Skyrocketing rent costs in the Denver have forced many to explore alternative income options to cover increasing living costs. Most apartment complexes across the Denver metro area do not allow tenants to advertise units for short-term rental via online platforms such as Airbnb. Lease agreements signed by tenants usually prohibit or restrict short-term subleasing by tenants.
The owners of Archer Tower, an apartment complex in Denver Colorado, plan to change that policy by offering a solution that works for both the landlord and the tenants. They have partnered with San Francisco-based start-up, Pillow, to provide a workable solution that allows tenants to cover part of their monthly rent through subleasing spare rooms while the landlord maintains building security and earns a percentage of the revenues generated via Airbnb.
Pillow promotes itself as a company that “provides seamless, full-service management solutions that allow hosts to enjoy greater mobility while knowing their guests rest easy.” The company raised $13.5 million in venture funding in June of 2017.
As part of the partnership, Archer Tower received incentives from Pillow in exchange for allowing residents to rent their units on Airbnb. To encourage residents to sign up for Pillow’s services, tenants who promise to post their units online at least 10 days a month, are given a discount on their rent.