Renter placed my property on airbnb
Investor · Houston/Chicago · Member since 2022 · 15 posts · 10 votes
Renter placed my property on airbnb
Most Popular Reply
Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
3yHell nahhhhh
He's violating the lease - you have the lease written for a reason, right? He's essentially increasing your liability tenfold then placing all the risk on you
And now you KNOW about it
Seems like this has the potential to get messy for you. For that reason alone I'd out a stop to it
Now - I don't have a problem with the strategy or getting paid in full every month. But the lease need to be amended or re-leased to accommodate for this new use
31 Replies
- Fletcher, NC · Member since 2016 · 35 posts · 22 votes3y
Quote from @Kendall Moore:
Hi I have a multi-family2 unit property in Houston, Tx . Not sure what or if I should do anything. I use one side for an airbnb myself. I rent the other unit out. I have a renter, the gentleman that was listed is in his 70s. I thought it was strange for a 70 year man to want a 3 bedroom 2 bath unit with all of the bathroom being on the second floor. I rented the place to him because he met the requirement for the rental income. I have since notice that he had not once visit the property (a younger couple comes by) and I now see the unit listed on airbnb. In the lease agreement it states the property is to be use for personal use by the renter only. I will say that the unit I placed on airbnb does not make more than what I could rent the unit. I am concern that my unit will have to compete for listing on airbnb with a unit I plan to rent out. Should I say anything to the renter or just let it be as long as they pay the rent every month. I plan to stop airbnb my unit next soon and likely will rent it out.
Does your insurance policy cover sub-leased rentals? Answer is no. The old man is dodging the general liability of owning a rental and putting the financial burden on you. If a claim arises from his sub-let, you'll get zero Loss of Income and your claim entirely can be denied.
He's paying maybe $250 yr for a renters insurance policy that will cover him for loss of property/theft. Anyone renting out property should have a short term rental insurance policy to cover losses incurred, vacancy between renters and protect you from liability.
Claims can pull historical records of AirBNB, find this guy renting it out and deny you for any loss, say if the whole place went up.
- Fletcher, NC · Member since 2016 · 35 posts · 22 votes3y
- 3yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
If the tenant is violating the lease, then yes you need to talk to him and tell him to stop and start the eviction process. Also 70 is not that old for most people. I know many people in their 80s and 90s who have no problem with stairs.
- Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes3y
Hell nahhhhh
He's violating the lease - you have the lease written for a reason, right? He's essentially increasing your liability tenfold then placing all the risk on you
And now you KNOW about it
Seems like this has the potential to get messy for you. For that reason alone I'd out a stop to it
Now - I don't have a problem with the strategy or getting paid in full every month. But the lease need to be amended or re-leased to accommodate for this new use
- 3yBobby PaquetteBusiness MemberReal Estate Agent · Abilene, TX · Member since 2019 · 223 posts · 88 votes
Quote from @Kendall Moore:
Hi I have a multi-family2 unit property in Houston, Tx . Not sure what or if I should do anything. I use one side for an airbnb myself. I rent the other unit out. I have a renter, the gentleman that was listed is in his 70s. I thought it was strange for a 70 year man to want a 3 bedroom 2 bath unit with all of the bathroom being on the second floor. I rented the place to him because he met the requirement for the rental income. I have since notice that he had not once visit the property (a younger couple comes by) and I now see the unit listed on airbnb. In the lease agreement it states the property is to be use for personal use by the renter only. I will say that the unit I placed on airbnb does not make more than what I could rent the unit. I am concern that my unit will have to compete for listing on airbnb with a unit I plan to rent out. Should I say anything to the renter or just let it be as long as they pay the rent every month. I plan to stop airbnb my unit next soon and likely will rent it out.
I think theres a few things to consider here..If its on AirBnb its likely getting cleaned a lot more than it would by a long term renter, your appliances are probably getting used a lot less than a long term renter, so theres 2 Win's for you. I do think it would compete against yours if similar size, and it may be more of an insurance risk. Finally, you could tell him you know that he has it listed on AirBnb and the lease states he cannot do that, but you are willing to keep letting it happen for an increased rent amount.
