How to do an STR without owning a property?

[Steven Seguin]

Hey all! I'm new to the Bigger Pockets forums. 

About a week ago I attended this seminar for STR's. It was very informative and honestly has me reconsidering strategies.

This person, Dave, claims to have 9 units. All of which he does not own. In fact, they are all apartment units that he leases and then lists as an STR on various sites.

Does anyone know what kind of language you need to use in order to get the apartment manager to not think your just going to host raging travelers? Something about corporate-short term rental. 

Any insight on this would be greatly appreciated! Thanks!

[Jaron Walling]

@Steven Seguin What you're describing is rental arbitrage (AirBnb Arbitrage). It only works when the lease you sign doesn't include a clause specifically prohibiting it. Some apartments and single family homes don't allow it, some do, and others don't mention it at all. Connecting with investors actively doing this and getting a current copy of a lease from a property is probably the best way to start searching. 

"This person, Dave"... is taking risk using this type of investment strategy. All types of investing come with risk but in my opinion this is bottle of the barrel. You don't really control anything doing rental arbitrage. All you control is user experience with some cash-flow at the end of the month. It doesn't capitalize on other wealth building pillars associated with real estate investing. You don't own the asset. You can't leverage the property. You can't value add. It's become trendy because there's nothing else to buy. Real property is hard to buy. That's just my opinion. 

As a novice in this regard I'm wondering where the units are located and if they're all in the same apartment complex. If so that would increase my curiosity only from a maintenance prospective. You could even hire a regular tenant to manage cleanings since they live next door. Not sure how these investors handle it on a larger scale. Double digit arbitraged units sounds like a full time job.