All Forum Posts by: Michael C.

Hi, I am trying to figure out how to best protect my personal assets. My spouse and I are full time property managers focused exclusively on Airbnbs. 

- My spouse and I own 3 properties.

- Spouse owns 2 properties in State A and are held in personal name

- I own a property in State A held jointly with a business partner

- Homeowner insurance for the 3 properties cover short-term rentals

- Spouse is the managing member of an LLC, which is a property management business. The LLC leases apartments in State B and rents them out in Airbnb. The LLC also manages the properties in State A.

- LLC has a commercial general liability policy up to $2M ($1M per incident)

I would like to protect our personal assets from lawsuits from the property management business. What specific strategies should be employ?

- moving the properties to LLCs

- More insurance. Would an umbrella policy protect us from commercial claims if our coverage isn’t enough? Or the insurance denies the claim?

- Moving the assets (properties, stocks, other investments) into a trust for our child

@John Underwood

Renters with little or new history on Airbnb (new accounts). No or negative reviews. Under 25 renters.

My VA team has a checklist they use to screen these types of guests. It's more work but we've mostly sidestepped bad guests (finger crossed)!

@David Haynes

Thanks David.

@Luke Carl

Haha. Avery might be watching!

@Kyle Nolen

Congrats on securing a deal and being conservative in your underwriting. Here are some of the numbers I use for a 4/4.5 built in 2005.

RM - 250/month

Capex - 2500/annual

Deep cleaning - 1000/annual

Historical utilities are a good guide but be mindful your occupancy rate may differ from the former owner so these expenses are highly correlated to usage. (Don’t forget covid knocked out 6-8 weeks in 2020 so annual 2020 number might be understated).

DM if you want to talk more numbers and best of luck on your purchase.

I hope this helps!

Best

Michael

Hi, I have a couple of Airbnb properties in CMX3 zoned building and looking for a help getting visitor accommodations permits for the

If you are an attorney or someone with a legal background in Philadelphia, I would greatly appreciate a referral. Thanks!

@Hui Song

Hi Hui, which carrier did you go with for the insurance?

Hi Angela, we are looking to purchase cabins and would be interested in taking a look if you are looking to sell. I'll send you a message and hope to connect.

@John Underwood

I also charge 500 on VRBO. For high risk Airbnb reservations, I ask for a separate security deposit payable through the resolution center before I release the codes. I refund it after the checkout to ensure compliance.

HI Jake, I've been a professional Airbnb host for 4 years now and here is part of my tech stack. We have ~20 properties in Philadelphia, PA and Sevierville, TN. Happy to double click on these if you have additional questions. 

- Hostaway for PMS and distribution

- Pricelabs for pricing management

- Hostfully for guest guides

- Asana for task management

- BNBTally/Quickbooks/Hubspot for accounting/finance

- Whatsapp/Slack - managing your cleaners and assistants

And much more. Everyone has their own flavor customized to their individual preferences and use cases but these cover the major software verticals you'll need to get up and running. Hope this helps!