How to Work with Landlords to Sublease an Airbnb | Jorge Contreras - YouTube

Are you interested in starting  an Airbnb subleasing business  

but don't know how to speak to landlords  if you are interested in creating passive  

income and financial freedom through airbnb  subleasing make sure you hit that subscribe  

button and turn on the notification bell  hey everyone my name is Jorge Contreras  

and what actually allowed me to accelerate  my airbnb business to six figures a month  

is the subleasing strategy i was able to go fast  because i didn't have to buy the properties and  

put down large down payments all i had to do was  get permission in writing from the property owners  

and we're about to go over just that subleasing  is a phenomenal way to start your first airbnb  

but it can be illegal if you don't get permission  in writing from the property owner so here are  

some things that you need to do in order to get  approval from the actual landlord the first thing  

is that you want to be very transparent and in  the past i've tried the strategy where i first  

go and look at the property and then i build  relationship and once we get to the application  

process then i finally tell them that i'm  actually interested in using this property as a  

short-term rental and that has worked but there's  a strategy that i've learned over the years that  

has also helped me help hundreds of my students  launch these subleases and that is speaking to  

property owners being completely transparent and  mentioning the short-term rental strategy directly  

on the first phone call at the beginning of  the first phone call and this way if they  

are open to it now you get to go and look at a  property knowing that they're actually open to it  

whereas if you pitch it over the phone and let's  say that no matter what they're not open to it  

well now you just saved yourself the drive of  having to go over there so in my experience  

it's better to be upfront be transparent and  honest right off the bat and mention it at the  

beginning of the phone call so typically the  conversation might sound something like this  

hello yes i'm calling in regards to a one two  three main street is that still available and then  

typically they'll say yes because it was obviously  listed for rent i'll say great do you work with  

short-term rentals and then they might say yes no  or how does that work your job during this part  

of the conversation is one thing you want to make  sure that you educate them on exactly how it works  

often i have found that sometimes when we're  talking about subleasing their property  

they think that they're going to receive a  variable amount of rent depending on how your  

business does when in fact that's not true  we're going to pay them the advertised rent  

every single month for a whole year because we're  going to sign a lease agreement for 12 months  

and we can even set up the payment on autopay days  early just to give them peace of mind and so what  

you want to do is educate them on exactly how it  works often when a landlord or property manager  

says no in my experience it is because we failed  to educate them enough about the business model  

to say yes now if the landlord is open to it or  maybe they just had a couple of concerns that you  

overcame which we'll talk about a few objections  in a second but before we go into that i want to  

talk about the three pieces of documentation  that you should absolutely bring when you are  

looking at the property after they said yes number  one you want to of course complete the application  

whether it was online or if you printed it  and you are providing it physically number  

two is provide them your bank statements for the  last three months just so that they can see that  

one you actually have the finances and you're  not someone that after paying the first month  

in deposit you have no money left and then in  their mind they're thinking hey what if you don't  

do well in your first month or your second  month you're not going to be able to pay me  

so i recommend obviously the more money you have  in your bank account the better but at the minimum  

i would recommend three to six months of rent  reserves in order to give them peace of mind that  

you can actually afford to pay this property  in the event that you had to the third thing  

that you want to bring is a copy of your credit  report which you can get at freecreditreport.com  

reason for that is let's say you're going and  looking at three properties on a particular  

weekend you don't want the property owner or the  manager to run your credit and then have your  

credit run three times consecutively during that  24-48 hour period so instead i bring a copy of  

my credit report and i say hey landlord here's my  credit report and let's say that after speaking to  

them and seeing the property in person they like  me i like the property we want to move forward  

then at that point i say hey landlord feel free  to actually run my credit and so again i only  

let people to run my credit once i know  that we're actually going to move forward  

and they're only going to run my credit  to validate that what i actually brought  

is what's actually on my credit report so again  the application bank statements credit report  

and as i mentioned you want to make sure that you  sign a 12 month lease with the option to renew  

