Have any landlords here signed a lease with Loftium?

Question

Hey everyone! I'm finishing up a renovation on my first duplex (owner occupied house hack) and I've been approached by Loftium to sign a 3-year lease at a significantly higher rate than I would expect to get at market rates. Have any landlords in Denver been given a similar offer? Did you take it and, if not, why did you pass up? If you signed on, how has your experience been?

For some background, Loftium places a tenant in your rental property and then co-hosts Airbnb/STR with them. They assist with the management of the listing, and the tenant is the on-site management for the Airbnb guests. By doing that, they comply with Denver's primary residence stipulation, the full-time tenant gets lower rent than they would otherwise, and the landlord gets a higher rental rate.

I'm going to talk with them more regarding some details, but it's looking like a pretty good arrangement for me at this point. I'm just curious if anyone has any feedback from their experience. Thanks!

Herb Dorn · Answer

We did sign a lease with Loftium (two months ago, worked with Ed Dugan).  I have zero complaints thus far.  They have performed exactly as represented.  Make sure to read their agreements, and as you said, if it's a good fit for you (which it was for us), I don't see any downside.  They were willing to add a couple of items to their lease which we requested (lawn maintenance and snow removal I believe).  Ed was really easy to work with, and so far so good.

Herb Dorn · Answer

We continue to have a good experience with Loftium and Ed.  For us, the key is that they have placed an excellent tenant in the property.  We are currently extending their lease, it's a very good fit for us at this point in our business/life.  Happy to answer specific questions about our experience.

Ian Martin · Answer

I have a friend who is doing this after he moved away from his primary residence. He said everything has been great from their point of view, but that the tenant they placed gets frustrated sometimes with the whole AirBnb arrangement. From a landlord perspective it's been totally good though.

Fernon Meeks · Answer

Poor experience on my end with Loftium even though we used our in house lease. They like to collect income from the Airbnb and rental income from their sub-tenant but they do not do a great job managing the sub-tenant on their end. We have had issues with multiple water shutoffs for non-payment and a few lease violations.  When I notified Lofium I received the following email reply from Alex Fuqua, their Denver Field Operation Manager ."Loftium relegates the management of the property and it's sub-tenants to your property management team. Let us know if the tenants are unresponsive to your requests and we can help to reach out."

Ed Dugan was my contact but he is currently non-responsive to emails and not paying rent during Covid19 but they still collecting rent from the sub-tenant which unfortunately will eventually end with an eviction. Terrible. Don't believe the payment guarantee. Ed Dugan set up auto payments in our self service portal then I receive a notice that they clawed it back and claim it was "unuthorized".  I can't wait to be done with them.

Nancy Wallace · Answer

Kevin, They must have decided to not expand to Colorado Springs as they didn't get back with us.  Sorry I can't be more help.  Will be interested in hearing the experience of the others you tagged!

Kevin Healey · Answer

@Grayson Hussey, @Herb Dorn, @Nancy Wallace how have your experiences with Loftium been thus far? @Nancy Wallace, did you end up finding insurance and working with Loftium?  We have a duplex in Harvey Park that they approached us about and the numbers are pretty compelling. We're also working with Ed and have a few questions for him, but I'd love to hear any candid feedback on the experience, in general, but specifically to performance. Feel free to DM me too!

Herb Dorn · Answer

@Nancy Wallace Yes on both,  CBIZ for STR insurance.

Nancy Wallace · Answer

@Grayson Hussey  @Herb Dorn Do you guys have umbrella policies and homeowners policies that allow STRs?  We just got contacted by Loftier too (in Colorado Springs) and wanted to find out all the scoop, especially insurance.

Aaron Bihl · Answer

Is this a new model with loftium?  Last I saw they offered down payments for owners willing to STR a unit/room in their house?

Jeff White · Answer

@Grayson Hussey  I heard of them, but I don't know anyone that has signed a lease with them.  How much higher rent are they offering you vs. if you rented it to a traditional long-term renter?

The negatives of Airbnb is there will probably be a little more wear and tear on the property since you have will more people cycling in and out.  Maybe it is worth the extra cash flow and a three year lease though.

Have any landlords here signed a lease with Loftium?

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