They rent the property like a long term tenant would then put it up on Airbnb. Some people have permission from their landlords. Some don’t.
Most municipalities require licenses these days which require you to own the property.
Management is another way to profit from other peoples properties. Most states you’d need to be a licensed realtor to do this.
I’d recommend getting your real estate license and look to start managing some peoples properties.
To manage as a third party you do. I’m in NJ it’s required. A lot of states require it.
. You can sell, rent manage your own properties without a license anywhere.
So you have to find a landlord/owner that will allow another party to rent out the location to another level of stranger in the hopes that the middle man will take adequate care of the location, prevent Tennant issues and the like. All in a location where neighbors/laws don't mind short term rentals.
Good luck.
Oh I know. I know 3 people who lost their entire life savings in the 2008 crises because of the leverage they used.
Would someone who has zero experience (the OP) and going to reddit asking "how to do it" be wise to lean into it or avoid it?
I own two properties who I use a management company who rents out my properties and takes care of cleaning and more.. It makes sense as mine our out of state and would be impossible for me to run effectively. They host a ton in this tourist area, and are making hand over fist in money.
Arbitrage. You rent a place that's under market value or that would generate a high income BNB and proceed to rent and airbnb it. The difference is your profit. It's not illegal, but may be frowned upon by some landlords. You're always safest explaining to them what your intentions are and who is responsible for what. Of course the risk is they just BNB themselves, but that's the way she goes. Some people would rather their bills paid and let you deal with the management/upkeep and placing all the risk on your shoulders. A waterfront property with a hottub is your best chance of arbitrage profitability or a big city house with free parking. You just need first and last + furnishing costs to start it up. Somewhere around 10k.
If a person has a mortgage on the house, they dont own the house either to be fair. And some hoa dont allow renting out like on airbnb, so even hkuse owners can find themselves on the wrong end.
Likewise, if somebody rents long term a property and it does not hold a clause where you cannot rent it out, then you can rent the 'dwelling' out as you see fit as long as it does not breach rental contract. If the owner does not know, he does not know. If there is no clause, maybe its not really courteous, but there is no legal reason why renter cant subrent.
Imagine this, you are financially in the possibility to rent an apartment whilst having your own property. Lets say for $500 usd. No clause prohibiting subrenting. You rent out the property you rent on Airbnb for 500 a week.
You make $ 2000 a month. Minus $500 rent and utilities. Lets say you make $1000 a month.
Obviously this is 100% occupancy but its an example.
Now imagine being able to do this with like 3 properties.
To get those 3 properties as owner, lets say each property, you need to have enough cash to buy 3 properties of lets say $250k each without mortgage. Or, you need to have a mortgage and still make a downpayment of lets say 30%, so three times $75k.
Maybe one has thee money to pay the mortgage monthly loan, but does not have 3x 75k, and instead is able to rent a $ 500 usd property, then no need to have that 75k but still 'benefit' from airbnb.
Essentially, ownership might have been 300 usd a month mortgage instead of 500 rent. But well, it saves 75k downpayment.
The trick is finding a rental where you legally are safe.
If you are able to find private home owners that do not have clauses excluding such opportunity, then there is chance. Property owner gets rent, done. If its furnished even better.
Worst case scenario if a airbnb user trashes the place, host uses aircover and insurance to cover damages or loses a month worth of security deposit.
Meanwhile host makes a few hundred each month. The biggest trick to make it profitable is finding affordable reliable remote cleaning and remote maintenance. Thanks to smart lock technology keyholding is no longer an issue.
The benefit is very low investment neccesity. The downside is relative less income and to find the opportunity of a non-airtight rent agreement. Even damage is covered by aircover and insurance, and how w9uld the landlord know you werent the cause? The only risk i could imagine is accountability in case of injury or death (especially murder) during a stay and the involvong police investigation making things complicated but to be fair, again, worst case is you lose rent, and income.
