Do you have a property that you want to make a short-term rental but some of the
HOA or the condo association or someone is telling you that you are not allowed
to do this? Are you wanting to know how you can get around that? How you can
still make it a short-term rental? I'm going to tell you how. Let's go.
So, let's talk about restrictions on short term rental properties. And how to
get around them. Because so many people have these restrictions and so in this
video, I'm going to tell you one. I'm going to tell you what restrictions are common and how
you can get around them, of course. Number 2, I'm going to give you the secret way to
get around almost all restrictions no matter what. And then number 3, I'm
going to tell you what to say so that you don't blow it.
Short-term rentals are an amazing way to start making money in real estate.
Basically, I had lots of rental properties and then I started making
them short-term rentals. In other words, renting them out on a per night basis
instead of renting them out unfurnished for a whole year or for 2 years. I
started to furnish them, stock them with towels, toilet, tissue and the things that
people need. Look around this is an Airbnb that we're in. And this is how I
started to make tons of money. And I realized I didn't meet as many
properties. However, many times, you may have a property that is in a condo
association or an HOA, a homeowners association. And they have restrictions
around what it is that you can do. Or maybe you live in a city or a town where
they have banned Airbnb and said they don't want short-term rentals. I'm going to
tell you how to get around that. So, before we get into getting around the
restrictions, let's first talk about why they exist. Because I think you need to
understand that before you try to get around them. So, many times there are HOA
covenants or condo covenants that restrict short-term rentals. And the
reason why they do that is because they are trying to protect their property
from party guests, people throwing events. People coming in and partying like you
know, it's Daytona Beach or something and then trashing the place and leaving. And
a lot of times this can be very disruptive to the neighborhood and to
other neighbors in the area. And so, the reason why they came up with these
restrictions really is an admirable reason. But as an entrepreneur, we want to
make money so we got to figure out how do we respect what it is that they were
trying to do and still make money. That's the key to
this. So, the key to this is that in most cases, you want to set up yourself as a
business. I know this sounds a little bit crazy like what difference would it make
if I set myself up as a business versus a person. Well, there's a big difference.
And I'm going to tell you something that is mind-blowing. And when I figure this out,
oh baby, did I make a lot of money. Well, if you get a property in your business's
name hmm businesses are not people, right? I think
you know we have like a guy that told us that businesses and corporations were
people and a lot of people started arguing because it's not true. Essentially, a
business is a business but a business does has people. But the great thing
about it is can a business occupy a property? No. A business cannot occupy a
property. But you can get a property in the business's name.
You can even lease a property in a business's name. Then once you do that,
you actually have different rights, okay? And this is amazing, okay? And this is how
we rent properties and then literally legally and ethically put those
properties on Airbnb. Because we rent the properties in our business's name. And
then just by default, a business is not an occupant. You have to then name a
person that lives in the property. And so, if you then rent the property out to on
Airbnb, each guest is just the occupant. And so all you have to do is tell the
leasing office or the manager who's residing in the property and you're
legal. So again, the key to it is become a business. You must have a real business.
You can't just say, "Hey, I'm a business." You're literally going to have to get the
steps. You're going to have to get that LLC or that S corp or that C corp or
whatever it is in your state and become a real business. Get a real EIN number
and actually be a legitimate business. Then when you go to a seller a property
owner, an apartment complex; you rent the property or you buy the property in the
business's name and that is how we've been able to
circumvent a lot of these laws. But at the same time, you have to stay above
board and just notify them of who is in the property. Just that simple. So, let's
talk about how you don't blow it because I just told you an amazing secret. But
here's where a couple of my students have messed this up and I was able to
coach them through it and they fixed it. So, the one thing that you want to do you
do not want to go to you know the property manager or the property owner
and say, "Hey, yeah, I'm going to rent this property and then put it on Airbnb."
That's a big mistake. Do not tell them that. You want to say things like, "I have
a corporation. I have corporate clients that stay here. I have travelers that
come here." My clients, you really want to keep it to your clients. Because
essentially they are your clients. Remember, if someone contracts to stay in
your property with your business. They're your guests, they're your client. Now, your
relationship with the seller or the owner or the property manager is a
little bit separate. And so, as long as you don't get into all of that muddiness
and start telling them what it is that you're going to do and how much money you
plan on making with their property and all of this crazy stuff, you're probably
going to be okay. But you do want to notify them. But you want to stay away
from terms like Airbnb vacation rental, short term rental. You get what I'm
saying. You don't want to necessarily tell them
all of that nor do you actually have to. Okay? In many cases, you do disclose what
your business does and that's about it. Again, you're legally responsible for the
property but I'm going to tell you a secret. Almost all of the websites that you will
put the property on like Airbnb, Home Away, blah, blah, blah, many of them do not
care if you actually own the property. They don't. They never ask. They don't.
That's like this big hidden secret. They just want to make sure that you have
legal right to put people into the property. And so long as you do what I'm
saying and you set your business up properly, you will be okay. Okay, I have
definitely spilled all the tea and told you all of the secrets on how to get
around short term rental restriction. Again, remember that a lot of these
restrictions were created for a purpose. And you don't
want to go in there and then do the thing that they don't want. You don't
want to allow people to have a party and events and all of those things. You want
to make sure that you restrict those things from your guests as well because
you want to honor what the restriction is therefore. The only thing is you just
want to make sure that you are allowed to make the business and have free
enterprise. So, this is a win-win for everyone if you do it correctly. If you
need more help, need more coaching on this, go ahead and do my free training.
Its Noellesfree training.com. I'm giving you tons of information.
Premium training just for you. I just want you to be successful. To your
success.