So you’ve done your market research, found an area with good profitability, and are okay with the local short-term rentals rules. You have a bit of money saved, and are all set to do rental arbitrage. So, what’s next? Right – you’ll need to find landlords that allow Airbnb.
Finding properties that allow sublets is the first hustle in launching your rental arbitrage business. With many cities and tourist hotspots now saturated with vacation rentals, how will you locate properties that allow Airbnb? Do you know how to pitch landlords on Airbnb?
In this post, we list some practical ways to help you land your first rental arbitrage deal.
First, let’s make it clear. It’s not easy to find apartment complexes that allow Airbnb. Many property owners hesitate from allowing sublets because of the following reasons:
So when you find a landlord who’s willing to listen to your arbitrage plans, you’ll have to be ready to answer common objections.
You can even offer a revenue-sharing agreement in exchange for letting you use their property for Airbnb. (We’ll discuss this in a separate post.)
There will be landlords who are very much willing to sublet, though. And you don’t have to turn over rocks to find them. There’s a variety of resources, online and offline, that you can tap to locate Airbnb-friendly landlords.
Online real estate websites like MLS, Zillow, and Trulia are online marketplaces that connect renters with landlords. They let you search by city or ZIP code and narrow the results based on different categories like size, number of bed and bath rooms, etc. Many of them have interactive maps that you can zoom in on to see where properties are located, with helpful details about the surrounding area.
If it’s just apartments or condos you’re after, go to ApartmentGuide, ApartmentList, HotPads, PadMapper and Sublet.
Search engines and online marketplaces like Google, Craigslist and even Facebook Marketplace are where people turn to for almost anything nowadays, including housing.
On Craigslist, you can type “Room for Rent” and you may find a property whose owner will let you sublease. You could actually type “Sublease apartments” or “Want to find an Airbnb-friendly landlord” and you might find exactly the type of property owner you’re looking for.
Many independent owners are definitely looking to get their properties leased. You could even look for properties on sale that have been on the market for a while.
In the absence of buyers, their owners might be open to renting them out instead. Just keep trying.
Sometimes, you’re just a few clicks away from someone who has exactly what you want. You’ll just have to explain what you’re looking for and planning to do.
And the people you talk to, even if they themselves can’t provide what you’re looking for, may know of somebody else who has it. They might say, “Oh, you can talk to this person, they just started buying multifamily buildings.”
And it could lead to something great.
Watch our video on YouTube below that explains the process!
Real estate agents work directly with homeowners and landlords. You can call and tell them your intention of subletting on Airbnb.
Realtors get commission from brokering leases, and if you can offer them extra commission on top of the standard amount they get, they’d be likely help you out.
Go to local real estate investor meetings and build relationships. Cities have well-established meet-up groups that know the ins and outs of the local real estate industry.
Get to know people there, make a good pitch, and when they get leads on something, it’s possible they’ll remember you and tell you about it. Besides, they already know who in the local industry would be open to your kind of arrangement.
Go to Meetup.com, search your chosen city, and look for real estate meetings or real estate investor meet-ups or events.
Drive around and look for potential properties — physically.
Go around neighborhoods you’ve never gone before, even if they’re 30 minutes away. You might see properties with a “For Rent” sign, and there’s a chance their owners might be home, available to talk to you.
If it doesn’t work out, at least you had a chance to practice your script!
Understandably, the most logical option is to focus on neighborhoods within your vicinity or those within driving distance of maybe an hour. But it’s not ideal to limit yourself only to the area where you live.
When it comes to rental arbitrage, the opportunities are unlimited. There are markets booming far and wide, and it’ll work in your favor to keep your horizons wide open.
And of course, don’t forget your own landlord. If you’re renting the space you’re residing in and have a good relationship with your landlord, ask them if they have other properties that are vacant.
If you’re a good tenant — you’ve been there a good while, paid your bills on time, and caused your landlord no trouble — there’s a good chance he’ll listen and accommodate your pitch.
You could also ask friends, or neighbors down the street who are renting apartments. Their own landlords may have multiple properties waiting to be rented.
Read also: Don’t Start an Airbnb without Answering these 8 Questions First
These are just some of the options you can look into.
In big, booming cities that are “hot markets” in the real estate industry, finding landlords that allow Airbnb can be a little more challenging. You’d have to be more diligent and constantly going out, looking for your big break.
As an alternative, look into smaller markets where there isn’t as much competition.
It pays to be creative and persistent. Don’t give up after just a few tries and think, “I gave it a go, there’s nobody out there. That’s it.”
Keep trying until you find and seal your first deal.
In these competitive times, homes can go very quickly — especially now as cities reopen after Covid-19.
Even as you’re reading this post, someone may already be listing their property online, looking for a good tenant. They may not care too much if their property is used for arbitrage. They may just want somebody to take care of it properly.
And that’s where YOU can step in.
Read also: Co-hosting on Airbnb — Can You Do it Without Prior Hosting Experience?
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