If a potential tenant approaches you about Airbnb rental arbitrage, you may wonder if there’s a catch. Are you responsible for damages? What if you encounter a noisy guest? As a landlord, there are all kinds of pros and cons you need to consider before letting someone else lease out your home. But, not to worry—our hosts are here to spell them out!
Welcome back to the Real Estate Rookie podcast! In this episode, Ashley and Tony deliver some critical advice to landlords. In addition to rental arbitrage, they discuss non-renewal notices—when and how to deliver them! For first-time investors, they also provide a step-by-step process for creating an offer letter. What’s more, they break down the biggest differences between hard money loans and construction loans and which one is the better option for a BRRRR (buy, rehab, rent, refinance, repeat). Finally, they touch on structuring partnerships and all of the details you MUST flesh out before making one official!
Ashley:
This is Real Estate Rookie, episode 334.
Tony:
I guess we can just go pros and cons for allowing someone to arbitrage your unit. You ideally could potentially charge slightly higher than market rents. If you’ve got a bigger multifamily property, you could lease out multiple units at one time to one person. The third benefit, and this is counterintuitive, they’ll probably end up being your best tenants, because they’re going to handle a lot of the minor maintenance issues on their own if they’re a good host, because they’re going to want to make sure that it’s ready for that guest.
Ashley:
My name is Ashley Kehr, and I’m here with my co-host Tony J. Robinson.
Tony:
And welcome to the Real Estate Rookie Podcast, where every week, twice a week, we bring you the inspiration, motivation, and stories you need to hear to kickstart your investing journey. And today, we’re back with another rookie reply, answering questions from you, our rookie audience. And look, if you would like your…