How to Get Landlord Permission to Host on Airbnb

airbnb landlord permission

You want to know the number one question I get asked, over and over?

I want to rent on Airbnb, but I have a landlord.  How do I approach them and get permission to rent out my space?

I’ll admit, that question is a bit of a doozie but let’s walk through it.

I, like many others, do not own my Airbnb property.  I rent it.

And, like anyone in that situation, it is not up entirely to me to rent out the property.  At the end of the day, your property owner decides if your Airbnb dreams sink or float.

Do it the right way

It’s a pretty big conversation…and if you’re going to be successful, you’re going to need to be prepared.

You might think to yourself:

“What’s the big deal?”

“Why would my landlord care?”

That’s a common first reaction and it’s the number 1 reason why so many people rent on Airbnb WITHOUT telling their landlords.  (Note that’s NOT a good idea!)

While going under the radar might work for a while, it’s inevitably going to blow up in your face.

In that case, you stand to lose a lot more than your rental money…you could get evicted and have to find a new property to live in entirely.

Now what’s ironic about that situation, and the way so many hosts go about it, is that your landlord might have actually been open to the idea of renting to you.  You never asked so you’ll never know.

If they end up finding out about Airbnb by “catching you”, you’ve eroded any potential goodwill you could have had to work with in the first place.

If you try to approach the conversation AFTER you’ve been caught, your odds of getting permission are going to be dramatically lower.

So you want to do it the right way…correct?  Of course you do.

Let’s get your Airbnb unit Landlord-Approved!

Get into the mind of an Airbnb landlord

airbnb landlord mindFirst off, you do not stand a chance of negotiating with your landlord if you do not understand the position they are coming from.

You must clearly understand how a landlord uniquely sees Airbnb.

Put yourself in the shoes of your landlord and try to think about the things that influence their decisions and how they see their properties.

If you don’t know much about rental properties, let me fill you in.

Landlords see their long-term rental properties (properties that are under 1,2, 3+ year contracts) as a low risk, and modest source of income.

Some landlords make a lot of money off properties, and some make only side income. But one thing that does not change: landlords see long-term rental income as low risk.

Now, imagine you own a property. Chances are you put a lot of effort into renovating it and you’ve signed your first tenant for 2 years.

Whether or not you’re a great landlord, active in helping the tenant enjoy their stay, or if you’re still investing in your property…it’s still going to make you the same amount of money every month for the term of your tenants lease.

So most landlords, logically, do not see the need to invest a ton of time and energy into their properties – they see it as a long term, fixed income stream.  Any extra effort spent on the rental can often be seen a waste of time.

The worst-case scenario for a landlord is losing a tenant or property damage. Tenants can be replaced and insurance can be purchased to cover property damage…check and check.

You’re still the property owner:  Now imagine your tenant approaches you and asks if they can let a large number of strangers come in and out of their space for their own profit.

Your property just went from low risk and modest income to HIGH risk and modest income.

airbnb landlord riskAirbnb Landlord Risks

So how is it now “high risk” for landlords?  Well, its at least “riskier” for multiple reasons:

  •  While Airbnb does verify guests, there is still potential for bad-apple guests that cause property damage, harass neighbors, or create theft (if you don’t believe me search “Airbnb orgy”).
  • In many city municipalities, short-term rentals are illegal and can be subject to fines if caught.

But here’s the biggest one:

  • Landlords are required to have homeowners insurance for their building that covers anything that could go wrong.

Homeowners insurance will deny ANY and all claims in the case that they find out the space was being rented like a business.  Yes…Airbnb is a business.

Even worse…they could completely cancel the landlords insurance entirely (causing the ENTIRE building to then be illegal).

And let me remind you, they are taking this risk now with NO potential upside.  It simply will not make sense for them.

In very few circumstances will a landlord be ok with you renting on Airbnb without at least getting something in return.

Make a conversation game plan

airbnb landlord negotiationNow that you understand why, in fact, landlords do care about Airbnb rentals…it’s time to make a game plan.

In order to get a YES, you’re going to have to be prepared to change the risk/income equation for them.  Now that doesn’t necessarily mean paying more rent, but in many cases that’s all it takes.

Be aware of your relative position before you enter the conversation:

  • How long have you been a tenant?
  • Have you been a good tenant?
  • How old is your landlord? Do you think they’ve even heard of Airbnb?
  • How quickly do you think they could find a new long-term tenant? Is it a hot rental market?
  • Do you share space with other tenants who could be affected?
  • Are you rent controlled?
  • Does the landlord have multiple properties?

