Leasing to an STR Operator – Looking for Advice

[Hunter Morris]

Hi everyone! I have a rental property in Tampa, FL and I was recently approached by a company that wants to lease it at my asking rent to use as an STR. They sent me their lease, but my gut says I should be providing my lease to make sure I'm protected.

Has anyone here done something similar — leasing to a company that operates STRs? Any lessons learned, good or bad?

I’m leaning toward having a lawyer draft or at least review their lease for me since the BP templates I’ve used in the past are mainly geared for LTRs. Would love to hear what others have done in this situation. Bonus points if you know of a lawyer in the Florida market who specializes in this kind of lease. Thanks!

[Bill B.]

I assume you have GREAT insurance or nothing to lose in a lawsuit. You’re going to let people you haven’t vetted party in your property. I sure hope none of them are underage drinkers who later crash and kill someone. 

There is ZERO chance I would do this. Why do you think they're using your property? They have nothing, or they don't want to lose anything. You'll be the target of any lawsuit. If the city outlaws STR the next day, how many more months of rent do you think you'll get? I'll give you a hint, that "company" you rent to will have $5 in its bank account.

If you want to run an STR get the right insurance and get maximum leverage on your property and run it. If you want to do MTR or LTR do it. Don't farm it out to someone with nothing to lose who can quit anytime they want.

Ps. Remember your current insurance won't cover you, that's for a regular rental, not an STR.