Companies like Airbnb that host peer-to-peer, short-term rentals should incentivize hosts to improve quality of listings, according to new research from the University of Denver's Daniels College of Business.

Rental hosts that have high ratings for service quality help sustain healthy and viable business growth for the listing site, the study found.

The study, "The impacts of quality and quantity attributes of Airbnb hosts on listing performance," looked at 5,085 active Airbnb listings in Austin and found that while the majority of hosts — 87.74 percent — manage only one listing, there's also a significant portion of hosts — 12.26 percent — managing multiple listings.

"We see a warning sign though: there is a diminishing sales performance per listing as the number of listings managed by a host increases," said study author Karen Xie, an assistant professor at DU's Fritz Knoebel School of Hospitality Management. "Essentially, the hosts who decide to expand on Airbnb would face a ‘trade-off’ between quality and quantity."

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