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Last year, Airbnb announced its plans to launch Niido, a co-branded apartment project that will open up several Airbnb-approved apartment complexes in Florida. To quickly recap: the developer in charge of the project is a real estate development group based in Miami called Newgard Development Group. Airbnb is set to serve as the “branded partner” to the project and Newgard will be retaining 100 percent ownership of the buildings. As of December last year, the Niido project acquired a $200 million investment from Brookfield Property Partners, $20 million of which will be allocated for its first 324-unit building to be completed in the first quarter of 2018.
The project, officially called “Niido Powered by Airbnb”, is a prime example of a healthy and working relationship between the landlords and building owners who don’t want illegal, unchecked short-term rentals on their properties and the tenants who want to rent out their homes for supplemental income. This new program is also a great representation of the kind of compliant home-sharing that Pillow strives to create for communities across the US.
As stipulated by their leases, residents of Niido apartment complexes are able to rent out individual rooms or their entire units on Airbnb for up to 180 days per year. This creates a stable and easy source of income for many folks who plan on travelling frequently or those who don’t mind sharing their homes with strangers. Under the partnership, Airbnb will charge its standard 3 percent fee for all revenue generated from reservations and Newgard will charge 25 percent, with the rest going to the tenants.
“The Niido model will provide additional income to landlords and tenants while enhancing the experience for Airbnb guests. Niido eliminates barriers by encouraging home sharing and creating solutions that work for everyone,” said Harvey Hernandez, founder and CEO of Newgard Development Group.
Residents of Niido sign annual leases which allow tenants to rent out their homes through the Airbnb’s Friendly Buildings Program that facilitates revenue-sharing between landlords and Airbnb hosts. Many of the apartment and community amenities for Niido are designed to be Airbnb-friendly, providing guests with shared common spaces and other features optimal for home-sharing. In fact, the apartment complex will have keyless entry and all tenants will have access to an app called MasterHost, which will allow tenants to remotely check in guests and provide other guests services, such as cleaning and special requests. To make things more exciting, the first apartment complex to open up is located in Kissimmee, Florida, a tourist-friendly area, near all the popular theme parks like Walt Disney World and SeaWorld Orlando.
“As the cost of living increases, apartment renters are under intense financial pressure,” said Hernandez. “Together with Airbnb, Niido’s unique multifamily home-sharing model provides a powerful solution to this ongoing problem by delivering extra income for tenants while creating enhanced experiences for their guests.”
This is a clear manifestation of home-sharing being privatized and introduced as a structured and controlled business to establish a transparent relationship between all parties involved. A program such as this that treats the landlord and tenant as partners in the home-sharing process is what Pillow strives to provide. At Pillow, we aim to create communities in which tenants and landlords can engage in a transparent and mutually beneficial relationship.
Written by Harry Lee · January 19, 2018