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Once you found a property you like and you’ve gotten hold of the landlord, the next step you’re gonna want to do is to negotiate with and try and get the best deal that you can. Now, the two types of landlord that you’re going to come across are landlords themselves, individuals or small businesses that might do this or the agency that represents the landlord in some way, shape or form. Now, the deal that you’re got to want to do that, you’re gonna want to try and negotiate with either of these people are going to be slightly different. They’re going to want slightly different things out of it. And there are different things that you can offer to them that will be particularly attractive points you can negotiate on for agencies. They’re interested in volume of business. The more business they can do, the more money that goes through their system. They take a cut of the money that goes through their business. So the more revenue or business they can go through, the better they feel. So offering them volume, the business is something they’re going to be attracted to. They’re also gonna be attracted to the fees that are associated with any of these kind of models. So, again, that’s a point you can negotiate for landlords. Landlords are going to be interested in stability. The ideal world for a landlord is they have a property they rent out for a five year period to someone who pays them on the door every month. And that amount of money goes up by inflation plus three percent every single year. So the length of contract, guaranteed income, that’s the kind of thing they’re looking for. And so any element of stability that you can give them, that’s gonna be a good negotiating point for you. They’re also looking at. Improves return on investment. So basically they know that they can get a certain amount of money for their property. If you can offer them more money than they would otherwise get. Then they’re going to be interested in. That’s what they’re looking for here. One way that you can make your argument about offering them an improved return on investment is by undertaking a profitability analysis. Basically, what you want to do here is you want to go through a number of different numbers and data points and you’re going to pull out the amount of money that you think that you’re going to be able to offer them for this property. That’s going to be different than what they could find themselves or what they could achieve themselves and their property. This might be because you’re going to be more of an active manager than they’re going to be. Or you might have an edge on the market, but essentially you’re going to be wanting to look at what’s the historic price. You can just ask the landlord for this. Like what? What have they been charging this property out to? What are they renting out at before? So what have you got there? That’s going to be your baseline. The next is gonna be the target income. What are they looking for from it? So this is going to be depending upon the mix over the course of a calendar year that you’re going to use of short, medium and long term less. What’s your expected revenue from that? What is going to be the projected occupancy rate for each of these kind of things? Obviously, you’re going to adjust your mix to best suit the occupancy rate, the demand in the market. But also, you’re going to get different returns for these different models. So rather than just renting out for a single monthly fee for a whole calendar year, you could rent the place out on a short term basis during high season and make much more per week, per month than you could do if it was on a longer term deal. So it’s that difference between historic standard prices and the occupancy mix that you’re going to offer that is going to increase the profitability and increase the. The other element that’s going to come into it is like, what’s the competition? What are the properties of a similar feature set is available in the local area. What’s their pricing going to be? Obviously, you can find that online. You find it LBB, Expedia, booking dot com look on the platforms where you’re going to be offering this property anyway. Not only is this. What is you’re up against, but this is what other people achieving in the market and what is the demand in the market for this type of property?
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