Airbnb Renter is Doing Arbitrage - Now What?

Question

Hi Everyone,

This is new to me. I have a vacation rental which it’s the off season and I accept rents at a lower rate. I’ve had a tenant through Airbnb which has extended her stay twice (each a month) and has been giving feedback as to how great it’s been.

I come to find out (via a lead paint inspection and going down to check on the property) that she is 100% doing rental arbitrage which was not approved by me. I have seen 4 different sets of people and maintenance team said they saw others to.

My question is now what? I do not have a Ring camera (buying one now) and when I reported it to Airbnb they basically said if I can’t prove it there is nothing they can do.

Any suggestions?

Mike

Bill B. · Answer

Live with it for 6 days until the end of the month and then raise the rent 30-50% or just don’t renew. I  Hate that they’re liars but most arbitragers are. Hopefully Airbnb’s insurance would still cover you. At least not as bad as someone scamming you on an LTR. Good luck.

Lauren Kormylo · Answer

As Monique said, it's standard in leases to not allow subletting.  Your property manager should be responsible for not having that clause in there!  You should also have in your house rules on Airbnb that the person booking has to be staying there, you will not allow third-party bookings even on short term rentals. Airbnb themselves do not allow that unless the booking party is registered for "Airbnb for Work".  https://www.airbnb.com/help/article/427 .

The other thing is, how come this lady is getting bookings at higher prices for the off season and you can't?  Before you shut her down, find out where she is advertising/listing your place and copy her in the future.

John Underwood · Answer

I like the idea of extending with her if she wants to but raise the rates. Let her do the work and you make the money.

You should have a LTR lease anyway for stays over 30 days.

Nathan Gesner · Answer

You have a camera. Document every unauthorized guest and calculate what the rent income would be. Present your guest with the evidence and demand she (a) vacate immediately and (b) pay you the income those unauthorized guests generated. If she doesn't leave, evict. If she doesn't pay, consider taking her to small claims court.

Theresa Harris · Answer

Is there a way you can refuse her future bookings?  If it is up at the end of April, do not let her extend her stay under any circumstances and watch out for anyone booking it for 30 days as she may try to rent it under someone else's name.

Sarah Kensinger · Answer

I won't even ask how this happened! If you really have a PM company managing this property, they need to go ASAP!!

A lesson everyone should take....have smartlocks and ring cameras on every STR you host, so you know at all times what is happening at the property. Also, cleaners should always clean the property every 2 weeks with a month-long stay! Then someone gets eyes inside the property and has a good idea what is going on.

Brooklyn McCarty · Answer

I agree with Bill. Let her ride out this current booking and then if she wants to extend or stay again, decline it and raise your rates a ton. In the meantime, gather evidence. Also make sure your guests are signing a RA

Andrew Steffens · Answer

Not sure about NJ rules on tenancy here but you could lock them out/remove them and secure your property (at least in FL).  You do not need Airbnb permission to do so.  However this far in with 6 days to go, just document everything to CYA and do not renew.

John Underwood · Answer

Definitely get the ring camera installed at first availability.

Bruce Woodruff · Answer

So you let her become a tenant (by allowing her to stay over 30 days). Big mistake.

But.....do you have a lease and what does it say? If you have no lease and only an ABNB agreement then what does it say?

ABNB are crap in helping Hosts, so don't expect much help....but also don't give up. Escalate this until you get some help. Depending on state, you may be able to get help from the law....? Or hire an attorney.....

Airbnb Renter is Doing Arbitrage - Now What?

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