Big business is buying up Airbnbs! Here's how you can profit
BY MIKEL HUBBARD
FORMER HGTV PRODUCER | CO-FOUNDER, THE HOST CO |
OWNER, TIMES EIGHT PROPERTY & DESIGN
It was just a matter of time before bigger companies moved into the Airbnb space looking for a slice of the pie, but it’s always been a question of what that would look like. Would they buy up existing Airbnbs? Create their own? Right now, there’s a few trends to keep your eye on that may actually work out better for you than Airbnb-ing on your own.
TURNKEY - PARTNERED WITH MARRIOTT
On the surface, Turnkey is simply a property management company that will handle the cleaning, the booking and take over setting your rates. However, they’ve partnered with Marriott International Hotels and Villas which gives them a HUGE leg up. People who have Marriott Bonvoy points can use them at Turnkey properties and gain more points for renting them. That means if these guys are overseeing your home, you’ve opened it up to a whole new market. Plus, it also means they’re going to invest in your property to ensure it’s at a certain level of safety, security and style that you may not feel like attaining on your own.
READ MORE: IS YOUR TOWN CONSIDERING A SHORT-TERM RENTAL ORDINANCE? HERE’S WHAT TO DO.
AVANT STAY
Avant Stay will rent your home from you at a higher than normal rent and then they will Airbnb it. You make more than you would long term renting your place and on top of that, they’ll invest in your property to turn it into a luxe Airbnb. You generally sign a one year lease with Avant Stay with a three year option that they can continue, which could mean guaranteed higher income for years to come. This also takes the liability out of YOUR hands, as they’ll be the ones officially owning and operating the Airbnb business out of your home.
READ MORE: HERE’S WHAT WE WISH WE KNEW BEFORE STARTING AN AIRBNB
ONE FINE STAY - OWNED BY ACCOR HOTELS
Accor Hotels are most known for their luxury properties like Swissotel and Sofitel, so it’s no surprise they would scoop up One Fine Stay, an online company that rents out high end homes in world class cities and vacation destinations. One Fine Stay manages the properties and provides top notch service, but only selects one in every ten homes that apply. That means they’re going for the creme de la creme, but if you’re that, they’ll help you make the big bucks and take of your guests at the highest level. Having the partnership with Accor just sweetens the pot for guests who already love that brand.
READ MORE: HERE’S WHAT YOU SHOULD INCLUDE IN YOUR AIRBNB RULES
LANDING - PARTERNING WITH BIG BUILDINGS
Landing works with big apartment buildings to furnish their apartments and then rent them out both long and short term (or a combination thereof) which is especially handy if you’re moving to a new city and not sure how long you’re going to need a place for. What they’re doing is an interesting way of scaling up quickly with minimal partners, a ton of properties and very little overhead. Another person in this space is Mint House, so I’d expect to see more.
Got your eye on another corporation figuring out the Airbnb game? How will it impact the industry? Let us know in the comments so we can feature them too!