People asking to lease for corporate lease or AirBnBing

Member since 2023 · 32 posts · 8 votes

for my rental property which is vacant right now, i see requests coming for a year lease for corporate lease or for AirBnB-ing...

I have never done that so not sure what are the pros and cons and what should i care for if i do this? Also i think i can ask for higher rent in that case. how much higher?

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Go to the Short-Term Rental forum and read up on rental arbitrage, or use the search feature (magnifying glass). You'll see plenty of people posting about the negatives.

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Matthew MorrowBusiness Member
Investor · PA - NY - NJ · Member since 2019 · 975 posts · 354 votes
2y
Quote from @Vivek Kumar:

for my rental property which is vacant right now, i see requests coming for a year lease for corporate lease or for AirBnB-ing...
I have never done that so not sure what are the pros and cons and what should i care for if i do this? Also i think i can ask for higher rent in that case. how much higher?

Renting your property as a corporate lease or for Airbnb can offer flexibility and potentially higher rental income. Corporate leases typically provide stable, longer-term tenants, while Airbnb can yield higher nightly rates but may involve more management and turnover. Consider the additional costs for cleaning and maintenance with Airbnb. Research local market rates to determine how much more you can charge; often, Airbnb properties can command 20-50% higher than traditional leases, but this varies by location and demand. Be sure to check local regulations regarding short-term rentals as well.
[email protected]484-791-6200
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Vivek Kumar
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Member since 2023 · 32 posts · 8 votes
2y
Well I am not doing Airbnb. The person leasing it wants to do Airbnb. I am leasing them for the year
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Matthew MorrowBusiness Member
Investor · PA - NY - NJ · Member since 2019 · 975 posts · 354 votes
2y
Quote from @Vivek Kumar:

Well I am not doing Airbnb. The person leasing it wants to do Airbnb. I am leasing them for the year
Ah ok, I misunderstood. This is your current tenant with yearlong lease and they want to sublease / airbnb?
[email protected]484-791-6200
CORE Team | Realty ONE Group Supreme548 Reviews
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Vivek Kumar
OP
Member since 2023 · 32 posts · 8 votes
2y
Quote from @Matthew Morrow:

Quote from @Vivek Kumar:

Well I am not doing Airbnb. The person leasing it wants to do Airbnb. I am leasing them for the year
Ah ok, I misunderstood. This is your current tenant with yearlong lease and they want to sublease / airbnb?

Well my property is empty but someone reached out to me to lease with that intent
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Matthew MorrowBusiness Member
Investor · PA - NY - NJ · Member since 2019 · 975 posts · 354 votes
2y
Quote from @Vivek Kumar:

Quote from @Matthew Morrow:

Quote from @Vivek Kumar:

Well I am not doing Airbnb. The person leasing it wants to do Airbnb. I am leasing them for the year
Ah ok, I misunderstood. This is your current tenant with yearlong lease and they want to sublease / airbnb?

Well my property is empty but someone reached out to me to lease with that intent
Gotcha. It all comes down to what you want with your property. Are you desperate for cash flow?

if you were looking for security and stable tenants, waiting for a long-term may be your best option.

there are prospective tenants who would be great using your property within their own business model, but just make sure you understand the insurance and liability implications of this. Some building insurance companies may not allow this because it is essentially free rein on use of the property.

either way, do what’s best for you.
[email protected]484-791-6200
CORE Team | Realty ONE Group Supreme548 Reviews
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Quote from @Vivek Kumar:

for my rental property which is vacant right now, i see requests coming for a year lease for corporate lease or for AirBnB-ing...
I have never done that so not sure what are the pros and cons and what should i care for if i do this? Also i think i can ask for higher rent in that case. how much higher?

This is commonly referred to as rental arbitrage. They want to lease the property from you for $X and then lease it out to someone else for a higher price and generate a profit.
There are hundreds of posts about why this is a bad idea. Long story short, you lose control of your property. Based on what I've seen, there's a very good chance they will not obey the law, pay taxes, be a good neighbor, etc. When the money dries up, they'll abandon your property and leave you with a bill.
If your property is capable of producing a greater return as a corporate rental or short-term rental, I recommend you educate yourself on how to do that and then do it yourself. Otherwise, stick to what you know.
The DIY Landlord Book4.7245 Reviews
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Vivek Kumar
OP
Member since 2023 · 32 posts · 8 votes
2y
Quote from @Nathan Gesner:

Quote from @Vivek Kumar:

for my rental property which is vacant right now, i see requests coming for a year lease for corporate lease or for AirBnB-ing...
I have never done that so not sure what are the pros and cons and what should i care for if i do this? Also i think i can ask for higher rent in that case. how much higher?

This is commonly referred to as rental arbitrage. They want to lease the property from you for $X and then lease it out to someone else for a higher price and generate a profit.
There are hundreds of posts about why this is a bad idea. Long story short, you lose control of your property. Based on what I've seen, there's a very good chance they will not obey the law, pay taxes, be a good neighbor, etc. When the money dries up, they'll abandon your property and leave you with a bill.
If your property is capable of producing a greater return as a corporate rental or short-term rental, I recommend you educate yourself on how to do that and then do it yourself. Otherwise, stick to what you know.

Thanks for the insights. The red flag is all I am looking for. I will do if there are red flags only if I know the way to overcome those. Won't do it just for more money
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Go to the Short-Term Rental forum and read up on rental arbitrage, or use the search feature (magnifying glass). You'll see plenty of people posting about the negatives.
The DIY Landlord Book4.7245 Reviews
Website View Page
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