Requesting to AirBnB a Landlord's Property

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Requesting to AirBnB a Landlord's Property

Gabrielle E.
Flipper/Rehabber · Richmond, VA · Member since 2014 · 184 posts · 40 votes

I'm trying come up with the best strategy for finding landlords who would be interested in allowing me to rent their property to AirBnB tenants. The owner would benefit from the relationship because I would ensure the landlord will receive their originally-advertised rent payment each month and I would take care of property upkeep. This would allow the owner to basically have a no-hassle rental and I would have a rental that I control without much money out of pocket.  I've considered contacting landlords to take a look at their property as a prospective tenant, then after building rapport I could pitch the AirBnB concept.

I plan to contact landlords who have properties in areas with high demand in my city. I'm in the Richmond, VA market so this would be properties downtown, near colleges, etc. I plan to get a pretty good sense of demand in certain areas by searching on Airbnb in specific areas throughout my city and checking out various listings. I can ensure the spread is there between the landlord's rent rate and the AirBnB price by checking local rates, how many reviews other listers have, and whether those reviews are concentrated or spread out over many months. (A listing with 30 reviews in the past four months shows good demand. A listing with 30 reviews over the past three years, not so much.)

My main question is, as a landlord, what is the best approach to pitch an AirBnB opportunity to a landlord? Any advice about how I should go about this process?

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Ethan Cooke
Rental Property Investor · San Francisco, CA · Member since 2016 · 227 posts · 365 votes
8y

@Gabrielle E. I am doing exactly what you’re talking about in the San Francisco Bay area and would be happy to share how I have been successful convincing landlords to work with me and building my portfolio of furnished rentals. When I find a good property, I will typically spend $10K up front on first month's rent+deposit+furniture, then clear about $600-$1,000 a month in net profit. So I disagree with folks who say it can't be done profitably. As suggested by @Edward B., I do corporate rentals with a 30-day minimum, and adjust pricing to keep vacancy low. In addition, I typically offer the landlord free property maintenance, early rent auto-deposited every month into their bank account and a higher rent than they are asking for. This means I need to find below-market-rent properties.

I am part of a national community of “rental arbitragers” following in the footsteps of longtime experts like

@Al Williamson and 

@J. Martin.  Rental arbitrage can be done profitably, but you need to be very selective about the property. For example, I have learned that sometimes I can find a single-family home for rent with an in-law unit (basically 2 units) and pay just a bit more in rent than the single-family. But that nicely furnished extra unit is worth a whole lot more to a business traveller than the extra $300 a month I am paying for it. Also, 80%+ of the business traveler market is folks traveling alone who want either their own unit or at least their own room. So studios and 1-bedroom apts are easier to keep full than 2BR and 3BR homes. 

Feel free to PM me. Happy to chat.

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  • Alexander Ramos
    Bedford Park, IL · Member since 2016 · 103 posts · 44 votes
    8y

    Here is one a couple pitches I give. I made a video as well to build trust and use a different pitch in person.

    Quality Tenant Proposal

    As you may be aware you are in a desirable location. Not only does attract better people, it creates for a better environment.

    Here's what we do and how we can help preserve your apartment(s).

    As a property owner myself. I know the importance of screening tenants! It's in your best interest to keep it clean and avoid evictions right!?

    I am offering to maintain the apartment. How? We furnish, professional clean and insurance it. Yes who's going to guarantee your rent take care of your place and keep it in showcase condition? Who, How?

    We still sign a year lease like a regular tenant, however we host to short-term guest. And don't worry we do pre-screen everyone. Typically families coming to visit students, hospital and or to temp work in Chicago.

    Given the quality of tenants.

    They typically want to see the place up-to-date and neat!. Therefore, I would like to see if we can come to an agreement.

    Keep in mind the apartment is still yours. It will stay in for sale condition neat and clean!.

    You will also attract better people!

    I will furnish it and pay for that! Next any minor maintenance up $250 is taken care of by us.

    Rent will be received as usual like any other lease.

    What's your thought?

    Alexander Ramos

    5Reply
  • Edward B.
    Investor · Midlothian, VA · Member since 2015 · 980 posts · 823 votes
    8y

    @Gabrielle E., the numbers look tight to me as a rental. As mentioned vacancy, maintenance, and turnover costs will be much higher with a nightly rental. That is going to significantly squeeze your profit. And if the AirBnB doesn't work then what is your out? However, $146k 10 years ago? Was that right before the crash or right after? Either way in this market it may be worth significantly more. If you could take it over then maybe you could refi or sell it. But a refi is unlikely to save you more than $100-$200 per month.