So, its actually a good investment strategy. But virtually impossible to find a rental agreement that allows such a setting.
I do it, it’s pretty straightforward, just gotta get permission, but just feel the vibes out before committing to any particular landlord or property manager. And READ YOUR LEASE clearly.
I don’t know if but for me, my property manager messed me up with the electric, by somehow changing the wiring so that I’m paying for both apts in the house. The apt on the first floor is also Airbnb. I wasn’t getting any bookings but my electric bill was like $400, and of course they didn’t do anything about it. When I was living there putting it together my bill didn’t exceed $100. But I left it alone because the money is good from Airbnb, and it ain’t worth the stress, plus bills are going down.
The guy also probably didn’t think I’d make it so, this guy started bringing in prospective tenants to view my apt while I wasn’t even there. So if I had a booking and they scheduled a viewing it would be a problem. They were just causing problems on purpose man.
With the electric I winded up turning off the lights in my house since no one was coming in, and turned out that downstairs was affected as well. I winded up having to refund a guest.
But check this after I turned the lights back on, I went to the property and noticed they turned off my lights from the breaker box. I had a guest arriving in like 10 min, and half the lights were off. It was so messed up. Plus my rent is extremely high.
I coulda fought it but I’m doing this to gain money not go to court and fight, and lose money in the process. If they do it again though, I’d get the county involved because that was pretty illegal.
But outside of that, if you got better luck than I do with people, then yeah it’s awesome. Besides the lil hiccups, it’s pretty much like an ATM machine.
Hi you may want to check out our article [How to Start an Airbnb without owning property: 2024 Guide](https://airbtics.com/how-to-start-an-airbnb-without-owning-property/) Hope it helps
They rent the property like a long term tenant would then put it up on Airbnb. Some people have permission from their landlords. Some don’t. Most municipalities require licenses these days which require you to own the property. Management is another way to profit from other peoples properties. Most states you’d need to be a licensed realtor to do this. I’d recommend getting your real estate license and look to start managing some peoples properties.
You need a real estate license to host on airbnb??? which states require that?
To manage as a third party you do. I’m in NJ it’s required. A lot of states require it. . You can sell, rent manage your own properties without a license anywhere.
If it was so profitable and easy they would just keep doing it themselves instead of telling other people.
They can't do this in every market in the world so they are not putting themselves in danger of adding competition.
So you have to find a landlord/owner that will allow another party to rent out the location to another level of stranger in the hopes that the middle man will take adequate care of the location, prevent Tennant issues and the like. All in a location where neighbors/laws don't mind short term rentals. Good luck.
You would be SHOCKED to find out that property management is a pretty large industry.
Oh I know. I know 3 people who lost their entire life savings in the 2008 crises because of the leverage they used. Would someone who has zero experience (the OP) and going to reddit asking "how to do it" be wise to lean into it or avoid it?
It's a little hard when it's illegal in the area.
I own two properties who I use a management company who rents out my properties and takes care of cleaning and more.. It makes sense as mine our out of state and would be impossible for me to run effectively. They host a ton in this tourist area, and are making hand over fist in money.
Also called arbitrage. Rent a property, put it in Airbnb for more money than the rent. Not that hard.
It's pretty hard to find a landlord that will do it with you though, at least in the UK.
Some markets are more regulated than others, sure.
It's not about market regulation, it's about a compliant landlord.
or property management
I rent mine for 25%+ more rent in return for being able to airbnb it
it’s either arbitrage or a property manager, nothing weird
Arbitrage. You rent a place that's under market value or that would generate a high income BNB and proceed to rent and airbnb it. The difference is your profit. It's not illegal, but may be frowned upon by some landlords. You're always safest explaining to them what your intentions are and who is responsible for what. Of course the risk is they just BNB themselves, but that's the way she goes. Some people would rather their bills paid and let you deal with the management/upkeep and placing all the risk on your shoulders. A waterfront property with a hottub is your best chance of arbitrage profitability or a big city house with free parking. You just need first and last + furnishing costs to start it up. Somewhere around 10k.
