Unlocking Extra Income With Airbnb-Friendly Apartments
In this Q&A with the company's real estate chief, find out how owners and renters can benefit from hosting opportunities.
With all costs rising over the past few years, both residents and apartment operators have been looking for ways to improve their revenues. Even though it might seem impossible to find a mutually beneficial way to earn extra income and offset high expenses, some rental companies and their residents have done it by using Airbnb.
Launched in late 2022, the Airbnb-Friendly Apartments program is designed to make hosting profitable for both the landlord and the renter. Currently, it runs in 40 markets and 127 cities across the U.S.
Multi-Housing News talked with Airbnb Global Head of Real Estate Jesse Stein about the program.
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How does Airbnb-Friendly Apartments work exactly?
Stein: Through the Airbnb-Friendly Apartments program, Airbnb has partnered with real estate companies of all sizes across more than 400 buildings in 40 U.S. markets and 127 cities, to help renters tap into the economic benefits of hosting on Airbnb. Since launching in November 2022, more than 900 renters have used the platform to create an AFA listing, earning approximately $7 million in the process.
What are some of the benefits of the program?
Stein: There are several benefits for buildings that join the program. Airbnb-Friendly Apartments can help to drive occupancy in buildings, with an increasing number of residents attracted to residences that offer flexibility and the potential to earn extra income while they travel. The program also amounts to free marketing for these buildings, as partner buildings are not charged a fee to be involved in the program.
From a NOI perspective, owners can elect to earn a share of revenue on every booking. This could result in increased revenue per square foot without raising rent. Partner buildings take a revenue share between 10 and 25 percent of a host’s booking amount. Building managers can use the income to help cover the cost of administering the program—such as reviewing and approving listings—market the program, reinvest in community beautification, or add services and personnel.
How does the program address safety and security concerns?
Stein: While communication with existing tenants is handled by building management, Airbnb is designed with safety in mind, and we believe the neighborhoods and communities in which we operate are as important as the hosts and guests who use our service. In addition to tools inherent to our platform, buildings participating in the AFA program have access to tools that provide visibility into hosting activity to help preserve community integrity.
The Latigo Group’s Lynwind community in Davenport, Fla., includes Airbnb-friendly apartments. All images courtesy of Airbnb 
Lynwind’s expansive pool with wading sun decks and in-pool lounges. 
Lynwind features one-, two- and three-bedroom units that residents can list on Airbnb to earn extra income. 
A living room at Lynwind 
The property includes indoor and outdoor gaming tables. 
Lynwind’s fitness center
Do you view this program as a way to deal with rising living costs? How much can hosts earn?
Stein: Airbnb has always been a tool for economic empowerment, helping hosts earn extra money to help them pay for expenses. According to internal survey data of Airbnb hosts with listing type ‘apartment,’ 64 percent of tenants say they choose to host on Airbnb in order to earn money to cover the rising cost of living.
With the continued high cost of living, we see this program as an opportunity for Airbnb and renters. AFA opens up hosting for their renters to allow them to earn some extra money to help pay their rent, save to buy a home, or just to enjoy a little more financial freedom at a time of economic uncertainty. The typical AFA host has earned approximately $3,500 since the program launched in November 2022.
How are potential maintenance problems and other urgent issues addressed to ensure both a positive Airbnb guest experience and a trouble-free participation in the program for the host and landlord?
Stein: Like all Airbnb hosts, AFA hosts are covered for damage under AirCover for Hosts, which includes damage protection to help reimburse costs up to $3 million. For any guest issues, Airbnb Support is available 24/7. Additionally, many of our partner buildings have maintenance teams that are onsite and available for emergency maintenance issues during off hours.
What are the most common challenges you encountered since implementing the AFA program? How did you deal with them?
Stein: Renters have largely not been able to host on Airbnb and that mindset is cemented in many people’s minds when they’re looking for apartments, so we’re continuing to spread awareness of this opportunity and ensure as many people know about the program as possible. We’ve also observed more traction when our partners market and educate their residents on the program, so we’re continuing to work hand-in-hand with them to continue building on and replicating that success.
