Homeowner · Saint Louis, MO · Member since 2023 · 2 posts · 2 votes
BiggerPockets community!
I'm excited to share that I'm a new homeowner and recently purchased a duplex with the intention of house hacking. To my surprise, a company has expressed interest in renting out one of my units for 1 year to 18 months, with plans to turn it into an Airbnb afterward.
I'm thrilled about the opportunity, but I'm also new to this, and I want to make sure I'm well-prepared. Have any of you experienced a similar situation or have insights to offer? I'd greatly appreciate any recommendations or advice on the steps to take moving forward, particularly in terms of screening, contracts, and ensuring a smooth partnership.
Investor · Hopedale, MA · Member since 2021 · 321 posts · 212 votes
2y
i'd suggest having it in your corporate lease agreement that the person renting from you handles all maintenance calls + coordinates and pays for repairs under $___. i would also have them get renters insurance with a company who knows what they're doing with the property, and make sure YOUR homeowners insurance company is aware and would cover you. also consider whether or not you want to share a wall with an airbnb. i probably would not.
I'm excited to share that I'm a new homeowner and recently purchased a duplex with the intention of house hacking. To my surprise, a company has expressed interest in renting out one of my units for 1 year to 18 months, with plans to turn it into an Airbnb afterward.
I'm thrilled about the opportunity, but I'm also new to this, and I want to make sure I'm well-prepared. Have any of you experienced a similar situation or have insights to offer? I'd greatly appreciate any recommendations or advice on the steps to take moving forward, particularly in terms of screening, contracts, and ensuring a smooth partnership.
Thanks in advance for your guidance!
Hi Christian. This is called rental arbitrage. I recommend you research the pros and cons of doing this. I highly discourage rental arbitrage to landlords. Usually it only woks out well for the rental arbitrage LTR tenant, and when things go bad, they are off the hooki and you are on it. Bottom line- you lose a lot of control, money, and have much higher liability if you go this route. You're better off STR'ing it, yourself with or without a PM.
Investor · Minneapolis · Member since 2023 · 265 posts · 162 votes
2y
Great points by Chad. I think you're better off doing STR if you know how to put a plan in place. You might want to start by running some numbers on AirDNA and checking how local hotels do on Hotstats.com. Those are some of my favorites. Also, if you do elect to allow someone to do arbitrage, get decent legal help first with any contracts.
Investor · Hopedale, MA · Member since 2021 · 321 posts · 212 votes
2y
i'd suggest having it in your corporate lease agreement that the person renting from you handles all maintenance calls + coordinates and pays for repairs under $___. i would also have them get renters insurance with a company who knows what they're doing with the property, and make sure YOUR homeowners insurance company is aware and would cover you. also consider whether or not you want to share a wall with an airbnb. i probably would not.