I'm thinking about moving forward with having an investor take over one of my properties and sublease on AirBnb. In the past I did traditional landlord but I am being over 20% over market value. I understand the investor will make even more money on top of that, however I do not have the time available to do this myself so I am happy with extra rent.
Anyways I'm wondering should I set up a master lease on this property, but was curious if anybody had a good template I could use that will help keep me protected?
Yes Steven, I would setup a master lease, ensuring your T's and C's cover what your "investor's" T's and C's (Airbnb's T's and C's) are consistent with your master agreement so as to not create a conflict. Have you considered a "property manager" as an option? If it's in Charlotte I have a good friend who might be able to help if you went in this direction.
I'm leasing to somebody that will sublease to AirBnB. I don't think I need a property manager for that. Once the lease is setup it will be the same as any other property I have except the person who I am leasing the property to won't be living there but using it as an AirBnB investment. This works for me because I will be getting above market rent.
I am hoping somebody who has done this in the past can provide me with a lease agreement. The normal one I use states no subleasing.
@Steven W. Ah, now I get what you are doing. A novel concept and I know a lot of people doing this and growing their portfolio.
You'll also want to change your hazard/property insurance from a traditional landlord policy to a commercial policy...otherwise you risk the insurance company not paying because of commercial use of the property (which short term renting is considered). Check out Proper Insurance or CBiz, that's what most AirBnBs use around here...I have State Farm insurance and they don't allow short term renting under their landlord policy.
Have you thought about just using a full-service AirBnB management service for your place? You might make more money going this route vs getting a third party involved. Turnkey is one in my area who does this, but there are others popping up depending on your market concentration. Good luck!
@Steven W. did you ever follow through with this and if so how is it working for you and for the person who leased from you?
I would be interested to know if you ever received a template on this as well. I would like to use one!
I run an AirBNB management company. I can probably get you a bit above the 20% above market rent depending on the unit/ location. Happy to run the #s for you if you'd like. I operate out of New York City (the most strictly regulated market in the world) and thus we are extremely efficient and hit 5-star reviews >90% of the time. PM me if interested.
I am interested in a master lease as well. Any luck finding a template?
Anyone able to find a lease agreement for this "airbnb arbitrage" situation?
If there is not one out there, I will write a draft and if someone could offer some feedback on it that would be great!
Did anyone ever receive a template for rental arbitrage? Thanks
the stench that keeps returning through the floorboards. arb keeps being dredged up from the past.
@Richard Catlett, @ Reina Hosier, @ Liam Doig, @Jeff Corporon, @Steven W
Does anyone has a Master Lease Template for arbitrage renting to share please?