Pro tip: If you want to do STR arbitrage, just say so...

[Cody L.]

Every day I get emails or texts asking if we do "corporate rentals" at our Houston portfolio of multifamily. And 11 times out of 10, what they are really asking is if we allow people to lease our units, then rent them out via STR on Airbnb/VRBO

I just got a new email today that was even more round about....  Email subject was just "LEASING" (yes, all caps), and the body was "Good afternoon! I was curious if you guys are accepting business applicants ?"

If I was going to try to do STR with other peoples units, here is what I'd do:

I'd create a website about my company (if it's new, no problem). Explain who we are, what we do, etc. In my initial email, I'd write up a quick summary of why you can trust me with your unit. I'd explain how I'm capitalized. My level of experience. What I'm willing to do vs. a normal tenant (take care of small work requests on my own? Pay a larger deposit? A bit higher rent?). I'd go over the legit fears that people have with STR ('extra wear and tear', etc.) and how I meditate them.

Then I'd reach out to owners and explain that yes, I'd like to lease your unit as a short term rental.  I'd provide the previously mentioned data.  I'd make myself available for any questions they might have, and I'd push for them to take next steps. 

But don't beat around the bush.  Don't just start out with "do you accept corporate rentals?".   Just come out and make your ask, and be prepared to resolve objections.   This is sales 101 guys... 

[Cody L.]

Quote from @Nathan Gesner:

Quote from @Cody L.:

If someone can rent your unit, furnish it, then turn around and still rent it for a profit, why wouldn't you do that yourself? If each unit nets $10,000 a year, you are letting someone else make half a million dollars a year using your property. You can hire a property manager and still be clearing more than $300,000 a year without any additional effort.

this is why I don't understand why any landlord would allow arbitrage in their property. 

Because I'm not going to do it. I'm not staffed to do it. My team isn't set up for it. They're set up for doing long term tenants that pay $x/month. So if an STR person pays me $x/month and can make money on top of that, why would that bother me? Good for them.

Think about it this way:  I have a guy that rents a commercial space from me for $3,000/month to run his barber shop.  I'm sure after all non-rent expenses he's making a lot more than $3,000/month.   So why don't I just kick him out and run a barber shop myself and make that money?   Because that's not my business.

I have 2,000 units.  It's hard enough to keep a team of operations and property managers that can keep that train on the tracks.  Maybe at some point I'll hire someone that just does some STR sub business but that day isn't today or anytime soon.