INSUBCONTINENT EXCLUSIVE:
Airbnb is testing a new payments feature for hosts, letting them get partially paid out at the time of booking.This feature isn’t rolling
out to everyone just yet, as Airbnb says that this is just a preliminary test to gauge interest
Invited hosts simply opt-in to payout splitting to check out the feature.Here’s how it works:Normally, Airbnb hosts are paid 24 hours
after their guest’s scheduled check-in time
With the new payouts test, hosts who have been invited and opt in will receive 50 percent of their cash three days after the guest has
booked their stay, and the other half will be received 24 hours after check-in time.For their trouble, Airbnb is taking a 1 percent fee of
the booking subtotal for early payouts.As per usual, hosts can opt out of early payouts at any time by making the change in their Payout
Preferences.If a booking is cancelled after an early payout has been received, the amount will be deducted from the host’s next
booking.This comes on the heels of Airbnb’s announcement in February to add new tiers and types of lodging to the platform, including
Airbnb classifies hosts with more than six listings on the platform as Professional Hosts, and early payouts are one way that Airbnb can
help these hosts grow their business.However, in certain housing-constrained markets like NYC, professional hosts aren’t necessarily
In May, NYC Comptroller Scott Stringer released a report saying that Airbnb’s presence in NYC is driving up the cost of rent for full-time
The company and the Comptroller’s office went back and forth over the veracity of the report, but NYC isn’t the only market worried
about the folks who make Airbnb their full-time job.In 2017, the WSJ reported on a study surveying 100 of the largest metro areas in the U.S
which found that a 10 percent increase in Airbnb listings leads to a 0.39 percent increase in rent and a 0.64 percent increase in house
That may sound small, but rental prices typically climbed by 2.2% per year without Airbnb, according to one of the survey’s authors
So Airbnb is accelerating the rate at which rental prices rise.This very argument and the ensuing spats have led Airbnb to cut SF listings
(almost in half) following the city’s kick-off of new short term rental laws
And new, stricter laws may be coming to NYC.Airbnb says that it works with its communities to stay on the right side of the law, but that
professionally managed properties are integral in markets where tourism is a huge part of the economy.“For decades, vacation rentals and
professionally managed properties have been the backbone of the economy in vacation destinations like beach and ski towns and we welcome
these types of listings in these types of communities,” said an Airbnb spokesperson
“Trials like these are one way we work to support our community
In some places, usually urban destinations, there can be rules around hosting multiple listings
We always want Airbnb to be a positive force in local communities and we make it clear to hosts that they need to follow these rules.”The
payouts test is geared towards professional hosts, but is being spread via an invite basis to both pro hosts and regular hosts.
