Question for Airbnb Co-hosts / Property Managers

[Selena Walsh]

I have recently started a short term rental management business in Minnesota and have worked with an attorney to establish our LLC as well as a property management agreement we can use with clients. We are actively using the co-host feature on Airbnb, but upon reviewing the actual Airbnb terms and conditions we found the following terms:

As a Co-Host, you may only act in an individual capacity and not on behalf of a company or other organization, unless expressly authorized by Airbnb.

If we need to act as a co-host in an individual capacity we lose the protection of the LLC. I wrote to Airbnb to inquire and received the following response:

Unfortunately, we do not currently support registration of business entities as co-hosts. You are, of course, welcome to sign up to co-host as an individual, and we hope you will still consider doing so. While your direct relationship with Airbnb will be as an individual and your interaction with other users will be in your individual capacity, this is not intended to restrict your ability to otherwise operate your business how see fit.

Definitely not seeking legal advice here as i have an attorney... just curious if other co-hosts or property managers have run into this obstacle with Airbnb?  I have seen several threads on BP members starting short term rental management companies so I've got to think you all have worked through this in some capacity.

Thanks!

[Marcia Maynard]

I'm an Airbnb host for our one of our own properties.  Super host for more than a year.

I agree with the approach that Airbnb is taking on this. I wouldn't want property management companies to enter into this realm. Just as I do not favor the strategy of those hosts who offer multiple properties for short-term rentals and scale it up into the stratosphere.

Airbnb started with the intent of home stays with hosts who provide a personal added value. Unfortunately when people scale up and take away the personal touch with having other people run their business it takes away from the uniqueness of this model.

The intention of co-hosting is for hosts to help one another out from time to time or to have additional support at times when you need it.

There are plenty of short-term rental opportunities where you could provide your services, without entering the Airbnb market.

[Tyler Work]

@Selena Walsh I do the same here in Denver.  I think its wonderful that Airbnb pushes hosts to keep the personal touch and keep property managers out of co-hosting but the reality is that running an AIrbnb is a business and property managers are a much needed part of the short term rental industry.  As Airbnb grows guests expect better more “hotel like” service, and here in Denver you may only rent out your Airbnb if it is your primary residence.  Therefore many of the current listings are rented out when the owner’s go on vacation and are not available to address guest concerns, further requiring a property manager.

In regards to your post I also use a property management agreement that says that I am acting as a manager in regards to my LLC, not as an individual. This agreement is signed with the owner and is totally separate from the Airbnb agreement. I also have a $1 million general commercial liability policy that covers me if anything were to happen. I am definitely going to ask my lawyer how co-hosting as an individual would change anything regarding my agreement or insurance coverage but I currently have no idea how the Airbnb terms and conditions come into play, although I doubt they have read them in any detail.

I also know that the larger property management companies take your listing over completely and don’t use the co-hosting feature.  Some of them leave your photo and profile but change the bank account to their account info and pay the owner monthly, similar to a traditional property management service.  I will probably eventually have to go to this but for a small PM company with little reputation, you can imagine some owners are weary of turning over all their payouts to a small firm, so for now the co-hosting feature works great.  

If you find out more from your lawyer I would love to hear how it went and anyone else’s opinion on this matter as well.  Hope this helps!

[Luke Carl]

If you are a co-host you are not touching any of the money coming in. Money goes directly to the owners bank account.
If you are a host.... whether you own the property or not, you're handling the money therefore you need your ducks in a row legally.
Why not skip the lawyers and just co host?

[Selena Walsh]

@Tyler Work Would you mind sharing who you use for your commercial liability insurance and if you would recommend?

[Tyler Work]

Originally posted by @Selena Walsh:

@Tyler Work Would you mind sharing who you use for your commercial liability insurance and if you would recommend?

Hey Selena I use Cameron Schultz, a local agent here in Denver for Farmers insurance. I had a very tough time finding insurance for my STR business and he has been great to work with. Tell him I referred you if you end up calling :)

[Luke Carl]

Should probably read their rules before you bothered with lawyers.

[Eric A.]

@Tyler Work hope you are well. I would like to PM you on your current co hosting efforts with Airbnb. Thanks!