Foreign owner / local host

[Olympia-Eleni0]

hi so there is a house that belongs to a foreign friend(from another country) and we thing to turn it into AirBnB . how can we make this work? does he need to make me a lease and then i will be the host or is any other way? we really do not care if the incomes goes to me or direct to him....hope that someone can share some info with me! thanks in advance!

[Joan2709]

@Olympia-Eleni0 

The listing should be setup with your friend as owner. Your friend adds you as a Co Host to the listing and adds payment info. Be sure you have a written contract that spells out responsibilities, compensation and what happens if you decide to end the arrangement. Ensure you have met all local regulations, licensing and tax requirements:

You need to setup your own profile/account with Airbnb

Your friend/owner sets up their own profile/account on Airbnb and creates the listing

Your friend then sends you an invite to be a Co Host

You accept invite

Your friend then can make you Primary Host but they remain as Owner on the Listing

Co Hosts

https://www.airbnb.com/help/article/1244

Owner - Co Hosts - Primary Host

https://www.airbnb.com/help/article/1534

[Olympia-Eleni0]

Joan thank you so much! do you know if he can also set up all the payment to go direct to my account even if i am co-host? as the property and me belong to the same country so the same law and he is from another country but i already know how the thing works in my country for airbnb incomes.. 

[Emilie]

Lovely to see the info Joan shared was useful already! I'll mention her here so she can see your reply in case she has more advice - @Joan2709 🤗

Quick tip: To tag someone, tap "@" and select the host's username from the dropdown menu.

[Joan2709]

@Olympia-Eleni0 

Well....I would be careful with all income going to you as you are not the owner. That is usually a bad idea for tax reasons, as you might have issues with taxes on the income being reported under your name instead of the actual owner.  You might want to consult with a local tax accountant.  

[Emilie]

Hi @Olympia-Eleni0, 

That's an exciting opportunity! Are either you or your friend near the property or both in a different country?

 Please take a look at Joan's input and let us know if you have more questions. It would be great to know how your project evolves and what you and your friend decide to do. 🙂

Have a lovely day, 

Emilie

[Olympia-Eleni0]

hello! i am close to the property but my friend(the owner) leaves and are a citizen of another country 

[Helen3]

The host income needs to go to the owner and the cohost income goes to you @Olympia-Eleni0 

He can speak to an accountant in his country about any taxation he needs to pay in his country . It makes no difference whether the income comes from Airbnb or via your cohosting business he will still need to pay tax on it @Olympia-Eleni0 

[Jason114]

@Olympia-Eleni0 Contrary to some of the other responses you may hear, you can make this work through a property management agreement with your friend. In that case, you would operate as the local host or manager. You can create the Airbnb listing under your own Airbnb account, have all booking payouts go directly to your bank account, and then at the end of each month, send your friend their portion of the earnings based on your agreement. Be sure to set up a separate bank account for this.

Just be sure to put everything in writing.. the management contract should outline who handles expenses, maintenance, taxes, and profit splits. This setup is actually quite common for foreign property owners who rely on local hosts to manage their properties.

[Joan2709]

@Olympia-Eleni0 

DO NOT allow a property management company to be named as "Owner" on the listing. If you need to terminate the agreement with them, they will keep all the reviews and your friend (and you) will have to start over with a new listing. 

You also will not have the ability to change payment details, as the property manager has total control over that if they are setup as owner. They can also remove you and your friend (the actual owner) as Co Hosts without your permission and you will have no way to access the listing.

If you want to use a property mgmt company, INSIST they NOT be named as owner, the listing should be setup with your friend as Owner and you as a Full Access Co Host. You can then invite the Property manager as a Co Host and then make them the primary Host on the listing as I outlined above.

A local host/property manager can manage the property as a primary Host with the instructions I outlined without having the property management company setting themselves up as "owner" on the listing.

@Jason114 

[Jason114]

@Olympia-Eleni0 while Joan seems to have a strong opinion on this, she doesn't seem to be speaking in terms of your best interest. In my opinion, it is likely in your best interest to list the property on an Airbnb account that you own. In any case, you should consider getting a professional opinion on this with your attorney to construct such an agreement with your friend, as well as get a CPA to guide you on how the transactions should work.

[Joan2709]

@Jason114 

Exactly.

A property management company should never be listed as an owner. They don't own the property - they only manage it. The same for a Co Host.

"Allowing a property management company to be listed as the "owner" on an Airbnb property can create significant risks, including losing control over the listing, brand, and reviews; increased liability if the company's management is poor; and the potential for the owner to be locked out of their own listing. It can also be difficult to hold the company accountable for problems, and the owner may be contractually obligated to a bad relationship."

@Olympia-Eleni0 

[Olympia-Eleni0]

thank you all for your feedback. we are thinking to make a contract between us in which he will give the property as a rental to me but with a minimum fee like 50euro /month then i will put it on my airBnB account and i will receiving all the money from the visitors so i will pay taxes too and after 1 year we will see what the profit was and i will transfer him through Revolut a percentage of the profits. do you thing that this can work?for sure we do not want to  include others or any management company. for me the easiest if i will be a co-host and has nothing to do with incomes and taxes but as he owns a company in the other country we are still searching how this can work . we will both ask our accountants and when we find a solution i will update you all . maybe we will help others to solve the same problem 

[Helen3]

I think that's an incredibly risky approach for the owner for you to do this @Olympia-Eleni0 

[Jason114]

Sounds great, @Olympia-Eleni0. It appears you're approaching this thoughtfully and professionally. I recommend confirming your options with your accountant and counsel.. including those mentioned in this thread.. whether you decide to proceed as a co-host or take it on as a property manager and manage the listing directly. Be sure to choose the path that best serves your long-term interests.