Does anybody rent out a place and then re-read it on Airbnb?
Waukegan, IL · Member since 2017 · 24 posts · 9 votes
Does anybody rent out a place and then re-read it on Airbnb?
Most Popular Reply
Real Estate Agent · Duncanville, TX · Member since 2017 · 26 posts · 21 votes
8yHi Rachel
I do this. Check out the Short Term Tental forums. Others do this as well.
Pros - control without debt.
Cons - risks without equity or appreciation
Yolanda
21 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes8y
I'm not sure which podcast you're referring to but I know one from a few months back had a woman that was sub-leasing without the owner's permission. I was surprised they allowed that on the show.
If it's done without Landlord's permission, it's probably a lease violation and could get you evicted or sued. I suspect many of these sub-leasers aren't paying attention to tax laws, zoning, or any other rules. They're generally the ones ruining it for everyone else.
The DIY Landlord Book4.7247 Reviews - Real Estate Agent · Duncanville, TX · Member since 2017 · 26 posts · 21 votes8yHi Rachel I do this. Check out the Short Term Tental forums. Others do this as well. Pros - control without debt. Cons - risks without equity or appreciation Yolanda
- Wholetailer & Architect · San Francisco, CA · Member since 2015 · 544 posts · 298 votes8yThere are some people doing very well at it with full disclosure to the landlords and sticking to 30 day plus guests. Traveling doctors, nurses, professors, business people Tagging J. Martin and Al Williamson Al helps people get started and J travels the world while his rentals pay him like little oil wells
Had a tenant (military guy and his wife) who started renting out rooms in my house to others. Found this out by accident via craigslist. They posted pictures of the inside of the house and I realized the living room looked QUITE familiar! From the ad these two were making almost double the rent each month.
This was, of course, a violation of the lease which CLEARLY listed who could reside there.
Initially Bill and I discussed filing for an eviction based on this violation. Instead I sent them a notice raising the rent exactly the amount they were charging for these rooms (at this point they were on a "tenancy at will" lease).
They must have gotten the point because while they did pay the increased rent the following month they included a notice they were terminating their lease.
The lesson in all of this is that we had been lax landlords (or perhaps they were angry about the increased rent) because, frankly, the left a great deal of damage to the rental house. Old couches were tossed over the back deck railings, breaking them and then left lying in the back yard. One of the bathtubs had a bowling ball sized hole in the bottom (?perhaps they had rented to the truly obese?) and continued to be used, rotting the floor underneath. Someone's dog had chewed the bottom cabinets in the kitchen requiring an entire replacement of these. Broken tile, leftover mattresses, etc.; you get the picture.
I later learned when they moved they went on to purchase their own home and danged if they didn't advertise for room renters (and pets were allowed). At least any further damage would be done to their place.
Lesson learned....Regular inspections of your rentals are a MUST!
Gail
- Waukegan, IL · Member since 2017 · 24 posts · 9 votes8y
Originally posted by @Nathan Gesner:
I'm not sure which podcast you're referring to but I know one from a few months back had a woman that was sub-leasing without the owner's permission. I was surprised they allowed that on the show.
If it's done without Landlord's permission, it's probably a lease violation and could get you evicted or sued. I suspect many of these sub-leasers aren't paying attention to tax laws, zoning, or any other rules. They're generally the ones ruining it for everyone else.
Thanks for responding! It wasn't on BP, I actually can't remember how I found it. But in this webinar, he had the owners permission and in some cases the owner was even making a percentage.
I was curious how many other people have been successful with that. I like the idea of not going into it with a lot of loan debt and very little of my own money.
When say you ruining it for everyone, what are they ruining exactly?
- Waukegan, IL · Member since 2017 · 24 posts · 9 votes8y
Originally posted by @Yolanda Columbus:
Hi RachelI do this. Check out the Short Term Tental forums. Others do this as well.
Pros - control without debt.
Cons - risks without equity or appreciation
Yolanda
Thank you for responding! I will check those forums out, thank you for the recommendation!
How did you get started with this? Have you been pretty successful? Would you recommend this to others?
- Waukegan, IL · Member since 2017 · 24 posts · 9 votes8y
Originally posted by @Sean Walton:
There are some people doing very well at it with full disclosure to the landlords and sticking to 30 day plus guests. Traveling doctors, nurses, professors, business people
Tagging J. Martin and Al Williamson
Al helps people get started and J travels the world while his rentals pay him like little oil wells
Thank you for responding! I like the idea of 30 day plus guests, because you know you're going to have a whole month without vacancies! I'm just wondering how people consistently keep those places rented out!
Thank you for tagging those two! I would love any information you have. Traveling the world while getting paid is my ultimate dream!
- Waukegan, IL · Member since 2017 · 24 posts · 9 votes8y
Originally posted by @Gail K.:
Had a tenant (military guy and his wife) who started renting out rooms in my house to others. Found this out by accident via craigslist. They posted pictures of the inside of the house and I realized the living room looked QUITE familiar! From the ad these two were making almost double the rent each month.
