Renting to someone who does short term rentals

[J-D]

I think it's a solid business model... for the dude trying to hustle you and put all the risk onto you.

[killramos]

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I think it's a solid business model... for the dude trying to hustle you and put all the risk onto you.

Precisely

[arcticcat522]

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1. Your lender can probably call your mtg if they find out
2. Your insurance probably doesn’t cover commercial activity

I remember being asked about this. Is there any Grey area with this? I mean, I'm not using the property as a commercial business and I'm not ofdri g the unit as a short term rental. As far as I know, I have a lease with Joe Blow. Assuming g they sign the lease in there name and not XYZ scammer LTD.

[ercchry]

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I remember being asked about this. Is there any Grey area with this? I mean, I'm not using the property as a commercial business and I'm not ofdri g the unit as a short term rental. As far as I know, I have a lease with Joe Blow. Assuming g they sign the lease in there name and not XYZ scammer LTD.

You’re the property owner, lawsuits will name you, they will also ultimately go after the property to settle the suit, anyone with security on the property will have increased risk of recovering their money (hence lenders calling in the loan as they have exposure to these situations)

[max_boost]

Not uncommon. Maybe would have been better if you didn't know and just collected rent but now that you do you have to weigh in on all the what ifs.

[arcticcat522]

Stupid what ifs......no good for nobody

[gwill]

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Stupid what ifs......no good for nobody

your getting the answers you'd expect from the usual crowd. I know many people who rent specifically to high end rental companies. That's why I asked how your location/building is different.

If its a general 1 bedroom condo built by a shitty builder with nothing making it stand out id say don't do it. Otherwise give her.

[Buster]

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your getting the answers you'd expect from the usual crowd.

[shakalaka]

I recently did this with my higher end, 2 bedroom, 2 bathroom condo in Downtown Edmonton. The guy approached me and suggested this and at first I was quite apprehensive. However, the more I thought about it and the more he explained as to how his interest aligns with mine to keep the condo in top shape, made sense. Plus I checked out his airbnb page and he's running 12 other properties in the exact same manner and been doing the 'business' since 2017. I spoke to couple of other landlords and they were happy with their monthly, without issue rent and no complaints about the property or any issues. So I went for it. I asked for a slightly higher rent than what I would have offered to a more traditional tenant (only by $100/month more but still well within market value) and signed a slightly longer lease of 2 yrs.

Interesting business idea for this young 30 yr old kid though, being a 'super host' on Airbnb apparently helps his business and as said he's doing 12 units now and he says he does quite well and there is rarely ever a month when he doesn't at least breaks even with the all the rent he pays every month (20K+).

[Buster]

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I recently did this with my higher end, 2 bedroom, 2 bathroom condo in Downtown Edmonton. The guy approached and me suggested this and at first I was quite apprehensive. However, the more I thought about it and the more he explained as to how his interest aligns with mine to keep the condo in top shape, made sense. Plus I checked out his airbnb page and he's running 12 other properties in the exact same manner and been doing the 'business' since 2017. I spoke to couple of other landlords and they were happy with their monthly, without issue rent and no complaints about the property or any issues. So I went for it. I asked for a slightly higher rent than what I would have offered to a more traditional tenant (only by $100/month more but still well within market value) and signed a slightly longer lease of 2 yrs.

Interested business idea for this young 30 yr old kid though, being a 'super host' on Airbnb apparently helps his business and as said he's dong 12 units now and he says he does quite well and there is rarely ever a month when he doesn't at least breaks even with the all the rent he pays every month (20K+).

What are his margins?

[rage2]

I have a friend that was doing what your renter is doing out of Vancouver.

https://forums.beyond.ca/threads/348...07#post4760307

The reason it worked for him was becasuse for the owner of the units:

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Where you own none of the upside. But all of the downside.

It's a bunch of grunt work to pull it off, you gotta be good at marketing your units, he's made it work for him and he says the rental owners are generally really happy he's doing all the grunt work. That's really the only upside for the rental owner. That said, it brings a lot of fights between the owner and the condo boards, he's been booted out because of it 1/2 the time. When it works, he makes a killing, and he has nothing to with the drama once he's "busted".

He quit after COVID killed the market and left Vancouver. @Buster you can find his margins in my post when he was still doing this.

[Buster]

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I, he makes a killing,

That's what I figured.

[zechs]

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Stupid what ifs......no good for nobody

But you MUST have a 10,000,000,000,000 insurance policy just in case someone stubs their toe and sues you for loss of life!!/sarcasm

[Buster]

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I recently did this with my higher end, 2 bedroom, 2 bathroom condo in Downtown Edmonton. The guy approached me and suggested this and at first I was quite apprehensive. However, the more I thought about it and the more he explained as to how his interest aligns with mine to keep the condo in top shape, made sense. Plus I checked out his airbnb page and he's running 12 other properties in the exact same manner and been doing the 'business' since 2017. I spoke to couple of other landlords and they were happy with their monthly, without issue rent and no complaints about the property or any issues. So I went for it. I asked for a slightly higher rent than what I would have offered to a more traditional tenant (only by $100/month more but still well within market value) and signed a slightly longer lease of 2 yrs.

Interesting business idea for this young 30 yr old kid though, being a 'super host' on Airbnb apparently helps his business and as said he's doing 12 units now and he says he does quite well and there is rarely ever a month when he doesn't at least breaks even with the all the rent he pays every month (20K+).

Did you ask for an indemnification from the sublessee? Did you insist on the sublessee providing appropriate insurance?

[mr2mike]

Lol. This thread.
So you want to AirBnB but not make any money? Ha!

[arcticcat522]

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Lol. This thread.
So you want to AirBnB but not make any money? Ha!

I want nothing of the sort. I would, however, like a long term relationship with someone who pays the rent I ask for. I'd like as few headaches along the way as possible. I've never done short term rentals, and was curious if they are as bad as I imagine they can be. Maybe they are, Mayne they aren't. How many units do you have for short term rent?

[shakalaka]

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Did you ask for an indemnification from the sublessee? Did you insist on the sublessee providing appropriate insurance?

Yes, I prepared a lease agreement accordingly and I made sure I had his company as well as him personally on the lease agreement and Airbnb also requires certain specific insurances with liability of $2M to be in place. To answer your other question, I don’t know what his margins are - I didn’t really ask that much about it.

[arcticcat522]

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Yes, I prepared a lease agreement accordingly and I made sure I had his company as well as him personally on the lease agreement and Airbnb also requires certain specific insurances with liability of $2M to be in place. To answer your other question, I don’t know what his margins are - I didn’t really ask that much about it.

How much to share a blank copy of that lease agreement??? PM me @shakalaka

[killramos]

Did you just ask a lawyer to give you some boiler plate samples gratis? Hahaha

[TomcoPDR]

Summer time Shak needs a new Hellcat