You want to know the number one question I get asked, over and over?
I want to rent on Airbnb, but I have a landlord. How do I approach them and get permission to rent out my space?
I’ll admit, that question is a bit of a doozie but let’s walk through it.
I, like many others, do not own my Airbnb property. I rent it.
And, like anyone in that situation, it is not up entirely to me to rent out the property. At the end of the day, your property owner decides if your Airbnb dreams sink or float.
Do it the right way
It’s a pretty big conversation…and if you’re going to be successful, you’re going to need to be prepared.
You might think to yourself:
“What’s the big deal?”
“Why would my landlord care?”
That’s a common first reaction and it’s the number 1 reason why so many people rent on Airbnb WITHOUT telling their landlords. (Note that’s NOT a good idea!)
While going under the radar might work for a while, it’s inevitably going to blow up in your face.
In that case, you stand to lose a lot more than your rental money…you could get evicted and have to find a new property to live in entirely.
Now what’s ironic about that situation, and the way so many hosts go about it, is that your landlord might have actually been open to the idea of renting to you. You never asked so you’ll never know.
If they end up finding out about Airbnb by “catching you”, you’ve eroded any potential goodwill you could have had to work with in the first place.
If you try to approach the conversation AFTER you’ve been caught, your odds of getting permission are going to be dramatically lower.
So you want to do it the right way…correct? Of course you do.
Let’s get your Airbnb unit Landlord-Approved!
Get into the mind of an Airbnb landlord
First off, you do not stand a chance of negotiating with your landlord if you do not understand the position they are coming from.
You must clearly understand how a landlord uniquely sees Airbnb.
Put yourself in the shoes of your landlord and try to think about the things that influence their decisions and how they see their properties.
If you don’t know much about rental properties, let me fill you in.
Landlords see their long-term rental properties (properties that are under 1,2, 3+ year contracts) as a low risk, and modest source of income.
Some landlords make a lot of money off properties, and some make only side income. But one thing that does not change: landlords see long-term rental income as low risk.
Now, imagine you own a property. Chances are you put a lot of effort into renovating it and you’ve signed your first tenant for 2 years.
Whether or not you’re a great landlord, active in helping the tenant enjoy their stay, or if you’re still investing in your property…it’s still going to make you the same amount of money every month for the term of your tenants lease.
So most landlords, logically, do not see the need to invest a ton of time and energy into their properties – they see it as a long term, fixed income stream. Any extra effort spent on the rental can often be seen a waste of time.
The worst-case scenario for a landlord is losing a tenant or property damage. Tenants can be replaced and insurance can be purchased to cover property damage…check and check.
You’re still the property owner: Now imagine your tenant approaches you and asks if they can let a large number of strangers come in and out of their space for their own profit.
Your property just went from low risk and modest income to HIGH risk and modest income.
Airbnb Landlord Risks
So how is it now “high risk” for landlords? Well, its at least “riskier” for multiple reasons:
- While Airbnb does verify guests, there is still potential for bad-apple guests that cause property damage, harass neighbors, or create theft (if you don’t believe me search “Airbnb orgy”).
- In many city municipalities, short-term rentals are illegal and can be subject to fines if caught.
But here’s the biggest one:
- Landlords are required to have homeowners insurance for their building that covers anything that could go wrong.
Homeowners insurance will deny ANY and all claims in the case that they find out the space was being rented like a business. Yes…Airbnb is a business.
Even worse…they could completely cancel the landlords insurance entirely (causing the ENTIRE building to then be illegal).
And let me remind you, they are taking this risk now with NO potential upside. It simply will not make sense for them.
In very few circumstances will a landlord be ok with you renting on Airbnb without at least getting something in return.
Make a conversation game plan
Now that you understand why, in fact, landlords do care about Airbnb rentals…it’s time to make a game plan.
In order to get a YES, you’re going to have to be prepared to change the risk/income equation for them. Now that doesn’t necessarily mean paying more rent, but in many cases that’s all it takes.
Be aware of your relative position before you enter the conversation:
- How long have you been a tenant?
