By - Thursday, August 08, 2024
When it comes to mid-term rental arbitrage, one of the key elements to success is securing properties through subleasing agreements. Convincing landlords to allow subleasing can be challenging, but with the right approach, it can be a win-win situation for both parties. Here's how you can effectively persuade landlords to sublease their properties for corporate housing.
The Pitch: Benefits for the Landlord
Enhanced Rental Income:
"How would you like it if I rented your property, got it cleaned for free every few months, and paid double the market rent?"
By offering to pay above-market rent, you immediately capture the landlord's interest. This higher rental income can be particularly appealing, especially for those looking to maximize their returns on investment.
Maintenance and Cleanliness:
"Any maintenance under $200, I will shoulder."
Regular maintenance and cleaning are part of the deal. This ensures the property is well-maintained, reducing the landlord's stress and the likelihood of significant issues arising.
Long-Term Lease Contract:
"I will sign a long-term lease contract. There will be no late payments."
Stability and reliability are critical factors for landlords. A long-term lease provides security, and the assurance of no late payments builds trust.
Corporate clients vs. vacationers:
"I cater to corporate clients instead of vacationers, who most of the time trash properties. Corporate clients treat properties well."
Emphasize that corporate clients are generally more responsible and respectful of the property compared to vacationers. Corporate clients often have reputations and jobs to protect, which usually means they take better care of rental properties.
Multiple Insurances:
"The property will be covered with multiple insurances for safety purposes."
Providing additional insurance coverage reassures the landlord that their investment is protected against unforeseen damages.
High-quality guests:
"I am only accepting high-quality guests."
Ensuring that only vetted, high-quality guests stay at the property reduces the risk of damage and disruptive behavior, further easing the landlord's concerns.
Conclusion
Convincing landlords to sublease their properties for mid-term rental arbitrage requires highlighting the numerous benefits they will enjoy. From higher rental income and regular maintenance to the reliability of corporate clients and enhanced property protection, these points can help sway landlords in your favor. By emphasizing the stability and profitability of mid-term rentals, you can secure the properties you need to grow your corporate housing business successfully.
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