HOME SHARING: HOW MULTIFAMILY CAN TAKE A SHARE OF THE PROFITS The industry-leading resource for vacation rental data, AirDNA, estimates there are more than 1.2 million available short-term listings across the globe in 2022, up 15% from 2021. Clearly, short-term renting has not only taken off, but it has turned the hospitality industry on its head, often outperforming hotels in many markets. But is it possible for multifamily operators and their residents to gain some traction in the new sharing economy? Many multifamily operators are already participating in home sharing or flexible living models and solving a number of perennial challenges to boot.
BENEFITS OF HOME SHARING
Home sharing occurs when residents rent their primary residence for lodging WHAT IS HOME SHARING?
✓ Reduces vacancy by diversifying your customer base to fill empty units. ✓ Boosts NOI by combating any seasonality issues in leasing in particular markets. ✓ Helps improve long-term lease-up rates, as some people use home sharing to test out a community and determine if it’s right for them. ✓ Can be positioned as a profitable amenity to full-time residents, some of whom may even need the additional income to afford their apartments. ✓ Opens up higher rental income potential versus traditional, year-long leases. Multifamily operators and their residents can set fluctuating rates depending on the area’s high and low seasons and set a minimum length of stay for the most popular times of year to ensure maximum profits.
to paying guests, which is different than owning and renting out a secondary rental property.
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