Airbnb announced plans to work with local governments on short-term rental rules that will allow renters to earn extra income by sharing their home.
In a blog post announcing the plans, Airbnb cited reports that a record half of renter households in the United States were deemed “cost burdened,” meaning they spent more than 30% of their income on rent and utilities. The post also noted that high mortgage rates and housing values leave renting as the most financially viable option for many.
Yet despite those trends, many of the short-term rental regulations across the country preclude renters from earning extra money by sharing their living space as homeowners are allowed to do, even though renters tend to earn significantly less than homeowners do.
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“Homeownership should not be a barrier to entry when it comes to sharing your home,” said Mike Signer, Airbnb’s North America policy director. “The vast majority of hosts in the U.S. share their space to help cover the rising cost of living, and we want to partner with cities to develop sensible short-term rental policies that grant renters the opportunity to do the same.”
The company highlighted efforts by cities such San Diego, Raleigh, North Carolina, and Tulsa, Oklahoma, in passing renter-friendly short-term rental policies. This month Virginia adopted a statewide law requiring that localities issuing short-term rental permits to property owners must issue the same permit to tenants — with permission of the property owner.
The issue of property owner permission highlights that while Airbnb may be able to lobby local governments into making things easier on renters, landlords still represent a potential roadblock.
Phocuswright senior research analyst Madeline List said the new announcement evoked “the more economic and community friendly stays” Airbnb was known for when renting out spare rooms was more common.
“What it doesn't cover though is landlords who include lease clauses that prohibit short-term rental or arbitrage from their tenants,” List said. “Landlord pushback has been a major factor in this area as many don't want the hassles or liability of having frequent guests in their building who they didn't approve.”
As part of its announcement, Airbnb also said it was donating $100,000 to the Flagstone Initiative, a nonprofit that offers financial assistance to help renters avoid eviction.
“Millions of renters live paycheck to paycheck and need help making ends meet,” Flagstone Initiative CEO Shin Inoue said. “Airbnb’s donation will help provide creative upstream solutions to improve their financial stability and keep them in their homes.”