Airbnb corporate rental for 1 year

Selik

So I've been doing Airbnb very successfully the last 16 months and was planning on doing it until June 2019 and then review my options - except now I've agreed to rent the place for 1 year on Airbnb to a foreign employee of a fairly big company who have an office in Dublin. They only rent through Airbnb otherwise I would have done it off the platform. I have been dealing with the company directly via email and phone. They have done this before with other employees and I guess they don't want the hassle of doing a normal letting for obvious reasons.

I did all my checks (incl calling the company number online and asking for the person doing the booking) and it's all been agreed now at a huge premium to the market rate of a regular rental. It's a little under what I make on Airbnb on an annual basis (gross) however I will now save on cleaning fees and have also negotiated a huge reduction in commission costs with my agent to keep them on board in case of emergency and also handy to book regular cleans. The guy in question is in his mid 30s (same as me) and a professional - look at his FB and all seems good. I'll be personally collecting him from the airport which will be first as I've never met any of my guests so far as the longest stay has been 5 weeks.

I'm fairly optimistic everything will work out well - the way it works is I will be paid monthly from Airbnb at the start of every month and I will deal with the guest directly for any issues that may arise, booking cleans etc.

I can see very little disadvantages to this arrangement and I almost can't believe my luck to be honest. Has anybody else done anything like this before and if so I'd be interested to know how it worked and also any potential pitfalls?

The_Conductor

Honestly- I don't understand whats in it for the person to rent in this manner.
They are paying way over the odds for the sake of going through the airbnb platform- which in the context of a fixed term lease- does not make any sense.
The benefit for the renter- is they can leave at any time without notice.
The benefit for you- is you can ask them to leave at any time without notice.
If you try to invoke this- and they claim its a tenancy- good luck trying to defend it under Irish law- you are in for a world of pain.

The cleanest way of doing this- is a straightforward lease- if it makes life easier for them- put break clauses in it- but be aware of your rights under the Residential Tenancies Act- and try not to run roughshod over either your or their rights.

Its nutty to airbnb a place to a single person for a year- they are a Part IV tenant under the RTA anyway- once they're there for 6 months.............

BailMeOut

The_Conductor wrote: »

The cleanest way of doing this- is a straightforward lease- if it makes life easier for them- put break clauses in it- but be aware of your rights under the Residential Tenancies Act- and try not to run roughshod over either your or their rights.

Not nutty for the company as I assume they are not Irish and most likely American. Doing this via AirBnb means they have a contractual agreement with another USA company (AirBnB) for the lease and not with the OP. They will pay more but is a lot less hassle and risk for them. In every large US company any contract would have to be approved by their internal legal folks or outside counsel so using AirBnb means they have a unified process worldwide and do not need to be worried about the legal nuances renting in individual countries they send everyone. Quite a smart idea in fact.

Selik

The_Conductor wrote: »

Honestly- I don't understand whats in it for the person to rent in this manner.
They are paying way over the odds for the sake of going through the airbnb platform- which in the context of a fixed term lease- does not make any sense.
The benefit for the renter- is they can leave at any time without notice.
The benefit for you- is you can ask them to leave at any time without notice.
If you try to invoke this- and they claim its a tenancy- good luck trying to defend it under Irish law- you are in for a world of pain.

The cleanest way of doing this- is a straightforward lease- if it makes life easier for them- put break clauses in it- but be aware of your rights under the Residential Tenancies Act- and try not to run roughshod over either your or their rights.

Its nutty to airbnb a place to a single person for a year- they are a Part IV tenant under the RTA anyway- once they're there for 6 months.............

Yes correct however this guy is a big shot and will only be here for 1 year as he's working on an specific project. He will actually be going home a regular basis and for a good weeks in the summer.

For the premium I'm getting I think it's an acceptable risk but I'm concious that things could easily go awry. If there's an issue of any kind and he steps out of line it's not just him in the firing line but his company also - who are not a US company but extremely reputable nonetheless.

The company in question wanted to book for 1 year straight out no messing around. They've actually been great to deal with so far.

