Buying an AirBnB home that is Rented Before Closing

The answer can be found on any internet forum.

 

Forget paying for one, ChatGPT is a free lawyer too…

 

Good call. It can even completely make up stuff to support your chosen position.

 

Oh man, this is going to go political, better stop!

 

No politics intended, I was just referring to a story about two lawyers who used AI to write their brief. The AI cited cases that did not exist and they, naturally, never read or checked. The other side did both and "His Honor" was not as amused as I was.

 

Doing a rentback to the sellers with no deposit or rent fee to cover potential losses is very risky. Adding the Airbnb factor makes it even riskier for you. Does your insurance know that the house is being used for short term rentals and would they cover a loss if an Airbnb tenant started a fire or got drunk and fell down the stairs?

 

I saw that article- I was joking about your comment and recent P-word issues we have going today… Anyhow, I use ChatGPT for teaching coding- it does a great job for that (with minor errors that I have students debug for practice).

…this was a good Friday thread, too bad it didn’t really take off.

 

Good stuff here. That being said, I’m obviously not looking at TW or Reddit for legal advice, this is after all just general discussion .

I found it interesting that I couldn’t find a quick answer to my question via internet, calling Airbnb, asking a couple realtors. and it seems the question is still on the table, is it legal? Who knows.

I spoke with my realtor and we are going to attempt and move closing back to Aug1 and get immediate occupancy. I assume they will agree to that, if they don’t.. we’ll cross that bridge.

I’m not really worried about buying a home that is a short term rental. Is it Ideal? No, but my neighbor lived in his beautiful log home for 20 years and almost burnt it down with a cigarette a couple years ago. Shit happens. From what I’ve heard most (not all) short term renters are great, probably more clean and respectful that most homeowners.

As mentioned by a few of you, I’m mostly trying to remove my liability. Damages to the home are one thing, but that’s what insurance is for.

I think that moving the closing till after they rentals are over is my best option. It’s a sellers market. Not much power here. They want their cake and to eat it, too. Fine by me as long as im not getting stabbed at the cake cutting.

 

Got Update?

 

Hmmm that’s tricky. Once you close on July 12th, you technically own the home, but possession is a different matter. If your contract specifies that you don’t get possession until August 1st, the sellers are likely within their rights to continue renting it out until then.

 

Almost one year to the date - Got Update?

 

I agree. It is important to read the contract thoroughly. Otherwise, talk to a lawyer.
When we were going to move, we not only chose a house but also read Local Home Buyers reviews to find out other people's experiences. Sometimes there are nuances you can't be prepared for.

 

Yeah sorry, for some reason I didnt get updates on this thread.

Right, it’s almost been a year and there were no issues that we found moving in on day 1, at least none that I could see. We ended up moving the closing to August 1st (so we wouldn’t own the home while they were renting it) and they had no problem with that, thankfully. That removed any liability on us.. I think. There was nothing in the contract conditions about renting the place between the sale and occupancy. They were short term rental folks (20 or so properties I heard) and I’m sure they probably had a lawyer and knew what they were doing. We had the short end of the stick in the market and didn’t have much power. Moving the closing was the cleanest option. It came down to not wanting to poke the bear and kind of cross our fingers some vacationers didn’t burn the place down, I guess. I’m still not stoked on it but at this point it is what it is.

We had issues with those previous owners afterwords hitting us up for stuff like: their smelly ass packed full trash can that I kindly took down curb to have emptied for them (thought at first we were getting a free one), their internet subscription that they tried to persuade us to take over their contract, because I’m sure they had a hefty cancelation fee. Later on they asked to pick up the hardware from the internet. We made a time and date for them to pick it up, he showed up when I wasn’t there and grabbed it. At which time offered them to “come and take it” next time aka don’t ever let me see them near my property again, nam. I mean the nerve to call someone afterwords and say “hey would you mind if I come grab this?” “…. And this..” two days later.. “and this?

I see the guy at the gym occasionally. He’s never made eye contact with me but his son acts like he knows who I am. Let bygones be bygones, no harm no foul, however you want to put it. After I told them off we never had any issues. Honestly our neighbors were glad they were gone too, and I have since made some good, trustworthy friends. We love our home and have no regrets, but I will probably ask more questions at the signing table next time. You live, you learn.

Man I hit a few phrases there.. eh..


.. might as well throw in the Live, Laugh, Love.

sorry the lattes are talkin now. Damn, it’s only Tuesday? Whoops

 

Best Possible Outcome!
Congrats!

 

When you close on a property, you technically become the owner, but possession is a separate matter. Since your sellers have the right to lease the property until your agreed-upon possession date, they can legally rent it out until then. However, it’s worth checking your contract to see if there are any clauses that address this scenario, as well as consulting with a real estate attorney for clarification on liability and insurance coverage.

On a related note, if you're considering alternative options, I recently came across some interesting listings for apartments, properties, and villas for sale in Marbella. Depending on your needs, exploring these could provide you with some potential investments or even a vacation spot. With the right research, you might find a property that could be a perfect fit for your situation, especially if you're interested in short-term rentals. If you're curious, you can check out the options available here: https://3saestate.com/for-sale/—it might just offer some fresh ideas for your next move!