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General Landlording & Rental Properties

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Paul Leone
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Leasing my condo to a business/property manager

Paul Leone
Posted Feb 24 2024, 04:10

I am a longtime landlord that has normally just rented my unit to individuals after I complete my normal background and credit checks.  Then I have standard 12-month lease that covers me and my condo appropriately.  I have been approached by a company that focuses on business travelers for longer stays that would like to rent and furnish my place and then they would be renting it out on weekly/monthly basis.   My condo association is small and we do allow short term rentals so that is not an issue.  My main question is does anyone have lease or contract that they could suggest for me to review for this type lease?

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied Feb 24 2024, 05:18
Quote from @Paul Leone:

This is often referred to as "arbitrage" and most of us don't recommend it. I would only consider this if they can demonstrate they are a professional company with a long history (operating 5+ years would be my standard), and if they are willing to make it financially beneficial to you (higher rent rate, they handle maintenance, etc.).

There are a lot of "businesses" that started recently that have no real experience, meaning they've only operated in a strong market. There's a very good chance many of these companies will fall apart when things get tough. Then they'll pack their bags, disappear into the night, and leave you hanging.

Solid hospitality companies buy their own property rather than making money off someone else's.

  • Property Manager Wyoming (#12599)

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Paul Leone
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Paul Leone
Replied Feb 25 2024, 04:22

Thanks Nathan.  Well this company has been around for 10+ years which a is a good sign and they are willing to take care of maintenance of the property but I am not getting anything extra in terms of higher monthly rent then what I was originally asking for normal tenants.  Can you suggest a form I can use for an Arbitrage lease?  Or is the normal Florida Lease contract will work?  https://www.floridabar.org/public/consumer/consumer004/

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Obed Calixte
  • Realtor
  • St Petersburg, FL
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Obed Calixte
  • Realtor
  • St Petersburg, FL
Replied Mar 7 2024, 14:02

Paul - you’ll want to get a lawyer to create a  new lease that provides necessary coverage or at minimum an addendum for sub-lease/arbitrage situation.