Airbnb arbitrage. Do you allow it? What’s You’re experience and opinion?

[Ramiro Rodriguez]

I listed my home for rent and was contacted by a company who is interested in Airbnb arbitrage. They agree to sign a 12 month lease and of course will Airbnb the property. For me, I don’t mind that model and I understand it. What has you experienced been for people who have done this or are currently allowing this in your properties? If I had a little more time I think I would try to run it myself but I’d like my property to be more passive and collect rent each month. What are your thoughts and experiences?

thanks, Ram 

[Michael Baum]

I wouldn't do it myself @Ramiro Rodriguez.

I agree 100% with @Andrew Steffens for sure. Just because they have some cool letterhead and a "business" doesn't mean they aren't working outta the back of the white van...next to the speakers they sell.

I would charge a 25% premium over going LTR rates. I would require a much larger deposit than a usual LTR lease requires. Personal guarantee 100%.

The bottom line is if you are getting contacted for arbitrage, then I would seriously consider doing it yourself. Take a look on VRBO and AirBNB and see what other places are bringing that are near yours and similar.

Check out  https://www.awning.com/airbnb-estimator. Pop the address in there and see the basic figures for other units nearby.

Then go do it yourself.