- Have you been a good tenant?
- How old is your landlord? Do you think they’ve even heard of Airbnb?
- How quickly do you think they could find a new long-term tenant? Is it a hot rental market?
- Do you share space with other tenants who could be affected?
- Are you rent controlled?
- Does the landlord have multiple properties?
Being in a strong negotiation position means:
- You’ve been a tenant for a long time
- The landlord is more comfortable with you
- The landlord is familiar with Airbnb
- The landlord has only a few properties
- …and the worse the rental market – the better your position
If you’re in a strong position, it might only take a little bit of compromise to get a yes.
If you’re in a weak position, it could take a lot, and getting a YES might take some creativity.
Consider what you can offer to your landlord
On the income side:
- You can offer to extend your lease
- You can offer to pay more…a flat rate or a % of Airbnb earnings
- You can offer to pre-pay rent up front
On the risk side:
- You can explain to them how the Airbnb $1,000,000 insurance guarantee works
- You can offer to purchase your own vacation rental insurance (anywhere from $80 – $200 / month typically)
- Read more about Airbnb Liability Insurance
- You can offer to limit the rentals to certain times and certain groups
- You can guarantee that you’ll only be renting private rooms and will be present throughout the stays
- You can amend your rental contract to offer coverage of certain damages yourself
- You can increase the size of your security deposit
Now, this is by no means an exhaustive list of options, but they are the options that I have seen work in the past.
In my experience, these are the things landlords care about + or – a couple potential curveballs.
Be prepared to know what you think you can offer them and what you think it will cost to address their concerns.
Start the conversation with your landlord
The way I’ve explored it, there are two options to bring this up. One is directly with your landlord, the other is what I call the “nuclear option”.
If you think you have enough rapport with your landlord, then try approaching them directly.
My suggestion is that your main focus is simply starting a dialogue and not treating this like a business pitch.
Keep it simple. A landlord will not approve what they cannot understand and if you pile on information, they will get confused.
Try emailing them or talking in person like this:
“Hi Mr. Landlord,
I’ve recently been introduced to Airbnb when I went on my trip to Paris. Its an amazing service.
I was wondering if you had an opinion about Airbnb?”
By simply asking their opinion, you don’t prime them for confrontation and you open up a conversation simply pertaining to what they KNOW about Airbnb.
Once you’ve established what they know and think, you can have a much easier time at explaining it to them and dispelling the myths to them.
In the same conversation, I would attempt to bring up 2 things:
- You’re exploring the opportunity, but wanted to be respectful and ask their opinion first.
- Establish that there is a solid reason why you are interested and would benefit from Airbnb.
- Explain that it will help you pay rent, meet bills, or improve your life in some way.
- Let them know that to the landlord this sounds risky, and that you’re willing to find a way to make it MORE than worth their while.
Then take it from there and start deploying your compromise options from above.
Landlord not open to Airbnb?
Here’s the nuclear option…
If your landlord isn’t receptive to this idea find out who their legal counsel is.
In 90% of cases, landlords will have SOME legal counsel that they work with on contracts, insurance, tenants rights, etc.
Either contact their lawyer and state your case, or seek out your own lawyer to explain your case.
As legal counsel to your landlord, it is their duty to represent the landlord’s best interest.
If there is an opportunity to make them more money, and is within the local laws, they’re going to obligated to present it for you.
It is much harder for a landlord to say “no” when his or her own legal counsel says, “This is legal and it can work”.
Post Contributed by Evan Kimbrell.
✔ How to avoid the BIG mistakes that most hosts make
✔ The secret weapon of all Top 1% Hosts
✔ The pricing strategy used by professionals
✔ How to consistently get gleaming 5-Star reviews
✔ How to free up your time without becoming a "robotic host"
This free training is brought to you by James Svetec an Airbnb Expert who has managed over $1M in bookings & Symon He, the founder of LearnBNB, the #1 Airbnb hosting education blog.
Learn about all of the secrets that professional hosts don't want you to know
Thanks for the info. I’m surprised by the lack of comments on this topic. I just wanted to share my experience on this topic.