    0Reply
  • Account Closed
    Specialist · San Francisco, CA · Member since 2018 · 36 posts · 30 votes
    8y

    Hi Gabrielle, 

    There have been some great responses here, but I thought I would chime in to provide some additional resources. I have a few clients I support, that have had GREAT success with this model. When you have a moment, check out J Massey and CashFlowDiary.com. He provides the step-by-step process he uses for running a real estate business, WITHOUT owning the properties. 

    He currently operates 24+ Airbnb units. There is a lot of free information on his Youtube site, so definitely check that out before deciding to pay. Also, I've found these resources very helpful, as well: 

    STR University

    Passive Airbnb 

    Airbnb Automated

    2Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    8y

    @Gabrielle E. I agree with @Paul Sandhu Once you get it set up and prove it is viable why wouldn't the owner want to cut out the middle person and make all the money them selves?

    You best bet is buy your own VRBO properties so that you are in control of the properties you are renting.

    0Reply
  • Gabrielle E.
    OP
    Flipper/Rehabber · Richmond, VA · Member since 2014 · 184 posts · 40 votes
    8y

    @John Underwood I agree. I can see the point in not wasting a lot of time and money investing in a property where I can't have much control or ownership

    0Reply
  • LaSherrell White
    Member since 2018 · 1 post · 0 votes
    8y

    I am currently attempting to do this in the Atlanta/midtown area but I’m having a hard time finding landlords to agree as well.. especially the high rises with views.. I’m interested in doing luxury properties..

    0Reply
  • Erin DeasyPro Member
    Portland, OR · Member since 2016 · 4 posts · 1 vote
    8y

    @Alexander r

    @Alexander Ramos

    Hi Alexander, I found your pitch here! LOVE IT!!!

    Do you have a link to the video/any other materials you like to use? 

    Thank you!!!

    1Reply
  • Eric A.
    Investor · Abilene, TX · Member since 2017 · 4 posts · 2 votes
    7y

    @Gabrielle E.  I just wanted to follow up on this post to see if you've had any success with this strategy.  If so, how were you able to convince the landlord and how has it worked out so far? Looking forward to hearing what you have to say!

    0Reply
  • Alexander Ramos
    Bedford Park, IL · Member since 2016 · 103 posts · 44 votes
    7y

    @Erin Deasy pm me!

    1Reply
  • Deanne Bourne
    Investor · Concord, CA · Member since 2016 · 54 posts · 22 votes
    7y

    A smart owner could see from the STR (short term rental) availability calendar the approximate earnings. If he realizes he could do it himself or have a less expensive manager do it he will turn away from you at the end of the lease. I would talk more about the money and how time consuming and hands-on STR is. Certain owners will go for it but others you would just be giving them a business they will take back.

    My comment concerned the Code/planning Department. Neighbors are now reading about the perceived issues with STR. They have learned where to complain. If the city or the county has made tough regulations against STR I would be careful.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    7y
    Originally posted by @Gabrielle E.:

    I'm trying come up with the best strategy for finding landlords who would be interested in allowing me to rent their property to AirBnB tenants. The owner would benefit from the relationship because I would ensure the landlord will receive their originally-advertised rent payment each month and I would take care of property upkeep. This would allow the owner to basically have a no-hassle rental and I would have a rental that I control without much money out of pocket.  I've considered contacting landlords to take a look at their property as a prospective tenant, then after building rapport I could pitch the AirBnB concept.

    I plan to contact landlords who have properties in areas with high demand in my city. I'm in the Richmond, VA market so this would be properties downtown, near colleges, etc. I plan to get a pretty good sense of demand in certain areas by searching on Airbnb in specific areas throughout my city and checking out various listings. I can ensure the spread is there between the landlord's rent rate and the AirBnB price by checking local rates, how many reviews other listers have, and whether those reviews are concentrated or spread out over many months. (A listing with 30 reviews in the past four months shows good demand. A listing with 30 reviews over the past three years, not so much.)

    My main question is, as a landlord, what is the best approach to pitch an AirBnB opportunity to a landlord? Any advice about how I should go about this process?

     I see no reason why a landlord would allow you to do this. They would essentially take on all of the additional risk without receiving any of the additional benefits. This is why most leases you see out there in the general public prohibit subleasing. Makes no sense for the landlord. In many municipalities short term rentals are being banned. Huge fines are being levied against the property owner. If a huge fine where to be levied in your situation it'd be the owner on the hook for it. Not an ideal situation for a property owner to be in.

    0Reply
  • Grant Rothenburger
    Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
    7y

    There are companies and people that have systems that they teach for a price. I know BP typically anit-"Guru" but some of them seem to be well worth it, though I wouldn't personally know. Sue Hoyuela has been on a few podcasts that I've listened to and she has a system for managing AirBnb's and getting landlords to have you do it for them.

    0Reply
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