{"id":175734,"date":"2024-07-26T14:24:14","date_gmt":"2024-07-26T20:24:14","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=175734"},"modified":"2024-09-18T02:16:46","modified_gmt":"2024-09-18T08:16:46","slug":"my-tenants-were-airbnbing-my-apartment-without-me-knowing","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/my-tenants-were-airbnbing-my-apartment-without-me-knowing","title":{"rendered":"My Tenant Was Airbnbing Their Apartment Without Me Knowing. It Happens More Than You Think."},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC7122931878\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Downsizing after a divorce was painful but financially <\/span><span data-preserver-spaces=\"true\">smart<\/span><span data-preserver-spaces=\"true\">. I decided to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/real-estate-investing\/house-hacking-strategy\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">house hack<\/span><\/a><span data-preserver-spaces=\"true\">, opening my Victorian Brooklyn brownstone to Airbnb guests and hoping to bring life to my cash-starved bank account and a spark to my stately home.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Well, I got more sparks than I bargained for.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Relocating to a lower floor, I was awoken in the night by clattering and knocking like a ship on the high seas, along with loud groans. I was sure the whole neighborhood could hear. It turned out that my 100-year-old home was being used for more than a simple short-term stay.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Whenever the same repeat guest booked, my grand old manse may as well have been an X-rated film set. Upon the guests&#8217; departure, I immediately looked into making sure they never came back. But according to Airbnb&#8217;s rules at the time, if I refused guests at short notice, my online ranking would drop fast\u2014and with it, the prospect of future income.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">My Tenants Were Airbnbing Their Apartments Without My Knowledge and Allowing Movie Shoots<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">It wasn&#8217;t my only bad experience with Airbnb. I&#8217;d wondered why my long-term tenant disappeared on weekends and why I&#8217;d find lockboxes around the exterior railings. <\/span><span data-preserver-spaces=\"true\">It turned out she<\/span><span data-preserver-spaces=\"true\"> was working a side hustle without my knowledge, subletting her apartment to short-term guests.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Another time, my neighbor asked me, &#8220;What film were they working on?&#8221;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">&#8220;Film?&#8221; I responded, confused.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">&#8220;Yeah, there was a whole film crew here. Actors, lighting, sound guys. Like 20 people,&#8221; he said. &#8220;I assumed you knew about it.&#8221; <\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">I didn&#8217;t.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Shorter the Booking, the Greater the Likelihood of Problems<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">I learned <\/span><span data-preserver-spaces=\"true\">a lot<\/span><span data-preserver-spaces=\"true\"> about Airbnb as a host before <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/short-term-rental-bans-in-new-york-only-made-hotels-more-expensive\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">New York City banned vacation rentals under 30 days<\/span><\/a><span data-preserver-spaces=\"true\">. The basic rule of thumb was that the shorter the booking, the more likely problems would occur. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> was especially true during national holidays, resulting in Airbnb banning one-night stays over<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/news.airbnb.com\/airbnb-announces-anti-party-crackdown-for-summer-holidays\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> Memorial Day and the Fourth of July<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">\u201cIn the off-season, bookings drop,\u201d Max Kostyashkin, president of<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/makrealty.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> MAK Realty<\/span><\/a><span data-preserver-spaces=\"true\">, who short-term rents high-end condos at the famed Fontainebleau Hotel in Miami, told BiggerPockets. \u201cThat&#8217;s summer in <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Miami-Fort%20Lauderdale-Pompano%20Beach%2C%20FL\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Miami<\/span><\/a><span data-preserver-spaces=\"true\">,<\/span><span data-preserver-spaces=\"true\"> when the rates go down <\/span><span data-preserver-spaces=\"true\">and<\/span><span data-preserver-spaces=\"true\"> the caliber of guests takes a nosedive, too.\u201d&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Kostyashkin manages condos owned by associates, investors, and family members. <\/span><span data-preserver-spaces=\"true\">\u201cInstead of weeklong bookings at high rates in peak season, <\/span><span data-preserver-spaces=\"true\">in the offseason,<\/span><span data-preserver-spaces=\"true\"> we get one-to-two-day bookings and 50% of our peak rates.<\/span><span data-preserver-spaces=\"true\"> That\u2019s when we see more problems.\u201d<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Always Have Insurance<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Kostyashkin tells this story:<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><span data-preserver-spaces=\"true\">\u201cWe had one incident before New Year&#8217;s a couple of years <\/span><span data-preserver-spaces=\"true\">ago,<\/span><span data-preserver-spaces=\"true\"> when a suite <\/span><span data-preserver-spaces=\"true\">was booked<\/span><span data-preserver-spaces=\"true\"> by a group of guys in their mid-20s. <\/span><span data-preserver-spaces=\"true\">Roughhousing must have occurred<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">because one went through a giant framed mirror, which was secured to the wall with four wooden corners. He claimed he was asleep and that the mirror had fallen on him, which was impossible. He got cut pretty badly and ended up going to the hospital <\/span><span data-preserver-spaces=\"true\">and<\/span><span data-preserver-spaces=\"true\"> requiring stitches and wound up with a $4,000 hospital bill.\u201d<\/span><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><span data-preserver-spaces=\"true\">\u201cThe guest blamed us and tried to get money. We spoke to Airbnb, who agreed that the story made no sense. The guests gave us a bad review, and because the mirror was custom-made and part of a condo in an upscale hotel, it had to <\/span><span data-preserver-spaces=\"true\">get<\/span><span data-preserver-spaces=\"true\"> replaced. The room was closed down for a week. As business owners in the hospitality business, we have full-time vacation rental insurance, but ultimately, we lost money through no fault of our own.