Renting a loft and covering expenses using Airbnb???

Question

So this is probably a worn out question, however I am new here so I am going to ask anyways.

I am looking into renting a loft in Galveston TX as a weekend getaway. However, my current financial situation does not quite allow me to do so. The thought was to airbnb it out when I am not using it. Right off the bat, I know there are some problems with this. First and most obviously, I do not own the property.

In a city like Galveston TX, how likely are you to find a landlord that will work with you and allow you to do what I am proposing? Secondly, what is the best way to pitch the idea to them? Something has to be written into the rental agreement I would assume. The idea of sub-renting it out through airbnb or something similar would be strictly to cover cost. If I could make it cashflow, that would be great however back to my original statement, I am just looking for a way to afford a getaway spot for several days a week.

Thanks for any and all feedback!

Austin

Conner Olsen · Answer

@Austin Seth This is called rental arbitrage! It is possible to find landlords willing to rent their property like this. Here are some ways to make it more enticing to them:

1. Offer a % of total profit

2. Get a longer lease, may be 2-3 years

3. Pay above market rent

It is definitely a good business strategy for creating cashflow quickly, however you need to check with your city to see what their STR laws are because you could get stuck with a long lease and no renters if you do it wrong.

Lyndsey Garza · Answer

Wow! You just gave me a great idea that could benefit us both, Alex. I am a long-time broker on the Island & also have owned 2 successful STR management companies. You need local expertise on the policies for each building regarding rules on rental lengths, etc. Send me a message and let’s talk. Wheels are a turning!

Conner Olsen · Answer

@Austin Seth Start by googling "X city short-term rental laws" or variations of that. You should find something on their city website if the don't allow STR's. You could also message a host on Airbnb in that city and see if they know about any laws. Even if the landlord says you can sublet it on Airbnb, the city could say that you have to live in the property to rent it as a STR. In Austin where I live they are pretty strict on people having to live in the property to rent it as a STR or they have to rent it for 30 days or more.

Austin Seth · Answer

@Conner Olsen Thank you for the tips!

Based on your last comment, what do I need to look for in city STR laws to avoid getting stuck? Again, I am new so please forgive me, but I figured the landowner would mandate what I could do/not do in the lease?

Again, thanks for the help.

Austin

Renting a loft and covering expenses using Airbnb???

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