Airbnb Opportunity: Newbies Need Guidance

[L'Rainne Molina]

My S.O. and I have an opportunity to start an Airbnb, but want to make sure we understand the best steps to take under the given circumstances. 

The property is a newly built 1 bed, 1 bath loft apartment above a detached garage/shop in Idaho Falls, ID. It's not located within an HOA and is within city limits. We do NOT own the property - family does. They are ok with us doing this, as long as it works for everyone. The owners are moving to Oregon for 9 months out of the year, and are leaving us to lookover the property while they're gone.

We have completely fully furnished the unit and it's just about ready to go, but there's certain specs that I'm not familiar with as far as 'owning' an Airbnb.

Here are my questions: 
-Is an LLC necessary for this kind of situation? And if so, who should be the holder of the LLC?
-How does this work for property insurance purposes for the owner? 
-How would you split the profit made with the owner if they are completely hands off?

[Luke Carl]

1. Heck No you don't need an LLC. You need a partnership agreement. Which can be hand written on a napkin as long as you both sign it.

2. Call current insurance company and switch from primary homeowner to commercial 

3. No wrong answer but you’ll probably get sick of it after a year or two so keep that in mind. I would just do 50/50 and he keeps the equity.