to empower individuals to leverage their spaces, cover the rising cost of living, and potentially generate additional income through short-term rentals.
