How To *Successfully* Negotiate Leases For Airbnb Arbitrage

Want to promote your business to my community of 1,400+ entrepreneurs and investors? Reply to this email with “SPONSOR”. 📈

Starting my Airbnb arbitrage business at 19 was one of the best decisions I’ve ever made. Now, at 21, I manage 48+ Airbnb properties across four states, and one of the most critical skills I’ve developed over the last two years is negotiating leases. Whether you’re just getting started or looking to expand your portfolio, negotiating leases is crucial for success in the Airbnb arbitrage business.

Here I’ll share the strategies that have worked for me when negotiating with landlords and Property Managers, and how you can use them to secure deals for your business too.

1. Understand the Landlord’s Perspective

One of the first things you need to do when negotiating a lease for Airbnb arbitrage is to understand the landlord's concerns and motivations. Most landlords want long-term, reliable tenants who will take care of their property. The idea of short-term rentals might make them uneasy because they fear increased wear and tear, noise complaints, or dealing with vacancies.

Strategy:

• Offer Stability: Highlight that you’re a professional operator, and with your business model, you can offer guaranteed, on-time rent payments without the risk of vacancy. Explain that your success depends on the property being well-maintained for guests, so they can rest assured that you will keep the property in excellent condition.

• Emphasize Professional Management: Share your experience managing multiple properties and explain that you handle maintenance, cleaning, and even guest screening to ensure high-quality tenants. This reduces the burden on landlords and reassures them that their property is in good hands.

• Create a Pitch Deck: In this deck you will break down every aspect of your business and showcase the exact intentions you have with the property. Everything from vetting guest, security measures on the property, maintenance and more! This will give the landlord or Property manager a better look at exactly what you will be doing, and how you will be doing it. *This deck has converted multiple no’s to yes’s and the exact pitch deck template can be found in my Airbnb Takeoff program 😉

2. Create a Win-Win Proposal

Negotiation is all about finding common ground. Approach landlords with a mindset that creates a win-win situation for both of you. Instead of just asking them to allow Airbnb arbitrage, show them how it benefits them.

Strategy:

• Consider Longer Lease Terms: Offering a longer lease (e.g., two or three years) can provide landlords with greater security and reduce turnover, which is attractive to most. This can be a great way to secure a property for the long term and avoid the hassle and worry of having to renew leases frequently.

• Offer a Slightly Higher Deposit: If the landlord is on the fence, you can offer to pay slightly above the original security deposit, to sweeten the deal. The extra income can be an incentive to allow you to run an Airbnb arbitrage business at the property or complex.

3. Present a Professional Proposal

Landlords want to work with responsible tenants, and nothing shows that better than presenting yourself and your business professionally (even if you are just starting). When negotiating a lease for Airbnb arbitrage, treat it like a business deal.

Strategy:

• Prepare a Business Plan: Bring a clear business plan to the meeting. This should include details like your experience, how you manage short-term rentals, your guest screening process, and the insurance you carry to protect the property. A pitch deck. A website. A sample lease addendum (Provided in Airbnb Takeoff Program) Showing a thoughtful plan builds credibility.

• Highlight Insurance and Liability Coverage: Many landlords & PMs worry about the risks associated with short-term rentals, so it’s important to reassure them that you carry insurance to cover any potential damages. Explain that you use additional protection such as Airbnb’s Host Guarantee (Air Cover) and carry a renters insurance policy for peace of mind.

4. Address the Landlord’s Concerns Head-On

Landlords may have concerns about short-term rentals, especially if they’re unfamiliar with how Airbnb works. You need to be prepared to address these concerns and offer solutions.

Strategy:

• Overcome Objections: Be ready to answer common objections such as concerns over noise, wear and tear, and neighborhood regulations. Offer solutions, such as installing noise monitoring devices or ensuring that you have strict house rules in place to prevent parties and disruptions. As far as regulations, let the landlord or PM know you will only operate legally and will get any permitting required to operate.

• Local Regulations Knowledge: Demonstrate your knowledge of local short-term rental regulations and zoning laws. This will assure the landlord that you’re operating legally and won’t put their property at risk of fines or penalties.

5. Build Relationships for Long-Term Success

Successful negotiations aren’t just about getting the lease—it's about building trust and a long-term relationship with both landlords and property managers. When you take care of their property and make sure everything runs smoothly, they’ll be more likely to work with you on future properties or even refer you to other landlords or property managers for opportunities (this has worked for me in the past!).

Strategy:

• Offer Regular Updates: Offer to provide the landlord with regular updates about the property’s condition and any guest feedback. This keeps them in the loop and helps to build trust.

• Keep Communication Open: Be proactive in maintaining open lines of communication. If any issues arise, address them quickly and professionally. This will reassure landlords that you’re a reliable tenant who they can count on.

Negotiating leases for Airbnb arbitrage can seem daunting at first, but with the right strategies, you can successfully secure properties and scale your business. The key is understanding the landlord’s perspective, creating a mutually beneficial proposal, and presenting yourself as a professional. Remember, they want stability and reliability, and by addressing their concerns, you can show them that Airbnb arbitrage is a win-win.

Let me know if you use any of these tips!

Stay Up To Date With Me 👇

Chat soon,

Hailie ❤️