How Do I Get A Landlord To Say Yes To My Airbnb Business?

hey guys jay massey here welcome back to the channel and if this is your first time here and you're wondering what this video and videos like this is about we talked a lot about the short-term rental economy we talked about how to lever to real estate and ultimately what you're going to see here is our students get access to me on a continual basis through a Q&A and via that QA will we often have many different questions and one of the questions that came recently was something that I get asked often how on earth do I have this conversation with landlords what does that conversation look like what do I say what what about the whole subleasing thing what on earth 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 in fact what is going to be the highest probability of success where is going to be the fastest road for me to get the greatest success and build a sustainable business well we're gonna discuss that in this particular video so if this is your first time here feel free to hit that subscribe button everybody please hit that like button because it helps us reach more and more entrepreneurs just like you so that we can help more people become bigger better batter in their own business [Music] says hi J I'm still at the process of getting more details on whom I'm going to serve understood currently I'm planning to go with professionals sales doctors professors okay that makes sense I am planning to interview some of them by this week I just had a quick question the so know if the the property is owned by the property management I asked them about subleasing their property no no that that not at all first of all one very important thing for everyone to understand I am NOT your attorney never have been never will be but the reason I mention that is because we are not subleasing all right there's a big difference especially in a legal sense between subleasing and what we're asking and what we're actually doing what we are actually doing is operators giving and granting a license to use said property okay we are not conferring upon our guests all of the rights of a tenten a tenten all rights of a tenant for the duration of that their time there we that is not what we're doing we're giving them a license to stay there a license that is very restrictive and definitely doesn't confer all of the rights so that's that's a very important thing to understand very important distinction which is why you don't hear me use the word subleasing in fact Nevin here's what you do you're not asking them about subleasing at all you're not even asking them can you grant a license you're letting them know what your company does for example you said who did you said it was what professionals sales doctors okay got so Nevin if I was you I would say something like hi my name is Neven my company and I are looking to lease a number of properties in the area are you the right person to talk to about that now they're gonna either be the right person or not but what you're trying to figure out is how do I get this conversation to be what I need it to be as it relates to letting them know what I'm doing when they ask you you do you wait for them to ask you what it remember the words are my company and I are looking to lease there's a whole reason for all of that go back into the training that we did on today and you'll see more of that anyway there's the whole reason we did that at some point they will ask whether you when you're walking through the property or what have you what's happening is that they will ask you what does your company do that is the question you are waiting for when they answer or when you when they ask you that question your answer is 100% tied to one thing it is whom you serve and how you serve them it is not where you get your customer from where you source your customer is not the subject of this conversation what is the subject of this conversation is whom you serve and how you serve them okay so if I was you I'd be answering that question hey you know what is your company do well thank you for asking what we do is we serve a number of professionals like doctors and professors and salespeople who travel to the area for a period of time either on business or they're relocating to the area and what we like to do is we like to provide clean safe affordable places for them to stay so that they don't have to worry about the inconveniences of a hotel they get to understand the area the neighborhood from a completely different perspective and most importantly sometimes they just want to have a kitchen and we like to provide that for them so what we often do is we 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 still service our customer period that's what you do you're not asking to sublease okay hopefully that clears that up so you said you had two questions though so let's get to second question it says if the property is managed by the property management how will I get the owner's details that's back to what I was saying again on Saturday is you don't want the highest probability of success our properties that are owner managed period oftentimes if it depending on what type of property when you say if it's managed by a property manager if it's a if it's just a single-family house that's managed by a property manager then it's probably still capable for you to get in contact with the owner they're gonna end up having to talk to them anyway but most of the time owners who are using property management of that kind don't want to be bothered if you're talking about like a REIT or syndication owned building where it's like 200 units and it's got all the fancy amenities maybe even a bowling alley I think we you have an apartment building out here with a bowling alley which anyway whatever so and one with the wine bar those are two there's those are not the same ones that would be funny right that a wine bar aníbal yeah here's my point you want to be as close to owner direct as possible now when you're in a situation in which you can't and you have to work through the property management structure you have to work through the property management structure that there's just nothing I can't do anything about that so if the property is managed by a property management company again it's not the highest probability of success so depending on how big the company is you have three levels that you've got to get through sometimes for the first level is that leasing agent that leasing agent is the person that you brand straight into is right there at the desk totally happy usually on Commission and will tell you yes to everything then after the leasing agent you have who is usually their manager there's usually a manager of some kind all right and they come with various different names sometimes I know they're called just a community manager okay so cool that person is usually responsible for the entire or that entire building in some way shape or form and they're typically reporting to someone who they call a regional manager which usually means that that particular entity that you're dealing with has a number of buildings in that particular geographic area therefore it'll probably go up to at least the regional when I've had these conversations it goes up to at least the regional if they're small enough but still big you it may still end up getting to the owner as well so that's typically how that's going to go but like I said being owner direct is what you want and don't don't have this opinion to where you think that I have you have to go down that route there's enough property out there for you to be able to do this without having to go through the property management structure it's totally possible so it's not something that I would be overly stressed like oh I can't you can find them it yes it will take work but it's worth it and another way of saying that is just pretend for example each unit you get no matter how many buildings are in just think about it this way each unit you get is probably I'm just going to say somewhere between depending on your geographic location somewhere between 35 to 50 thousand dollars of revenue on an annual basis for your business okay and if we're projecting somewhere in the neighborhood of a 20% net profit from running that 90 minutes a day when you're using the system properly is it or is it so that's another way of saying Nevin is it worth it to do a little bit of upfront work to make five hundred dollars a month on 90 minutes a day that is scalable to whatever size you want I think the answer is yes and you'll also find that you'll probably make more than that but that's neither here nor there it's uh as always been fun talking to you guys today I look forward to talking to you soon go out there and crush it we thank you for the opportunity to influence you and whatever ways that we've been able to do so and well I look forward to talking to you again soon well next time

Channel: CashFlowDiary

Views: 25,283

Rating: 4.9783678 out of 5

Keywords: airbnb business advice, airbnb, airbnb arbitrage, airbnb guide, airbnb host, airbnb host guide, airbnb host tips, airbnb hosting, airbnb rental, airbnb strategy, airbnb tipps, airbnb tips, airbnb tips host, airbnb tutorial, airbnb videos, how airbnb works, automating airbnb, best airbnb advice, hosting on airbnb, scaling an airbnb, what is airbnb, biggerpockets, homeaway, rakidzich, real estate, real estate investing, rental arbitrage, short term rentals

Id: yDvwUopG8rQ

Length: 9min 52sec (592 seconds)

Published: Sat Mar 02 2019