The_Conductor

The_Conductor wrote: »

Honestly- I don't understand whats in it for the person to rent in this manner.
They are paying way over the odds for the sake of going through the airbnb platform- which in the context of a fixed term lease- does not make any sense.
The benefit for the renter- is they can leave at any time without notice.
The benefit for you- is you can ask them to leave at any time without notice.
If you try to invoke this- and they claim its a tenancy- good luck trying to defend it under Irish law- you are in for a world of pain.

The cleanest way of doing this- is a straightforward lease- if it makes life easier for them- put break clauses in it- but be aware of your rights under the Residential Tenancies Act- and try not to run roughshod over either your or their rights.

Its nutty to airbnb a place to a single person for a year- they are a Part IV tenant under the RTA anyway- once they're there for 6 months.............

If he is renting to the company I don’t see how a tenancy could be created as the employee is only there on consent of the company, they are the ones renting the apartment.

I’d actually question if a tenancy can be created using Airbnb regardless also.

davindub

BailMeOut wrote: »

The_Conductor wrote: »

The cleanest way of doing this- is a straightforward lease- if it makes life easier for them- put break clauses in it- but be aware of your rights under the Residential Tenancies Act- and try not to run roughshod over either your or their rights.

Not nutty for the company as I assume they are not Irish and most likely American. Doing this via AirBnb means they have a contractual agreement with another USA company (AirBnB) for the lease and not with the OP. They will pay more but is a lot less hassle and risk for them. In every large US company any contract would have to be approved by their internal legal folks or outside counsel so using AirBnb means they have a unified process worldwide and do not need to be worried about the legal nuances renting in individual countries they send everyone. Quite a smart idea in fact.

I dont think the contract is with Airbnb though? Are they not just the booking platform?

Grumpypants

Very common for the big US tech companies. They need to offer a package to get people here, accommodation is a big one. They have a bunch of properties rented out. They pay to avoid the hassle. They make billions so a few euro on rent makes no difference.

Grumpypants

Grumpypants wrote: »

Very common for the big US tech companies. They need to offer a package to get people here, accommodation is a big one. They have a bunch of properties rented out. They pay to avoid the hassle. They make billions so a few euro on rent makes no difference.

They can write it off against tax too I’m sure so in reality costs them next to nothing.

mikemac2

They didn't ask you to pay for a cleaner as part of the deal?

It's only a minor point and just what I noticed. I would have thought if they are paying over the odds they might want you to arrange a cleaner every few weeks or so.

If they didn't ask so be it I guess

Selik

mikemac2 wrote: »

They didn't ask you to pay for a cleaner as part of the deal?

It's only a minor point and just what I noticed. I would have thought if they are paying over the odds they might want you to arrange a cleaner every few weeks or so.

If they didn't ask so be it I guess

I'll be covering monthly cleans same as broadband, electricity etc. More then happy to with the rate I'm getting I'll even book cleans more often if the guest wishes. Also beneficial for keeping an eye on the place so it doesn't get grubby etc.

Selik

Grumpypants wrote: »

Very common for the big US tech companies. They need to offer a package to get people here, accommodation is a big one. They have a bunch of properties rented out. They pay to avoid the hassle. They make billions so a few euro on rent makes no difference.

Agreed but in case its not a US tech company but an EU one with EMEA offices.

l5auim2pjnt8qx

BailMeOut wrote: »

Not nutty for the company as I assume they are not Irish and most likely American. Doing this via AirBnb means they have a contractual agreement with another USA company (AirBnB) for the lease and not with the OP. They will pay more but is a lot less hassle and risk for them. In every large US company any contract would have to be approved by their internal legal folks or outside counsel so using AirBnb means they have a unified process worldwide and do not need to be worried about the legal nuances renting in individual countries they send everyone. Quite a smart idea in fact.

I would be very careful if I was you , I had a similiar situation in which a Relocating company contacted my agent ,not through airbnb.

it was a big us multinational in this country ,they told the agent they would high be high end chief roles in the company . like you I expected some big shot from the US - promised they would look after everything , reality couldn,t have been further from the truth , turn's out 3 field standard maufacturing employees from the Uk early 20's, parties non stop,bad attitude, bad manners to deal with ,problems with neighbours ,( Think Georgie Shore )they waited until 6 months were up 12 mth contract - started demanding all types of stuff .( Told at the start of contract they were head of roles in there fields.)

