here are two really cool ways that you can get some free rent doesn't take
anything crazy you can be an absolutely normal person or business the second one
is is completely fresh and new I've only recently started seeing this in Leases
like as of this year so my name is Sean rakidzich this is Airbnb Automated
and let's get you some free rent right welcome back
Airbnb family so before we continue please like the video it helps for the
algorithm a ton and I appreciate you doing that if you're new to the channel
hit that subscribe button and then the bell because you won't get all these
videos unless you hit the bell and we're going to do a lot of time-sensitive
stuff coming up here soon so welcome to the Airbnb family so this video is not
your typical free rent video there's a lot of stuff on YouTube where like they
say if you work as a property manager or your live-in nanny or do like trade work
like maintenance and stuff for a property that you can live for free
forever and that's not really the point we're talking about how to like score
some free rents in your negotiations and so that way you can either get ahead on
your business or you can just kind of cut in and live for a little bit less in
a completely normal scenario you don't have to do any work in trade there's no
like hidden catch all you have to do is say I want it and the landlord would say
yes so we're gonna talk about how to get these and then of course WHY a landlord
would even agree to just giving you money for free because that's
essentially what you're asking them to do is just give you free cash okay so
the first one is the one that you should already know if you've followed this
channel at all you you would hear me say this all the time front end at least
concessions so what is a front end lease concession well that is where a building
will give you something on the front end a concession typically tends to be
cashback or free months of stay so in Houston for example the there's so many
new apartment complexes that buildings in order to kind of entice you to live
there they'll say that will they'll give you eight weeks free a lot of times
buildings will try to prorate that so what they'll have is they're advertised
market rate which is like two thousand dollars a month per se and if they give
you two months free they're gonna give you that four thousand dollars off over
the course of a year all right that's a prorated concession
you can simply negotiate this on the front end and even if a building isn't
ant advertising a front-end lease concession
or any lease concession at all you can still ask for it now why would a
landlord agree to that well let's look at northern states let's look at
Wisconsin Illinois Pennsylvania which I'm doing a lot of negotiation and these
states can suffer from the fact that people don't move in in the winter right
now it's October end of October so November December January those are
tough months for a landlord to fill new tenants in so coming into the season you
can tell a landlord well I'm going to take this place now you're probably not
going to have a landlord into you're not gonna have a tenant until you'd say
February or March like your odds of getting a tenant is low or you have to
really drop your rates anyway so let me take the lease from you now and let me
get the front two months free and that way I can realize a little bit of the
the the savings of moving in at an optimal time and that way you're
guaranteed to have a tenant you don't have to worry about if this front is
going to be paid starting in January because I'm going to be paying it
because I'm on the lease with you so landlord would love to have that lease
right because having that leases guarantee didn't come in the future and
a lot of landlords are under pressure because they have a bank note if they
don't stay if certain percentage occupied then they could get there like
building taken away for example there's a building in Houston where I was
talking to a property manager one of her previous buildings that she was in she
was hired on specifically to help them lease up and this was an older building
this wasn't a brand-new building trying to get up to 90 percent which is another
typical common situation in Texas right now
but her building they had a huge loan and if they didn't get over ninety
percent occupancy the bank was going to take the building back from them in this
case being 90 percent leased is wonderful even if they're not ninety
percent occupied they would still be 90 percent leased the bank would accept
that so in this case just the same you are pretty much giving them that
situation where I'm going to lease from you this is guaranteed rent in the
future if you give me two months for free now makes sense now here's a couple
tips for this not only do we talk about maybe taking the lease immediately but
if you can gauge the landlord's expectation so when they would think
they would get this place full then you can really realize what his benefit or
her benefit is by taking it faster then you guys can maybe split that difference
be like well if it was going to take you ten weeks to fill give me five of those
weeks free right this is a good way to negotiate this is the way that you as a
regular tenant you don't have to be a business with a lot of money to play
with you can just realistically and logically make this small negotiation
it's cool now another way to get a higher likelihood of yes with a
multi-month front and lease concession is to sign a longer lease if they look
at the total percentage off that you're getting off your rent by giving you a 36
month lease and they give you two months of rent for free or let's say they give
you three months of rent for free on a three-year lease upfront first three
