Program Manager / Investor · Charlotte, NC · Member since 2016 · 77 posts · 39 votes
Good evening,
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?
Investor · Denver, CO · Member since 2016 · 533 posts · 433 votes
9y
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.
Investor · Nashville, TN · Member since 2016 · 11 posts · 6 votes
9y
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!
New York, NY · Member since 2017 · 144 posts · 75 votes
7y
Steven-
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 also in a similar situation. An investor approached me to do rental arbitrage. They are offering me a 14% bump in my rental rate to do this. I'm not sure if that's a good deal or not, since I've heard 20% above market is the norm?
This would be my first time doing this and was wondering how your situation turned out. Any advice or tips would be super appreciated. Did you end up with a good template for this to keep yourself protected?
Investor · NC · Member since 2022 · 2 posts · 0 votes
4y
I am a new investment company preparing to make a deal with a landlord on an air bnb arbitrage. Can anyone here help me check off the proper documents i will need to present to the landlord? I know i will need consent to sublet signed by the landlord, i have that covered from eforms.com What about a sublease agreement? Air BNB will cover that part right?
I am a new investment company preparing to make a deal with a landlord on an air bnb arbitrage. Can anyone here help me check off the proper documents i will need to present to the landlord? I know i will need consent to sublet signed by the landlord, i have that covered from eforms.com What about a sublease agreement? Air BNB will cover that part right?
Hey Jessica! Can I ask how you got a landlord to agree? I am trying to get started and struggling. Thanks!
Investor · NC · Member since 2022 · 2 posts · 0 votes
4y
I just asked if the property would be available for corporate leasing. Then i went over my plans and assured the landlord that the deal was legit down to every detail. I havnt closed on the deal with her yet. The landlord and realtor are still making their final decision. TBH im having second thoughts. Rent is $2100 a month and according to mashvisor, that area is only bringing in approx. $2200 a month for air bnb. I think ill keep searching for a better rental price.
Investor · Denver, CO · Member since 2017 · 14 posts · 3 votes
3y
This thread came up today when I was searching for a master lease for doing short term rentals. Does anyone have any recommendations or templates yet? So far, the only one I've seen that is probably decent is one that is for sale on Etsy (so I therefore haven't actually seen it in its entirety yet).
A master lease can be a useful tool for protecting your interests as a property owner when working with an investor who will be subleasing your property on platforms like AirBnb. A well-drafted master lease should clearly outline the terms of the arrangement, including the duration of the lease, the amount of rent to be paid, and any other obligations or responsibilities of the investor.
It's important to carefully review and negotiate the terms of the master lease to ensure that your rights and interests are protected. Some key provisions to consider include clauses that allow you to terminate the lease in the event of default by the investor, clauses that give you the right to inspect the property and ensure that it is being properly maintained, and clauses that outline the investor's responsibilities for paying taxes and insurance on the property.
In addition to these provisions, you may also want to consider including clauses that address issues specific to short-term rentals, such as the investor's obligations to comply with local zoning and licensing laws, to maintain appropriate levels of liability insurance, and to cooperate with you in the event of any claims or disputes.
It's a good idea to have a lawyer review any master lease agreement before you sign it to ensure that it adequately protects your interests. You may also want to consider working with a real estate agent or broker who has experience in dealing with short-term rental properties to help you negotiate the terms of the lease.