Owner of a townhouse looking for Airbnb Arbitrage tenant.

[Alexander Johnosn]

Hello, 

I have a renovated rental unit in Tallahassee near capital circle and park avenue. I did long term tenant in the past and they trashed the place. I moved to Orlando and need a clean tenant that will take care of the property. I would prefer someone who can manage it as a Airbnb for me. They would furnish it, pay rent (between 900 and 1100), pay utilities, internet, maintenance etc.. and collect the profits from Airbnb or VRBO.

Open to other strategies as well. 

[Alex Scattareggia]

I would look at this scenario through two options. 

Option A. If you rent the property to an arbitrager who is going to pay you $1000/month + cover utilities etc, their all-in cost will probably be somewhere in the ballpark of $1500/month.  

A good arbitrage guy wouldn´t do a deal like this for less than $1,000 profit/month.  After cleaning fees + the $1500 expenses they will need to be grossing roughly $3,000-3500 per month to make this worthwhile. Whether or not that is possible would require some more knowledge about your unit and the market itself but that wouldn't be super hard to figure out. 

It might be worth looking into an Option B, where you pay a STR Property Manager their 25-40% and net the difference. So using the 3k revenue number - 30% to the property manager you net $2,100.

Your work load is very similar in both scenarios but your income would double in scenario B.  The keys are going to be to find a solid operator on the property management side.  

Good luck!