Being in a strong negotiation position means:

  • You’ve been a tenant for a long time
  • The landlord is more comfortable with you
  • The landlord is familiar with Airbnb
  • The landlord has only a few properties
  • …and the worse the rental market – the better your position

If you’re in a strong position, it might only take a little bit of compromise to get a yes.

If you’re in a weak position, it could take a lot, and getting a YES might take some creativity.

Consider what you can offer to your landlord

On the income side:

  • You can offer to extend your lease
  • You can offer to pay more…a flat rate or a % of Airbnb earnings
  • You can offer to pre-pay rent up front

On the risk side:

  • You can explain to them how the Airbnb $1,000,000 insurance guarantee works
  • You can offer to purchase your own vacation rental insurance (anywhere from $80 – $200 / month typically)
  • You can offer to limit the rentals to certain times and certain groups
  • You can guarantee that you’ll only be renting private rooms and will be present throughout the stays
  • You can amend your rental contract to offer coverage of certain damages yourself
  • You can increase the size of your security deposit

Now, this is by no means an exhaustive list of options, but they are the options that I have seen work in the past.

In my experience, these are the things landlords care about + or – a couple potential curveballs.

Be prepared to know what you think you can offer them and what you think it will cost to address their concerns.

Start the conversation with your landlord

airbnb landlord conversationThe way I’ve explored it, there are two options to bring this up.  One is directly with your landlord, the other is what I call the “nuclear option”.

If you think you have enough rapport with your landlord, then try approaching them directly.

My suggestion is that your main focus is simply starting a dialogue and not treating this like a business pitch.

Keep it simple.  A landlord will not approve what they cannot understand and if you pile on information, they will get confused.

Try emailing them or talking in person like this:

Hi Mr. Landlord,

I’ve recently been introduced to Airbnb when I went on my trip to Paris.  Its an amazing service.

I was wondering if you had an opinion about Airbnb?”

By simply asking their opinion, you don’t prime them for confrontation and you open up a conversation simply pertaining to what they KNOW about Airbnb.

Once you’ve established what they know and think, you can have a much easier time at explaining it to them and dispelling the myths to them.

In the same conversation, I would attempt to bring up 2 things:

  1. You’re exploring the opportunity, but wanted to be respectful and ask their opinion first.
    • Establish that there is a solid reason why you are interested and would benefit from Airbnb.
    • Explain that it will help you pay rent, meet bills, or improve your life in some way.
  2. Let them know that to the landlord this sounds risky, and that you’re willing to find a way to make it MORE than worth their while.

Then take it from there and start deploying your compromise options from above.

Landlord not open to Airbnb?

airbnb landlord helpHere’s the nuclear option…

If your landlord isn’t receptive to this idea find out who their legal counsel is.

In 90% of cases, landlords will have SOME legal counsel that they work with on contracts, insurance, tenants rights, etc.

Either contact their lawyer and state your case, or seek out your own lawyer to explain your case.

As legal counsel to your landlord, it is their duty to represent the landlord’s best interest.

If there is an opportunity to make them more money, and is within the local laws, they’re going to obligated to present it for you.

It is much harder for a landlord to say “no” when his or her own legal counsel says, “This is legal and it can work”.

 

 

Post Contributed by Evan Kimbrell.

Related Airbnb Hosting Tips

Opt In Image
Get MORE Bookings on Airbnb
We will help you become a Smarter Airbnb Host

You will learn how to:

  • Get MORE bookings for your Airbnb
  • Earn MORE revenue with LESS effort
  • Optimize and grow your Airbnb business

Added Bonus: Perfect Listing Workshop Walk-Through
Join Today & Gain Confidence! Offer Ends Soon.

Learn More

About The Author

13 Comments

  1. Steven Talbott
    October 22, 2015
    • Adam Dodd
      October 25, 2015
      • Steven Talbott
        January 18, 2016
    • bill
      June 30, 2016
  2. Legal_Templates
    November 18, 2015
  3. Sabrina
    April 14, 2016
    • Steven Talbott
      May 4, 2016
    • Ash Camp
      October 22, 2016
  4. Thomas Anderson
    April 29, 2016
  5. Rental guy
    August 28, 2016
  6. Dr Ray
    August 28, 2016
  7. Randall Tomes
    December 22, 2016
    • Marc Pariser
      March 13, 2017

Add Comment