Six months ago, I signed a lease for an apartment to be used specifically for short term rentals. I only signed a six month lease because I wanted to minimize any financial risk if this didn’t work out.
I was completely transparent, opened up a direct line of communication with my neighbors and kept in contact with the property management company. Everything was smooth sailing. In fact, things were going so smoothly that I was added to a “waiting list” for another unit. Bookings were great, no noise complaints, no issues, etc.
About 60 days before the lease was up, I contacted the property manager to ask what the renewal process was and to ask where I was on that waiting list. I never got a response so I called several times, left voice mails, all with no response.
Then, I received a “Request for Possession” letter in the mail stating my lease ended on such and such date at midnight. At first, I thought, okay, I just need to renew the lease.
In the meantime, I have spent thousands of dollars on professional photographers, videographers, a website, smart phone app, listing fees, virtual checkin, virtual welcome guides and general marketing. I was ready to grow this into a real business!
After continuing to receive no return phone calls, no response to emails, I decided to contact a lawyer. My goal was to find out my rights, find out what options I had, if any, and ultimately, make a deal with the owner directly that would make it worth his while and at the same time allow me to keep doing what I was doing.
As a side note, 50% of the apartments in the building were being used for short term rentals. I had a single unit but there were three other companies or groups who each had 4+ units.
So far, the attorney reached out to the owner who said short term guests didn’t have the same respect for the property that long term guests had. Anyone who’s been doing this for any length of time knows this is total BS, at least it was in my case. I’ve had nothing but pleasant guests who have had the utmost respect. In addition, I bet my place stayed way cleaner than any long term tenant’s apartment. Not to mention, I had my own supplemental $2M commercial insurance policy that protected every one and everything.
My attorney has only a few days before the end of the lease and is still trying to work something out. I’ve offered to rent every unit on the same floor, in the entire building and offered to pay more rent and/or pay the owner a cut of the profits.
So far, it doesn’t look promising. I’m trying to be optimistic but have bookings that go many months into the future. I’ve been looking for alternative units but it’s either not allowed, they already have too many units being used for that purpose, the HOA doesn’t allow it, etc.
It seems to me this is a new industry, it’s in high demand and is only going to grow. A smart landlord seizes opportunities vs resist change.
I get the concerns, don’t get me wrong, but there are workable solutions. It just seems to me that an owner can rent to tenants who disguize their true intentions, constantly evicting people and being paranoid or they could embrace the change, make some extra money and be done with it.
Thoughts?
Hi Steven,
What area are you in ? I would like to do the same thing in my area being Sydney Australia. Please reply with an update of how you are doing with this.
Hi Adam,
First, to answer your question – I’m in Nashville, Tennessee. Second, to provide an update:
Believe it or not, despite the fact that my lease ended on October 31st, 2015 – I am still in the same apartment. I realize that I can’t fight the inevitable and they haven’t changed their minds about putting an end to all the Airbnb activity in my building – so right now, I’m just stalling. All of the condo buildings have HOA rules against short term rentals so my only option is a multi-family apartment building which aren’t in abundance, yet. However, quite a few are well under there way to being built.
The reason I didn’t have to leave on October 31st is because the notice they served was sent about a week too late. That coupled with the acceptance of my rent check created a month-to-month tenancy under the Uniform Landlord and Tenant Residential Act of Tennessee. Here we are on January 19, 2016 and I still have not been given a proper thirty day notice as required by law.
My attorney sent them a letter that basically stated my rights, their obligations under the month-to-month tenancy and the fact that I would continue leasing month-to-month until proper notice was received. If they were to send me a proper notice tomorrow, I would legally have until the end of February.
I’ve got 5-6 different apps on my phone working overtime to find a place to move. Things are snatched up within minutes of being posted – at least available rentals in the core downtown area. I’ve also recently paid for some Airbnb data so that I can research neighborhoods outside of the immediate downtown area where I may have much better results.
My apologies for taking so long to respond – notifications were going to spam and I just sifted through my spam box where I found the questions and responses.
