All Forum Posts by: Keith Koch

Quote from @Jenny Banda:

Quote from @Keith Koch:

Quote from @Jenny Banda:

Have an honest conversation with the person renting the house. Explain your concerns about the impact on the property and the expenses not covered by the fixed rent. Let them know you'd like to find a fair way to share the profits. Explain how a profit-sharing agreement can be advantageous for both of you. It gives them a reason to take better care of the property, which can lead to more bookings and higher earnings for them. As far as the templates go, look for general partnership or revenue-sharing templates online, and adapt them to fit your situation. I would even go as far as to have a lawyer review the agreement to make sure it covers everything I need. And as a final thought, stay cooperative and respectful throughout the process and it can lead to better outcomes. Finding a solution that works for both parties is the goal so always remember that as the first rule of any good negotiation!!

 Thanks for the healthy communication reminders. We feel we are using these approaches. I am just finding that there isn't much information on these arbitrages agreements. I've seen very basic stuff, but zero in regard to profit sharing. What do you think would be a fair %?

 Well I'm just going to use my broker split as an example. Any deal I close I get 80% of it and my broker gets 20% (you would be the broker in this case). So your friend would be making the majority of the profit and you only 20% because you've literally got the LOCATION that's making his business run. Now, if he decides not to do a percent split... How about you buy a tiny home and do the same thing he is? Granted I would suggest you do some research before jumping into anything but this is just an idea

 Thanks for the reference. We are definitely aiming our sights on that percentage so thanks for the confirmation.  

We do have a couple tiny homes on the property, but didn't have the capital to buy another one during the window where we worked it out with them. They paid us to build the tiny house too, so it was a good income on both ends, but it has been an experiment and learning process, so we're just figuring out what works.

Quote from @Bill B.:

Are they not just paying land rent like a common RTV park? I would take the guaranteed income everytime. You should have nothing to do with the Airbnb part. It already sounds like they’re preparing to fail and leave you with nothing. If they aren’t current in the rent start eviction and have them move the home off your property. In regards to trash that’s obviously in your. Lease to each of your tennants. What it costs and what the fines/penalties are if you have to do it for them. Simply start doing it and billing them. It should take care of itself. 

They are paying land rent. The thing is, there is a lot of competition here for places to live and there is no issue finding renters. We just are hoping to build community and a viable business to pay off some investments into the property.   They are actually doing quite well. The Airbnb is booked every night of the week. 

Quote from @Jenny Banda:

Have an honest conversation with the person renting the house. Explain your concerns about the impact on the property and the expenses not covered by the fixed rent. Let them know you'd like to find a fair way to share the profits. Explain how a profit-sharing agreement can be advantageous for both of you. It gives them a reason to take better care of the property, which can lead to more bookings and higher earnings for them. As far as the templates go, look for general partnership or revenue-sharing templates online, and adapt them to fit your situation. I would even go as far as to have a lawyer review the agreement to make sure it covers everything I need. And as a final thought, stay cooperative and respectful throughout the process and it can lead to better outcomes. Finding a solution that works for both parties is the goal so always remember that as the first rule of any good negotiation!!

 Thanks for the healthy communication reminders. We feel we are using these approaches. I am just finding that there isn't much information on these arbitrages agreements. I've seen very basic stuff, but zero in regard to profit sharing. What do you think would be a fair %?

Quote from @Michael Baum:

Hey @Keith Koch. This is a weird post. Someone built a tiny house? Just some random person came and put in a tiny home on your property?

I assume that you have bare land they rent from you, then they put a tiny home on it.

Do you have a lease? How long?

Are the arbitragers not taking care of the property? Lots of garbage laying around etc?

If so, then you should be able to just have them leave. More info please.

 Hey there! Sorry I thought I explained some of the aspects, but didn't explain others.

We have a 10 acre property with various "sites" for RVs or Tiny Houses. One of the sites we had someone put a tiny house with the idea that they could test out an airbnb business. We talked about the profit-sharing before it was built, but their build went way over budget so they are not as open to profit-sharing, hence the rift.

We know this person, it isn't random. Just trying to get clear on what others do. It seems that there are so many ads trying to teach people to do arbitrage, but I have seen few substantial templates of agreements with landlords, and zero ones that include profit-sharing. Seems like it would be standard practice. 

They signed a lease last August for a year, with the hopes that it would of been operational 6 months sooner than it was, so it is up in August, hence us going for the update. 

The arbitragers live in Seattle, we live in Port Townsend. So what I'm referring to is that there is just added trash from doing all the turnovers, and maintenance on the lawn and landscaping etc. 

Anywho, if anyone has any references for examples of people doing any profit-sharing.

I'm wondering what would be a fair %. It is their building but on our property. We are thinking 15% is where we want to land on.

Greetings! We have a piece of property in a tourist place. Someone built a tiny house and is renting it out on Airbnb.

I can't seem to find anything online that gives examples of agreements that people who "arbitrage" properties that are not theirs on Airbnb.

Can anyone forward me some examples of profit-sharing. Or can suggest some templates or advice as far as negotiating a deal where we get a % of the profits for this. We want to do it peacefully, but we may have to use leverage to shut-it down otherwise.

We are trying to work out a deal where they do profit sharing. They don't seem to be open to the idea and it is creating some tension.

The airbnb is up and running for two months is being rented out consistently. They are only paying a fixed rental amount. We are finding that this is not working for us, as there is a lot of impact on the land that wasn't accounted for originally, like landscaping, road impact, trash removal, and generally just keeping up with things at a guest level.

Thanks!

Greetings! We have a piece of property in a tourist place. Someone built a tiny house and is renting it out on Airbnb.

I can't seem to find anything online that gives examples of agreements that people who "arbitrage" properties that are not theirs on Airbnb.
Can anyone forward me some examples of profit-sharing. Or can suggest some templates or advice as far as negotiating a deal where we get a % of the profits for this. We want to do it peacefully, but we may have to use leverage to shut-it down otherwise.

We are trying to work out a deal where they do profit sharing. They don't seem to be open to the idea and it is creating some tension.

The airbnb is up and running for two months is being rented out consistently. They are only paying a fixed rental amount. We are finding that this is not working for us, as there is a lot of impact on the land that wasn't accounted for originally, like landscaping, road impact, trash removal, and generally just keeping up with things at a guest level. 

Thanks!