months free what they've done is they've given you a month per year off it's much
more likely to work in your favor if you asked for two months free on a
three-year lease then on a one-year right because they're still making more
money off of you lifetime and that percentage just got smaller so that's my
tips for you for front-end lease concession now the second one is kind of
crazy you can still potentially do it as a regular tenant but this one really
more for by Airbnb business owners now if you're not an Airbnb business owner
and you're watching this because you're a regular tenant trying to get some
discounts I welcome you to continue watching and maybe this will turn you on
to the idea of running an Airbnb business by renting it's kind of cool
all of you Airbnb rental operators throw it in the comments how many properties
do you have because a lot of people probably would love to see how awesome
this kind of stuff is I welcome all of you and they are being be family to put
that in the comments so this is called a trigger not like my past video or like I
called out Morris invest like that's not this type of trigger not the red eyes so
in a lease contract or any other contract a trigger is when something
happens something triggers or a part of the lease that comes into effect or a
part of the contract comes into effect so it's like a dormant provision in a
lease now one of the most popular triggers that I'm seeing lately in
leases is called a recession trigger so for example let's say I take an entire
building there's a builder I'm taking one in Philadelphia right now we're
negotiating 28 units in a 28 unit building that's a master lease
essentially where you take the whole thing I say I'll pay you this lump chunk
of rent and let's say all just all like apocalypse comes with a recession and
everything just goes terribly people stop traveling stuff like
that if I have no flexibility in that negotiation and I have to pay say thirty
thirty five thousand dollars a month in rent for this building maybe more and I
have no business because the recession just like took the bottom out of the
market if he loses me as a tenant and I pay him $0 he suddenly loses all of his
revenue and the bank could come calling on that note like we discussed earlier
if a building doesn't stay full the bank will come and come after you so he needs
to stay full and normally his risk is diversified if he has 28 tenants in a 28
unit building and three of them to get evicted because they couldn't pay
because of the recession he just goes and tries to find three new tenants but
he's still 25 to 28 full right so now that he's invested to you in a big big
way doesn't have to be a whole building you
could have 10 20 leases when somebody has an ear like a regularly hi
relationship with you in volume you can make these types of recession triggers
so for example there's a landlord in Philadelphia that's signed with a
company called sander many of you know solder they're worth over a billion
dollars they're kind of the poster child for rental arbitrage right now but
there's a lot of players in the game myself included
so sander signed an agreement with a landlord in Philadelphia and what they
put as one of their recession triggers is that if the Dow Jones drops 700
points in a day they get a month of rent for free
well if you remember like a couple three months ago the Dow Jones went crazy
so sander got two months of rent for free in a week bang-bang right makes the
landlord rethink how they want to negotiate that recession trigger right
like if they could get a free month of rent every single week because the Dow
Jones goes that crazy you know they probably want to put a cap on that
because otherwise Sadr could essentially just live for free if the Dow Jones went
like that that's an example of a recession trigger now I will be
publishing a course on taking entire buildings and I will be giving away
leases with these types of triggers in there that's kind of like a template
document I'm stuff that I've been paying my lawyer a lot of money for so stay
tuned for that in the future but with that said I hope this was helpful helps
you find some extra rent and to wrap that up a landlord if they rely on you
will be more likely to give you a trigger or a a modular type / nth so let
me give you one last example because I really feel I kind of left you with just
half a solution and I don't do half right we're gonna do the whole thing so
another way that you can do this you can tell your landlord well the season tends
to be slow in the winners and so we're gonna take 20 properties from you and
what we'll do is we're gonna pave this what we call base contribution the rent
that you want is $1,500 so what we'll do is we'll pay you $1,000
a month completely and then these months we'll pay you 1,800 instead we're in the
winter we'll pay you a thousand or we'll pay you a thousand every month and then
as we make profit what we pay you goes up so that's like a hybrid rent model so
that's not a trigger but that's a way that you can pay less rent and kind of
just be on the books and the landlord's cool with it because the landlord wants
enough money to pay their bank note there's a lot of ways that people make
money on properties if you watch my buddy Sean Ray's stuff he talks about
how you know you can you can take a building it can go up in value like
appreciate and of course you could be depreciating the property as an income
property and all those things work out for a builder even if they're making
like positive cash flow on you they're still making money elsewhere believe it
or not so with that said I'll leave it right there
thank you for watching Airbnb automated share the video with your friends and
I'll see you on the other side