Hope everyone’s 2016 is off to a fantastic start!
Steven
Hey Steven. Any update on how its been going? (:
Curious what apps you’re using to scour for properties. You mention paying for airbnb data – is this mashvisor youre speaking of?
The landlord either doesn’t want his flat used for such purposes or has decided to run an airbnb business from the property himself. It’s his appartment, so move out. Perhaps you should try to raise the finance to buy your own property. Then you will have autonomy.
How do you figure out who the landlords are for multi-unit dwellings to even approach them about this for AirBnB
for $10 a month you can download “landglide” app
you get 5 searches for free just to try it out
you pull up to the building and turn on the app
it tells you who owns the property with a link to the county record
and mailing address of the owners are listed in the county record
you can go to peoplefinder also $10 a month and get the phone numbers and a bucnh of personal info on the owners and give them a call.
here’s the thing, whats stopping the landlord from doing this themselves? thats the value. In this situation, you offer ZERO value to the owner, especially since they can do it themselves.
Thats how it goes with any business. IF they can do it themselves, they’ll cut out the middle man. you are the middle man.
Its not Zero value. In fact it is 200% value addition. Owners cant do on their own. Its all about two way communication and getting feedbacks bothways and rankings, etc. Traditionally landlord communication was through agents aimed at long term tenancies.. Short term tenancies are mix of motel style and home atmosphere.There is value addition and change of habits and mental makeup. Thats why airbnb introduced sharing/managing hosting functions.
It’s simple… They wanted you out because you gave them the bright idea to do Air BNB themselves. It wasn’t about you at all. They saw dollar signs $$$.
I say everyone should milk it for what it’s worth under the radar if the landlord isn’t around much. Then buy your own property and start your Air BNB hassle-free because it’s YOURS!
I am looking for the letter to give to the landlord but I don’t want to pay $900 for it
This is a great topic and very well covered. Steven, I’m sorry to hear of your troubles. Nevertheless you’ve been far more responsible than those many hosts who fly under the radar and neglect to tell their landlord that their essentially sub-leasing their property to short-term tenants. We’ve heard so many cases of tenants being evicted on these grounds.
Ultimately we would guess that your landlord has the right to turn down your proposal. So if the bargaining fails, perhaps it’s time to move on and find a new lodging. Sorry for the loss of your investment of time and money. We hope you have better luck soon!
But you’re not leasing. Do you lease the hotel? No, you’re a guest. You have short term guests in your airbnb
Do you have any templates on how and agreement between the homeowner and property manager would look like for a rent to rent situation?
Your landlord probably realized how lucrative your Airbnb business is and decided not to sit on the sidelines anymore. Unfortunately, it is completely legal for a landlord to decide not to renew a lease (they are not evicting you, simply not renewing or extending), and as such, they don’t have to give you any reason for their decision.
Your best bet might be to move on to a different property and simply sign a longer lease this time. Ultimately, you want to buy properties in order to avoid having to follow someone else’s rules.
Thank you for chiming in, Sabrina. I don’t disagree with you but it’s not quite that simple. Here’s what:
1) Our local short term rental code, passed last year and requires hosts obtain a permit and pay hotel occupancy taxes. No problems there. The code also puts a restriction on the number of single family homes allowed to be used as short term rentals. Although an arbitrary cap, it does exist and is 3%. Most areas in downtown and surrounding areas are completely maxed out. Only 1 permit can be given for an address and that permit is not transferrable.
2. Interestingly, the limit doesn’t apply to multi-family buildings BUT every condo HOA I’ve checked, prohibits rentals less than 30 days.
3. This means my only option is really apartment buildings.
I was able to get a unit at a different building by agreeing to use the property as a corporate rental. I agreed but with the caveat that I would be filling any gaps between corporate rentals in the best way that generated revenue. In other words, I am only marketing to business travelers but in cases when I don’t have a business traveler, I lease it to leisure guests after a thourough screening process.
