I have been contacted by a person who works as a sales rep for a local company that leases houses from landlords and then sub-lets those houses out to customers of Air B&B. Check out this website:(hometownbnb dot com and tell me if you think this company is legit.

I have a vacant house right now where the advertised rent is $850.00. This sales rep today (I met him at my house) told me he would pay me $1,000.00/month rent for my house assuming I would allow his company to sub-let it out to B&B type short term clients. I told him this was almost too good to be true.

Roy, this post almost made me spit my beer out, and with me you know that's serious.

Have you seen any of my posts on Airbnb? They suck. Now you're thinking about putting a 4th party (you, guest, Airbnb, sub-letting agent) into he mix?

No. Absolutely not. Forget it.

Or as RB says, do it...and tell us how it goes. I'm betting 50 person party happens in the first 2 weeks.

There are a lot of airbnb's around here. (Lakes, rivers, Northwoods-tourist area). From the little I know of them, I can understand the tourist part of it- a house verses a hotel. As to other locations that are not big tourist draws, I'd be extra careful or I'd pass. Remember, the place would need complete furniture, kitchen stuff, TV, etc.

Besides, if you really want to try it, why not study up on it and do it all yourself - why let someone else take the majority of the money while you run most of the risk.

I'll bet Mr.landlord has a good bit of info on how to do this.

Roy I know you... you are hands on. I am too... I cannot imagine handing the reins to my property off to an unknown "partner" who gets to select who stays in my house and when.

Roy I know you... you are hands on. I am too... I cannot imagine handing the reins to my property off to an unknown "partner" who gets to select who stays in my house and when.

I will be talking with this sales rep again on Friday. I will have plenty of questions for him.

From my point of view, this is not much different than me hiring a property manager to manage just 1 of my properties.

However, instead of me paying the PM,..he will be paying me here,...$1,000/month direct deposited into my account. According to him, I will no direct involvement with the house or the short term residents. He will stock the house with furniture, add kitchen appliances, and provide maid services all at his expense.

I have not made the decision to pursue this. I am just doing my homework and trying to gather some information about BnB type operations.

Can anyone here say anything positive about Air B&B ?

6x6,

I own a very successful AirBnb, and another that we just hired a new manager for. Yes, you can make a LOT of money with an AirBnb. I know a number of people who buy properties specifically for AirBnb and make really nice returns. We've actually considered it, as a way to make money without the huge capital investment.

Thank-you Robin and congratulations to you and all your success with AirBnB. I agree with you about the correlation between good management and success.

That's a lot of risk for $150.

Part of my tenant screening is to ask for applicant references. So ask to speak to 4-5 of his current clients and they can tell you how well it is going for them and if they are happy with the arrangement.

Oregon,

I assume a risk every time I rent a house to anyone. There is no avoiding risk in this business, which is why we have insurance to minimize our risks in case a loss. The AirBnB man that wants to rent my house has a credit score of 775, he is a homeowner, has numerous rental properties, he is college educated and has acted very professionally with me in all of his communications with me.

Thanks DannyC for the encouragement. I am going to give this guy a 6 month rental agreement and just see how it goes. This is a very small 3/1 house and it would be ideal as a 'test subject' for a BnB arrangement.

Ken - any regular tenant of mine could have 50 people over and I would never even know it unless the police got called. I had one tenant that died (OD) and I did not find out until the rent was past due. I do not babysit my tenants with surveillance cameras like some LL's do.

Ken,

This is a typical Class C working class neighborhood. Again, the BnB man is competing with the local motels for customers. Now, whether he has customers or not, I still get my rent paid. His business is his business and I will not make it mine. I will see him again on Monday and will ask about the legality of what he is doing.

Roy,

I say go for it!

Make sure your city allows it – short term rentals are being beaten up by city councils.

Make sure your lease is clear about who is responsible for damage Dash in this case the person or agency you rent to, NOT the occupant.

Make sure you have a good deposit, maybe even a double deposit due to the increased liability.

Is there some special feature or activity in your town? Like a pro football team? Why would someone pay $150 a night to stay in your $5000 handyman special house?

Locally I am seeing short term rental landlords reducing their rates because there's so much competition and the hotels are offering deals because they are hurting for customers.

The quiet young couple with a baby that you would normally rent to can also have 50 people over for a wild party.

If you are nervous try it for 90 days and see what happens!

If you want to grow your business you have to try new things.

Thanks Brad20k - my town does not have a pro football team but we do have multiple Pro Bass Tournaments here every spring/summer due to the Coosa river that divides the city into 2 parts. Water related sports is big business here. My soon to be BnB house is just 1 mile from the river.

Roy,

I actually do this with one property. I lease a house with the written understanding I will furnish it and rent per diem to third parties.

I've been doing it with this one house for 18 months. So far, not a single day empty.

Started because I needed a third house for a new client and did not have anything available. I really like it, the owner really likes it, and our clients love it.

Thanks Gevans

When the BnB inventers were still in the womb I rented out a furnished 1BR condo as a"Motel Alternative". Listed it in the paper under "furnished apaartments" to fill vacancies. It ran around 80% occupacy and yeilded WAY more than any long term rental.

This popular “hack’ as they’re calling it, is all over TikTok right now with the millennials. It sounds like you have someone that is well backed financially and experienced, so that’s good.

I did talk with a friend in Colorado Springs and she was renting her house as an Airbnb and she was making $4500-$5000/mo and the regular long term rental rate was around $2500/mo. So quite a bit more.

I had been toying with putting my log cabin up for air bnb for a few years. I met someone who runs a VERY successful business doing this - his own and managing for others. I forget what he offered me but it was VERY lucrative. I wasn't ready and I am a control freak so I'd have trouble dealing with this new mind set. He charges $400 per night, 3 night minimum at a location within a mile of me - different type building and property - same view. I drive past several times a week on my way to and fro and there are always vehicles, many out of state, parked there. I forget what he told me his vacancy rate is but he's full a good portion of the time.

I didn't do it but have partnered with him on something different to see how our business styles mesh - he is young and high end and I am not !!

Rental arbitrage is a thing.

Alternatively, look on Furnished Finder yourself and see if there is a market for traveling medical professionals. They stay for 3 months at a time.

If you do rent to him, get a substantial deposit. Make sure you are on their insurance as additional interest. $150 extra a month is not enough, maybe $300/month extra is.

I would see if BBB has any complaints about his business and give him a trial if everything is clean.