Loftium Homebuyer Responsibilities
You agree to rent out a room or mother-in-law unit in your home for __ months. In exchange, Loftium provides $__________ toward your down payment and you split the monthly Airbnb income _________. If you fulfill the following responsibilities, this contract does not change no matter how your room performs on Airbnb, and you don’t have to pay Loftium back - the down payment is equity in your home you get to keep! You'll be required to contribute 1% towards the purchase price of the home at closing. Loftium's contribution can be used for the down payment and closing costs.
Within 30 days of closing on your home:
- Move into your home
- Furnish the guest bedroom with at minimum:
- A queen-sized (or larger) bed, including mattress and frame
- A chair
- Desk or bedside table
- A lamp
- Take 8+ nice photos of your guest room for your Airbnb listing
- Install the Loftium-provided keypad on your front door
- Create your Airbnb listing with Loftium’s required settings and your room photos
- Add Loftium as a Co-Host to your listing
- Work with Loftium to ensure your listing is ready for guests (i.e. better photos, update the description, etc)
- Turn on “InstantBook” to allow guests to start booking your place!
Your ongoing responsibilities:
- Be friendly and hospitable to guests
- Promptly respond to guest questions before and during their stay, both in-person and via the Airbnb app
- Ensure your listing is active and available at all times (unless you’re using Freebie days, see below).
- Keep your Airbnb listing up-to-date & keep Loftium as a Co-Host on your account
- Keep your home clean and rentable
- Clean and replace sheets and towels between each guest
- You can clean on your own or hire a cleaner, and charge guests a cleaning fee of up to $30 per stay. The cleaning fee will be part of your monthly pay-out from Loftium.
- Resupply essentials (shampoo, conditioner, soap) and new linens (towels, sheets, duvet covers) as needed. Loftium provides three sets of linens and bath products to get you started!
- Promptly respond to Loftium communications and let us know of issues with your listing (like maintenance or if you cancel or reject a guest’s reservation)
- Enjoy living in your new home!
- Free Days: You get 8 “Freebie days” per year (woo hoo!) that you can use to reserve your Loftium room for friends or family. Once you’ve used up your Free Days, no problem - you can still block the room by paying a blocking fee from your monthly split.
- Airbnb Cancellation Fee: Airbnb allows you to cancel up to 3 bookings per year if you are uncomfortable hosting the guest. After that, Airbnb charges a $100 fee if you cancel on a guest, which will be charged to your account. This is not a fee from Loftium.
- 2nd Lien: Loftium reserves the right to put a second lien against the property, which means we’d be second in line to be paid back (behind the mortgage lender) after the home is sold, refinanced or foreclosed on.
- Contract Cancellation: Should you have to stop renting the room for any reason before the contract ends, you’d just pay your share of the nights remaining, plus 15 percent of that amount. For example, if you received a down payment of $25,000 and want to cancel the contract halfway through, you would need to pay back 1/2 x 115% x $25,000 = $14,375