I’ve worked endlessly on tweaking a proposal and have sent it to about 20 owners or property owners so far. I tweak each and every time I send one and definately on the right track. I’m not finding it nearly as difficult to start a discussion now that I have a formal online proposal going out.
I decided to document my experiences as I move forward and will continue adding updates there as well.
I remain optimistic and am trying to secure a few more properties in the next 30 days. I am definately shooting for longer term leases this time so thanks for that advice!
Steven
Hi Steven,
I’d be interested in reading about your progress! Is there a place you are posting updates?
Jim
I am fairly new to this and would be interested in reading the proposal you have created
Hi Steven,
I’m moving to the Nashville area to finish grad school and to help care for my mother who lives in north GA. I’m hoping to find a place to rent that will allow me to use Airbnb to rent a room within the apartment or house I’m renting to help offset costs, especially while I finish school. Would you be willing to offer me counsel on this? Even if it’s brief it would be greatly appreciated! [email protected]
Probably, and 90 cents will buy you a cup of coffee. Until he finds out, or is properly evicted, he has a chance.
Honestly (but respectfully), my reaction to all this “What planet do all of you live on? – whichever one it is, it’s definitely no where near New York City or Northern New Jersey”
I’ve already approached several landlords about airbnb and they all reacted like I was proposing to set up a meth lab by day – or a place for prostitutes to turn tricks at night. Seriously, the whole idea of negotiating the rights to use a leased apartment for airbnb – at least in the region I live in – strikes me as a delusional fantasy.
PS
If there is a landlord anywhere out there in Hudson County that will let me lease and apartment for airbnb, please let me know.
LOL bad salesmanship because I am peaking many peoples interest and have 2 people that have agreed to it.
what pitch did you use does that lanlord has more apartments
Thomas.
Have you follow training in how to rin an Airnbnd business?.
Because in a training/workshop you learn everything. from what to say. how to find them etc etc.
It’s legal to rent out a room and “share” your own apartment in NYC with a short term renter… but it’s not legal to rent a whole, unoccupied, living space without a Certificate of Occupancy that specifically permits that – e.g. a Hotel.
As a former, one summer only, Airbnb host, once I found out that my homeowner’s insurance would not cover any liability/property damage event, I realized that the financial gain was not worth the risk. Even if the event was not related to an Airbnb guest, the Insurer (Farmer’s) would contend that my “homeowner’s policy “misrepresented” the Airbnb business aspect and could therefore be used to negate any and all liability or property damage claims. Insurance Companies are all motivated to sell policies but are often disinclined to pay, and have staffs to find loopholes denying coverage. So given this, why would any landlord want to allow a tenant to sublease via Airbnb, with all the risks and no gain? Greed and need can be blinders indeed if not intent!
If you pay rent for a place you should be able to have family or friends visit and stay with you.
That is the part of paying rent, you are renting an entire living home not a bed. If I rent a home to someone it is not my proper place to us the threat of eviction to bully the renter with my own agenda of social engineering applied to them. Only matters that relate to damage to property (not ordinary wear tear), respect for neighbors are adhered to, are proper for you as a landlord to insert your authority.
Airbnb is is type of room sharing between the dwelling resident and other people. Other people just like if you had friends or family visiting. It is your business to chose who comes and stays at your dwelling and not the business of the landlord as long as your visitors respect the rules. Airbnb is not a lease agreement it is simply temporary room sharing and nothing more. No landlord has the right to use their authority as a big stick to bully their tenants to live by certain conditions that are not related to protection of their property. Have someone simply come and stay at your dwelling is not a valid cause to set of alarms and prompt your landlord to dictate who will be your guest and who won’t.
Simply put, there are far more people on the planet than land owners. In some locations like Australia for example, by design, land ownership is reserved for the exclusive. Even the USA is becoming like that in many regions. We can’t have a situation where we are at the mercy of landowners dictating their social agenda by using their authority as landlord as a bully stick. Yes, you, the landowner, may have worked and payed for that piece of property but here is a little secret, you didn’t do it on your own. That’s right, an infrastructure in place provided by the many working non-land owners and everyone working for that matter, allowed for you to be able to work and own your place. So in return to society for providing you with this opportunity, be a respectfully landlord and don’t abuse your authority.
