The property scene is oversubscribed with opportunities to make money, if you know where to look. Gone are the days of owning a property being a prerequisite for getting far in this industry; as there are a number of other creative strategies you can undertake, to get your bank balance looking healthy.
Contrary to some of the criticism, these methods are legal, safe, and perfectly ethical – and even contribute towards building a well-balanced ecosystem, and giving others the opportunity to build their own business.
Interested to find out how owning a property can now be the LAST thing on your list? Read on for the full scope.
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Sometimes referred to as “rental arbitrage”, the rent-to-rent model involves you renting a property from a landlord, and then subletting it to a tenant or guest. Then, you pull a profit from the money you make from subletting (after you have settled the fixed rent with your landlord).
This model is an easy way of getting onto the property income ladder, without making any huge commitments. Properties are fairly easy to rent throughout all major cities across the world; and a landlord’s prerogative will always be to receive their rent on time – without their property getting damaged.
So, while a number of people believe that this is a no-go area (because subletting is “illegal” and disliked by landlords) – there is actually no greater myth! If you simply ask your landlord for permission to sublet their property and guarantee rent to them in return while also promising to take care of their property, they are more than likely going to agree to the idea.
Remember, the property will need to be professionally cleaned every time you turn it over for a new guest; and there are very few landlords who will be against this arrangement, especially if it’s coming at no extra cost to them.
This essentially means that you can list the property you’re now renting on a booking site (at a higher nightly rate than you pay) and easily make a profit without even needing to have a guest in that property 30 days a month.
If you do this for just three different properties that you’re renting from a landlord, you could easily be earning more than what you might be now, in your current full-time job.
Short-Term Rental Property Management
Not owning a property of your own doesn’t stop you from managing somebody else’s. If you have the time to effectively list and market a landlord’s property, manage the booking process, and take care of the entire guest experience – then you can offer to manage properties as short-term rentals and take a cut of the profit.
In most cases, you and the landlord will agree on a percentage that you’re able to take from the rental income to continue delivering a service. If you do this as a franchisee with Luke Stays, we will have all the paperwork and contractual details ready for you.
The landlord will want to see how this model can bring in much higher revenue for their investment while also having the guarantee that their property will be taken care of – and that you won’t be attracting any “bad tenants” to their property – even if unintentionally so.
STR property management requires a little more effort from your side, but the earning potential is high (and easy to scale into a full-time business). We highly recommend exploring this avenue with the help of a trusted partner – as there may be a number of laws and industry guidelines that you might be unfamiliar with.
At present, there are thousands of successful business owners who have all built their wealth without owning a single property, to begin with. Don’t make the mistake of believing that you’re strapped for resources to get your empire going; with so many creative strategies available now – success is attainable for anyone who’s willing to put the work in.
Get in touch with a member of our team if you’d like to explore these options as a franchisee with Luke Stays. You’ll get started under an industry-recognised and trusted brand and have all the support you need right in front of you.