Renting to tenant to manage an AirBNB in the property?

[Account Closed]

So we are not exactly newbies but not veterans either - we have 3 rentals and 2 flips right now. We attend an REIA where another member has inquired about renting properties from us - he would sign a lease, pay market rent, etc but he would be using it to run exclusively as an AirBNB. He rents rooms out of his own house he lives in on Airbnb, and wants to add more properties to rent. I'm intrigued with the idea, as I'm not really seeing a downside for us. Am I missing something I should be aware of with something like this?

[Thomas S.]

In a situation like this you should be charging a premium rent, possible as much as 50% over market, or you should be taking a cut on his business income.

The property is your investment there is no way you should be allowing someone else to make a profit off of your efforts without getting a cut. You may as well run the airbnb yourself.

You should also investigate whether airbnb is legal in your area and whether th eadditional traffic will result in neighbour complaints. Airbnb is basicly operating a hotel out of your property and will come with additional issues for you. If there is no upside profit for you why bother taking th erisk.