ATTENTION ALL LANDLORDS: Airbnb Invading - Pay ATTENTION

[Patrick Soukup]

Alrighty. I need ALL of your help. In the ‪#‎RealEstate‬ or‪#‎PropertyManagment‬ industry or not, I've got a duplex downtown in a very desirable location. Three miles to Colorado State University and 6 miles to downtown Old Town Fort Collins, Co --- Currently, one of the "tenants" is using the one bedroom/one bathroom and loft as an Airbnb. I wouldn't have KNOWN, but that the neighbors complained of "all the people coming in and out always." She is charging $91/night, taking REALLY good care of the unit (as she has incentive to make it a nice place to stay for STR's - short term renters). She has gotten great reviews by people that have stayed there. SO ---- what do you do? Evict her for violating the lease (subleasing without permission)? Implement a revenue sharing model as discussed on Multifamily Executivehttp://www.multifamilyexecutive.com/…/deal-or-no-deal-airbn… ? OR --- evict/talk her into moving out and start the Airbnb myself? (This would increase my revenue substantially as the duplex is in a very desirable area- but add considerable labor on a monthly basis.) Things to think about: Liability - no background/credit checks --- long term tenant annoyance --- City of Fort Collins, Colorado - Government is currently talking about STR's and how they are going to handle them. Thank you for your input! It is much appreciated.

[Roy N.]

This one is straight forward.  Your tenant is conducting a hotel/hospitality business from your rental property which surely puts her in violation of her lease and might put you on the wrong side of the local tenancy or hospitality regulation.   On top of that, it's most probable your insurance company will not be warm and fuzzy to the current goings-on.

Give her a notice to terminate {end the lease} or, at the very least, a notice to comply (a shot across the bow) ending the hoteling venture.