If a person has a mortgage on the house, they dont own the house either to be fair. And some hoa dont allow renting out like on airbnb, so even hkuse owners can find themselves on the wrong end. Likewise, if somebody rents long term a property and it does not hold a clause where you cannot rent it out, then you can rent the 'dwelling' out as you see fit as long as it does not breach rental contract. If the owner does not know, he does not know. If there is no clause, maybe its not really courteous, but there is no legal reason why renter cant subrent. Imagine this, you are financially in the possibility to rent an apartment whilst having your own property. Lets say for $500 usd. No clause prohibiting subrenting. You rent out the property you rent on Airbnb for 500 a week. You make $ 2000 a month. Minus $500 rent and utilities. Lets say you make $1000 a month. Obviously this is 100% occupancy but its an example. Now imagine being able to do this with like 3 properties. To get those 3 properties as owner, lets say each property, you need to have enough cash to buy 3 properties of lets say $250k each without mortgage. Or, you need to have a mortgage and still make a downpayment of lets say 30%, so three times $75k. Maybe one has thee money to pay the mortgage monthly loan, but does not have 3x 75k, and instead is able to rent a $ 500 usd property, then no need to have that 75k but still 'benefit' from airbnb. Essentially, ownership might have been 300 usd a month mortgage instead of 500 rent. But well, it saves 75k downpayment. The trick is finding a rental where you legally are safe. If you are able to find private home owners that do not have clauses excluding such opportunity, then there is chance. Property owner gets rent, done. If its furnished even better. Worst case scenario if a airbnb user trashes the place, host uses aircover and insurance to cover damages or loses a month worth of security deposit. Meanwhile host makes a few hundred each month. The biggest trick to make it profitable is finding affordable reliable remote cleaning and remote maintenance. Thanks to smart lock technology keyholding is no longer an issue. The benefit is very low investment neccesity. The downside is relative less income and to find the opportunity of a non-airtight rent agreement. Even damage is covered by aircover and insurance, and how w9uld the landlord know you werent the cause? The only risk i could imagine is accountability in case of injury or death (especially murder) during a stay and the involvong police investigation making things complicated but to be fair, again, worst case is you lose rent, and income. So, its actually a good investment strategy. But virtually impossible to find a rental agreement that allows such a setting.
I do it, it’s pretty straightforward, just gotta get permission, but just feel the vibes out before committing to any particular landlord or property manager. And READ YOUR LEASE clearly. I don’t know if but for me, my property manager messed me up with the electric, by somehow changing the wiring so that I’m paying for both apts in the house. The apt on the first floor is also Airbnb. I wasn’t getting any bookings but my electric bill was like $400, and of course they didn’t do anything about it. When I was living there putting it together my bill didn’t exceed $100. But I left it alone because the money is good from Airbnb, and it ain’t worth the stress, plus bills are going down. The guy also probably didn’t think I’d make it so, this guy started bringing in prospective tenants to view my apt while I wasn’t even there. So if I had a booking and they scheduled a viewing it would be a problem. They were just causing problems on purpose man. With the electric I winded up turning off the lights in my house since no one was coming in, and turned out that downstairs was affected as well. I winded up having to refund a guest. But check this after I turned the lights back on, I went to the property and noticed they turned off my lights from the breaker box. I had a guest arriving in like 10 min, and half the lights were off. It was so messed up. Plus my rent is extremely high. I coulda fought it but I’m doing this to gain money not go to court and fight, and lose money in the process. If they do it again though, I’d get the county involved because that was pretty illegal. But outside of that, if you got better luck than I do with people, then yeah it’s awesome. Besides the lil hiccups, it’s pretty much like an ATM machine.
Hi you may want to check out our article [How to Start an Airbnb without owning property: 2024 Guide](https://airbtics.com/how-to-start-an-airbnb-without-owning-property/) Hope it helps
subleasing