Approaching a Property Manager About Leasing for Airbnb

[Andy O'Neal]

I'm looking to buy a property in Baltimore use as a short-term rental full time via Airbnb. While working through the slower parts of the purchase process (financing through a small credit union), the thought occurs to me - Why not see if I could rent a home or two and do the same thing?  

I've read some posts here about owners angered by their tenants doing Airbnb on the sly. I understand. That's not what I'm after. I want to do this totally on the up-and-up with PMs and/or LLs being totally aware of my intentions.

I take for granted that landlords/PMs are going to be predisposed to reject use as a STR - especially full time.

What are some good ideas about how to approach landlords or their reps and assuage their worries?

My instincts say I should be very forthcoming - not even asking for a viewing of a listing until I've come clean about my Airbnb plans. 

I'll also assure - and even encourage the LL to put into the lease - that I will have a STR-tailored commercial insurance policy that will supersede homeowners insurance. (Propoer Ins, underwritten by Lloyds seems like the gold standard here.)

I would also be willing to put down 2 months rent as a deposit (max allowed in MD, I believe, and double the standard). 

I can also pay more, say 10% or even 15-20%, more than current list. In most cases, that is still will below the initial listing amount from when the properties went on the market in May, June or July.

I'm also only planning to approach on properties that have been vacant for 5+ months. The Baltimore market is slower than a lot of others and a lot of big apartments are coming on line. There appears to be diminishing demand for the 4 bedroom townhomes that I'd prefer.  

Many thanks in advance for any thoughts, ideas or practices that have worked in the past.

[Eric A.]

I have been in the STR business for a long time - 10 years! Wow, now I feel old! Andy, here are some pointers to get you going and approach other landlords. One on one landlord talks / presentations will be much better then a property manager. Remember, the property manager gets paid through long term rentals and may perceive you as a threat.

1. Contact your friends or colleagues and ask them if you can Air BnB a room or start your business with their help. Once you have a couple stays create a professional web site and business cards. Quality pictures, quality pictures, quality pictures. Go Daddy and a hungry college kid can develop a very professional web site for $100. Business cards are very inexpensive.

2. Contact landlords through any list company like listsource.com. You will mail them directly or call them and you will have more appointments that you can shake a stick at. An original letter that is hard hitting is key.

3. Out of state owners in your target neighborhoods are your customers.

4. Ask for a 3 - 6 month lease with the first months rent due in 60 days. You have to get the property ready and this will only benefit the owner. Can you imagine offering a landlord a free rehab! Yes, it's only paint touch up, new light plate and electrical plates, possible new light fixtures and cleaning, but this only helps the owner and costs you less then $1000! The delay in 60 days to pay rent will allow you 30 days of revenue that will cover prep and repairs.

5. If it's not furnished you can easily furnish a 2 - 3 bedroom apartment very inexpensively. PM me and I will give you places to find everything. I can't give away all my secrets.

6. Advertise the property on Air BnB with high quality pictures and a guidebook is key. Did I mention high quality pictures. Show the owner all you have done and tell him his landlord friends are completely missing out. If your research is correct you should be easily earning 35% clear per month for less then a $2000 investment. Yes, that's highway robbery.

It's a great model and always listen to people who are actually doing Air BnB and landlords.

Best Regards,
Eric