How on earth do I have this conversation about a potential Airbnb with landlords?
What about the whole subleasing thing?
What is the right way to approach this subject so that I can actually get one of my short term rentals going and make this business work for me?
What’s going to be the fastest road for me to get the greatest success and build a sustainable business?
These are probably many of the questions you’re asking yourself right now. If you’re ready to make the leap, then you CAN make a viable Airbnb business from a property you don’t own.
We just have to get you prepared on how to approach the subject with your landlord…
Knowing the difference between "subleasing" and "granting a license to stay" is a big deal
We are NOT subleasing here. In the instance of creating an Airbnb from a property that we don’t own, we are granting a license to use said property.
If we subleased the property, that would mean we’d be granting our guests all of the rights of a tenant for the duration of that their time they are on the property.
Instead, we're giving them a license to stay there – and that license is very restrictive.
Here Is How You Can Ask Your Landlord To Allow Your Airbnb Business
A great start to this conversation would be verbiage like this:
“Hi, my company and I are looking to lease a number of properties in the area. Are you the right person to talk to you about that?”
You’re trying to get the conversation to be what you need it to be, and to let them know what you’re doing.
At some point, they will ask what your company does – that is the question you are waiting for.
When they ask you that question, your answer is 100% tied to one thing: to whom you serve and how you serve them.
It is not where you get your customer from.
Here’s what your potential answer could look like:
“What we do is serve a number of professionals like doctors, professors, and sales people who travel to the area for a period of time, either on business or they're relocating to the area. We like to provide clean and safe places for them to stay so that they don't have to worry about the inconveniences of a hotel. They also get to understand the area and the neighborhood from a completely different perspective. Most importantly, sometimes they just want to have a kitchen, and we like to provide that for them. As such, what we often do is connect ourselves with quality landlords, such as yourself, so that we can leverage give you guys what you need in terms of steady rent, and we get to service our customer.”
That's what you do.
You're not asking to sublease.
If the property is managed by the property management, how do you have this conversation?
Well, that’s when the tricky part really starts to come into play.
What you’re hoping to do is get in touch with the owner.
Oftentimes, it depends on the type of property. If it's a single home managed by a property manager, then it's probably still capable for you to get in contact with the owner. Ultimately, they're going to end up having to talk to them anyways so there’s a definite inroad there.
How To Handle Larger Companies When You Can’t Speak To The Owner
Most of the time, owners who are using a property management service don't want to be bothered. If you're talking about a high-end apartment complex where it has 200 units and all the fancy amenities – it’s going to be hard to get to the owner.
When you're in a situation in which you can't get one-on-one time with the owner – and you have to work through the property management structure – you make the best with what you have.
Depending on how big the company is, there are three levels that you've got to get through:
1. The leasing agent - The leasing agent is the person that you ran straight into when walking through the door. They are at the desk, super happy, usually on commission, and will tell you yes to everything.
2. The leasing agent manager - There is usually a manager of some kind, and they come with various names. Sometimes, they're called just a community manager. That person is usually responsible for the entire building in some way, shape, or form. And they're typically reporting to someone who they call a regional manager.
3. The regional manager - When I've had these conversations, they go up to at least the regional manager. If the building is small enough, but still big. You may still end up talking to the owner, as well.
It’s totally possible for you to be able to have this conversation without going through the entire property management structure. So it's not something that I would be overly stressed about.
Yes, turning a rental property into an Airbnb will take work.
But it's worth it.
Want to learn more about creating and expanding your short term rental business?
Visit my youTube channel to learn more: https://www.youtube.com/user/CashFlowDiary