AM Property Solutions
I recently received an inquiry on the Zillow listing for one of my rentals from a person who says they work for a company called "AM Management Solutions". The message they sent is as follows:
My company's name is AM Management Solutions. We specialize in filling vacancies for busy property owners like yourself. We do this by establishing a long-term lease agreement (Typically 24-60 months), so that they can enjoy receiving consistent long-term cash flow while building equity in their home. My company would then provide stay to traveling professionals who are looking for a unique short term housing option.
Here's how my company operates: We would be the designated lease signee/holder and would pay you the monthly asking rent rate just as any normal tenant would. With your permission, we would provide short term stay to traveling professionals, vacationing families and local corporations (Our clients range of stay varies between 3- 120 days). All of our clients are top tier individuals. They are all non-smokers, pet free, screened through a criminal/credit background check and are inclusively taken care of by our company (such as low-level maintenance, landscaping, housekeeping etc.). Our primary focus is to keep your property in pristine condition at all times while under our care.
As a part of our client-outreach process, we advertise across the web in order to bring awareness to our services. We have created a full proof advertisement system to ensure that we serve only the best individuals out there. We use various platforms such as our own Website , Expedia, Corporate Housing, AirBNB, TripAdvisor, Booking, Military Housing & Furnished Finders (For health care providers) to simply find our ideal client and begin onboarding them. Every individual we provide stay to goes through a rigorous prescreening process to ensure they are a perfect fit for us.
If all looks good to you, we will happily move forward with the application process in hopes of moving in immediately!
Thank you!
Has anyone entered into an agreement with this type of company? If so, any feedback?
Also, I'm a bit wary of this company in particular as I can't find anything online that would indicate that "AM Management Solutions" is a real company. Has anyone heard of this company at all?
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They don't have any money so they want to use yours to build their business assuming they even have one. The author of this brochure is good, he can talk the birds out of trees. Feel free to do as you please, this proposition would not be for me.
This is a classic "short-term rental arbitrage" play. It is discussed on many of the STR podcasts I have listened to. I would not do it. You have no say over whom they let live in your property. They are asking you to take all the risk. They are probably judgement proof since their "business" does not have any footprint that you can find. If you want to rent to short-term guests, do it yourself and maintain the control over your asset.
@Evan Williams
They are most likely new to STR and are trying to do an arbitrage by holding the lease and then renting it out via air bnb to people short-term without owning the property. If you want a long-term renter, this would probably not be your tenant. Assuming they make it through a year lease and make all their payments, they are probably not going to be the kind of tenant who occupies the property for 5-10 years and doesn't want to move. If they couldn't get the business profitable in one year they will probably be out. On top of that, there is more risk in that you have no control over who would be staying there, and since many people are coming and going in the property with short stays it could result in things getting damaged since it's not their home.
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They want to pay you $1,000 a month (or whatever) and then rent your place as a short-term rental and make $3,000 a month. They are probably lying about screening their tenants for non-smoking, criminal records, credit, etc.
I wouldn't touch it. If your property is zoned for short-term rentals and can produce more income, hire a property manager that does all the work and you'll still make more money than you would as a long-term rental.
