Airbnb-friendly apartments open up short-term rental market in San Diego
It's an opportunity for short-term rentals to proliferate, despite city rules meant to limit them. A growing number of apartment buildings across the country, including those in San Diego, are allowing tenants to rent out their units part time through Airbnb. This shift comes despite new regulations being implemented to limit short-term rentals. The rules require property owners and renters to secure licenses, and each host can only operate one unit within the city. However, some property owners have used "proxy hosts" to acquire multiple licenses for their homes. By using renters as hosts, local apartment owners and property management companies can also profit from and fuel more Airbnbs. Airbnb launched Airbnb-friendly apartments in 2022, a marketplace to help renters find apartment buildings where tenants can use their primary residences for part-time hosting. The platform also includes over 400 apartment buildings in 43 markets.
Published : 10 months ago by Kate Murphy,Sami Sparber in Tech
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A growing number of apartment buildings nationwide, including about two dozen around San Diego, are allowing tenants to rent out their units part time through Airbnb. Why it matters: It provides new opportunities for the proliferation of short-term rentals, even after city officials passed regulations intended to limit them.
Catch up quick: Last year, the city set new rules for managing short-term rentals to regulate the growing vacation-rental industry that's divided local property owners, neighbors and corporate investors for years.
Yes, but: The system hasn't fully worked as intended.
Zoom in: The rules require property owners and renters to secure licenses, and each host can only operate one unit within the city.
• When the regulations went into effect last May, dozens of property owners capitalized on a legal loophole and used "proxy hosts" — through individuals, LLCs, partnerships and family trusts — to acquire multiple licenses for their homes.
Between the lines: There is no limit to the number of complexes or units owned by a property management company that can be used as short-term rentals.
• By using renters as hosts, local apartment owners and property management companies can also profit from and fuel more Airbnbs.
The big picture: Many landlords don't permit short-term rentals, but some companies with big portfolios like Greystar have joined Airbnb's apartment platform.
• Apartments accounted for about 16% of the nation's Airbnb listings in April 2024, per AirDNA, a short-term rental analytics firm.
How it works: In 2022, Airbnb launched Airbnb-friendly apartments, a marketplace to help renters find apartment buildings where tenants can use their primary residences for part-time hosting.
• The platform grew last year to include more than 400 apartment buildings across 43 markets nationwide.
• Buildings that partner with Airbnb receive a share of the total booking revenue — typically 25% in San Diego.
State of play: Many of the local Airbnb-friendly apartments are in popular downtown areas, including East Village and Hillcrest.
• There's a cluster in the Mira Mesa and Scripps Ranch area, as well as around Del Mar and Carmel Valley near the beach.
• Most buildings let tenants rent out their abodes for up to 90 nights per year.
The intrigue: Tenants in San Diego who host on Airbnb typically earn about $9,200 a year — the highest among U.S. metro areas, per 2023 figures shared with Axios.
• Residents at Strata, 525 Olive and Park 12 Tower downtown can make the most money, with each averaging more than $1,000 in weekly Airbnb earnings.
• At Deerwood in Rancho Bernardo, hosts could also earn about $1,130.
What they're saying: "Everybody should have the ability to host, or share their home part time to make some extra income," Jesse Stein, Airbnb's global head of real estate, tells Axios.
• "We don't feel like homeownership should be a barrier."