All Forum Posts by: Yoon Chong

I'm not an expert but based on my personal knowledge. I would open a separate LLC or fill out some type of paperwork stating that you are working with Airbnb now. Your current LLC falls more into the Real Category while Airbnb deals more with Hospitality. Two different professions.

Also as a Host, you are protected in 3 different ways:

1. Airbnb $1 million host guarantee

2. Renter's Policy Insurance

3. Homeowner's Insurance ( Update your insurance; inform your insurance that you are doing Short Term Rentals.

Does protection from Airbnb extend to both property owner and manager?

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Quote from @Charley Gates:

I would definitely consult with an insurance broker and possibly also an attorney about this.

I personally would set up a separate legal entity whose purpose is to manage STRs. I would put no other assets into this entity such that, if it is sued, there is nothing to lose.

One tenet of nearly all asset protection strategies is to not to mix risk types within one LLC. In other words, in traditional rentals, the entity that owns the rental should not be the entity that manages the rental. The rental-owning entity is full of assets and should have good liability coverage and probably a commercial umbrella. The management entity should hold essentially no assets since it is likely to be sued at some point.

I would also think about E/O (errors and omissions) insurance coverage.

I hope that this helps! Good luck.

This does help significantly. I appreciate the advice.

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Quote from @Sarah Kensinger:

Quote from @Jeffrey Reyes:

Also as a Host, you are protected in 3 different ways:

1. Airbnb $1 million host guarantee

2. Renter's Policy Insurance

3. Homeowner's Insurance ( Update your insurance; inform your insurance that you are doing Short Term Rentals.

The OP is not working for Airbnb but a homeowner who would like to list their property on the Airbnb listing website but wants someone else to do the work. Also be aware that you cannot count on Airbnb Cover, you have to jump through so many hoops to get your money for guest damages. Many times, they won't pay out for a variety of reasons. There shouldn't be renters' insurance, just STR homeowners' insurance and if you want protection for guest damages Safely, Waivo, etc.

I'm not the homeowner but potentially the co-host/property manager. Protection from Safely ir Waivo would be something that the homeowner purchases correct, not the property manager?

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Quote from @Sarah Kensinger:

You may be able to use the same LLC but if depends on what real estate business you're doing. It might be better to just create a new LLC and EIN number to keep the management side separate. But you could wait and see if you enjoy managing STR before creating another LLC.

Insurance is important! But so is the setting up the right entity! Check into Wister a sister company to Proper that understands STR and PM of them. Make sure to ask about including errors and omissions policy, then if something happens like a software malfunction, etc. and you cost the homeowner thousands of dollars, you have insurance to cover that.

Safely or Waivo are nice to have as well, they cover damage from a guest including sheets and towels, and I think also thief. Those companies would not cover you as a PM.

Hope that helps!

Thanks for the info and the recommendation. Setting up a separate LLC makes sense to me.

1 Vote

I have a friend that wants to use one of his properties as an Airbnb rental. As he is moving out of state, I offered to manage it for him to see if STR is an investment strategy that I'm interested in. I'm a realtor and so have an LLC for my real estate business. My question is as the co-cost/listing manager what protections do I need? Will the LLC that I have extend to Airbnb management? My questions are assuming that the owner will maintain homeowners insurance to cover STRs.

1 Vote

I'm looking to sell two properties, one primary and one rental, and use the profits to pay cash for a new primary. I'm wondering if there are some strategies to minimize my capital gains tax burden. Here's the situation:Primary home: purchased for $350k; can probably sell for $750k; owe about $50k on the mortgage. So, I'll have a $350k capital gain, minus the $250k for it being my primary for a few years. Owned for about 8 years.Rental Home: fully paid off, purchased for $200k; can probably sell for $450k. $250k capital gain. Have owned it for 10 years.The home I'm looking to buy will essentially utilize all the cash I will have after these two sales. I don't want to take out a loan. My concern is the capital gain tax burden I will face after the sale of both. Are there any strategies that I should consider to minimize the tax burden? Is it possible to use a 1031 Exchange on the rental and put it towards a primary? I know it's meant for investment properties. However, how will they know whether or not the new property is my primary or investment?

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Quote from @Dawn Brenengen:

In off market properties I brought my clients, my buyers have usually paid the commission. Since it's not listed in MLS, the seller has not offered any compensation to buyers' agents right off the bat. So, the buyer pays it as a closing cost or the sales price is increased to include it.

This is the right answer.

1 Vote

I would recommend a weeklong in-person class, if one is available near you. The group learning atmosphere is much better than the online courses. I did the online course (real estate U) because I have a young kid but it was super dry and boring, though it got the job done quickly and cheaply. CE Shop is usually recommended but I have no experience with it. I assume all online courses are about the same.

1 Vote

Atlanta, Georgia

AirDNA is your best bet to get rental rates/occupancy rates/etc. It's a monthly subscription you have to pay for by area or state.

I personally would not buy a STR in Norcross or Lilburn as those cities are generally not destination areas of Atlanta, though I don't know the numbers. Chamblee is generally more on the radar. Intown Atlanta will have visitors throughout the year. Being near the beltline, east of downtown, and midtown are generally the more popular areas.

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Atlanta, Georgia

HELOCs are residential/homeowner loans, so I don't think you will be able to do it on your rental under an LLC (just my assumption). The first reply is correct about the Quit Claim Deed. You should just call your lender and see about the due on sale clause

1 Vote

Atlanta, Georgia

All Forum Posts by: Yoon Chong

Yoon Chong has started 2 posts and replied 12 times.

Post: AirBnb Management Liability/Insurance

Post: AirBnb Management Liability/Insurance

Post: AirBnb Management Liability/Insurance

Post: AirBnb Management Liability/Insurance

Post: AirBnb Management Liability/Insurance

Post: Turning 1 primary and 1 rental into 1 primary

Post: Non-MLS deal, who pays broker commission?

Post: R.E. License as Investor in Georgia

Post: New to BP/ Airbnb in atlanta

Post: Rental Property switch from personal to an LLC