You’ve heard about coworking, but how about coliving? Now is the time to learn more about this urban rental trend that’s gaining momentum with young renters across the country, including millennials looking to save money by sharing amenities. Not sure how this trend applies to your business? If you’re a multifamily property manager, you’ll want to keep reading. As the market appears to be headed for a downturn in the near future, flexible leasing strategies could be your best bet to recession-proof your properties and maximize rental revenue. What is coliving? Currently, coliving is mostly an urban trend with residents sharing a house, apartment or building. If you’re thinking of the kind of roommate arrangement that is the result of random pairings through online postings, think again. Today’s coliving spaces offer modernized community experiences — sometimes referred to as “intentional communities” — and often include options for more privacy and luxury, such as microsuites. Residents will usually have a private bedroom and sometimes a private bathroom. Shared spaces typically include kitchens, lounges, laundry rooms, gyms and rooftop areas for social gatherings. And while the experience is not too foreign for renters who’ve shared housing before, coliving spaces are usually cheaper than traditional rentals. For most coliving enthusiasts, the social connection is important — they don’t want to feel like they’re living in a hotel. The essence of coliving is bringing compatible renters together in one space, with an emphasis on the quality of relationships and experiences over the quantity of square footage. For single renters new to an area, coliving can provide a sense of community as they get to know their greater surroundings. For cash-strapped renters looking for great amenities or seriously swanky accommodations, coliving is the answer. And for the many young...

Home sharing was one of the hottest trends discussed at this year’s Canadian Apartment Investment Conference (CAIC) this fall. While many property owners and managers have been hesitant to allow renters to share their units with short-term guests, the trend keeps gaining momentum. At CAIC, Brookfield Asset Management’s Jonathan Moore, who manages the company’s multifamily investments, revealed details of the company’s $200 million investment in a joint venture with Niido, Airbnb’s multifamily development partner. The funds are being used to buy as many as six apartment complexes in Florida and Nashville and developing them into communities where tenants may rent out their units through Airbnb for almost half the year — and share the profits with the landlord.+ For the industry, this partnership represents a significant commitment to making home sharing work — for both multifamily operators looking to take advantage of a growing trend and leverage its revenue while protecting their bottom lines, and renters looking to offset the cost of their leased units and enjoy a more flexible lifestyle. Airbnb’s Jaja Jackson, director of global multifamily housing partnerships, stated, “We’ve shown how landlords, developers and Airbnb can work together to create value for everyone. We’re excited to continue to work together to make home sharing easier to landlords, tenants and travelers.” Developing Brookfield’s New Communities Since 2010, Brookfield’s investments include around $8 billion in purpose-built apartment acquisitions and another $3 billion in multifamily development. After the sale of more than $4 billion in apartments in the past couple of years, Brookfield has chosen to repurpose that capital in the home sharing market. The choice of Florida and Nashville as the locations to test this venture have been by the fact that the two cities are popular with tourists but light on Airbnb...

The City of Toronto has proposed new regulations for the short-term rental market. The proposed changes will affect owners of short-term rentals, rental agencies such as Airbnb, as well as hospitality and multifamily specialists. The City of Toronto is the first Canadian city to draft policy for this sector of the hospitality industry. Hosts and renters alike have known that regulations for the short-term rental market were inevitable. According to an Ipsos Public Affairs survey, 74 percent of Toronto residents believe short-term rentals should be permitted with some regulations. The Need for Change Several factors contribute to the need for new legislation regarding short-term rentals. Four issues top The City of Toronto’s list of motivating factors. Housing Shortage Population growth has outpaced the construction of new homes in Toronto, resulting in a housing shortage and affordability crisis. CMHC Rental Market for 2015 reports that a healthy vacancy rate is about 3 percent. Toronto’s vacancy rate is 1.6 . The lack of supply directly affects affordability. The Brooke Amendment to the 1968 Housing and Urban Development Act established a standard that is honored throughout much of North America. The Amendment stipulates that allotting more than 30 percent of household income towards housing is a measure of housing unaffordability. The City of Toronto cites the following CMHC data: 28 percent of owners spend a third or more of their income on housing, while 44 percent of renters spend 30 percent or more. The City of Toronto is exploring the connection between the short-term rental housing and the shortage of available housing stock. Hospitality Plateau EX26.3, a document that details the proposed regulations for short-term rentals, provides an overview of the proposed changes. It states, “Growth in the short-term rental market may be one of the factors...