Hey Randall,
“If you pay rent for a place you should be able to have family or friends visit and stay with you.” On it’s face this sounds logical…but in reality, it’s not. I am an apartment owner and while my leases don’t deny tenants the right to have temporary guests, they are limited to how many days they may have guests in a given year. The reasons are quite simple and logical. More guests create more wear and tear on the unit, they create more likelihood of damage, the cost of which I would have to bear to repair, they use more resources (I pay the water for the building, so my monthly expenses go up and, since we are in a drought area, the city will levy hefty fines if I exceed my water allotment, insurance companies will deny certain claims if they are not caused by the tenant. I have a small 6 unit building with adult singles as tenants. There have been guests who have babies and this can affect the other tenants’ right to enjoyment of their property…which is a legal right and which entitles them to redress from me. These are some, but not all, of the issues with allowing tenants unlimited rights to have guests. Anyone renting a home of any kind is ALWAYS subject to conditions. The only way to eliminate conditions is to purchase and own ones home.
I really like how you guys explain the very fair position of the Landlord. And, if you are able to mitigate the risks for them, you should have a good chance of hosting for AirBNB. I like that you note that it is a business and it’s all about getting the conversation started. If the conversation works, I’m going to change up my office interiors and create a new bedroom!
I am so lost here. I am a landlord and I can’t rent Airbnb without safety inspections , $800 permits and a business license but someone can rent it and just go for it? What?
They may not actually be allowed and many hosts could technically be violating local city ordinances. But lots of cities are still trying to figure out what to do with short term rentals and Airbnb. As the language clarifies, and especially if/when enforcement kicks in with fines, more hosts will begin to comply.
Symon so does your course go over how to find out cities and best spots to try and use this airbnb strategy of renting out an apartment? I have a job that requires alot of travel. I would only be home 8 days per month and was hoping to find a landlord/apt. that i could airbnb out when i’m away on business.
Hey Fred, our masterclass actually spends an entire module on how to do market research–either to validate demand or to find markets that have demand to get into. For your situation, yes, you should definitely verify demand before signing a lease or buying a new place. If leasing, definitely figure out permission and agreement with landlord prior to signing lease.
Symon, How much is our Masterclass?
You can find the latest information on the masterclass by going to masterclass.learnairbnb.com/join-now
Thanks,
Hello Symon, I am a supper-host on Airbnb already with landlord knowing I rent my place to Airbnb guest or friends. Been living there for very very long time, so they are cool with me renting my place as vacation rental, while I travel and work. They are Super happy I have kept the place clean and in order. I learned a lot being a host over the last few years and ready to start renting more places on Airbnb and other hosting sites. I live in Orange County/ Long Beach County area thinking their is good market where I live. My goal is to rent out about 12 locations to vacations apartment and home rental. My question to you is, Masterclass, is it just a beginning course or do have advance course for what you charge. I am sure their always something you learn from begging to end. But what I really want to learn is how to write a legal agreement with the landlord about me doing vacation stays at places I rent. Do you cover this in your Masterclass? do you provide a template to use vacation rental agreement with the Landlord? Nowhere I can ask questions on the site or contact info. I’m sure its all legit, but it just don’t want to pay for something I might need or not and put my card to pay and what to do next? It just says join here and ask for info and card and then what? Your link. masterclass.learnairbnb.com/join-now. Anyways, thanks for your time and just wanted make sure is this about growing your business is covered in Masterclass, not a start your new business on Airbnb…. hope to hear from you… take care…
Perhaps just do it… and let them evict you… its not worth the hassle everyone is trying to make money off everyone that’s business.
Not if your lease agreement has an acceleration clause for breach of contract–you could be on the hook for the REST of the rent due on the remainder of the lease term! Whenever possible, even if it’s harder, the the time to find an Airbnb friendly landlord and execute a proper leasing agreement with a short term subletting provision.
