It’s your responsibility to educate the property owner as to why you will be the best tenant they have ever had. If people arent going for your pitch, then you arent presenting it in the right way. Here’s what you need to communicate.
“I will be the best tenant you have ever had. I will have professional cleaners in your property every 2 to 5 days, if anything ever breaks like a window or a ceiling fan, it is no longer your responsibility to fix it as the property owner. It’s my responsibility. I take care of making sure it gets done before the next guest arrives. The people coming in and out of the property use it sparingly instead of living there permanently, so your Cap X are lower, and your appliances and flooring will last longer. I’m adding tremendous value to your property in terms of Gross rents. When your property generates $30,000 and the identical property across the street generates $12,000 that adds value and build equity for you. Paid first. We pay you on the first of every month, if we do a good enough job, then we get to keep what is left over above the rent, but you always get paid first, your property continues to go up in value, someone else is paying the mortgage for you, and we are adding forced appreciation by keeping it nice, and pumping rental income through your property.”
I typically offer market rent, or slightly above. You can offer some kind of profit share like up to five or 8% if you think that’s a creative solution that will get the deal done. The best thing to do is to target multi family properties where you have already run the metrics through air DNA and know that they will perform nicely. Once you get one unit, even if they just give you one to try out, as soon as the other tenants contracts are up, if you are operating correctly, they will give them to you. This strategy is a dream for a passive investor. They just sit back and collect money, and you take care of the property.