Nestled in the tech hub of the city of San Francisco, AirBnb has achieved widespread global success since its founding just 8 years ago. Beginning with a simple living room turned “bed and breakfast” in a last-minute attempt to pay rent, Brian Chesky and Joe Gebbia are now operating a global company worth over 30 billion dollars. As a pioneer in the use of home-sharing, AirBnb took advantage of the recession in 2008, when many people were looking for cheaper alternatives to expensive hotels when traveling. Notably, AirBnb has gained recognition amongst millennials with its unique, quirky, and anti-corporate image. With the recently popularized “Experiences” feature, people are able to pursue this very sense of adventure that AirBnb’s image offers. According to research released by AirBnb itself, most millennials prioritize traveling over settling down and buying a home. millennials say that they are allocating more money into travel than they did a year ago. Experiences allows users to participate in activities or excursions that are led by local hosts, who give them a personalized view into their city and communities. Experiences can range from just a couple of hours to an itinerary stretched over multiple days, the latter of which are called immersions. These experiences could include physical activities such as hikes or surfing lessons, dining, or even workshops. For now, the Experience feature is only available in select cities. In the United States, the only cities with experiences available are Detroit, Los Angeles, Miami, New York City, Portland, San Francisco, and Seattle. Globally, users are able to choose experiences in Africa, Asia, Europe, and Australia. 8 out of 10 people surveyed in the UK, US, and China, say that the best way to learn about a country’s culture is to experience the country...

Airbnb announced the official launch of its multifamily housing program. The Friendly Buildings Program welcomes collaboration with apartment owners and addresses their apprehensions regarding transparency and accountability—that is what it attempts to do, at least. Nearly 35 percent of multifamily property owners are interested in a home-sharing program and 24 percent of owners were unsure, reports the new National Multifamily Housing Council (NMHC) home-sharing survey. Nearly 60 percent of multifamily property owners are open to the idea of Airbnb onsite. The market is a powerful growth opportunity for the company if it can overcome owners’ concerns. In the past, apartment owners routinely resisted the use of their properties for short-term rentals. The legalities of renter subleasing and inadequate insurance provisions topped the list of objections. Security and accountability trailed close behind. The Friendly Buildings Program proposes the following solutions: The program brings property owners into the loop of transactions. Owners can establish parameters for unit-sharing, including restrictions. Short-term rental provisions are made easy through lease addendums. Owners are notified of home sharing activity including reservation details and guest information. Owners receive regularly scheduled activity reports. The program protects against liability claims up to $1 million USD that occur in a listing as well as up to $1 million against third party claims of property damage or bodily injury. Kim Duty, Senior VP, Public Affairs & Industry Initiatives at NMHC summarized many owners’ thoughts on the insurance proposal, “A $1 million insurance policy is not close to enough to cover the potential risks.” Until more can be done to reduce liability, Airbnb faces a formidable obstacle. Most owners won’t move forward without a feasible insurance solution. Mark Stringer, executive Vice President at Avenue5 Residential took a quick survey of the room. More than 75 percent of...

Have you used Airbnb yet, either as a vacationer or a person renting out your home? According to the site, there have already been 60 million users, so chances are you have. I mean, I haven’t, because I like getting my towels cleaned every day and stealing hotel-branded pens, and also I think I would get creeped out when surrounded by some stranger’s family pictures while I’m trying to go to sleep, but, what can I say, I’ve always been a rebel. And it’s not just single-family homes that are being rented out. Now multifamily is slowly, tentatively exploring the possibility of maybe getting in on the Airbnb action, as MHN recently reported. As a property manager, should you allow residents to participate in Airbnb or use the service yourself for vacant units? Lets look at some pros and cons. Con: There might be security issues. The people coming in and out of your community through Airbnb won’t necessarily have the same checks you give your potential residents. In fact, you’ll probably know nothing about them. You don’t know who they’re inviting to visit them either. This could lead to some safety concerns. Pro: It’s an appealing perk for residents. If your community allows for Airbnb rentals, if a resident wants to go on a long vacation or if they need to break their lease a little early, it could be an option for these residents. Then they wouldn’t have to worry about paying their lease for a month they weren’t there, or losing a security deposit. Which would definitely lead to good word of mouth about your community. It could even be marketed as an “amenity” at your community. Con: Speaking of amenities, Airbnb-ers might hog the actual amenities. People who are renting the apartments for a vacation are probably...

This year, the Super Bowl will be held in East Rutherford, N.J. I live in New Jersey, not too far from there. Because of this, my apartment community recently sent an email memo to all residents saying that all subleases need to be approved, and that they will not be approving any near or around the Super Bowl. The reason the management company listed was to keep the community quiet and peaceful for all of the residents. After all, new people coming in and out of the building at all hours could be loud and disrespectful to their neighbors. Especially people who are there for a short time—they’re likely to treat the place as a hotel instead of a place where people live. Plus, after a day of tailgating, they might end up damaging the units or the common areas. Short-term rentals continue to be controversial—and sometimes illegal. Take, for example Airbnb. This website, which is an Internet service that allows people to rent out their apartments when they’re out of town. Which is illegal in some places, such as New York City. However, according to an article in the New York Times, the legality of renting out an to strangers for a short amount of time has not deterred people from using the service—in fact, according to the article, people are making substantial amounts of money from doing so. So, as a property manager, how can you make sure your residents aren’t participating in this practice? The first step is to have this written out in the original lease. That way if you discover residents are turning your beautiful community into a sleazy motel, you’ll be able to step in and take action according to the lease terms. Additionally, an email, similar to the...