This was, of course, a violation of the lease which CLEARLY listed who could reside there.
Initially Bill and I discussed filing for an eviction based on this violation. Instead I sent them a notice raising the rent exactly the amount they were charging for these rooms (at this point they were on a "tenancy at will" lease).
They must have gotten the point because while they did pay the increased rent the following month they included a notice they were terminating their lease.
The lesson in all of this is that we had been lax landlords (or perhaps they were angry about the increased rent) because, frankly, the left a great deal of damage to the rental house. Old couches were tossed over the back deck railings, breaking them and then left lying in the back yard. One of the bathtubs had a bowling ball sized hole in the bottom (?perhaps they had rented to the truly obese?) and continued to be used, rotting the floor underneath. Someone's dog had chewed the bottom cabinets in the kitchen requiring an entire replacement of these. Broken tile, leftover mattresses, etc.; you get the picture.
I later learned when they moved they went on to purchase their own home and danged if they didn't advertise for room renters (and pets were allowed). At least any further damage would be done to their place.
Lesson learned....Regular inspections of your rentals are a MUST!
Gail
Thank you for your response! Holy cow, that is so disrespectful of them. I would never rent out rooms of somewhere I was renting without the owners information. That sounds like a nightmare to deal with. Would you have let them if they asked for your permission?
If I had a excellent tenant that I had for a year or more I would, under certain circumstance, allow them to do short term rentals. I would of course require 50% of their take or double their rent. It would depend.
We would have to set up a partnership arrangement.
- Waukegan, IL · Member since 2017 · 24 posts · 9 votes8y
Originally posted by @Thomas S.:
If I had a excellent tenant that I had for a year or more I would, under certain circumstance, allow them to do short term rentals. I would of course require 50% of their take or double their rent. It would depend.
We would have to set up a partnership arrangement.
I completely respect that. The whole idea of renting out a property is to be making more money off of it, right? if someone is doing the same but off of your property, it could be taking away from the potential money you could make.
- Waukegan, IL · Member since 2017 · 24 posts · 9 votes8y
Originally posted by @Gail K.:
" Would you have let them if they asked for your permission?"
Additional roommates would need to go through the screening process we use for every applicant.
Gail
So If they passed the screening process, you would let your tenants sublease your property for additional income?
- Real Estate Agent · Duncanville, TX · Member since 2017 · 26 posts · 21 votes8y
I got started by contacting potential Landlords for a meeting. I'll explain the concept and then offer either a fixed or performance lease. For the fixed lease, I may pay a little more than rental market value; it depends on area.
I use sites like AirDNA to determine potential income. The rest of numbers are based on that - daily cost, target audience, budget for cleaning, budget for furniture, etc.
This is a new venture for me. Based on projections and current bookings, I'm on track to make anywhere from 35-50% more than rental cost each month.
Yolanda
"So If they passed the screening process, you would let your tenants sublease your property for additional income?"
Nope. Sorry; I'm old fashioned. I'm not running a hotel.
If the tenant wants to make additional income by doing so, they can, when their lease expires, purchase their own property and begin renting out rooms.
Gail
- Waukegan, IL · Member since 2017 · 24 posts · 9 votes8y
Originally posted by @Yolanda Columbus:
I got started by contacting potential Landlords for a meeting. I'll explain the concept and then offer either a fixed or performance lease. For the fixed lease, I may pay a little more than rental market value; it depends on area.
I use sites like AirDNA to determine potential income. The rest of numbers are based on that - daily cost, target audience, budget for cleaning, budget for furniture, etc.
This is a new venture for me. Based on projections and current bookings, I'm on track to make anywhere from 35-50% more than rental cost each month.
Yolanda
Thank you for the detailed response. Have you found that many landlords are okay with this arrangement? How do you budget for cleaning costs? Do you charge them the cleaning fee separate or incorporated with their charge for the whole stay?
How many days out of the month have you been able to consistently rent out? How many of these properties do you deal with?
- Waukegan, IL · Member since 2017 · 24 posts · 9 votes8y
Originally posted by @Gail K.:
"So If they passed the screening process, you would let your tenants sublease your property for additional income?"
Nope. Sorry; I'm old fashioned. I'm not running a hotel.
If the tenant wants to make additional income by doing so, they can, when their lease expires, purchase their own property and begin renting out rooms.
Gail
I totally respect that! Thank you for your input. I think I would feel the same way if I were the landlord and when I heard of this arrangement I was confused as to if it was common, as I had never heard of it before.
- Rental Property Investor · Sarasota, FL · Member since 2017 · 81 posts · 41 votes8y
Originally posted by @Yolanda Columbus:
I got started by contacting potential Landlords for a meeting. I'll explain the concept and then offer either a fixed or performance lease. For the fixed lease, I may pay a little more than rental market value; it depends on area.
I use sites like AirDNA to determine potential income. The rest of numbers are based on that - daily cost, target audience, budget for cleaning, budget for furniture, etc.
This is a new venture for me. Based on projections and current bookings, I'm on track to make anywhere from 35-50% more than rental cost each month.
