Making money with airbnb with leased properties?? Glamping

[Kaplin261]

I'm thinking of leasing a recreational property in the backwoods. I would need $1,000 down payment and then a little bit of effort making a spot for a yurt or some other kind of tent. It couldn't be a permanent structure and I think i would have to take it down for certain amount of time each year.

There is a monthly balloon payment with the final amount  due in 5 years with the option of walking g away.

The property is 1 hour from me. Is this a bad idea?

[Miss Prim]

Is this in a popular area that people would want to visit?  I would look up Air BNB properties in the area and look at their calendars and see if people seem to be clamoring to rent there.  Also, whoever is leasing the property to you would most likely want to be aware of what you are doing.  You would have to have some type of liability insurance and I don't know who would have to carry that on a leased property, probably the person leasing their property to you.  To me, it just doesn't sound like it would be feasible or profitable. 

I rent my basement apt. and pole barn space out for storage, but I am fully insured for any liability.  Personally, I would not want to lease out property to a person who is in turn leasing it out to someone else.   Just doesn't set right with me.

                                                                                                          Miss Prim

[Kaplin261]

Is this in a popular area that people would want to visit?  I would look up Air BNB properties in the area and look at their calendars and see if people seem to be clamoring to rent there.  Also, whoever is leasing the property to you would most likely want to be aware of what you are doing.  You would have to have some type of liability insurance and I don't know who would have to carry that on a leased property, probably the person leasing their property to you.  To me, it just doesn't sound like it would be feasible or profitable. 

I rent my basement apt. and pole barn space out for storage, but I am fully insured for any liability.  Personally, I would not want to lease out property to a person who is in turn leasing it out to someone else.   Just doesn't set right with me.

                                                                                                          Miss Prim

If I lease the property with a LLC I set up exclusively for this, then only the assets of the LLC are at risk?

I also forgot to mention in my original post I will probably need a porta potty setup and serviced monthly.

[Catbert]

If you're an hour away how are you planning to handle turnover and cleaning?  If you're paying someone, be sure to consider that in your analysis.  Doing it yourself will be much more cost effective...well, except for the your time and car costs of a 2 hour round trip.  If it's
DIY are you the kind of person who will quickly tire of doing it and end up paying someone.

[mskyle]

Is this in a popular area that people would want to visit?  I would look up Air BNB properties in the area and look at their calendars and see if people seem to be clamoring to rent there.  Also, whoever is leasing the property to you would most likely want to be aware of what you are doing.  You would have to have some type of liability insurance and I don't know who would have to carry that on a leased property, probably the person leasing their property to you.  To me, it just doesn't sound like it would be feasible or profitable. 

I rent my basement apt. and pole barn space out for storage, but I am fully insured for any liability.  Personally, I would not want to lease out property to a person who is in turn leasing it out to someone else.   Just doesn't set right with me.

                                                                                                          Miss Prim

If I lease the property with a LLC I set up exclusively for this, then only the assets of the LLC are at risk?

I also forgot to mention in my original post I will probably need a porta potty setup and serviced monthly.

Aside from whether or not it's true that you wouldn't have any personal liability if you leased through an LLC (I'm doubtful that this is true, but I am no lawyer), the assets of the entity that you are leasing the property from could also be at risk, which is one of the reasons they would not want to lease to you so that you can then re-lease. That said, there are people who will lease you property and allow you to sublet/re-lease, e.g. I know people who rent city apartments and then re-rent them to others (not roommates, AirBnB or short-term student rentals).