AirBnB Buyers Beware: Cautionary Advice from Rachel Prince, the "Rentalpreneur"!
One AirBnB Property Manager offers cautionary advice to help others avoid lawsuits in the AirBnB industry.
Backstory: After receiving Airbnb funds in her account from an unknown source for 3 years (totaling $8,000), Rachel was blindsided by a lawsuit from a past client regarding "monies owed". The former client, forgot to stop the automatic payouts from his account that were being sent to Rachel when she managed the property, a common occurrence in the AirBnB industry. By the time the former client realized that payments were still being paid to Rachel and not him, he filed a lawsuit against Prince, demanding repayment. Needless to say, this was a very shocking and costly situation for Rachel.
Now that the matter has been resolved, Rachel would like to offer some sage advice to other homeowners and Airbnb managers, so that they can avoid something like this from happening to them.
Important Points To Consider:
1. Legality: Find out if your Airbnb Co-Host is a licensed and trained Real estate agent. In most cities now, like Indiana, BY LAW you need a real estate license to manage properties however Airbnb can fall under a "grey area".
2. Professionalism & Accountability:
3. Contracts: Create a legal agreement between you and your Airbnb real estate agent. Agents are allowed by law to access and write to standard property management leases. or have a lawyer create one for both of you.
4. Resources: Real Estate agents have access to standard documents and rental agreements, and are allowed by law to write leases. Be aware of letting a cohost without a license write a lease for a long term guest. Also realtors often have access to company lawyers and may be able to provide more aid if anything ever went wrong with a guest.
Featured in INC. Magazine and on The Ron LeGrand Mentor Podcast, Rachel Prince has been called the "Maven" of AirBnB Short-Term renting. She is also the author of AirBnB Mentality, AirBnB Side Hustle and the creator of BUYBNB the online investing course. To learn more about Rachel visit: www.rentalpreneur.com
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