Symon – This has been my biggest problem trying to find opportunities in my target market . The rental market is strong here and I’m trying to find a few properties to become full-time AirBnB’s. I’ve tried to go about it saying that I usually travel one week a month for work and would like to do a short-term rental while I’m gone – they haven’t been perceptive to this idea. Should I just come out and be completely honest to what I’m trying to do? Airbnb is offering a new profit sharing program soon – do you think I should bring this up during my calls?
Same issue we faced before. I found that face to face prospecting, esp with the apartment buildings with property managers, were much more effective than over the phone. Still a low success rate but better than zero. Most building owners still aren’t too clear on regulation and so won’t risk getting fined or getting bad press so will say “no” immediately. Better bet is to find newish apartment in a metro/downtown market that is having a hard time filling up vacancies. Tell property manager you can help take some vacancies off them, generate premium rent (10-15% higher than market rates will do, esp if you have great arbitrage between Airbnb rates and long term lease rates), and go month to month with a mutual out on 30 day notice. You need to address their fears–liability risk, complaints by current tenants, parking, common areas, etc… Don’t talk about Airbnb on a first call. Set up a meeting and go check out the apartment and figure out if it’s even a good space first. Have that conversation in person. But still expect to have to talk to a dozen or few dozen folks before you get a YES. For homes, your best bet is to connect with homeowners directly. There is a growing number of folks who want to get in on Airbnb but don’t really want to host themselves and are looking for a good host to do all the work for them in exchange for a share of the profits (e.g. 15-20%).
Hi there
How do we find these owners that want hosts ?
Start by joining vacation rental owner groups on facebook and meetup. It’s a great place to start as some owners who are thinking about getting into the space will also join to learn.
Symon, thanks for sharing this post. Interesting negotiating tactics here that would be helpful. I’m curious if you have a recommendation about how one would go about finding a homeowner that is interested in partnering to rent their home on Airbnb. I’m an interior designer looking to help hosts design and get their homes up and running and would like to get reach out to these people to see if I can be of assistance.
Thanks again for the insightful info.
Send me a note to [email protected]. Want to clarify what you’re trying to do and may have an opportunity for you.
I loved this article. I am in the process of negotiating multi-family complex lease contract and would like to get a better monthly rate contract but I am planning of investing some amount of money into renovating the place and making it ready for airbnb. How can I convince the landlord to consider my investment into renovating the place as an addition of value to their property and get lower rate?
That’s an interesting proposition you’re proposing to the landlord. I don’t think most would have seen something like that. Just lay out the economics and benefits to the landlord and make sure to address all of the concerns outlined here. Note that most landlords are still inclined to say “no”.
Thanks to the people leasing places and then renting on Airb&b rents are increasing and affecting the ones with real jobs.
Thanks to the people leasing places and then renting on Airb&b rents are increasing and affecting the ones with real jobs. Should be illegal.
symon
Does your course include all legal agreements between the landlord and myself?
No, because every jurisdiction has different laws. It’s important to do things right in your specific market.
you need to consider that most landlords have mortgages and a tenent subletting in any shape or form is a definate no no with nearly all mortgage lenders.
As indicated in our contract, I as the leasee, is not allowed to sublease the propoerty I’m renting. However, the owner knows that the unit will be used for Airbnb. Do I really need to ask the leasor to remove the “sublease” in our contract considering she knows and gave us permission to do business with Airbnb?
It’s always best to get that approval in writing that says the approval supersedes and replaces the no subletting clause in the original lease agreement. Without that, you’re technically violating the original agreement and the landlord could exercise all of their rights in that agreement at any time as though you’ve defaulted on the agreement. If they approve, it’s better to have it in writing. It also makes it clear because sometimes the parties might not actually be on the same page.
As a landlord I would like to know if my property is registered with you as ppl are coming and going and even saying they are from you and I never gave permission to the tenants as they did it without asking permission. I need your response asap
If your tenants are listing your property on Airbnb without your permission, specifically violating your rental agreements, talk to your legal advisor. Depending on where you are, you may have different options of recourse, the least of which is to get them to stop. NOONE should be listing their apartment on Airbnb without landlord approval.
