Hosting on Airbnb is a great way to earn extra money, but delivering a great experience to guests requires a significant amount of time and effort. That’s why Airbnb has long offered their co-hosting program, that enables property owners and renters to share hosting responsibilities with trusted individuals.
In order to make co-hosting simpler for Airbnb hosts, the company enabled property owners/renters to split payouts to co-hosts without sharing bank account details and other sensitive information.
Although it was a great tool for many, Airbnb removed the co-host split payment functionality on August 1, 2018. Why? The main reason is concerns over scalability. The system worked well at first with relatively low transaction volumes, but as Airbnb co-hosting became more popular, the code powering the payment platform had to be rebuilt.
In their public announcement on the program, rather than Airbnb saying that they’re going to restore split payments, the company instead announced they’re working to develop a new feature to be announced down the road.
Shortly after making this announcement, Airbnb teamed up with London based property management company Air Agents to open a pop-up shop for all things related to short-term rentals.
So, what does this mean for the average Airbnb host? Is Airbnb going to get in the property management space though these partnerships? Are they looking to make an acquisition? Unfortunately we don’t have official answers to those questions, but our guts are telling us more partnerships are going to occur.
Why? Well, as we mentioned in our article about Airbnb Plus, one of the biggest challenges Airbnb faces is scaling their quality control operations. Hiring people to inspect Airbnb listings across the globe is logistically difficult. It’s much easier for Airbnb to have third-parties handle the nitty gritty of hosting, so they can focus on enhancing the platform as a whole.
Note that Airbnb hasn’t eliminated co-hosting from the platform all together – they just removed the ability to split payments across Airbnb accounts. If you’re an Airbnb host that doesn’t want to manually issue payments to co-hosts, Airbnb still supports multiple payment profiles within a single account. The one downside to this method is that co-hosts need to provide their payment information directly to the primary host, or they have to control the master account all together.