Owners open to sub-leasing in the South Bay Area.

[Kent Baltare]

Hello to all.

I am currently searching home or condo owners in San Franciso's South Bay area who are open to leasing their property with with an allowed sub-lease clause.  Any sub-lease activity would ONLY be to a traveling professional vetted by myself, a fellow owner and investor, and there would be financial upside above market rents for any willing owner.

I am also interested in hearing whether anyone has any more effective ways of searching out an owner who would be open to sub-leasing?

Thanks to you all for your time,

Kent

[Account Closed]

@Chris Mason,

This is definitely a trial and error for me. This is what I've learned, and it's not quite pleasant IMO. This is my sole opinions, and it has nothing to do with J's operation.

1) The location of the building/house has to be right IMO. Otherwise, your neighbors will complain. How do you like living next to a house that has different people coming in and out every several months? Did I mention there's a chance that your tenant MAY throw Airbnb guests when there's a one or two week gap between his/her corporate rental turnovers?

2) Noise issue - Sometimes, they have too many guests in a unit. This create noise issue. If you can cure it quick enough, your long-term tenants may use this as an excuse to break the lease, or they will move when their lease ends. You will only find out after the fact.

3) Safety issue - Your building is now operating like a hotel/motel/transient place rather than a "home". Your long-term tenants no longer feel safe because they don't know who lives next to them. If they want to break the lease, you have to let them out, or they move out when their lease ends. Again, you will only find out after the fact.

4) Does this mean you should run all of your units as corporate rentals or none? If all, the turnovers would be quite a bit. This goes back to the location of the building has to be right.

5) For 5+ unit buildings, our lender doesn't lend to furnished rentals. How do you plan to refinance when the loan is ballooned?

That's what I've learned so far...I hope there's nothing more to come.