You basically have zero insurance. You might as well stop paying it. Hopefully you have no net worth yet so you don’t mind losing it all. Hopefully it’s just a trip and fall or a fire and not an underage drinker.
This is all ignoring you're renting to a known liar. Start the eviction process and make sure your future leases say STR is not allowed, owner occupants only, no sub-leasing, etc.
- Investor · Houston/Chicago · Member since 2022 · 15 posts · 10 votes3y
Quote from @Theresa Harris:
If the tenant is violating the lease, then yes you need to talk to him and tell him to stop and start the eviction process. Also 70 is not that old for most people. I know many people in their 80s and 90s who have no problem with stairs.
I did not mean anything about his age. I just notice the person is 73 years man old yet I’ve only saw a young couple maybe in the 20s. So I know it’s not the person on the lease
- 3yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Quote from @Kendall Moore:
Quote from @Theresa Harris:
If the tenant is violating the lease, then yes you need to talk to him and tell him to stop and start the eviction process. Also 70 is not that old for most people. I know many people in their 80s and 90s who have no problem with stairs.
I did not mean anything about his age. I just notice the person is 73 years man old yet I’ve only saw a young couple maybe in the 20s. So I know it’s not the person on the lease
Could it have been his grandkids? If you've never seen him there, I'd pop by to say 'hi' and if he doesn't answer ask the person who answers the door who they are and where X is. You could also ask for the wrong name (eg Paul instead of Phil) to see if they catch the mistake or correct you.
- Fletcher, NC · Member since 2016 · 35 posts · 22 votes3yThen what is likely happening is his kids are using his good credit to get themselves an AirBnB property without doing what you did...buy it. Notify AirBNB that the property is fraudulent. It will immediately be blocked. AirBNB will actually lock out rentals if renters report the owner for violation of privacy. This is likely an easier fix for you to block his shady kids out of renting. It's fraud.
Quote from @Kendall Moore:
Quote from @Theresa Harris:
If the tenant is violating the lease, then yes you need to talk to him and tell him to stop and start the eviction process. Also 70 is not that old for most people. I know many people in their 80s and 90s who have no problem with stairs.
I did not mean anything about his age. I just notice the person is 73 years man old yet I’ve only saw a young couple maybe in the 20s. So I know it’s not the person on the lease
Notify the tenant you're conducting an interior inspection this week, go in, take a photo of yourself inside the unit and submit it with your request to AirBNB to shut it down. Make sure there is a date/time stamp. I'd serve the C/Q notice and get an eviction lawyer involved if he doesn't comply with the lease rules. In fact I might even have the lawyer serve the c/q notice by process server just to get the point across firmly. This situation needs to be nipped in the bud fast because of the liability and damage concerns.
Quote from @Bobby Paquette:
Quote from @Kendall Moore:
Hi I have a multi-family2 unit property in Houston, Tx . Not sure what or if I should do anything. I use one side for an airbnb myself. I rent the other unit out. I have a renter, the gentleman that was listed is in his 70s. I thought it was strange for a 70 year man to want a 3 bedroom 2 bath unit with all of the bathroom being on the second floor. I rented the place to him because he met the requirement for the rental income. I have since notice that he had not once visit the property (a younger couple comes by) and I now see the unit listed on airbnb. In the lease agreement it states the property is to be use for personal use by the renter only. I will say that the unit I placed on airbnb does not make more than what I could rent the unit. I am concern that my unit will have to compete for listing on airbnb with a unit I plan to rent out. Should I say anything to the renter or just let it be as long as they pay the rent every month. I plan to stop airbnb my unit next soon and likely will rent it out.
I think theres a few things to consider here..If its on AirBnb its likely getting cleaned a lot more than it would by a long term renter, your appliances are probably getting used a lot less than a long term renter, so theres 2 Win's for you. I do think it would compete against yours if similar size, and it may be more of an insurance risk. Finally, you could tell him you know that he has it listed on AirBnb and the lease states he cannot do that, but you are willing to keep letting it happen for an increased rent amount.
This is not a good idea.
