I thought I'd broach the topic of Airbnb since it's become a pretty popular topic in my area as of late. The pope is coming to Philadelphia in under a month as part of the world meeting of families event and Airbnb prices have shot through the roof as a result of the impending mass attendance for this event. I currently rent (new to investing and looking to by my first house when my lease expires) and my 3 bedroom townhouse could easily fetch over $1000/night for the week. My landlord won't let us rent the place out which I completely understand since It's kind of a high risk/low reward scenario for him. My main question here is: would there ever be a scenario in which any landlords would consider letting their tenants use Airbnb? Perhaps if the profits were shared?
I doubt it because they haven't vetted the airbnbers themselves. They would not gain anything from allowing that to happen but would be taking on significant risk. Either way I'm sure it happens all the time but landlords are not aware.
Very unlikely. Most lease agreements would prevent this action. I have heard of tenants using Airbnb without the knowledge of their landlord though, the situation does not end well of course. See the BP post via the link below for example:
Occasions like Pope Francis' visit in late September are rare, so the interest does not pique that often. In the end, if you are renting out a property/unit, you should own it.
@Casey B. No.. You don't have the ability to vet aiirbnb until it is too late
All valid points. It's true you have considerably less ability to vet a renter on airbnb, however, since it's a short term rental isn't the task of finding a perfect renter a little less critical? You wouldn't have to worry about missed rent payments or an eviction with an airbnb renter since they have to pay up front. There is still the risk of damage to the property or other liability but isn't this the case with all vacation rentals? I know some investors are able to use airbnb for vacation rentals successfully so I was wondering if this strategy could be used to add value to rental properties through some sort of profit split between the landlord and tenant. It might be more trouble than it's worth but it's just an idea.
NOOOOO........As a landlord you would get none of the benefit ($$$) and ALL of the liability. If the guest has an accident while staying at the property , guess who is getting sued ?
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