I am exploring properties in popular short term rental (STR) locations in California and being an Airbnb arbitrage friendly landlord. Airbnb arbitrage is a popular strategy but it's challenging to find landlords who allow tenants to sublease on Airbnb. The hypothesis is that by being an Airbnb arbitrage friendly landlord we solve the biggest problem for businesspeople looking to launch an Airbnb arbitrage business.
Right now I'm doing some market research and am hoping this community can answer a few questions for me:
1. Have other landlords tested a strategy similar to this? What was your experience letting a business person sublease on Airbnb?
2. As a landlord, are there special clauses/provisions you would put in your lease?
3. As a business person who wants to do Airbnb arbitrage, would you be open to paying slightly above market rent, profit sharing, or covering minor repairs to secure a lease that allows subleasing.
Thank you in advance for taking the time to respond to my questions!
The people who are landlords all agree it’s a horrible idea. If I was looking to get into a business I would ask successful members of that business what they’re doing and copy it, not go the other way.
it’s all downside for the landlord and all upside for the “tennant”. That’s why the common estimate is 90-99% don’t tell the landlord.
you can click the magnifying glass at the top right of your screen. This is brought up by someone new to real estate monthly if not weekly. I assume a guru is going around telling people with no money and no credit this is the easiest way to get a job with almost zero risk. If it doesn’t work out just stop paying rent and bail on the unsuspecting landlord.
@Bill B. Thanks for the insights and tip about the magnifying glass! I hear your point about about asking what other successful business men have done in the field and will continue my research.