\u201d<\/span><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Beware of Vacation Rentals in High-Rise Buildings<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Miami is a unique, wildly popular Airbnb market. Vacation rentals <\/span><span data-preserver-spaces=\"true\">are welcomed<\/span><span data-preserver-spaces=\"true\"> in certain parts of the city, and a<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/skift.com\/2024\/02\/15\/miami-is-set-up-for-a-surge-in-airbnbs\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> surge of Airbnb-compliant condos is in the works<\/span><\/a><span data-preserver-spaces=\"true\">. However, Kostyashkin urges caution to other Airbnb landlords and hosts who think overseeing vacation rentals in a high-rise will be smooth sailing.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">&#8220;Anything in your rental can affect the whole building,&#8221; he says. &#8220;Five years ago, one of our guests burned down the room. We&#8217;re talking tens of thousands in damages. The entire building had to <\/span><span data-preserver-spaces=\"true\">be evacuated<\/span><span data-preserver-spaces=\"true\">, all 37 floors. Like many Airbnb owners, he was trying to do it <\/span><span data-preserver-spaces=\"true\">on the cheap<\/span><span data-preserver-spaces=\"true\"> and never had insurance, so he had to pay the entire bill.&#8221;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">One Bad Event in Your Neighborhood Can Affect Every Vacation Rental Nearby<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">A headline-grabbing Airbnb horror story can affect other vacation rentals nearby, resulting in business suffering. The city can get involved, and even banks might become wary of financing other vacation rental projects nearby.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">For example, two years ago, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/abcnews.go.com\/US\/multiple-people-injured-pittsburgh-shooting-incident-police\/story?id=84131092\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">two teenagers <\/span><span data-preserver-spaces=\"true\">were killed<\/span><span data-preserver-spaces=\"true\"> and eight others wounded<\/span><\/a><span data-preserver-spaces=\"true\"> when a party at an Airbnb in <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Pittsburgh%2C%20PA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Pittsburgh<\/span><\/a><span data-preserver-spaces=\"true\">&#8216;s North Side, attended by over 200 people, went south. It was the third time in nine days that gunfire had erupted at Airbnb parties. Pittsburgh&#8217;s City Council soon <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.wesa.fm\/politics-government\/2022-05-24\/short-term-rental-owners-in-pittsburgh-are-unhappy-with-the-citys-proposed-regulations\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">proposed <\/span><span data-preserver-spaces=\"true\">tougher<\/span><span data-preserver-spaces=\"true\"> laws regarding Airbnb<\/span><\/a><span data-preserver-spaces=\"true\"> and limiting the length of stays.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">At the time, I was in the middle of financing my own <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multifamily<\/span><\/a><span data-preserver-spaces=\"true\"> Airbnb project nearby. My lender also funded the building where the shooting had taken place and warned me against short-term rentals. <\/span><span data-preserver-spaces=\"true\">For a while, <\/span><span data-preserver-spaces=\"true\">I thought<\/span><span data-preserver-spaces=\"true\"> they might decline my loan.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-find-a-property-manager\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">property manager<\/span><\/a><span data-preserver-spaces=\"true\"> I used installed a sophisticated noise-monitoring system and another that detected the number of cell phones <\/span><span data-preserver-spaces=\"true\">in use<\/span><span data-preserver-spaces=\"true\"> in the building as a safeguard against uninvited guests and parties. So far, so good.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">For every vacation rental horror story, many more investors have cultivated profitable businesses without the hassle of dealing with eviction or having full-time tenants.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">If you&#8217;re looking for a passive investing experience, while vacation rentals are tougher to do passively, a good vacation rental software like <a href=\"https:\/\/hospitable.com\/biggerpockets-2\/?utm_source=biggerpockets&amp;utm_medium=referral&amp;utm_campaign=biggerpockets\" target=\"_blank\" rel=\"noreferrer noopener\">Hospitable<\/a> can make it much easier.<\/span> Hospitable can help put your vacation rental on autopilot by automating 90% of guest messages, syncing calendars across all platforms, streamlining cleaning team reminders, and more.<\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_0b7b2eac42f9a08a2af33dc44503ce2d\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_d122402b669979f9bf96ca164899dc50\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color wp-block-paragraph\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_cecead23cb8515b863d24756bb8eabd4 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/my-tenants-were-airbnbing-my-apartment-without-me-knowing&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color wp-block-paragraph\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/my-tenants-were-airbnbing-my-apartment-without-me-knowing&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Renting has its horror stories, and sometimes it gets out of control. Jeff gives us an inside look at what happened when one of his tenants rented out his property without him knowing, plus stories from other landlords.<\/p>\n","protected":false},"author":613725,"featured_media":175737,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7271,7119],"tags":[],"class_list":["post-175734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-short-term-rentals","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/175734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=175734"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/175734\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/175737"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=175734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=175734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=175734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}