Despite being a frequent target of controversy, the Airbnb brand has flourished as apartment dwellers embracing the sharing economy have started making extra cash by renting out their units in short-term intervals.
It now appears that the business model is being adopted on a larger scale. As previously reported by Forbes, Miami-based development firm Newgard Development Group is concurrently working on two condominium projects – in Miami and Austin,Texas respectively – via Powered by Airbnb, the consulting arm of the globally-popular rental app.
Operated under the brand Natiivo, the developments are being built from scratch with home-sharing as their intended purpose from the start, rather than simply an option owners have after purchasing a unit and occupying it as their primary residence. The 249 Austin units will come online first, slated to hit the market in 2021, at which point owners will be actively encouraged to rent them out when vacating for an extended period of time. The Miami location is set to open in 2022, with that property comprising 604 units – over twice as many as its Austin counterpart.
Owners will have the option to list their abodes on their own, or utilize Natiivo's management services in exchange for a 25% cut of the rental fee. They will also be encouraged to contribute their own stories and recommendations for renters, in order to give those visiting a more guided experience of the city.
Natiivo functions under the corporate umbrella of NGD Homesharing, which already has similar properties in Nashville and Kissimmee, Florida that are labeled “Airbnb-friendly.” In addition to other standard amenities, the Austin and Miami developments will offer co-working spaces. Units at the Austin development will run between $300,000 and $1.2 million; the Miami location plans to offer a similar price range. Some of the rooms in both buildings will be run as stand-alone hotel rooms under the purview of the developer.
Mike Odenthal is a staff writer at The Cooperator.