Air BNBs structuring partnership
Anyone here have much experience with AirBnB and structuring partnerships?
Looking into a million dollar Air Bnb with OPM but this is all very new territory to me as far as how do you structure your percentages and how everyone gets paid. I.e. you rent out 10 days one month and 30 days another how do you structure the pay for each investor? We're providing the hustle and the rest of the equity would be coming from other people investing, I of course imagine they would be paid first but do you just see how/where you come in at the end of each month and divide in a percentage or one person gets paid their percentage first and then divide from there?
How do you handle or write into a contract/deal of if someone wants out later down the road when you're working with multiple partners?
Do you self manager or hire a PM? What's been your experience (seen both but would love to hear your opinion)
Thanks in advance!
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#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
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#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
Hey @Elizabeth Esplin, I don't really have any info on setting up the partnership, but I would just get with a real estate attorney to get it all setup. Seems like the best way to handle considering the pricetag.
As for paying out, I would just settle on a percentage per partner per month. Settle up each month based on gross-costs=net. Plus you should all agree on a set aside each month to build up a fund to repair things as you go along until you build it up to an agreed amount.
As for a partner getting out, you could setup a 5 year minimum clause or whatever in the agreement. That way each partner has time to build up some profits that can buyout another partner if/when it becomes necessary.
If you are doing the legwork, then you should do the management. It isn't that tough even remotely. I would add that as a cost that is split between the partners.
I am not an expert on this sort of thing so take everything with a grain of salt. :)