Creating a lease agreement for Airbnb and short-term rental hosts

Creating a lease agreement for Airbnb and short-term rental hosts

Member since 2020 · 1 post · 1 vote

TLDR: I'm a buy and hold investor. I have a unit I'm interested in renting out specifically to people looking to do rental arbitrage. What should I included in my lease to make it fair on both ends?

Long Version:

I have a 2bd/1bth on a desirable part of town that I think would do good as a short term rental. Unfortunately, I have no desire/interest in doing this myself since I am focusing all my efforts in getting my new business off the ground and running. (Business is in creating software and am confident I can make more than a W2 would). I would like to know if any landlords here rent out to people who do rental arbitrage, and if so, what do you include in your lease?

I haven't heard much around this topic from the Landlords point of view, only from the people who are doing it. I have heard things like:

- Tenant will be responsible of repairs up to a certain amount per month, and if it exceeds that, then landlord will step in.

- Higher security deposit amount

- Include in lease that noise monitor is required and should be enforced

- Include that tenant must have additional insurance/protection.

What else should I include? I want to be fair for both parties. Thank You!

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Most Popular Reply

John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y

Higher rent, higher deposit, profit sharing above a certain amount.  After all its your property.

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    Hi! Im a PM in Tampa, FL with 80 or so units.  I have also arbitraged (before I think that word existed in conjunction with the word rental).  I am curious why you do not pay a designer to furnish and and then find a full service PM to manage? Most of our clients are out of state and we do everything so their lift is minimal.


    If you still opt for arbitrage, I think the terms you laid out are standard and should be agreeable.  The amounts will be negotiable of course but I think you are on the right track there.

  • Investor · Member since 2022 · 1k+ posts · 754 votes
    3y

    Why not just STR it yourself?

  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    3y

    What is the additional tenant insurance/protection?  I would think that would limit a majority of potential renters and make it less desirable to an arbitrager.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    Higher rent, higher deposit, profit sharing above a certain amount.  After all its your property.

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Daniel Gopar, I echo what @John Underwood said.

    I would charge a premium above market rate. What that would be is up to you.

    One thing I would add would be that the arbitrager would have to adhere to any and all city ordinances. One of those is a maximum 8 guests.

    I would also be ready to move stuff out if the person fails at this job. STRs can be challenging and many new arbitrage people don't have any money so if things get dicey, the are apt to walk away from the lease.

    I would verify what kind of funds that possible person has. Are they nearly broke?

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