Yolanda
Whoa Yolanda, you are blowing my mind! That's a whole new housing hussle, very clever! Although, it seems like a lot of effort to only make $500 or so bucks a month on a rental, well, at least if you consider that it's a much more active affair than buy/hold REI. Kuddos to you and your legal hussle!
- Real Estate Agent · Duncanville, TX · Member since 2017 · 26 posts · 21 votes8y
Originally posted by @Rachel Murphy:
Originally posted by @Yolanda Columbus:
I got started by contacting potential Landlords for a meeting. I'll explain the concept and then offer either a fixed or performance lease. For the fixed lease, I may pay a little more than rental market value; it depends on area.
I use sites like AirDNA to determine potential income. The rest of numbers are based on that - daily cost, target audience, budget for cleaning, budget for furniture, etc.
This is a new venture for me. Based on projections and current bookings, I'm on track to make anywhere from 35-50% more than rental cost each month.
Yolanda
Thank you for the detailed response. Have you found that many landlords are okay with this arrangement? How do you budget for cleaning costs? Do you charge them the cleaning fee separate or incorporated with their charge for the whole stay?
How many days out of the month have you been able to consistently rent out? How many of these properties do you deal with?
Hi Rachel
I charge the guests the cleaning fee. The fee depends on the time it takes the crew to clean the unit which includes washing and drying linens, towels, etc.
Approximately, 10% of landlords I communicate with agree to a face-to-face meeting. They all expressed willingness to sign a contract. However, only about 1 in 3 actually liked the numbers enough to do so.
I'm currently at 50% occupancy a month. I had anticipated being at 60%. I think it's more marketing and inexperience then anything else. I'll get to 70%.
I'm still putting my team and systems in place. That fact combined with the fact that this is my part-time business, limits my capacity to 2, maybe 3 units at a time.
Yolanda
- Rental Property Investor · Chappaqua, NY · Member since 2015 · 1k+ posts · 947 votes8yRachel Murphy I rented to someone that did it without permission. Bc of the liability I sent them a letter and they ceased. A year or two later I contacted a short term(30 days+) rental agency and quizzed them on what I would get out of their service. It was getting big st the time and I figured there must be something to it and I always like to know options. They wouldn’t pay anything extra, their take on that was why would they...they would just find another landlord and offer market rent. I was able to negotiate slightly higher than market. however they would do maintenance, clean common areas, trash/snow removal and guarantee no vacancy. They had an insurance policy in place and I was named insured. My insurance company was involved and we wrote a rider on the leases to cover liability and indemnification. For me it was a no brainer. My new LL work consisted of paying mortgage, insurance and depositing one check a month. The agency encouraged me to do renos that helped them rent at higher rates. On two apts renos they gave me 0% interest loans with generous payback terms to complete the work. When I sold the units the new owner talked with an attorney about my arrangement and made a big effort to keep the STR onsite. I checked recently and the apts are still listed.
- there is a lawsuit against Airbnb right now alleging that it is illegal to facilitate the breaking of a lease and illegal subletting. They could very well lose in which case they will no longer be allowed to host properties without the property owner's consent. I honestly hope they do this because I own my Airbnb properties and over half of my competition would be gone overnight
- Waukegan, IL · Member since 2017 · 24 posts · 9 votes8y
Originally posted by @Yolanda Columbus:
Originally posted by @Rachel Murphy:
Originally posted by @Yolanda Columbus:
I got started by contacting potential Landlords for a meeting. I'll explain the concept and then offer either a fixed or performance lease. For the fixed lease, I may pay a little more than rental market value; it depends on area.
I use sites like AirDNA to determine potential income. The rest of numbers are based on that - daily cost, target audience, budget for cleaning, budget for furniture, etc.
This is a new venture for me. Based on projections and current bookings, I'm on track to make anywhere from 35-50% more than rental cost each month.
Yolanda
Thank you for the detailed response. Have you found that many landlords are okay with this arrangement? How do you budget for cleaning costs? Do you charge them the cleaning fee separate or incorporated with their charge for the whole stay?
How many days out of the month have you been able to consistently rent out? How many of these properties do you deal with?
Hi Rachel
I charge the guests the cleaning fee. The fee depends on the time it takes the crew to clean the unit which includes washing and drying linens, towels, etc.
Approximately, 10% of landlords I communicate with agree to a face-to-face meeting. They all expressed willingness to sign a contract. However, only about 1 in 3 actually liked the numbers enough to do so.
I'm currently at 50% occupancy a month. I had anticipated being at 60%. I think it's more marketing and inexperience then anything else. I'll get to 70%.
I'm still putting my team and systems in place. That fact combined with the fact that this is my part-time business, limits my capacity to 2, maybe 3 units at a time.
Yolanda
It sounds like this venture is working out pretty well for you, so congratulations! Would you say it's been pretty difficult for you to find landlords that are willing? Have you noticed anything in common with those that are?
50% occupancy is pretty great! Is the rent in the areas pretty competitive?
Having this as your part time business seems to be awesome! I'm hoping to do something similar as my side business, soon.
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