Running an Airbnb is a side hustle or business that many see themselves doing, if only they owned a home.<\/p>\n\n\n\n
Valued at $36 billion, Airbnb is a booming company that many travellers prefer over traditional hotels. If you have an extra room in your rental or you\u2019re often away, it seems like a missed opportunity.<\/p>\n\n\n\n
But today, an Airbnb entrepreneur doesn\u2019t need to be a homeowner<\/strong>. In fact, you can start and scale your Airbnb business without owning any property at all. But you have to do it the right way. Your landlord has to be on board.<\/p>\n\n\n\n It\u2019s very important that you do not try to start this business before you\u2019ve received your landlord\u2019s approval. Your neighbours could easily tell on you, or your guests might have a party and get the cops called. There\u2019s no way for you to know what will happen.<\/p>\n\n\n\n This isn\u2019t a \u201cbetter to ask for forgiveness than permission\u201d situation. It could cost you a lot.<\/p>\n\n\n\n Here\u2019s how to talk to your landlord about running an Airbnb on your rental, while also maintaining a healthy relationship.<\/p>\n\n\n\n Your landlord monetizes his or her property through long-term rentals. It could be their side business or full-time income. In any case, it means they opted for a secure and low-risk income plan.<\/p>\n\n\n\n Your landlord may not like the idea of short-term rentals at first. After all, what could they get out of you running a business on their property?<\/p>\n\n\n\n Nothing but more risk. This is something you need to consider when you approach them about renting out spare rooms, apartments or even full homes.<\/p>\n\n\n\n Put yourself in their shoes. You own a house and decided to rent it out long-term. Then your tenant asks you if they can host strangers in it short-term to gain a massive profit off your property.<\/p>\n\n\n\n Your income stays the same but your risk skyrockets.<\/p>\n\n\n\n That\u2019s how you need to approach this conversation with your landlord.<\/p>\n\n\n\n Don\u2019t come to the conversation pretending there are no risks.<\/p>\n\n\n\n Your landlord will find things out when they do their due diligence. Come prepared and aware of the risks and with a plan to mitigate them.<\/p>\n\n\n\n Possible risks to your landlord are:<\/p>\n\n\n\n The last one is the main issue. Come to your landlord already aware of these risks and your proposal for mitigating them.<\/p>\n\n\n\n Here are the possible solutions:<\/p>\n\n\n\n These are the primary risks for your landlord. Below we\u2019ll further ways to make them feel more comfortable with the arrangement.<\/p>\n\n\n\n Listing your rental property on Airbnb is\u00a0legal in many places. In others, it\u2019s legal conditionally. But in some places, it\u2019s straight illegal. It\u2019s not your landlord\u2019s responsibility to research.<\/p>\n\n\n\n Know the exact regulations that apply before proposing this to your landlord.<\/p>\n\n\n\n The first place to look is the Airbnb website itself. If you go to the Airbnb Help Center.<\/p>\n\n\n\n There you can look up your region and understand the regulations of your area. You can find all the information you need there. For instance, you can find links to the City Council regulations or other resources.<\/p>\n\n\n\n Map out a game plan of how you will ensure everything is in line with the law. Bring it to your landlord to discuss face-to-face.<\/p>\n\n\n\n You read it when you were first getting your apartment. But you\u2019ll need a refresher before you plunge into this Airbnb business.<\/p>\n\n\n\n Most rental agreements have the following clause: \u201cTenant shall not sublet all or any part of the premises without Landlord\u2019s prior written consent.\u201d If you violate this clause, your landlord can evict you.<\/p>\n\n\n\n You may be in a tricky situation if:<\/p>\n\n\n\n These are great reasons for your landlord to say no. See if you can amend this clause for your new business venture.<\/p>\n\n\n\n Make sure you get anything you decide on with your landlord in writing.<\/p>\n\n\n\n Even if you\u2019ve calmed their qualms about risks and aren\u2019t violating any laws or contracts, there\u2019s still one issue. If they\u2019re charging you $1000 a month, why on earth would they be okay with you charging guests $100 a night? Why would they want you to build a lucrative business on their property when they\u2019re only making a modest income?<\/p>\n\n\n\n Sometimes this is what will make or break your deal. One option is to offer to split profits with them.<\/p>\n\n\n\n You still pay the same rent, plus more. Either a fix lump sum or a percentage of the profits. In this sense, you\u2019ll become their short-term property manager. They will get an additional source of income without having to put any extra work in.<\/p>\n\n\n\n You can also explain to your landlord that you will make improvements to the unit. They\u2019ll get the house back in a better condition than it was before and<\/em> have made a profit.<\/p>\n\n\n\n Beyond the legal and financial risks involved, there are other things that could make a landlord uncomfortable.<\/p>\n\n\n\n This is their property, so you need to respect their rules.<\/p>\n\n\n\n Examples of rules they may want are:<\/p>\n\n\n\n Make sure it\u2019s clear you will impose all these rules on your guests and penalize anyone who doesn\u2019t follow them.<\/p>\n\n\n\n Have a thorough guest screening process ready to show your landlord. As a basic screening, use the systems that Airbnb already has in place. You can set up requirements for people to book with you: verified account\/ID has positive reviews, etc.<\/p>\n\n\n\n If you have a nervous landlord, screen your guests beyond the Airbnb process. You can start a conversation with the guest and get a feel for them. Ask them for their reason for travel, and ask them anything else that you or your landlord deem important.<\/p>\n\n\n\n Never accept guests who seem shady in any way.<\/p>\n\n\n\n Keep your landlord and neighbours in the loop at all times. When will the guests stay? How many are there? You can also add a rule that your guests allow you to share their profiles with the landlord. This can add an extra layer of comfort.<\/p>\n\n\n\n In the end, it\u2019s the landlord\u2019s decision.<\/p>\n\n\n\n You need to respect their decision. But, if you come prepared and show you\u2019ve done your research, you can be that much closer to a deal.<\/p>\n","protected":false},"excerpt":{"rendered":" Running an Airbnb is a side hustle or business that many see themselves doing, if only they owned a home. Valued at $36 billion, Airbnb is a booming company that many travellers prefer over traditional hotels. If you have an extra room in your rental or you\u2019re often away, it seems like a missed opportunity. But today, […]<\/p>\n","protected":false},"author":1,"featured_media":11505,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"amp_status":"","footnotes":""},"categories":[20],"tags":[],"class_list":{"0":"post-11496","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\nThink about what your landlord wants<\/strong><\/h5>\n\n\n\n
Calculate the risks and propose a mitigation plan<\/strong><\/h5>\n\n\n\n
Study the regulations<\/strong><\/h5>\n\n\n\n
Before approaching your landlord, read your rental agreement<\/strong><\/h5>\n\n\n\n
Offer to split profits with your landlord<\/strong><\/h5>\n\n\n\n
Set expectations and rules that work for everyone \u2014 stick to them<\/strong><\/h5>\n\n\n\n
Show your landlord how you screen guests<\/strong><\/h5>\n\n\n\n
Keep everyone in the loop<\/strong><\/h5>\n\n\n\n
Make it easy for them to say yes, but let them say no<\/strong><\/h5>\n\n\n\n