Landlord insurance policy for STR arbitrage

Landlord insurance policy for STR arbitrage

Reno · Member since 2022 · 27 posts · 5 votes

We are looking to rent to an LLC on long term lease for 2 years. The LLC will then use our single family home as an STR. The problem is finding a landlord policy that will cover the dwelling. Both Steadily and Foremost said they will not write us a landlord policy and cover the dwelling with the added risk of the LLC tenant using it as an Airbnb. Proper is the only insurance company that so far will insure, but only as their standard commercial STR policy. How are these situations typically insured, and does anyone have advice or recommend an insurance company? I know these rental arbitrage deals are fairly common.

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  • MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    7mo

    I'm not sure if rental arbitrage deals are fairly common but they are fraught with issues. Why not do STR yourself if is projected to be profitable enough for the LLC that is interested in it?

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    7mo

    1. Make people renting your house also pe5sonally responsible along with their LLC. If they operate correctly they shouldn't object to this.

    2. You are renting to a LTR tenant. Get that type insurance. Make them get the STR policy and you be listed as a loss payee.

    If they don't agree, then don't do business with them.

    Also are they licensed and insured to run a STR business?

    This is sketchy at best.

    I would recommend you run the STR or hire a licensed and insured LOCAL PM.

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