Eventually got them out went through 2 RTB hearings -won both money awarded , no money back to this date. Went I went to the US Multinational and the relocating company both based in Kidlare (for legal reasons can't name them)I got Back emails from the 2 HR departments of both companies " Due to legal reasons company cannot get involved in rental disagreements. )

Speaking to the agent recently , told me relocating company had been in contact with her regarding taking more young individuals from the Uk due to a
a large influx coming at the moment and she declined. Due to the hugh bonus packages this Relocating company is on they will do whatever means to try a get rental properties . (There legal swagger afterwards is that they take people in at face value ONLY) My advice is stay well clear of them.

OwlsZat

Brian Loose Snow wrote: »

BailMeOut wrote: »

Not nutty for the company as I assume they are not Irish and most likely American. Doing this via AirBnb means they have a contractual agreement with another USA company (AirBnB) for the lease and not with the OP. They will pay more but is a lot less hassle and risk for them. In every large US company any contract would have to be approved by their internal legal folks or outside counsel so using AirBnb means they have a unified process worldwide and do not need to be worried about the legal nuances renting in individual countries they send everyone. Quite a smart idea in fact.

I would be very careful if I was you , I had a similiar situation in which a Relocating company contacted my agent ,not through airbnb.

it was a big us multinational in this country ,they told the agent they would high be high end chief roles in the company . like you I expected some big shot from the US - promised they would look after everything , reality couldn,t have been further from the truth , turn's out 3 field standard maufacturing employees from the Uk early 20's, parties non stop,bad attitude, bad manners to deal with ,problems with neighbours ,( Think Georgie Shore )they waited until 6 months were up 12 mth contract - started demanding all types of stuff .( Told at the start of contract they were head of roles in there fields.)

Eventually got them out went through 2 RTB hearings -won both money awarded , no money back to this date. Went I went to the US Multinational and the relocating company both based in Kidlare (for legal reasons can't name them)I got Back emails from the 2 HR departments of both companies " Due to legal reasons company cannot get involved in rental disagreements. )

Speaking to the agent recently , told me relocating company had been in contact with her regarding taking more young individuals from the Uk due to a
a large influx coming at the moment and she declined. Due to the hugh bonus packages this Relocating company is on they will do whatever means to try a get rental properties . (There legal swagger afterwards is that they take people in at face value ONLY) My advice is stay well clear of them.

When was that? Sounds a nightmare

l5auim2pjnt8qx

OwlsZat wrote: »

When was that? Sounds a nightmare

It was and gladly over for me ,unfortunately for someone else the relocating company placed them into another property.

I've heard through a source that 2 of them have gone back to the UK - Contracts not renewed still not sure about the 3rd one, guess it went similiar for the next unfortunate Landlord who took them in.

Still pissed abour the lies the relocating company told - they know full well Landlords are looking for the best candidates for there properties - so spin the Director or Head of or Chief of to hook Landlords in.

Told by the agent the relocating company are paid massive amounts of money from the US multinational to source rental properties by whatever means possible.Live and Learn won't be burned a 2nd time.

Caranica

Brian Loose Snow wrote: »

It was and gladly over for me ,unfortunately for someone else the relocating company placed them into another property.

I've heard through a source that 2 of them have gone back to the UK - Contracts not renewed still not sure about the 3rd one, guess it went similiar for the next unfortunate Landlord who took them in.

Still pissed abour the lies the relocating company told - they know full well Landlords are looking for the best candidates for there properties - so spin the Director or Head of or Chief of to hook Landlords in.

Told by the agent the relocating company are paid massive amounts of money from the US multinational to source rental properties by whatever means possible.Live and Learn won't be burned a 2nd time.

Had a similar experience. The relocation company raved about what a good deal it was for us where it was only good for them.

LuckyLloyd

Giuliana Fit Radiance wrote: »

I’d actually question if a tenancy can be created using Airbnb regardless also.

Would you now? I wouldn’t.

Selik

Thanks for all the feedback/comments so far - the guy is in his mid-30s and has a family I believe. The apartment is a 1 bed very close to the city centre. I'm confident it will work out but a health level of skepticism !

