All Forum Posts by: Pratik Singhi

I was trying to understand the model on which Airbnb operates and one thing I can't understand is that whenever a host signs up and put his listing he is automatically enrolled in Airbnb's Host Protection Insurance which provides primary coverage for Airbnb hosts and landlords up to $1 million USD for free of to the landlord? I was trying to understand the math behind it -

1) Is it an agreement with an insurance provider which Airbnb might have contracted with?

2) What type of insurance companies does provide such coverage?

3) Is there a specific term/type of insurance that the insurance industry uses for such agreement with companies like Airbnb?

4) Lastly, is it an out of pocket expense for Airbnb which it tries to recover from is revenues as they are not charging it from the landlords or its been charged to the renter?

Would really love some insight!

Thank you

@Scott Wolf Yes that's why I was researching for outside NYC, like long Island and Upstate New York (Catskills, Hudson Valley, Adirondack) region. For expirience, I was looking for someone who was familiar with the industry to partner with as an operating partner and me being the investing partner. Thanks for the input!

@Anthony Rosa Thank you for the response! If possible could you connect me to any good real estate attorney in NYC, would be a great help. Thanks

Thank you for the response! 

@John Underwood In the option 2 suggested "they", refer to the property owner right? If yes, do you see a way I can involve a broker in my company like a partner with a very small share to him in terms of ownership/ revenue sharing? By the side, I attain an agent license and be enroll under the very same broker and if the company does well, apply for my own broker license in 2-3 years as I become eligible and hence remove the broker from my company (just a thought). Or any other arrangement that might be prevalent in the market that I am unaware of owing to a new entrant into the industry?

Thanks

Hello guys,

My Intro -

I am based out in New York City. I completed my Masters with a Real Estate concentration from Columbia University (New York) in 2017 and then worked on a portfolio of a residential building on the operational side for 1 year. Now I am looking to start my own vacation rental management company in New York.

My Concern -

Since I don't have a real estate agent/ broker license, which seems to be a requirement of New York state to start a property/ vacation rental management company unless your company strictly restricts it services to pure maintenance, so is there a way around it? Is there a way I can form my company under a broker doing some sort of arrangement with him? If yes then what would be the best way to do so? In case such agreement exists, are brokers willing to do or its difficult to convince a broker in any arrangement?

Really looking forward to the valued responses!

Thank you