NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

Airbnb exploring long-term rentals

By Olivia Zaleski
Bloomberg·
8 Mar, 2017 07:24 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Houses in San Francisco. Could Airbnb disrupt the rental market? Photo / 123rf

Houses in San Francisco. Could Airbnb disrupt the rental market? Photo / 123rf

Airbnb has quickly become a favorite destination for travelers looking for somewhere to stay on vacation. Now the home-sharing startup is interested in doing the same for people who want to find a place to live.

Airbnb is considering an expansion in the long-term rental business and has asked McKinsey & Co. to research the market, said two people familiar with the matter. The consulting firm's work involves conducting competitive analysis of Craigslist, said the people, who asked not to be identified because the deliberations are private.

While Craigslist currently dominates rental markets in many cities with its "sublets/temporary" section, Airbnb believes there may be an opportunity to offer a safer, identity-verified alternative, the people said. McKinsey is expected to present its findings to senior management at the San Francisco company next month.

Nick Papas, a spokesman for Airbnb, declined to comment on the project. He said at any given time, Airbnb is considering dozens of initiatives and new product categories, and many never see the light of day. "Examining different parts of the market is standard operating procedure, and we don't have any announcements to make," he said.

Craigslist's giant user base is an attractive target for Airbnb, which is on a mission to add new revenue streams and justify a private market valuation of $31 billion (NZ$45b). Craigslist boasts about 60 million US visitors a month, according to internet research firm ComScore. Despite being one of America's most trafficked online destinations, the classifieds website looks and behaves much like it did when it debuted more than two decades ago. In most places, users can post for free and anonymously. Craigslist doesn't police listings.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

The laissez-faire approach has made Craigslist a haven for hustlers and scammers. A March 2016 study from New York University found that Craigslist fails to identify and remove more than half of scam rental listings. Early on, Airbnb used Craigslist's leniency toward spam to its advantage. In 2009, an Airbnb founder devised a system to email thousands of Craigslist users encouraging them to migrate their home and apartment listings to Airbnb, according to "The Upstarts," a book by Bloomberg's Brad Stone.

Airbnb has offered a sublet section on its site since 2011, listing houses and apartments to rent by the month. Some cities, including New York, only allow Airbnb to offer long-term rentals. The company collects a 9 percent to 12 percent fee from each booking. According to the Airbnb Sublets page, monthly rentals are currently available in more than 5,000 cities.

However, the feature isn't advertised on the homepage and lacks basic functions. For example, it requires bookers to input an end date for their stays, something a person living month-to-month may not know. In addition to addressing that issue, the company would likely build options for long-term renters to pay utilities and other recurring service fees, such as electricity, water and internet, said a person familiar with the matter.

Advertisement
Advertise with NZME.

A push deeper into local subletting is in contrast to Airbnb's recently articulated strategy to become a full-service travel company. Brian Chesky, Airbnb's chief executive officer, said the company is building on the trip itinerary options, tours and other travel experiences it introduced in November. The company is also developing a flight-booking tool. Last month, Airbnb made its biggest acquisition, spending about $300 million on Luxury Retreats, a platform for high-end travel rentals and tourism services. And it's been looking at acquiring other travel-related startups.

Discover more

Business

Whistling balcony drives residents crazy

09 Mar 08:04 PM
Investment

City facelift: Auckland's giant new tower

10 Mar 04:00 PM
Save

    Share this article

Latest from Business

Premium
TechnologyUpdated

Tech Insider: $529 phone, bought in March, can only make 3G calls; IRD's AI warning; $16K Google Cloud refund

10 Jun 03:14 AM
Opinion

'Friend and partner': Ambassador Wang Xiaolong on future of NZ-China relationship

10 Jun 01:00 AM
New Zealand

'Great news': NZ red meat exports hit $1.21b in April

10 Jun 12:23 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
Tech Insider: $529 phone, bought in March, can only make 3G calls; IRD's AI warning; $16K Google Cloud refund

Tech Insider: $529 phone, bought in March, can only make 3G calls; IRD's AI warning; $16K Google Cloud refund

10 Jun 03:14 AM

PLUS: Elon Musk's pain is Sir Peter Beck's gain.

'Friend and partner': Ambassador Wang Xiaolong on future of NZ-China relationship

'Friend and partner': Ambassador Wang Xiaolong on future of NZ-China relationship

10 Jun 01:00 AM
'Great news': NZ red meat exports hit $1.21b in April

'Great news': NZ red meat exports hit $1.21b in April

10 Jun 12:23 AM
ASB offers $150,000 interest-free loans for farm solar systems

ASB offers $150,000 interest-free loans for farm solar systems

09 Jun 11:51 PM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP