These are all very relevant questions. Here are the ones I have answers to:
Does the lease prevent such activities? Almost all leases will at least try to discourage such activity. The only way around this problem is to own the property free and clear. However, this is NOT the case for us as we will be leasing the property, then turning around and renting it out through Airbnb for profit. The language in the lease says that anybody who will be staying there more than 30 days consecutively must have his/her name written down as a lessee. It also prevents subletting the property, although this clause was left up to discretion of the lessor (so, negotiable). But what the lease usually does NOT explicitly cover is the renting of individual rooms or a spare couch. Tiny details, I know. But from a legal angle, it's important.
Would the landlord approve of it? From my research, I find that although most will not, some look the other way as long as it doesn't bother other residents within the complex or interrupt the normal flow of things. Those who don't will first ask the lessee to cease such activities and/or evict them. There may be a few (we haven't found any) who may press for legal action, but the language in the lease makes their cases weak, which is why instead of going through the hassles of legal action, they prefer to ask their lessees to stop or evict them. Evictions can be fought in court, of course, but the lessees also know that they don't have much of a case.
What would you do if your guests damage property? After a particularly embarrassing slew of accidents involving the burglary and damage of rooms back in 2009, Airbnb came out with a $1M guarantee for all host properties (per host), working into their payments a financial system of checks and balances to hold guests more responsible for their actions. So there are two systems at work here: To Airbnb, both the guest and Airbnb will be held responsible for damages, while to the landlord of the property, it will be the lessee (us). As long as the first system works itself out, the second will not need to be implemented. This is a great question, and one that we are currently following up with airbnb's customer service.
Do you have 1 or several properties? Which is more profitable? Since there are a lot of unknowns going into this venture, we thought it would be wiser to start with one to see how it goes. What we learn from this experience will affect our next step.
Is it in a high-demand area? Based on our research, the only way to make this venture somewhat profitable is to target only the most high-demand areas. PM me if you'd like more details, but suffice it to say that this plan would not work if your property is listed in Omaha, Nebraska.
What about the logistics? Cleaning? Getting the keys to the guests? Automating the process? The logistics will and should be handled by either myself or my partner at least for our first property.
What property type would be most profitable? PM me for more details on this subject, as it breaks down quite differently based on who you are catering to, but overall, the most profitable seems to be studios/1br's for couples traveling together.
What is the hotel occupancy rate in your city? Hotel occupancy rate was and is one of the most important metrics we used when looking for the ideal location. However, it varies based on the area, especially in cities that are big. We narrowed down our list to tourist-rich spots where hotel/motel and even couchsurfing occupancy rates were high enough that we could turn a profit.
Your questions are all good. If there's anybody currently trying this out, I'd like to hear how it's been going for you.
