Renting to someone who does short term rentals

[arcticcat522]

Hey Beyond,

Since rental properties are the preferred asset class of Beyond, specifically condos, has anyone rented to people who sublet as a short term rental?

Any first hand experience. Let me know.

[ThePenIsMightier]

This quote is hidden because you are ignoring this member. Show Quote

Hey Beyond,

Since rental properties are the preferred asses class of Beyond, specifically condos, has anyone rented to people who sublet as a short term rental?

Any first hand experience. Let me know.

Asses?

[ExtraSlow]

You mean the person renting your place wants to turn it into an Airbnb?

[arcticcat522]

Short answer is yes....but they claim to be geared towards short term executive rentals. But I imagine Airbnb like. The unit is a small 1 bedroom condo

[ExtraSlow]

Does your condo prohibit those? If not, have a larger than normal damage deposit, do more frequent inspections, and giv'er.

[killramos]

Sounds like a hard no to me. If you wanted to do that then just do it yourself? Or get a management company at that point.

You are basically having your tenant be a management company for you.

[arcticcat522]

This quote is hidden because you are ignoring this member. Show Quote

Sounds like a hard no to me. If you wanted to do that then just do it yourself? Or get a management company at that point.

You are basically having your tenant be a management company for you.

Yes, they are like a free management company. Who has some shared interest in keeping the unit in relatively good shape. I don't want the hasstel of dealing with move in/out every week. I can handle yearly, but not weekly

[TomcoPDR]

This quote is hidden because you are ignoring this member. Show Quote

Does your condo prohibit those? If not, have a larger than normal damage deposit, do more frequent inspections, and giv'er.

Damage deposit can’t be over 1 months rent amount

[killramos]

This quote is hidden because you are ignoring this member. Show Quote

Yes, they are like a free management company. Who has some shared interest in keeping the unit in relatively good shape. I don't want the hasstel of dealing with move in/out every week. I can handle yearly, but not weekly

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

[ExtraSlow]

This quote is hidden because you are ignoring this member. Show Quote

Damage deposit can’t be over 1 months rent amount

Pffft, with this tenant I wouldn't consider it without a larger one. What are they going to do, not rent it?

[arcticcat522]

This quote is hidden because you are ignoring this member. Show Quote

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

Up side is they deal with all the miscellaneous maintenance and I have the rent paid for the lease term. I have others who are interested in the unit, but this was intriguing. If they make money, they will extend the lease I'm sure. It seems hassle free, hopefully, for me until they move on.

Don't get me wrong, first thought was hard no, but thinking about it.....what if. Fortune favors the bold, so to speak

[arcticcat522]

This quote is hidden because you are ignoring this member. Show Quote

Pffft, with this tenant I wouldn't consider it without a larger one. What are they going to do, not rent it?

I will ask for a slightly higher rent to account for some additional wear.

[ExtraSlow]

Go nuts.

[killramos]

You think they won’t pass on all the maintenance to you?

There is no “fortune” or upside because it’s capped at your rental income.

Best asset class

[gwill]

curious if your struggling finding good tenants?

Is your condo In a higher end building that will attract the type of tenants they claim they get? This is the bigger concern otherwise your 1bedroom is no different then the hundreds of other ones out there.

[arcticcat522]

This quote is hidden because you are ignoring this member. Show Quote

You think they won’t pass on all the maintenance to you?

There is no “fortune” or upside because it’s capped at your rental income.

Best asset class

They say they deal with all the maintanance. Not sure if thays acurate, but thats what they are saying. Im sure i would need to replace something that breaks, but i wont be getting calls about a burnt out light bulb. Sure returns are capped. My investment portfolio is down 8% ytd. Rental income has increased and principal has continued to be paid. Besides, I have already made the mistake of owning rental properties.

- - - Updated - - -

Have had 1 questionable tenant in the 9 years I've been renting. But turn over has been fairly consistent at 15 ish months. I'm just trying to figure out a way to extend that by considering this.

- - - Updated - - -

This quote is hidden because you are ignoring this member. Show Quote

curious if your struggling finding good tenants?

Is your condo In a higher end building that will attract the type of tenants they claim they get? This is the bigger concern otherwise your 1bedroom is no different then the hundreds of other ones out there.

See second part above^

[Buster]

I think it's an excellent idea.

Please make sure to post back here regularly with your experiences.

[ExtraSlow]

This quote is hidden because you are ignoring this member. Show Quote

I think it's an excellent idea.

Please make sure to post back here regularly with your experiences.

That's the energy we need today.

[Disoblige]

@arcticcat522 , PM me with who the company is. I am doing the same thing now on my end and it has been over 2 years.

As mentioned by everyone, everyone's first instinct is a hard no. But there is cases where this can work out in your favor. I don't fault anyone here for saying what they are saying, but it is a bit misinformed and clearly they do not have any experience with it.

[ercchry]

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