Renting my apartment out for 2 months

lockmc on 11/07/2019 - 15:49

Hi guys.

We have an apartment that we rent out on AirBnb. A previous guest has requested to rent it out for 2 months at the end of the year (we generally only have bookings that last 2 or 3 nights and generally max out at a few weeks).

To save myself and the guest fees, I was going to organise this outside of AirBnb as I don't believe they really provide any benefit in this instance.
I was wondering if anyone has any advice to give me to make sure that the rental is a success from both sides?

I am going to:
- Request a deposit be paid upfront so that the guest doesn't cancel, leaving me with a huge gap in my calendar (will make it similar to my current policy on AirBnb).
- Perhaps write up a word document stating the terms of the rental and have them sign. Would this be binding in any way?
- Perhaps suggest a quick inspection half way through the booking.

Any other things to watch out for? I read a few years back some issues in America due to squatting laws or similar meaning a guest after 30 days had as much rights as a full time tenant etc but I haven't found much that suggests that applies here.

Any advice would be great.

Home & Garden

Comments

  • CC123 on 11/07/2019 - 16:23
    +1

    Perhaps write up a word document stating the terms of the rental and have them sign. Would this be binding in any way?

    Yes, it definitely is. Ensure that you have at least 2 copies: one for you, one for the guest. Make sure he/she signs both copies. Also, be sure you that you have a place for 'date', 'printed name' and 'signature' since signatures aren't always readable.
    Also, I would have a quick read of this regarding contracts.

    Some things I would do prior to moving out and giving the guest access (i.e the night/day before you leave) would be to take photos/videos of everything - this way if the guest damages something, you have proof that it wasn't like that before.

    If I think of anything else I will add it.

  • Presence on 11/07/2019 - 16:37
    +5

    You should get some sort of insurance for sure. You'd be an idiot not to.

    • lockmc on 11/07/2019 - 19:31

      Yep we already have insurance with Terri Scheer

  • Nutrino on 11/07/2019 - 17:30
    +1

    Think about if the money you'll get is worth the absolute worst case senario you can imagine.

  • Randxyz123 on 11/07/2019 - 18:21
    +2

    To save myself and the guest fees, I was going to organise this outside of AirBnb as I don't believe they really provide any benefit in this instance.

    They'll manage the payment, the deposit, the terms of stay and if anything happens to your place, they'll probably side with you. I know the fees are bad but it's a bit like using paypal on ebay I guess. Provides an extra layer of protection.

    You could go through booking.com or stayz. I don't think they have fees but personally, I'd just go through air bnb

    Have you got renters insurance?

    • lockmc on 11/07/2019 - 19:34

      Payment is fine because I'll request it upfront. Airbnbs host guarantee is a major scam and they almost never side with the host and payout so I'm not worried here.

      We do have renters insurance.

  • CC123 on 11/07/2019 - 18:45
    +1

    Use cashrewards and you can get $150 back if it's done correctly, aware you aren't wanting to use Airbnb due to the fees but $150 may cover the fees?

    • lockmc on 11/07/2019 - 19:33

      Heh didn't know cash rewards could be used on Airbnb. I wonder how it works if you are already an established host? I will have a read.

      • CC123 on 11/07/2019 - 20:06

        I find it interesting too.

        Cashback is only valid for the first five host listings. If an existing host has more than 5 listings, additional listings will not be eligible for Cashback.

        Probably worth noting too

  • JimmyF on 11/07/2019 - 21:10
    +2

    Any advice would be great.

    Then don't do this

    I was going to organise this outside of AirBnb as I don't believe they really provide any benefit in this instance.

    • lockmc on 11/07/2019 - 21:15

      You obviously have never hosted on Airbnb, otherwise if so, you would understand just how little benefit they provide by having a booking go through their system.

      • JimmyF on 11/07/2019 - 22:17
        +4

        All the issues you want to 'solve' are covered by Airbnb standard agreement, so why bother increasing your risk and exposing yourself to larger 'issues' to save a few dollars in commission.

        I'm aware of the fees, google tells me its still about ~20% in fees, but isn't that already factored into your pricing? Why bother giving a massive discount to the renter, if your 'net' return after discount is going to be the same to bypass airbnb as going via Airbnb?

        To save myself and the guest fees

        Why do this? All you're doing is discounting for them, and you taking on the risk for no extra return

        aka $1000 coming in via airbnb and you'll see ~$800 of that, vs giving them a 20% discount and doing it for $800 direct.

        Your outcome aka income is the same, the renter is the one who saved money, not you and you take on all the extra risk.

        Yikes

        • lockmc on 12/07/2019 - 10:47

          This is my point - Airbnb do have a host guarantee, but it isn't worth anything. They always side with the guest and only pay out a few hundred max (even though they claim to have a million $ guarantee). If you look on Google, you will find countless stories of people who had their house trashed and Airbnb paid out a few hundred dollars with stupid excuses. We've had guests do damage and all the guest has to do is say it wasn't them and that's the end of the case.

          In terms of the fees, it is factored into my pricing as they were looking for a different place that was much cheaper - by going outside of Airbnb, we were able to reduce the cost to them significantly which helped sure the booking. We also get 3% taken out.

          We are talking about $12k here so it is a significant saving for the guest.

          • JimmyF on 13/07/2019 - 17:44

            @lockmc:

            In terms of the fees, it is factored into my pricing as they were looking for a different place that was much cheaper - by going outside of Airbnb, we were able to reduce the cost to them significantly which helped sure the booking

            But are you making more? If not, don't bother

  • Love a bargain on 12/07/2019 - 12:36

    What about a bond/ deposit in case of damage? Although you'll probably have to lodge it with the appropriate government department like a normal rental bond.

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