Hi, I am really interested in renting a property to set up an air bnb business but i am not sure how to do it. Regular agents are reluctant to manage the concept. Is there any company i can approach to help me. Thank you in advance, Gina
What utter greed and USURY – making money off other peoples assets is unethical and immoral and effects us all. Across the world there is a rental shortage and people wonder why, when rents are inflated by tenants who are subleasing property on Airbnb.
A few thousand dollars on advertising is nothing compared to the cost of an apartment which was probably a few hundred thousands dollars. Why don’t you buy your own house to rent on Airbnb if it’s so lucrative?
Sorry but to me your ideas sound delusional, you want to renovate and invest in other people’s property so you, as a tenant, can rent out that property to make an income?
Secure housing and shelter is a basic human need and is being undermined by this greed.
Agree. If the landlord is renting an apartment to someone for $800/month why would they be okay with letting a tenant rent it for $100/night. The owner of the property takes on all the financial risk while the tenant could potentially have a higher financial upside. No wonder it’s a lucrative business.
Air B&B is being established in at least 2 units in my apartment complex. My bicycle was recently stolen. I am a paying resident in a building with controlled access and still my property was stolen. This is a big problem for people who actually live in these communities. I understand that this is a great service and money maker but it can be at a great expense to other tenants who deserve a secure living situation.
How would a rent to rent agreement look like between the property manager and owner??
Here,t one downside for neighbors. Traffic. Lots of it. On fri,sat,sun I have at least 10 cars sitting around my house. I Don,t like this and have expressed it to the city. At least 5 other neighbors also complain. We are working on getting them evicted.
I don’t wish anyone a neighbor like you !
I don’t wish anyone to have you as a neighbor!
It is best to just talk to the owner, property manager about short term rentals. Get insurance for the space and have strict guidelines for your guests along w penalties if they act unbecomingly.
Talk to the neighbors, Give neighbors permission to call the authorities etc. The threat of a bad review, and neighbors aware you are staying, and having a third party (abnb) with guest license and personal info works. Our guests have been great and again posting a review on them along with their photo and ID, accessible to third party works wonders in keeping them cognizant of the rules. Just like we take in reviews posted by buyers on Amazon, restaurants and the like at face value. Need help drafting your guidelines to screen guests. Got short term rental questions. We can help.
I have been a landlord for decades and have excellent tenants and relations with them. If one of my tenants took your advice and contacted my attorney to try to talk with them about allowing subletting of my property, I would consider them shockingly presumptuous and no longer consider them a good tenant. Also, my attorney would not talk with them about anything having to do with my business; it would be a violation of client confidentiality.
Thanks for sharing Anne! We don’t really recommend that at all…hence the “nuclear” option. We always recommend a transparent and honest approach. And in the end, it’s entirely up to the landlord. Many aspiring tenant hosts will have to accept the likely scenario that they won’t be able to host on Airbnb with their apartment.
This was the most INFORMATIVE post I have come across! And to the naysayers.. You are needed..as motivation!!
Hi! The problem I’m having is accessing the owners direct. All the rentals in the Charlotte area are managed and listed by property management companies and I have realized you can’t get anywhere with them! Even if the owner liked the idea and was open to it, they are not gonna deliver the message to them. They are obviously scared of air Bnb because if I can manage the property they are no longer needed in most cases. Is it impossible to close a deal with a listing agent or property management company? Should I just focus on finding the owners? Thanks!
For property managers, you’re are right that you’d present a potential conflict of interest. Your best bet may be to find a large new, or recently renovated multi-unit apartment complex that has a high vacancy and will likely take more than a year to reach max occupancy. Approach them along the lines of, “Hey, let me take a couple of units off of you, pay above market rents, and help improve your occupancy. We’ll go month to month with a mutual 30-day out. When you fill everything else up with long term tenants, let me know and I’d be happy to get out. But in the meantime we can make a win-win”. But make sure you have them include the subletting terms in your actual lease agreement.