Landlord agreement

[Kevin332]

My wife and I are interested in becoming hosts. We are currently renting a 3BR house and have approached our landlord about subletting and he's OK with it. What I'm struggling with is how to share the income from the rental with him. When he gave me his approval, he said we could keep it simple and just split it 50/50. I'm totally fine with that if it's the common practice, but it also greatly reduces our incentive to do the rental at all.

I guess this boils down to the sharing of cost and risk. If a guest destroys his house, would it be his homeowner's policy that would kick in? I have renters insurance and have been told that none of our belongings would be covered if we sublet, which makes sense to me.

Any advice anyone could provide will be much appreciated. Thanks in advance!

[Cormac0]

@Kevin

Firstly Kevin, what you did was a very honourable thing, being both a landlord and doing Airbnb concurrently on separate units as I do, I think your landlord is being a little on the greedy side, 30/70 split seem fair to me.

There are very many people doing Airbnb without their Landlords permission and indeed breaking their lease in doing so.

I have a few suggestions and a few notes of caution,

Firstly caution:

1. If it’s very successful your landlord might decide to do a solo run and cut you out of the picture.

2.Check who’s going to cover maintenance bills in the event of damages by a guest.

3.Make sure your insurance does not fall between two stools and neither Landlord or yourself are covered.

Secondly Suggestions:

1. You may suggest to your land lord for the trial period he would reduce you rent if he’s taking a cut of your AirBnb earnings if its successful both parties will make a gain.

2. You suggest to your landlord that you will give Him/ Her a RENT increase for the duration of you Airbnb activity, and cut out all the paper work and money transfers Airbnb income would involve, does he need to see how much money your making?

He sounds greedy to me so he probably go for the rent increase as a bird in the hand is worth two in the bush.

Regards

Cormac

The Explorer’s Club Krakow III

The Explorer’s Club Krakow VIII

[Kevin332]

Thank you, Cormac, for the very thorough and helpful response! You've given us lots to consider and also a great chance for mutual success. Thanks again!

[Aden-and-Kaitlyn0]

Hi thanks for the helpful advice. I read that the standard cut for a landlord was 10-20%. Is that true? I also read that if I'm just renting then the homeowner/landlord has to be the host and I have to be the co-host. I want to be completely legal. I don't see a workaround on having the landlord see what I'm making. The potential landlord I've been negotiating says she does not have the time or the expertise to do airbnb solo so that's why shes interested in me. I don't mind showing her what I'm earning. That's the only way she will be sure she's getting the correct percentage in her cut. Do I seem to be on  the right track in my plan/understanding? I haven't tried this exact business venture in the past. Thanks so much!