UnderTheDoormat Group’s Response to Resident Hosting
Airbnb-Friendly Apartments and the Path Forward for BTR Operators: Exploring Alternatives
The Build-to-Rent (BTR) sector has seen significant evolution in recent years, with the rise of alternative income streams and innovative tenant offerings reshaping the market. A noteworthy example is Airbnb’s collaboration with Greystar on their "Airbnb-Friendly Apartments" program, which recently marked its two-year anniversary in the US and has recently launched in the UK. This partnership aims to empower residents to monetise their living spaces, and benefit Investors and Operators through increased management control, resident retention and ultimately returns.
This article, authored by the UnderTheDoormat Group—which includes Veeve, Hospiria, and TrustedStays—aims to explore and educate the market on the value of short-term rentals and home-sharing for owners, guests, and tenants in the BTR and broader real estate industry. It examines the full range of "Resident Hosting" models available while also addressing concerns around safety, security, and revenue potential for the real estate industry, noted in Skift's December 2024 report.
The Airbnb-Greystar Model: A Closer Look
Airbnb-Friendly Apartments aim to provide tenants with an easy, compliant way to sublet their units for short-term stays. As Greystar’s blog post describes, this model offers property owners a share of the income, integrates Airbnb’s platform for ease of use, and promotes community engagement. While the program has expanded to the UK, low adoption rates among tenants, according to Skift's report, highlights an opportunity to address concerns around safety, liability, and the stigma often associated with short-term rentals. These concerns can be effectively mitigated by alternative models such as the Fully Managed Model which can ensure the highest level of safety by requiring a professional property management company to oversee guest reservations from booking to check-in and check-out. Furthermore, TrustedStays’ distribution into corporate channels for guests and commitment to accreditation and industry memberships addresses liability concerns, offering reassurance to all stakeholders.
In addition, the exclusivity of the Airbnb platform can limit BTR operators’ ability to maximise distribution and reach diverse guest segments, potentially restricting income streams and operational flexibility. A multi-platform strategy offers a solution by opening access to broader audiences, including corporate and government clients, which are often underrepresented in single-channel approaches.
Challenges and Risks for BTR Operators
Safety and Security: A key concern is the potential for security risks and tenant dissatisfaction stemming from poorly managed short-term stays. Properties operating under a platform model leave the operations to the renter of the flat, who is by default not present which can lead to issues of managing stays and community impact in your development. Alternatives include in-house team providing a required management option or partnering with a single operator who can ensure smooth operations and ensure consistent delivery and accountability for this type of guest/stay.
Limited Distribution Channels: By partnering exclusively with a single channel, operators effectively constrain their access to other potential guests including platforms that cater to corporate travellers, insurance housing, or relocation clients. This limits income diversification and reduces resilience during market fluctuations. Platforms like Booking.com, Expedia, TrustedStays and Trip.com can complement strategies by diversifying demand sources.
Brand Impact: Tenant turnover, noise complaints, and reputational damage are potential side effects of embracing a short-term rental model that prioritises income over quality and consistent delivery. Ensuring that apartments are provided to quality guests while maintaining operational excellence is critical for integrating the right model into a development.
Exploring Alternatives
BTR Operators and Investors have access to a broader market that can offer wider access and more robust safeguards. TrustedStays, a platform partnered with The ARL (Association for Rental Living), exemplifies an alternative approach that prioritises professionalism, safety, and scalability. TrustedStays facilitates short-term stays for corporate and government clients, spanning the BTR, multifamily, co-living, serviced apartments, and short-term rental industries.
Comparing Resident Hosting Models
UnderTheDoormat Group and other STAA/Quality in Tourism accredited companies offer flexibility by presenting multiple models of Resident Hosting, each with its own advantages and trade-offs. Here is a breakdown of the key models:
Platform-Only Model: This is exemplified by the Airbnb x Greystar partnership, where a single platform handles the distribution and resident hosts operate the stay. While this model is straightforward to implement and provides immediate access to a large audience, it limits distribution channels and presents risks on the operational side.
