Help a real estate investor using Airbnb generate guaranteed rental income and find a full-service property management company.
John B. purchased a second home in Denver of 2009. In need of extra money, John began renting out the home by doing a year-long lease.
While John was happy with his tenant and pleased with the year-long lease, because of the growth of sites like Airbnb, John knew he could make more by renting out the home on a short term basis.
When his tenant’s yearly lease was up, John listed the home on sharing economy platform Airbnb and began renting out his home to short term guests.
Located in a neighborhood with high demand from vacationing guests, John’s home on Airbnb began generating needed revenue. With the help of a local cleaning service, John managed marketing, bookings, cleaning, and maintenance himself. He would, however, physically travel to Denver every four months to check on the home and ensure it was in good, rentable condition.
By the end of the year, John had hosted over 100 guests and grossed about $46,000 on Airbnb. After paying for things like cleaning, light maintenance, marketing, and booking, John was keeping about $34,000 for himself for the year from renting out his home.
When Airdna sent their customers an email about Rented.com’s free rental grader, a tool that predicts the rental income associated with a property, John looked to see an estimate of what he could make using Rented.com’s service.
Using Rented.com, John would no longer have to self-manage his property. Instead, Rented.com would help him find a local, professional property manager to do everything for him. With over 550 management companies competing in Rented.com’s marketplace, John could receive competitive offers of income and full-service management from local, vetted property managers.
Curious about what the management companies could offer him, John decided to see offers in Rented.com’s marketplace.
Tanner Bruce, Rented.com’s Director of Homeowner Success, worked with John to help him get offers.
To do this, he created a private profile in the marketplace that professional managers could use to make offers.
After 7 days, Tanner returned to John with two types of offers:
- Shared Success Offers:
Here, managers compete by offering their lowest commission rate and projected gross income. As all managers using Rented.com’s platform use the same contract, John was able to easily and accurately compare prices of various managers in his area while knowing that he wouldn’t have to pay any more for things like marketing, light maintenance, cleaning, and occupancy taxes.
- Guaranteed Income Offers:
With guaranteed rental offers, Rented.com property managers make offers to buy all the available rental weeks. Regardless of occupancy, with these offers John got a guaranteed, fixed rent payment every month. The manager would also pay for things like marketing, cleaning, light maintenance, accounting, occupancy taxes, and more.
To get these types of offers, Tanner helped John do the following:
- Create a profile.
Tanner completed a private profile for the John’s property in the Rented.com marketplace. Using the profile, managers had 7 days to make offers.
- Compare offers.
After receiving offers, John compared them to what he was making in his current rental situation. With the Rented.com platform, John likewise had the option to message and speak with the management company to learn more about them and their local operations before deciding what to do.
- Get paid!
After agreeing to work with the highest bidding property manager, John started receiving monthly checks!
While John initially believed that Rented.com wouldn’t be able to find a property manager that could offer him the same or more than he had made the year before with Airbnb, Rented.com found a management company that could not only offer him more money—they could likewise guarantee it.
While John was netting approximately $34,000 on the property after expenses the previous year, the management company guaranteed John $39,600 per year.
Not only did the management company help John earn 16% more, they also do all of the work for John and pay for things like cleaning, light maintenance, booking, and marketing.
“Being able to be completely hands off and having the money guaranteed is really nice.”
And that’s why John can now…
Relax. It’s rented.
Want to see if Rented.com can also help you make more and get better care for your condo? Call us at (470) 424-9656, or chat with us below!