- Investor · Fresno, CA · Member since 2016 · 222 posts · 237 votes3y
To me, this is an easy no. The man is violating the lease and placing an undue and unwanted burden on your as the property owner both from a liability as well as strategic standpoint. Insurance is the main concern here as noted above. I would have a discussion with him to come to a new, fair lease agreement (assuming you're okay with him sub-letting) which changes the terms of the lease, insurance requirements, and amount of security deposit. Be very firm and let him know that if you don't come to terms you will start the eviction process immediately/same day.
- New to Real Estate · NJ · Member since 2023 · 71 posts · 20 votes3y
Quote from @Jeremy Horton:
Hell nahhhhh
He's violating the lease - you have the lease written for a reason, right? He's essentially increasing your liability tenfold then placing all the risk on you
And now you KNOW about it
Seems like this has the potential to get messy for you. For that reason alone I'd out a stop to it
Now - I don't have a problem with the strategy or getting paid in full every month. But the lease need to be amended or re-leased to accommodate for this new use
Hi Jeremy,
I appreciated this reply of yours, but I have a question for you.
Would you please explain a bit more about the process of "amending" this lease to create a new lease. I am just not familiar with the whole process of solving this subletting issues besides an eviction.
Anything would be very helpful, thank you sir.
- New to Real Estate · NJ · Member since 2023 · 71 posts · 20 votes3y
Quote from @Bill B.:
You basically have zero insurance. You might as well stop paying it. Hopefully you have no net worth yet so you don’t mind losing it all. Hopefully it’s just a trip and fall or a fire and not an underage drinker.
This is all ignoring you're renting to a known liar. Start the eviction process and make sure your future leases say STR is not allowed, owner occupants only, no sub-leasing, etc.
Hi Bill,
I am 100% in agreement with your post here.
I just have a question for you, besides going straight into eviction, would there be any other reasonable solutions to help you re-structure the lease agreement without loosing that tenant (if you were to come to an agreement with them to not continue this act)
I hope this makes sense, and thank you sir.
- Fletcher, NC · Member since 2016 · 35 posts · 22 votes3y
Notifying AirBNB would end the problem immediately. He can't violate the lease without them.
Quote from @Kyle Sosnowski:
Quote from @Bill B.:
You basically have zero insurance. You might as well stop paying it. Hopefully you have no net worth yet so you don’t mind losing it all. Hopefully it’s just a trip and fall or a fire and not an underage drinker.
This is all ignoring you're renting to a known liar. Start the eviction process and make sure your future leases say STR is not allowed, owner occupants only, no sub-leasing, etc.
Hi Bill,
I am 100% in agreement with your post here.
I just have a question for you, besides going straight into eviction, would there be any other reasonable solutions to help you re-structure the lease agreement without loosing that tenant (if you were to come to an agreement with them to not continue this act)
I hope this makes sense, and thank you sir.
I'm not the person who wrote what you are responding to, but in my opinion there is no reason to restructure the lease. If you wanted to keep the tenant you would serve a Cure/Quit notice to them to stop subletting and then you would have to monitor the house closely for awhile to make sure they aren't using it as an airbnb again.
As far as losing this tenant, not much of value would be lost if they moved out. This is a major lease violation, assuming what OP says is accurate. It would be hard to trust this person in the future.
- Investor · Houston/Chicago · Member since 2022 · 15 posts · 10 votes3yI agree. I contacted Airbnb and was informed the listing would be removed.
Quote from @Butch Greene:
Notifying AirBNB would end the problem immediately. He can't violate the lease without them.
One more comment, re: the idea of keeping this tenant on.
I have a feeling this tenancy will implode on it's own. The 70 year old man doesn't live at the house, he lives somewhere else. If they aren't allowed to do airbnb anymore they have no need for the house. I predict these people will soon ask the OP if they can break the lease, or else they will just cease contact and just stop paying rent.
- New to Real Estate · NJ · Member since 2023 · 71 posts · 20 votes3y
Quote from @Jason Cox:
Quote from @Kyle Sosnowski:
Quote from @Bill B.:
You basically have zero insurance. You might as well stop paying it. Hopefully you have no net worth yet so you don’t mind losing it all. Hopefully it’s just a trip and fall or a fire and not an underage drinker.