Software-Only Model: Property Management Systems such as Hospiria, Guesty, or Uplisting provide property management systems that allow operators to distribute across multiple channels. This model offers greater flexibility and scalability than the platform-only approach. By accessing a wider range of platforms, landlords can diversify their revenue streams and mitigate risks tied to market fluctuations. However, it requires property managers to actively manage bookings and guest experiences. Staff training is a critical part of the success of this model, which is also one of the most cost-effective solutions.
Fully Managed Model: The combination of UnderTheDoormat Group’s services (TrustedStays, Hospiria, and Veeve) integrates multi-channel distribution with professional property management. This approach ensures compliance, inventory checks, market leading insurance, guest vetting, and high-quality management of short-term rentals, relieving landlords and tenants of operational burdens. Fully managed models provide the most robust safeguards, ensuring community trust and maximising yield. While the most expensive option, this model offers the best distribution to maximise occupancy and attract the right guests, maintaining safety and security with accredited short-term rental operators to enhance day-to-day operations for BTR clients. Ultimately it delivers the highest overall returns as it is the most sustainable and scalable model.
Encouraging Strategic Application in BTR Portfolios
These models are not just theoretical frameworks but actionable strategies that BTR providers can implement across their developments and portfolios. By understanding the advantages and trade-offs of each model, operators can tailor their approaches to fit specific project goals and market dynamics.
Developers facing slower lease-up rates in competitive markets might adopt the Fully Managed Model to boost occupancy quickly, safely and security whilst ensuring high-quality guest experiences.
Operators managing smaller portfolios with active property managers could benefit from the Software-Only Model, leveraging systems like Hospiria to access multi-channel distribution while retaining operational control.
For those seeking a simple entry point, albeit with some obvious risks, the Platform-Only Model offers immediate access to a large audience but requires careful management to mitigate the risks.
By applying these models strategically, BTR providers can unlock new revenue streams, enhance tenant satisfaction, and strengthen their competitive positioning.
Insights from TrustedStays Resident Hosting Blogs
TrustedStays and The ARL have published several insightful blogs that walk through the advantages and evolution of Resident Hosting models. For example, the third blog in their series explores how trends like remote work, rising rental prices, and flexible living are reshaping short-term rental models. It highlights the pivotal role of technology in enabling dynamic, secure, and efficient property management solutions. By integrating tools that cater to mixed-use spaces, property managers can better align operations with shifting market demands and create value for both residents and landlords.
As discussed in the first blog, TrustedStays provides a solution to unapproved short-term rentals by creating compliant, community-oriented programs that benefit all stakeholders. Meanwhile, the second blog examines the pros and cons of various resident hosting models, providing a roadmap for landlords to make informed decisions.
You can access the TrustedStays blogs published by The ARL here.
Strategic Considerations for the Real Estate Industry
For BTR operators considering short-term rental programs, the decision should align with long-term goals and address key stakeholder concerns. Here are critical factors to consider:
Scalability: Choose a platform that can scale with the portfolio’s growth while maintaining consistent quality and security standards.
Flexibility: Avoid platform exclusivity to maximise market reach and adaptability.
Compliance and Reputation: Work with partners that ensure compliance with local regulations and foster a sense of trust within communities.
Conclusion
The Airbnb-Greystar partnership represents a significant step in integrating short-term rentals into residential operations, however, it is not a one-size-fits-all solution for the BTR sector. Alternatives like UnderTheDoormat Group (which ultimately also provide access to Airbnb as a platform) demonstrate that operators can achieve greater flexibility, enhanced safety, and more diverse revenue opportunities by adopting tailored, multi-platform approaches and a robust strategy around the operations and management of stays in their developments.
BTR investors and owners must weigh the benefits and risks carefully, leveraging insights from forward-thinking organidations like The ARL and the UnderTheDoormat group to make informed decisions. In a rapidly evolving market, the ability to innovate while safeguarding tenant trust and operational integrity will define the future leaders of the real estate industry.
Get in touch with Lisa Parnell at lisa@UnderTheDoormat.com to explore how these models can transform your development’s potential. Alternatively, fill out the form below and Lisa will be in touch.