Does anyone rent to someone who Airbnb’s your property?

[Kevin Trapani]

I’ve had someone apply for a property of mine that disclosed they want to in turn sublet via Airbnb the rooms. Interested in hearing your experience. Anything specific I should write in the contract to account for the excess wear and tear? Extra security deposit? A % of the profits - if so how much? Or should I just avoid the risk altogether?

Thanks!

[Nathan Gesner]

This is referred to as "AirBnB arbitrage" and it's a get-rich-quick scheme promulgated on social media. In my experience, most of the people using this technique are amateurs that will not stick with it long-term. They expose you to increased risk and possible abuse/neglect of your home. You have no way of tracking who they put in, how they manage your rental, etc. When the going gets tough, they'll leave you out to dry. They tend to ignore laws like zoning, taxes, and other factors. And did you know that if they violate housing laws, you're still responsible for the actions and subject to a lawsuit?

Is your property even zoned for short-term rentals? If it is, why not give it to a property management company and let them manage it for you while making you a little extra money? This applicant thinks they can pay your the expenses and still make a profit, so just do the same thing yourself.