Property Managers: What's your take?

Question

Hey PMs,

I have recently discovered that a common short term rental strategy is to long term rent someone's space (house, apt, etc) and use it to sublet to others in short term renting. I want to do this with my business for traveling nurses and doctors. I sent out some emails, but haven't heard back (which is something that I was expecting). As PMs, what are your recommendations to sign some rental agreements with these property management companies and/or renters?
Follow up: How would you go about finding renters who would be willing to do this?
Thanks in advance!

Chris Ramirez
Pulse Property Management

Ben Tutewohl · Answer

Trying to compare Airbnb arbitrage to STR investing is like comparing driving for Uber to owning a car rental company. Sure, both involve cars and can generate income, but one is a job, the other is an investment.

With arbitrage, you're taking on significant risk without owning anything. There’s no appreciation, no loan paydown, and no tax benefits. You're essentially creating another job for yourself, and when the lease ends, so does the income.

That’s why many of us on this forum don’t consider arbitrage a form of real estate investing. It’s a high-risk hustle. If you're simply looking for a side hustle to generate income you can later invest, I’d recommend exploring something that doesn’t carry the risk of sending you into bankruptcy.

Ryan Moyer · Answer

This is a real estate investment forum, so not many people here with arbitrage experience, and frankly you likely won't get the replies you're looking for here as that approach is viewed very negatively amongst investors.

It's also something that is much more difficult to make worth it these days, as long term and short term rates have converged in many markets to the point where there is often not enough juice left to make the squeeze worth it.

Michael Baum · Answer

Hey @Christopher Ramirez Babinski, so arbitrage isn't an investing strategy, but a way to create a job for yourself and maybe a speedy way into bankruptcy.

Regarding the markets you talked about, there is no way I would invest or do anything in Portland, Seattle or even Spokane. WA and OR are very tenant friendly and you could get really stuck if guests don't vacate.

Also, those markets are very expensive. A 2/2 in Seattle or Portland can go for 4k a month. Spokane is less but not a ton. I am talking a nice place in a good neighborhood.

Plus there are more hurdles to jump through when trying to do STRs in these cities.

Personally, I would rethink this strategy.

John Underwood · Answer

Search for Arbitrage on this forum and you will see why this is not recommended by most on here.

Angela Dickerson · Answer

Hi Chris, great idea — this strategy is becoming more common, especially for housing traveling professionals. The key is being transparent with landlords or PMs. When reaching out, explain your business model clearly and highlight your guest profile (nurses/doctors). Many are open to it when they understand it’s not party guests, but responsible professionals. I’d recommend putting together a quick one-pager that outlines how you handle turnovers, cleaning, noise control, and liability coverage. Smaller landlords or boutique PMs are typically more flexible, so try Furnished Finder, STR-friendly Real Estate Groups.

Best of Luck-

Angela D, Howse Residential

Drew Sygit · Answer

The challenge is you have almost zero risk, yet the property owner has the following risks:

1) You can't find a tenant, so you stop paying rent

2) You put in a bad guest and then walk away from the problem, sticking the owner with the problem.

3) Guest trashes the property, you walk away, sticking the owner with the problem.

4) Guest refuses to leave, you walk away, sticking the owner with the problem.

It won't be worth it for an owner to sue you to recoup their losses, so WHY would they agree to this?

Andrew Steffens · Answer

There are dozens if not hundreds of older posts on here about arbitrage and its pitfalls. Focus the energy on ideas on how to purchase and own the assets and you will be much better off in the long run. Good luck!

Angela Harding · Answer

As a PM I have companies call me to rent houses and release them and I tell them absolutely not or don't even answer their emails or phone calls. I think your main problem would be having anyone lease to you and let you sublease. Right now the market I am in rentals do not stay on the market for long unless they are substandard housing. People want to prequal their own tenants and know who is in there homes.

Also, be careful on one strategy for nurses and doctors, short term rentals, know what is happening in the community. So many people bought homes to do nurse rentals and they are now turning them into long term rentals or selling because our hospitals built incredible housing on nearby land with gyms, pet friendly, swimming pools, it is amazing.

Best of luck!

Angela

Ned Carey · Answer

I would look for properties that have been for rent for a long time. They may be more motivated. Understand that this is a high risk strategy.

Christopher Ramirez Babinski · Answer

This is all good info. Thanks.

Property Managers: What's your take?

Property Managers: What's your take?

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