The_Conductor

If its only a 1 bed- whats the story with his family? Where are they supposed to live?

l5auim2pjnt8qx

https://gizmodo.com/these-gecko-gloves-can-kind-of-turn-you-into-spider-m-1755650045

That's the sleeping arrangments sorted ......don't try this at home.

The_Conductor

The_Conductor wrote: »

If its only a 1 bed- whats the story with his family? Where are they supposed to live?

They most likely aren’t moving over in this type of temporary scenario.

Selik

The_Conductor wrote: »

If its only a 1 bed- whats the story with his family? Where are they supposed to live?

They are staying in his home country. He will visit them quite often and he will be home at for at least 2-3weeks in the summer and alot of weekends throughout the year.

lolo62

What are you going to do come June when the restrictions kick in?

lolo62

lolo62 wrote: »

What are you going to do come June when the restrictions kick in?

It’s a long term let so the restrictions don’t apply, it’s just facilitated through Airbnb. That’s if the restrictions even do come in.

Samuel T. Cogley

lolo62 wrote: »

What are you going to do come June when the restrictions kick in?

Restrictions only apply to rents under two weeks not the actual platform used.

Selik

lolo62 wrote: »

What are you going to do come June when the restrictions kick in?

Nothing and in fact this was one of the attractions of this to be honest. It's going fantastic so far and the tenant seems like a nice sensible, considerate chap so far. We communicate mainly on Whatsapp and it really couldn't be easier. Met him in person the day he landed. Have bi-weekly cleans booked in for the year to keep the place perfect and also as an extra set of eyes on the place. Shared google doc so if he needs to reschedule no problem he just gives at least 48hrs notice by updating the document which I then pass onto the agent.

He goes back to Italy a fair bit (twice already) which is great as lower electricity bills and less wear and tear. Couldn't be going better, fantastic arrangement! My place is still technically on Airbnb but delisted so it won't come up in searches. I'll review the situation in December but I doubt I'll be going back to normal renting. I wouldn't even get half of what I'm getting now (even at market rates) and would be taking on more risk.

I got lucky with this one for sure but if I can do something similar for 2020 I'll jump on it! The guest already loves Dublin so maybe he'll stay around for longer than 1 year.

Selik

The_Conductor wrote: »

If its only a 1 bed- whats the story with his family? Where are they supposed to live?

Actually just has a girlfriend - think by family they meant his parents etc.

lolo62

Thanks guys didn't know that. Do you think the restrictions will kick in straight away or will it take a while for everything to be worked out?

Samuel T. Cogley

lolo62 wrote: »

Thanks guys didn't know that. Do you think the restrictions will kick in straight away or will it take a while for everything to be worked out?

They'll kick in straight away, there's been plenty of warning.

lolo62

Samuel T. Cogley wrote: »

They'll kick in straight away, there's been plenty of warning.

Thanks I know about the warnings, just this being Ireland and everything...thought it might take a while to get sorted

Samuel T. Cogley

lolo62 wrote: »

Thanks I know about the warnings, just this being Ireland and everything...thought it might take a while to get sorted

Sorry I should have also said the legislation has been passed; you're right in a lot of these things are bandied about but this one is something their quite serious about.

4ensic15

Samuel T. Cogley wrote: »

Sorry I should have also said the legislation has been passed; you're right in a lot of these things are bandied about but this one is something their quite serious about.

When did the legislation pass?

Lux23

October, I think.

GalwayBmw

There was a very resembling episode on "Nightmare Tenants, Slum Landlords" UK TV show - a high profile client who was happy to pay the premium to avoid the hassle - watch how it all ended up.

mrslancaster

If airbnb is the advertising platform and the contract is with the company for a year does that mean a tenancy is created with the company? Does it need to be registered with rtb and are the company then subletting to their employee?

4ensic15

Lux23 wrote: »

October, I think.

What Act? There is nothing in the statute book.

spurious

When do you get your money transferred? Surely not the normal AirBnB time frame, if they are going to be there for a year?

Selik

spurious wrote: »

When do you get your money transferred? Surely not the normal AirBnB time frame, if they are going to be there for a year?

I get it monthly at the start of every month paid directly from Airbnb as it's classed as a long term rental (this is how they pay out when it's longer than 1 month).