meaning that if after 12 months  everyone's happy and you want to continue  

you should have the option to be able to renew  your lease so far i've been able to renew 100  

of all these agreements and it's great because  look you'll see that when you actually launch  

your property like it's going to take a lot of  work from assembling furniture decor pictures  

creating the listing it's a lot of work up  front but once you set it up boom it could be  

mostly an automated business so why would you want  to stop all that momentum after 12 months and then  

go and start somewhere fresh no you want to just  let that baby roll over and just keep running it  

for as many years as possible also the landlord  doesn't have to you know take the property  

and start advertising and miss out on one or  two months of rent that they could have just  

gotten from you so typically as long as everything  has been good they also want to be able to renew  

that lease so make sure you put that verbage in  there that you have the option to renew as long  

as both parties are happy another thing that  you want to have written in the actual lease  

agreement is hey jorge contreras has permission  to use this property as a short-term rental  

that now gives you the legal permission to use a  property as an airbnb the second thing that you  

want in the contract in the lease agreement is hey  Jorge Contreras has permission to change the locks  

why because typically in a lease agreement you are  not able to change the locks when you're actually  

living there because a property owner typically  wants to have a copy maybe every three to six  

months they want to do an inspection to make sure  that the property is taken care of but in this  

case as airbnb hosts we're actually going to set  up a keyless entry to automate the entrance and  

exit of each and every guest so you want to get  permission to change the locks to a keyless entry  

now let's talk about three objections that  will likely come up in the conversation  

not always but often you'll get one two or all  these three the first objection and just to get  

everybody on the same page and objection is  typically like a concern that they might have  

and you want to acknowledge and overcome and you  want to acknowledge and overcome these objections  

by providing solutions the first objection might  be like jorge how do i know you're going to pay  

me on time and one you could say hey landlord i'm  actually going to set up the property on autopay  

days early so that you always get paid early or  on time the second objection that might come up  

is jorge how do i know that you're going to make  sure that my property is taken care of and here's  

how we answer that hey landlord well look in order  for us to provide a five-star experience for each  

and every guest we need to make sure that the  property is in five-star condition after each  

and every guest so if there's ever a small leak  or repair or a cosmetic thing that we need to fix  

my team and i will fix it immediately before the  next guest checks in that means landlord that your  

property will remain in for sale condition  exactly as when i took it over number three  

they might say jorge i want to make sure that we  don't have any issues with the neighbors they're  

going to see people coming in and out so how are  you going to make sure that there's no issues with  

the neighbors and typically here's how we respond  to that hey landlord i totally understand how you  

feel because you know i've worked with other  property owners and they have felt the same way  

and here's what i found is that i'm actually  gonna go and introduce myself to the neighbors  

to the right to the left in front and behind and  i'm gonna personally introduce myself give them  

my business card share my personal contact and if  they ever hear or see anything they can contact me  

directly and it is my commitment to make sure that  the neighborhood is comfortable and everyone's  

happy and we don't have any issues because i know  that's going to actually help me run a successful  

short-term rental business as well by keeping  everybody happy hey if you're finding value from  

this video make sure you hit that like button  now here's something else that i want to cover  

just as a bonus before we finish here what if you  don't have a job right now and you don't have the  

income requirement to implement the subleasing  strategy where often they want you to make two  

to three times the amount of rent meaning if the  rent is two thousand a month they often want you  

to make four to six thousand a month just to make  sure that you can actually afford the property  

and one way that i have found that will often  work is if you have those three to six months  

of rent reserves it can often offset the income  requirement because at the end of the day it's  

really about the property owner having peace of  mind that you will be responsible financially  

to pay the property every single month hey i hope  that you enjoyed this video and to continue to  

help you on this journey of starting your airbnb  business successfully right off the bat i created  

some free resources in the description down below  i have a free ebook some free trainings coming up  

so make sure you guys check them out in the  links down below you're gonna see lots of great  

videos here on my channel so make sure you guys  check out another video see you on the next one