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Updated about 2 years ago on . Most recent reply
Leasing my townhome to STR business
Hello,
I received an enquiry about potentially leasing my townhome to a business that will use it as a short term rental to their clients. (My hoa has no restrictions ). I assume it will be used as Airbnb. This business will just pay me the rent like any other tenant. What are the pros and cons of leasing to such businesses? Looking for some advice as I have no clue :). Thank you!
Most Popular Reply
Sounds like rental arbitrage to me. I would tread carefully and make sure you do your due diligence on the individual and the company. This is a popular way for some to get into the STR space for those who don't have the capital to purchase the property. With a well-qualified individual or company, it's a win for you. You get your rent every month and they make a bit of money as well. With a non-qualified or inexperienced individual/company, it could be a major issue. Make sure to change your insurance policy to cover STRs!