Property owners once saw short-term rental listing sites like Airbnb Inc. as a threat. Now, some are embracing them.
Startups like Sonder Corp., Domio Inc. and Lyric Hospitality Inc. typically lease blocks of furnished apartments on the same floor or even entire buildings under long-term deals. Then they turn around and rent them out to travelers for stays of a few weeks or as short as one night.
These apartment operators aim to appeal to travelers who prefer larger accommodations than a standard hotel room but want a more predictable experience than renting from an amateur host. For property owners, these firms offer the prospect of renting out a large number of units at once, as opposed to waiting until a new development gradually fills up with individual tenants.
Property developer Greystar Real Estate Partners recently agreed to lease 100 units in a San Diego development to Lyric, part of the 26-year-old firm’s recent push into the short-term rental market, said Greystar’s chief executive, Bob Faith.
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