I Can’t Air BnB... now what?

[Julian Mcclurkin]

My brother signed a 15month rental agreement for a studio apartment in downtown Columbus Ohio for his Daughter to live in as a Surprise. Prime location! One problem, his daughter accepted a job out of state a day after he signed the lease. One of the Rules of the apartment complex is that you cannot Air bnb the property. Now one lives there but my brother (who lives out of the city) will use it from time to time when he and his family are in town. Is there any strategy I can put in place to help my brother recover some of this $1700 a month he is paying for this vacant apartment?

[Paul Sandhu]

Can you sublease the property for 6+ months?  It would not be an Airbnb, just a sublease.  The tenant would be responsible for the utilities, and the amount of furnishings is up to you.  Your brother would not be able to use the property when he is in town.  His major goal is to break even on the lease, or at least lose the least amount of money.  Try subleasing it to a college student or a visiting professor.  They generally have a definite timeframe that they would want to lease the property.

[Wayne Brooks]

Sub lease it out, stay some where else while in town.

[Chris Gottshall]

I'd look at the early termination clause (assuming there is one) in the lease and see if you can ask the PM to re-list it for rent. I allow tenants to terminate early as long as they continue to pay the rent while the apartment is listed (and a nominal marketing fee to compensate for my time and expenses for listing). You might only be locked in for a few months, if they allow that. 

If you don't have that option, you might also look at what the penalty is for breaking that complex rule and if you can factor that into your monthly cost, maybe its worth paying a penalty to recoup part of the rent? If I were the PM and found out you were doing that, I'd probably offer you an early termination regardless. If they fine you $50 per occurrence, maybe you just tack on $50 to each booking. But, make sure you know the local laws before doing something like that. You could get yourself into legal trouble if the city prohibits STR in certain districts. Make sure you're only irritating the landlord, not the local authorities, if you feel you must go that route.

I'd try explaining to the property manager about your situation and seeing if you can early terminate or sublet it to a long term tenant as the first option, though.

[John Oden]

What your brother can or can't do will be determined by the terms of the lease, and the willingness of the landlord. 

Any competent landlord/property management company will have language in the lease that prohibits subletting of any kind, AirBnB or otherwise. Many leases do have a provision that provides for termination of the lease due to certain major life events such as job transfers. That would be a good place to begin.

Beyond that, having a candid conversation with the landlord is where I would go next. Perhaps the landlord might agree to subletting to an approved tenant that your brother could find. Or maybe the landlord would agree to begin re-marketing the unit with your brother paying rent until a suitable replacement tenant can be found.

At the end of the day, your brother is bound by the terms of the lease that he signed, and trying to slip something past the landlord/property management company is not likely to end well.

[Brandon Sturgill]

@Julian Mcclurkin Only $1,700/mo. for a studio?...sounds like Columbus ;) We're 30,000 housing units short of demand. Lower the rent to $1,500/mo. sublease it, and absorb the difference. It's about to be winter here...nobody wants to move in January. Get it sub-leased asap! 

[Robert Ellis]

Originally posted by @Julian Mcclurkin:
My brother signed a 15month rental agreement for a studio apartment in downtown Columbus Ohio for his Daughter to live in as a Surprise. Prime location! One problem, his daughter accepted a job out of state a day after he signed the lease. One of the Rules of the apartment complex is that you cannot Air bnb the property. Now one lives there but my brother (who lives out of the city) will use it from time to time when he and his family are in town. Is there any strategy I can put in place to help my brother recover some of this $1700 a month he is paying for this vacant apartment?

 I would contact the company and do a buyout agreement. I had a client who did 5 leases in another market and they terminated all 5 by getting an attorney. It cost him 2 months of rent and security deposit lost plus about $1500 in attorney's fees. If you want an attorney who can handle it here I can refer you to one that's done it for other clients in Columbus.

[Joe Splitrock]

@Julian Mcclurkin first he needs to check if the lease has a lease break clause.

Then I would call the landlord and try to work something out in good faith. Usually two months rent is a common lease break agreement. If the landlord is unwilling to release him early, your brother should just tell the landlord he will not pay another months rent. This will force the landlord to either work out an agreement or start the eviction process. Don't be scared of eviction, because the first step is a notice to vacate. If your brother vacates by the date on the notice, then there is no eviction and the lease is broken effective that day. He will not owe any rent past that date.

Before all the landlords pile on me - I am just speaking reality of how this will go down. I have had several lease breaks. Lease term only protects the tenant. My best advice is have a lease break policy and work with tenants when it happens.