Rent-To-Rent From Landlords Perspective
In this article, you are going to get some inside information on how to speak to landlords, how they think, why would they pass you their house keys for your rent to rent business and what you need to say to them to get the deal.
Some of my readers have seen me secure deals before as I have approached many landlords and agents for my rent to rent deals.
People tend to think that landlords only want to work with already established companies and brands but the landlord I spoke to recently proves otherwise as many landlords actually prefer dealing with individuals than faceless company representatives
who get replaced frequently.
In my recent interview with one landlord whom we’ve never met prior to our previous contact, I wanted to know his point of view on rent to rent deals and how he thinks it can better be done to suit both parties.
Here are some of the questions he tackled in our interview.
Why Did You Hand Me Your Property?
First of all, I didn’t know that you were doing a challenge and when I later on saw it, I thought wow what’s this guy doing?
I came to understand later on why you were so keen on showing the tenants around and thought wow this guy has a lot of energy and wants to show me he can do the management job already!
I immediately liked your energy and I mostly like to do business with people whose
energy I like. Wherever and whenever I get a gut feeling that a person or business is the right choice
for me, I give in. I trusted you and I think you showed me with that viewing that you could do what you are doing and what you said you could do.
You even got one guy to agree to rent the property in front of me and that sparked trust inside me knowing that you could manage my property better than anybody else or
Do You Prefer Dealing with Agents or Individuals?
I’ve always preferred dealing with individual people. I’ve had agencies run things for me and everything was professional as we had contracts but usually the contracts were biased against me as the customer.
If there were some damages, I would have to pay them and I would have to pay a surcharge for a little thing like changing a light bulb which would cost me sometimes three hundred percent because of the agency fees.
In addition to the cost of the light bulb and the cost of the visit, there were some hidden costs with agencies that I didn’t like and experienced.
When you deal with an agency, you sometimes see person A, sometimes you see person B and sometimes you see person C because they maybe are on leave and so you have to establish lots of relationships with these people.
My priority of course is to have a human sought of connection by doing business and I thought with you, it would be just dealing with you.
When you approached me with the proposal of managing my property, my honest truth is that I wanted to deal with you alone because I liked your energy and I thought okay let’s go for it and of course we’ll have a three-month break laws which I think you
You told me if it doesn’t work you or I can pull out after three months and if we like it then we’ll have a successful contract and therefore, I thought okay let’s do it for the three months the worst case scenario if everything doesn’t go as planned, I will lose
three months’ but you actually were going to pay two months in advance or something similar and so I wasn’t going to be risking too much and from my feeling it, it was going to work with you and then you passed it on to someone in your team.
Whoever that is he was busy.
Usually, I manage my own properties and I like it.
There’s many pros in it such as having much more control over my property and if there is a concern like my pump is broken or whatever, I get to know about it first as it doesn’t have to go through someone and that someone might be on holiday or might not be up for letting me know as things might build up.
If the tenant asks me, it might take maybe 1 or 2 days to fix if it’s not urgent or one to two minutes to sort out if it’s urgent.
One of the pros of having someone manage the property on my behalf would be that I don’t have to deal with things like this and I just got married as I had my honeymoon and I thought okay let’s get this managed and as you know it was advertised on spare
I wanted to manage it myself, I wanted to rent it out room by room as it had an HMO license and you approached me to manage it for me.
I already had some decision-making to do because I was planning to rent it myself and then when you came to negotiate, I thought actually yeah why not? you will save me management time. I might earn less money but you will save me some time and I can enjoy my honeymoon.
How Did I React to Our Deal Not Working Out?
To tell you the truth, you didn’t respond on the first day and not even the next day and I thought maybe Samuel is so busy and this doesn’t mean that he’s not going to change his mind.
You were just busy but later on got in touch with me and said no problem as you send over the keys and said it’s okay.
This of course cemented respect towards you and how you carry out businesses with people.
Even though we never got to work with one another, I would definitely recommend your rent to rent services to anyone who comes to me looking for such services.
When you act in a decent way with people then they will remember your deeds.
When you’re doing rent to rent, you should really be mindful of the landlord’s concerns because I mean it doesn’t show really in the video because it was cut of course but I asked you lots of questions and you gave me lots of assurances and as to how you would take care of the property and what I can do when things go wrong.
Whats your Advice to People Doing Rent to Rent?
As a landlord, I would want a rent to rent dealer to offer me a clear agreement that includes what would happen when problems happen.
When things go wrong who would be responsible for dealing with such problems?
Would there be a floating budget to solve problems and who would pay for the repairs?
What kind of repairs would the landlords have to pay and what would the rent to renter pay?
Who’d pay the cost of rubbish collection if there are big items to be carried away like if a bed is broken, who would pay for their removal? Would it be the rent to renter from their profits or would it be the landlord because if the landlord will have to pay lots of things every month, then they’re not getting a guaranteed rent of three thousand because they’re having to pay for a lot of things every month and therefore the guarantee needs to be much higher.
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