Exclusive Rental Agreements

Innovative Strategies
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Exclusive Rental Agreements

Alex Sanfilippo
Jacksonville Beach, FL · Member since 2015 · 115 posts · 19 votes

I posted this under "innovative strategies" although it could be something that everyone is already doing; I'm just new to REI and I wanted to run this idea by some professionals so that I can continue to learn!

Has anyone had any experience with renting multiple properties to large companies or schools and becoming an 'exclusive' or official partner with that school or company?

Example: If an employee moves to work at their company's corporate office and they ask about housing, they would have a list of my properties that are available for them to rent, even if it is temporary. If they are not interested in these, they are of course able to just go find their own, but this would be all that the company offers.

Not sure if I explained that well... I'm just wondering if this type of thing is "real" and if it happens in the world of REI. Again, I'm a new guy just trying to gain some knowledge and understanding.

I'm looking forward to the responses,
Alex Sanfilippo

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Tanner Bruce
Real Estate Professional · Atlanta, GA · Member since 2016 · 22 posts · 20 votes
10y

@alex sanfilippo Hi Alex- Great idea! Sounds very similar to what my company does for Owners/Landlords.

We act as a marketplace where Owners/Landlords can sell their exclusive rental rights to a professional Rental Management Company for a fixed amount. The Manager in turn has the exclusive ability to place tenants in the property while the Owner/Landlord receives guaranteed income regardless of vacancy.

It sounds like your idea was similar, but instead of a Rental Management Company buying the rights, it would be a corporation or university. 

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    10y

    Nope, why would they?

    0Reply
  • Garry C.
    Rental Property Investor · Littleton, CO · Member since 2015 · 252 posts · 164 votes
    10y

    Good idea Alex. Although what's important is whether or not there is demand. I think that might be what Wayne was trying to say, although without any helpful context.

    Problem Solving is what this business is all about, so you're on the right track with this mindset of creative solutions. You just need to be sure a problem exists first. If your area is growing economically and has a lot of people migrating to it, then this idea could prove very profitable to you.

    1Reply
  • Alex Sanfilippo
    OP
    Jacksonville Beach, FL · Member since 2015 · 115 posts · 19 votes
    10y

    @Garry C. Thanks for the helpful context! I'm going to slowly pursue this through networking to see if anyone will know the right person to talk to at some of the smaller schools (Not major universities) and some of the recently transferred corporate offices, we get a lot of big businesses from Chicago that move down here. Thanks again sir!

    0Reply
  • Patrick LiskaPro Member
    Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
    10y

     try talking to a hospital if there is one near by, for DR and Nurses. what about a large corporation that may have executives or sales men that come to town for meetings, convince them to rent a place and they can decorate the way they want it, maybe with their logos and stuff. just some thoughts, now you have me thinking, thank you !

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  • Garry C.
    Rental Property Investor · Littleton, CO · Member since 2015 · 252 posts · 164 votes
    10y

    Something else to consider, I have seen something similar to this before. In my neighborhood there is a large government contractor nearby, and they own a few houses that they rent to employees. Similarly, where I have a vacation rental property there is a ski resort that owns a few condos in the complex, for their employees. So, there is obviously a need for 'employee housing' in some areas. Although in many cases corporations will simply buy the properties and become the landlord as well as employer. Maybe this points to a niche that you can fill. Again, it's about problem solving, so find out what the companies don't like about these arrangements. There are pros and cons to everything. If you can make the cons outweigh the pros for them, then you've got a business model.

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  • Alex Sanfilippo
    OP
    Jacksonville Beach, FL · Member since 2015 · 115 posts · 19 votes
    10y

    @Patrick Liska - Great idea! Thank you for that. I'll keep you posted if I make any progress on this.

    @Garry C. - I appreciate the great comments and wisdom. I'm going to pursue this but continue staying open to other strategies. I am still new and just learning as much as I possibly can and am trying to find my niche. Thanks again!

    0Reply
  • Tanner Bruce
    Real Estate Professional · Atlanta, GA · Member since 2016 · 22 posts · 20 votes
    10y

    @alex sanfilippo Hi Alex- Great idea! Sounds very similar to what my company does for Owners/Landlords.

    We act as a marketplace where Owners/Landlords can sell their exclusive rental rights to a professional Rental Management Company for a fixed amount. The Manager in turn has the exclusive ability to place tenants in the property while the Owner/Landlord receives guaranteed income regardless of vacancy.

    It sounds like your idea was similar, but instead of a Rental Management Company buying the rights, it would be a corporation or university. 

    2Reply
  • Alex Sanfilippo
    OP
    Jacksonville Beach, FL · Member since 2015 · 115 posts · 19 votes
    10y

    @Tanner Bruce This does sound similar! Do you happen to have a website for this? I'd like to hear more about it for sure.

    1Reply
  • Tanner Bruce
    Real Estate Professional · Atlanta, GA · Member since 2016 · 22 posts · 20 votes
    10y

    @Alex Sanfilippo Sounds great- Yes, our website is www.rented.com. Please feel free to DM me, I'd be happy to discuss more!

    1Reply
  • Alex Sanfilippo
    OP
    Jacksonville Beach, FL · Member since 2015 · 115 posts · 19 votes
    10y

    @Tanner Bruce that's a nice website and seems to be a great business model. Good stuff!

    0Reply
  • Percy N.
    Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 905 votes
    10y

    @Alex Sanfilippo, a friend of mine specializes in providing executive housing for foreign employees who are here for 2-3 years on a H1B visa. 

    He has a preferred (not exclusive) relationship with large employers in the area.

    He has grown this portfolio to over 12 SFR rentals.

    1Reply
  • Alex Sanfilippo
    OP
    Jacksonville Beach, FL · Member since 2015 · 115 posts · 19 votes
    10y

    @Percy N. - Thanks for the information! I am actually working with a school in my city now trying to see what I can do to help them; I'm starting a business plan this coming week to show an investor.

    0Reply
  • Percy N.
    Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 905 votes
    10y

    @Alex Sanfilippo, is your goal to rent to faculty and staff of the university or students?

    The marketing and approach will be very different for these 2 distinct populations.

    Not sure you will get a university to endorse private housing, but you could establish a brand and market via the University's newspaper, radio, bulletin boards, etc.

    0Reply
  • Alex Sanfilippo
    OP
    Jacksonville Beach, FL · Member since 2015 · 115 posts · 19 votes
    10y

    @Percy N. - My goal would be students... I like what you said here:

    "Not sure you will get a university to endorse private housing, but you could establish a brand and market via the University's newspaper, radio, bulletin boards, etc."

    Marketing is actually one of my natural strong points, although I have never done marketing in this industry, most of my marketing skill is in aviation and online help for personal growth and development. However, I am up for learning how to get good at marketing in real estate!

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