This is all ignoring you're renting to a known liar. Start the eviction process and make sure your future leases say STR is not allowed, owner occupants only, no sub-leasing, etc.
Hi Bill,
I am 100% in agreement with your post here.
I just have a question for you, besides going straight into eviction, would there be any other reasonable solutions to help you re-structure the lease agreement without loosing that tenant (if you were to come to an agreement with them to not continue this act)
I hope this makes sense, and thank you sir.
I'm not the person who wrote what you are responding to, but in my opinion there is no reason to restructure the lease. If you wanted to keep the tenant you would serve a Cure/Quit notice to them to stop subletting and then you would have to monitor the house closely for awhile to make sure they aren't using it as an airbnb again.
As far as losing this tenant, not much of value would be lost if they moved out. This is a major lease violation, assuming what OP says is accurate. It would be hard to trust this person in the future.
Understood, I appreciate the response Jason!
With what you suggested with the C/Q notice (which this is actually the first time I heard of this before, since I believe I heard this called by another name), would you happen to know if BP provides that form within Landlord Forms that are able to be downloaded by state?
Again thank you:)
Quote from @Kyle Sosnowski:
Quote from @Jason Cox:
Quote from @Kyle Sosnowski:
Quote from @Bill B.:
You basically have zero insurance. You might as well stop paying it. Hopefully you have no net worth yet so you don’t mind losing it all. Hopefully it’s just a trip and fall or a fire and not an underage drinker.
This is all ignoring you're renting to a known liar. Start the eviction process and make sure your future leases say STR is not allowed, owner occupants only, no sub-leasing, etc.
Hi Bill,
I am 100% in agreement with your post here.
I just have a question for you, besides going straight into eviction, would there be any other reasonable solutions to help you re-structure the lease agreement without loosing that tenant (if you were to come to an agreement with them to not continue this act)
I hope this makes sense, and thank you sir.
I'm not the person who wrote what you are responding to, but in my opinion there is no reason to restructure the lease. If you wanted to keep the tenant you would serve a Cure/Quit notice to them to stop subletting and then you would have to monitor the house closely for awhile to make sure they aren't using it as an airbnb again.
As far as losing this tenant, not much of value would be lost if they moved out. This is a major lease violation, assuming what OP says is accurate. It would be hard to trust this person in the future.
Understood, I appreciate the response Jason!
With what you suggested with the C/Q notice (which this is actually the first time I heard of this before, since I believe I heard this called by another name), would you happen to know if BP provides that form within Landlord Forms that are able to be downloaded by state?
Again thank you:)
Don't know. Personally I would get it directly from a source in my state to make sure you have the most current one. In my county the county clerk office has a packet available for a small fee.
- 3yRick BassettBusiness MemberProperty Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
@Kendall Moore - what I would do is rent the Airbnb from him as a guest, then squat in it and refuse leave and make him evict me.
Bassett Property Management5109 Reviews - This is a great strategy! 😀
Quote from @Rick Bassett:
@Kendall Moore - what I would do is rent the Airbnb from him as a guest, then squat in it and refuse leave and make him evict me.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes3y
@Kendall Moore
Book the rental for yourself then go to it and evict the tenant.
I would screw with them first by asking for all these requests during your stay
7e investments53 Reviews - Fletcher, NC · Member since 2016 · 35 posts · 22 votes3y
Quote from @Chris Seveney:
@Kendall Moore
Book the rental for yourself then go to it and evict the tenant.
I would screw with them first by asking for all these requests during your stay
Actually an "in between" strategy is to have a friend or family member rent it from the old man, tell you when they are in the unit, then walk in and have your friend take a pic of you "entering the unit" while they're there.
Not sure if this strategy is true, but I was told if the AirBNB guest reports the owner as having entered the unit without the guests permission/knowledge (stalking), AirBNB automatically shuts the listing down.
- Investor · Houston/Chicago · Member since 2022 · 15 posts · 10 votes3y
Quote from @Rick Bassett:
@Kendall Moore - what I would do is rent the Airbnb from him as a guest, then squat in it and refuse leave and make him evict me.
I am trying to do this as peaceful as possible. That might be a last option. I’ve contacted Airbnb and was told the listing would be removed however the list is still up after two days.
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