How Partbnb updated their Platform in 2020

I first wrote about Partbnb back in early 2019, and their business model has evolved somewhat since then. This is a follow up to my previous posts that details updates on how their platform currently works in 2020.

The core driver of the change seems to be that they want the platform to be open to more serious investors, and make the fractional ownership of a home easier to achieve, but also to ensure their platform can scale, and not get bogged down by too many small investors.

How did it work?

So, previously, each property was divided into 10,000 parts, with each part starting from $34. The product also used to be more investment focused.

I wrote a post previously about how it used to work.

How does Partbnb work now?

With the all new Partbnb, things have gotten simpler, more focused, but for the customer, also more expensive. Which is great because it weeds out the non-vested investor, and also allows the Partbnb team to focus on a smaller group of higher value customers.

So, all new partbnb, instead of 10,000 parts, are now dividing the property into 8 equal parts. Of course, if your capital allows, you can buy up 2 or more, or even the entire property.

This new arrangement will kick in 1 March 2020.

Oh, and one more thing. Partbnb used to be only available to US residents, but with the new structure, is open to citizens globally. Different nationalities will come with different regulations with regard to ownership of foreign property, and that’s something everyone will need to look out for, but apparently there’s a dedicated team that can help navigate that.

Each part owner (1/8) can also opt to stay for free at the property for up to 45 days per year, availability subject to the booking platform.

You will also have access to the title deed and each property will be tied to a company of which you will have partial ownership.

As part owner, you will receive updates on capital growth, vote on issues of maintenance, and sell your part when you feel the value is right.

In the current dashboard, I don’t see any properties up for sale, but I believe this is due to the new format of the platform being readied for official launch in March of 2020, which is a mere 2 weeks away.

As previously mentioned, I said I will be interested if it were opened up globally, but with the tightened new format of the 1/8 ownership, driving the prices up significantly, I may take a back seat for now, and watch with interest as they develop.

Do we really own the property?

Yes, that’s going to be my biggest area of concern, and I’m sure it weighs heavy on every investor’s minds too. Partbnb is aware of that, and in their FAQ section, states that:

In the event that Partbnb ceases operations, your ownership of the property will be unaffected. Every owner is a shareholder of the local company which owns title to the property. Partbnb is appointed as the manager, but has no ownership interest in the property. You will need to appoint a new manager for your property, or alternatively the owners may agree to manage the property between themselves, or lastly the owners may look to sell the property as a whole.

Partbnb FAQ Page