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Posted on August 05, 2022

Seattle-based Airbnb rental startup Loftium misses its own rent payments, slashes staff as coronavirus undercuts business

For many tenants, living in a home managed by Seattle-based Loftium was a dream come true: a desirably located house, loft or townhome, in an expensive city, with affordable rent. Landlords, for their part, loved the ease and sense of stability that came with signing a lengthy contract with a well-funded company that promised to vet and supervise tenants itself.

But it’s all come crashing down in the pandemic.

Loftium, a startup that secured $15 million in venture capital last year, rents homes from owners and subleases a portion of the space to tenants — who then manage Airbnb listings in the rest of the home on the company’s behalf. Tenants typically pay half or less of the rent that Loftium owes to landlords; Loftium picks up the difference. The company keeps the revenue from its short-term Airbnb rentals.