Curbed

Thanks to Airbnb, There Are More Pricey Short-Term Rentals

October 24, 2015

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With Airbnb growing in popularity across the globe (if not with politicians in New York City), landlords and developers don’t want to be left out of the action. Some are trying to cash in by offering more short-term rentals for much higher prices, according to The Real Deal. One example: at The Arthur at 245 West 25th Street (owned by the Naftali Group), a one-bedroom model unit with a four-to-12-month lease is asking $7,000 a month. That’s compared to a typical one-bedroom in the building, which goes for $5,500 a month.

“There’s always demand for short-term housing in Manhattan, because people come from all different areas to work here,” said Gary Malin, president of the rental-focused brokerage Citi Habitats, told TRD. “And they’ll pay dearly for it.”

Another example is Zeckendorf Development’s 50 United Nations Plaza, where the new owner of a three-bedroom condo is trying to rent it out. If you go with a year-long lease, you’ll pay $26,950 a month. But if you go with the six-month lease, it’ll be $33,000 a month.

The new demand for short-term stays has also led to some hotels being turned into condos while others are exploring their own extended-stay models, the report said.

Subleasing for under 30 days is illegal in New York, but that hasn’t slowed down the growth of Airbnb. According to a report by New York State Attorney General Eric Schneiderman, more than 100 hosts used Airbnb to make a combined $60 million between 2010 and 2014. Just one of them alone managed 272 listings, booked over 3,000 reservations, and made $6.8 million. The company, which is only seven-years-old, is now valued at $25.5 billion.