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Updated about 3 years ago on . Most recent reply

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Brock Dowis
  • Investor
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Long term and short term rental partnership

Brock Dowis
  • Investor
Posted

I am curious if this sort of partnership already exists. But wouldn't it be advantageous for a long term buy and hold investor to team up with someone looking to do AirBnb arbitrage? If the property is marginal or maybe barely cashflows, couldn't you sign a 2 year lease with an Airbnb host and they can pay that rent but also look after the property and then they make their money as well?

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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied
Originally posted by @Nathan Gesner:

Sure, it all sounds like easy money. But what if:

  • The AirBnB arbitrage manager doesn't make as much as they anticipated and decides to leave?
  • They don't obey local or state laws?
  • They aren't good neighbors?
  • They don't maintain your home?

I've seen quite a few individuals start an arbitrage, manage it improperly, and then they close up shop and disappear in the middle of the night. I've seen them renting properties that were not legally zoned. I've seen them not pay taxes. They didn't care about respecting the neighbors or neighborhood.

I'm just throwing out some negatives so you can go in with eyes wide open. Happy New Year!

it can work you need the right circumstances.. where I have personally seen this work  the owner is a very busy professional who is already quite wealthy running their multiy million dollar company.  and just does not want to hassle with it.. the arbitrager has some chops. Or a good relationship with the owner and the owner enjoys helping said Arbitrager.. where I have seen it work is for travelling nurses living in high priced markets.   

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JLH Capital Partners

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