The company is partnering with the Paris-based arm of the renowned real estate firm Century 21 in order to try and get around regulations that prevent tenants from subletting their homes on Airbnb.
In the past, apartment landlords in numerous cities around the world have complained that Airbnb encourages their tenants to break their contracts by subletting their rented homes. They argue that this creates unsafe conditions for other tenants, though it’s likely that in many cases the real reason for the discontent is that landlords are missing out on a larger profit.
Landlords are so upset at Airbnb that a group of U.S. property owners earlier this year announced their intent to sue the company.
Airbnb has already been subject to numerous regulations in some cities, who’re worried about its effect on local housing markets.
So now, Airbnb says it’s teaming up with Century 21 in Paris in a deal that it hopes will appease landlords and keep its business alive.
Paris has some especially tough regulations against Airbnb, but the city is also a massively popular tourist destination and therefore a key market. Under the deal with Century 21, landlords can now agree to allow their tenants to sublet on the platform, provided they get a cut of any deal. The agreement stipulates that landlords receive a 23 percent cut, and Airbnb will get 7 percent, from each guest stay.
“The goal is to make it easier to sublet so hosts can welcome guests up to 120 days per year on Airbnb,” Airbnb officials told HousingWire. “A win-win deal as tenants, landlords and the agency all share the income when a booking is made on Airbnb.”
“With the Airbnb-friendly lease, subletting will be much better supervised,” the company continued. “Moreover, this deal does not dry up the supply of housing in tense areas but encourages subletting of occupied homes.”
Airbnb said if the partnership proves to be successful, it will expand the program to other major cities.