Start with the business, not the pitch
A professional operator runs a company with units, systems and references. Ask for the legal entity name and look it up in your state's business registry. Confirm it is active and who the managers are.
The 11 checks
- Track record. How many units, in which markets, for how long?
- Landlord references. Call two. Ask about rent timeliness, condition and communication.
- Live listings. Look at a current listing they run. Read the last 20 reviews.
- Insurance. Ask for a certificate or a quote naming you as additional insured.
- Financials. For newer operators, ask for proof of funds covering deposit, first month and furnishing.
- Guarantee. A personal guarantee from the principal if the LLC is new.
- Compliance plan. How will they get permits and remit taxes in your city?
- Guest screening. ID verification, minimum age, deposit holds.
- Operations. Who cleans, who answers at 2am, how fast are maintenance issues fixed?
- Noise and neighbors. Decibel monitors, house rules and a neighbor contact.
- Exit plan. What happens if rules change or they want out early?
Red flags
- Pressure to sign quickly or skip the consent addendum.
- No references, or only references from family members.
- Unwilling to name you on insurance.
- Vague answers about permits and taxes.
- Promises of "guaranteed" income to you beyond the lease rent.
How ArbiBase helps
On ArbiBase, operators must hold an active plan, and Pro and Premium operators pass an upgrade review. Your consent is documented before your property is visible. You still choose who to sign with. List free.
Checklist
- Entity verified in state registry
- Two landlord references called
- Live listing and recent reviews checked
- Insurance naming you as additional insured
- Proof of funds or personal guarantee
- Permit and tax plan in writing
- Guest screening and noise policy
- Exit clause agreed
Frequently asked questions
Should I run a credit check on the operator?
Yes, on the principal if the entity is new, alongside a personal guarantee.
How long should the lease be?
Two to three years is common; operators need time to recover furnishing costs.
Own a rental? List it free and get matched with verified operators.