Medium term rentals - Airbnb or FF? Landlord protections?

Question

We have just converted our garage to a furnished legal ADU and I have someone who wants to rent it for 2-3 months. I already rent out a 2 bedroom duplex and have had very good longterm tenants for two or three years at a time. For medium term rentals, is there anything to include in the lease that could help protect me from people trying to stay longer than their term? Are there more protections on Airbnb that would make it worth it despite the cut they take? As I understand it, Furnished Finder is just a listings platform and does not assist with leases or anything else, correct? Thanks for all your help!

Nathan Gesner · Answer

Join the California Apartment Association for forms, education, and more: https://caanet.org/

You can also purchase "Every Landlord's Legal Guide - California Edition" by NOLO. Great advice from start to finish, sample forms, and links to current State law.

Colleen F. · Answer

@Pat Saperstein  in most states 28 to 30 days stays puts someone under landlord tenant laws so it isn't under the STR. Of course in California  it is a more difficult area then many states and @Nathan G. is spot on that you should read up on California law and forms.

My limited experience with furnished finder is it is a listing platform targeted at health professionals.  I have received some leads from them but you need your own leases.  Although they verify landlords ID they do not verify prospective tenants ID. This is not screening but making sure that a person is real. Most appear real but I had a nurse inquiry from NJ who I suspected was false so I tried to verify her nursing license on Nursys and there was none.  I asked FF and their answers confirmed they don't verify prospective tenants as real people.  Airbnb will verify guest and host identities.  Not saying FF is bad but it is helpful to know what they do and don't do.  They partner with someone who makes leases available at a cost.  That said medical professionals that are licensed you can easily see if they are licensed online.  For nurses that means they have had criminal background checks so I don't need to run them.

Drew Sygit · Answer

@Pat Saperstein when we did STR's, we used an abbreviated lease, guests cold sign electronically.

If we were to do MTR's, we'd use our full lease.

You could send an eviction notice that coincides with their MoveOut Date to minimize your exposure. Just explain to guests upfront that it's part of your normal process.

Allen Duan · Answer

Hi Pat,

I own a property management business based in LA that specializes in furnished rentals. Most of our properties are mid term rentals due to local regulations. In my experience, Airbnb's protections aren't worth as much as they'd like you to think they are. Their $1mil protection covers damages that you can show proof was caused by the guest. But they don't help with other issues beyond damage, such as squatters, disrespectful guests who don't follow house rules, etc. We get most of our bookings through Airbnb and Furnished Finder. FF only connects you with potential guests/tenants. There's no insurance or protection plans, which is why they don't charge the service fee Airbnb does. For our FF bookings, we don't use an actual lease, only a basic rental agreement with the dates of their stay. It's not a bad idea though. I don't think it would look too different than a typical long term lease.

Let me know if you have any other questions about the mid term rental space. I'd be happy to chat more =)

Gina Stern · Answer

In any situation wherby you are unsure of your legal situation I would always have a talented Real Estate Attorney on my team, it is worth spending the extra few bucks for reassurance.

Ron Brady · Answer

We operate two medium term rentals. For us, at present and because of how evictions are not as landlord-friendly as we'd like in NJ, we're willing to pay the airbnb platform fees in exchange for what we think they can do for us if there is ever a dispute. We've dealt with disputes in our long-term rentals and know what that's like. Best wishes to you.

Medium term rentals - Airbnb or FF? Landlord protections?

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