how to approach landlords for short-term rentals

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Are you interested in venturing into the short-term rental economy but unsure how to approach landlords?

Do you want to know how to converse with them and increase your chances of success?

Let’s explore.

in this issue…

• granting a license, not subleasing

• focus on whom you serve and how you serve them

• owner direct is the highest probability of success

granting a license, not subleasing

One of the most important distinctions to understand when approaching landlords is the difference between subleasing and granting a license. Short-term rental operators are not subleasing the property but instead granting a license to use it. This distinction is crucial from a legal standpoint.

Don’t use the term "subleasing" altogether. Instead, when approaching landlords, focus on explaining what your company does and how it operates. For example, you can say, "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?"

By framing the conversation in terms of leasing and not subleasing, you avoid potential misunderstandings and legal complications. Remember, you are granting a license to stay in the property, which comes with certain restrictions and does not confer all the rights of a tenant.

focus on whom you serve and how you serve them

When landlords ask about your company and what it does, it is essential to have a clear and concise response. Focus on whom you serve and how you serve them. For example, if your target audience includes professionals like doctors, professors, and salespeople, highlight this in your response.

You can say something like, "Thank you for asking. We serve several professionals, such as doctors, professors, and salespeople, who travel to the area for business or relocation. We provide clean, safe, and affordable places for them to stay, offering a unique alternative to hotels. Our guests appreciate the opportunity to experience the neighborhood from a different perspective and enjoy the convenience of having a kitchen."

By emphasizing your short-term rentals' benefits and unique value proposition, you can pique the landlord's interest and showcase how your business caters to a specific niche market.

owner direct is the highest probability of success

While working through property management companies may sometimes be necessary, concentrate on owner-managed properties as they offer the highest probability of success. When dealing with property management companies, you often have to navigate multiple levels of hierarchy, including leasing agents, managers, and regional managers.

However, if you can establish direct contact with the property owner, you eliminate potential roadblocks and increase your chances of securing a property for short-term rentals. Finding owner-managed properties requires more effort, but the potential revenue and stability make it worthwhile.

He suggests treating each unit you secure as a significant source of revenue, potentially and conservatively generating between $35,000 and $50,000 annually. With proper management and a 30% net profit projection, the upfront work of finding owner-managed properties becomes a lucrative investment.

Approaching landlords for short-term rentals requires a strategic approach and clear communication. By understanding the legal distinction between subleasing and granting a license, focusing on whom you serve and how you serve them, and aiming for owner-managed properties, you can increase your chances of success in the short-term rental market.

Remember, when conversing with landlords, emphasize the benefits of your short-term rentals and the unique value you provide to professionals needing temporary accommodation. You can build a sustainable business in the short-term rental economy with persistence and a targeted approach.

Now go forth and profit.

that’s it, for the moment…

J. Massey

PS: Here’s a way we both can grow: