Luxury short term rental company wants to lease my property

[Amanda Thompson]

I have a listing for a really nice duplex community (12 units in all). I was contacted by a company that specializes in luxury short term rentals (for professionals like traveling nurses, etc). This company wants to lease a few units, and then run their short term rentals through it. Basically they are paying the rent to make it like an Air BnB? Also, isn't this subletting? I am sure they'd charge much more than the rent. And how do I know they are putting vetted people in? On the other hand, they'd clean it and stock it... probability take immaculate care of the place. It isn't something I've heard of before... what are your thoughts?

[Nathan Gesner]

This is often referred to as "AirBnB arbitrage" and it's increasingly common. It sounds good, but what happens when the reservations dry up and they're not making enough money? Do you know if this is a professional company or is it a couple amateurs that saw some YouTube videos looking to make easy cash? How do they screen their guests? How do they protect the owner? Do they profit share? Are they paying higher-than-market rates to compensate you for turning a profit with your property?

In my experience, most of these people are amateurs. They will fill the unit with basic furnishings, provide minimum communication with guests, and try to wring out every dollar which they will use to live off of. No reserves, no business model, nothing. And when they get hit with a divorce, market drop, or some other personal issue, the entire thing falls apart and you'll be left holding the bag.

If your property is zoned for short-term and the market supports it, why not do it yourself and keep the profit?