Airbnb partnerships...buying multi unit bldgs to rent to airbnb's

9 Replies

I've been reading about different ways Airbnb businesses can be run

There is a group called Niido powered by airbnb, that is building

 a 324 apt complex in Kissimmee Fl, 

with the object of renting the apts  with the stipulation that they rent

their place 180 nights on airbnb, either as a hosted stay there is no limit, or

they also have a Master Host program that provides keyless and other

needed services for a fee.  Newgard Development group will own

100% of the complex..

I was thinking this might work on a smaller scale

I knew it was only a matter of time before big corporations started jumping into the Airbnb game. It's too much money to be made in it. I'm actually doing the same thing on a smaller scale myself by getting with multi unit owners and turning their units into Airbnb's. If you start building an Airbnb portfolio now then your opportunities will be endless in the future. Airbnb is still only at it's foundation in my opinion.

Originally posted by @Myka Artis :

I knew it was only a matter of time before big corporations started jumping into the Airbnb game. It's too much money to be made in it. I'm actually doing the same thing on a smaller scale myself by getting with multi unit owners and turning their units into Airbnb's. If you start building an Airbnb portfolio now then your opportunities will be endless in the future. Airbnb is still only at it's foundation in my opinion.

 That sort of thing has me thinking that the line between hotel and vacation rental will be blurred to the point where governments force vacation rental owners to abide by hotel rules and taxes.

@Anthony Gayden They already are. Airbnb is already partnering up with local governments to collect taxes. Of course not all local governments have got on board with them but I think they will in the near future. I know here in Texas you have to pay hotel occupancy tax in order to run your Airbnb but Airbnb collects the tax for you.

@Myka Artis - I know Denver has collected $950K in lodger's tax from Jan 1 - July 2017. 

Are you serious!? That's some serious revenue being generated for a city. I'm surprised the laws are so strict with all that money coming in.

I know its just the tip of the iceberg I feel it, they say

only 1% of the airbnb hosts have more than

1 unit.  I've been doing it for 3 years and

love the income

Pauline

Sounds like they simply created a lower-end Ritz-Carlton Residences, without the development, construction, and much of the ongoing management costs.

@Pauline Jones - Different cities have different laws with regards to AirBnb so be sure to check those out. Last weekend, I went to the Bay Area Real Estate summit where I met a few people doing these "master lease" ideas. 

A "master lease" is when you reach out to landlords and ask them if it is okay if you rent their place, but instead of living there you do a short-term rental. In many cities that do not allow short term rentals outside of a primary residence (i.e. Denver), "short term" will be 30+ days. Traveling nurses and corporate rentals are a great market for the 30-90 day period. 

This is a new idea and most property owners do not love the idea at first. However, there is a great advantage in doing this that you need to let them know: 

1. They will get steady rent from you with little to no hassle (i.e. free property management)

2. You will be monitoring their property making sure that it stays maintained every time the property flips. 

3. Offer to fix the little things for the property manager so it's extremely passive for them. 

Advantages for you:

1. You get the landlording and property management experience without the huge investment. 

2. AirBnb and other furnished rental sites are said to pay up to 2x-3x more than market rentals. You'll be cash flowing the property so long as you rent in a good location.

Taxes are already collected as well as all the appropriate licenses both state and county.

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