Considering renting my home to a mid term rental arbitrage company

[Simon Strugar]

Hey all, I have a home in Lawranceville Ga that I listed for rent, I got approached by a rental arbitrage company that rents out homes for traveling nurses and mid term rentals and wants to lease my home on a 18 month lease contract. After listening to BP podcast #728 I'm open to the idea. I have the home listed at Market rents and I'm getting a good amount of interest. Since it will be used for mid term rental and more people will be in and out of the home compared to only one  family how much more should I charge for the rent and what addition should I add to the lease contract to protect me? thanks 

[Michael Baum]

Hey @Simon Strugar, I personally would never allow an arbitrage company to do this.

Having said that, I would increase my rent ask by 20%.

I would really, really, really read that contract. No way I would sign it until I had it vetted by my attorney. If you don't have one, get one.

There are a few horror stories about these arbitrage companies. They seem professional and successful only to find out it is a dude working out of his van down by the river.

I dunno man. This is something that really makes me nervous. Have you ever checked to see if it is even legal where the home is located? Atlanta and the surrounding area has quite a few restrictions. Arbitrage people often will try and do it illegally and as the owner, you are on the hook.

Now anything over 30 days is still a long term rental so it probably isn't a problem if they stick with that, but check anyways as if the short stay long term rental idea might not pan out and they will try and switch to STRs.