Airbnb is getting into multifamily rentals, though controversy continues to dog the tech company.
The short-term rental giant has quietly laid the groundwork to operate rentals en masse out of 14 building complexes by 2020, according to Bloomberg. So far, Airbnb is operating two branded buildings in Nashville and Kissimmee, Florida,
To execute the new business, Airbnb partnered with Miami-based developer Newgard Development Group for the venture now known as “Niido Powered by Airbnb,” which was first announced in late 2017, as reported by Fortune. The concept is now operating in two buildings, each with more than 300 units, and Brookfield Property Partners agreed to invest $200 million.
“We have a pretty aggressive growth strategy,” said chief marketing officer Cindy Diffenderfer to Bloomberg.
The concept caters to Airbnb travelers looking to book a rental for up to 180 days per year. The visitors are housed alongside longer-term tenants, who are being encouraged to rent out their own units using Airbnb with the two companies taking a 25 percent cut of their rental income. The effort is supposed to curb illegal sublets and forge a partnership between Airbnb, owners and property managers.
But in their second building, a 328-unit rental property in Nashville, long-time tenants claim they weren’t given any advanced notice that Niido and Airbnb were taking over their leases. Residents say they only heard the news when the companies released a letter to them announcing the “acquisition of your beautiful community.”