How to Get Rent 2 Rent Deals from HMO Landlords - Ask The Angels 1 — Rent 2 Rent Success

Exactly what it says on the tin
Easy ways to get rent to rent deals.
You know what, I think you’re going to love these simple, actionable steps that most people aren’t doing.

One of the top questions I get is asked is how to get rent-to-rent deals from landlords.

Rent to rent is a great strategy.
It can really change your life.

And now that I’ve gone from thinking that business and property success wasn’t for people like me, to inspiring others to Dream Bigger ⭐ Be Bolder ⭐ Be a Gamechanger

I’m going off topic.
Again!
Now is not the time to talk about our mission.

Let’s get back to getting more deals!

Today I’m going to answer Jordan's question, because I know lots of you will totally be able to relate to this, and certainly when we started, we found this as well.

"Hi, I'm a rent-to-renter in Birmingham who has done lots of training and currently I'm looking for deals.

However, I would appreciate if you could help me.
I can see single let landlords using our service because we can offer them more rent due to turning into an HMO.
However, when it's already an HMO, I struggle to see why the landlords would use us as we can't give them what they're getting now because we need to make a profit minimum 100 pounds per room per month.
Every offer I gave to landlords on SpareRoom about using my service, every single time they say the offer is too low, so they won't use us.
Have you got any advice please because I'm very stuck?"

That is a great question Jordan

It's a common problem.

The first issue in this scenario is that you're going in cold.
Cold sales is usually more difficult than warm sales.

So let's say you're an HMO landlord, you've got your property on SpareRoom, you're charging £400 per room for your 5 bedroom property, so you're expecting £2,000.

That expectation is £2,000.
So when you popup and the landlord doesn't know you with a much lower offer, they immediately dismiss it.

Two Important Things to Remember

1. Not everyone is achieving top rent for their HMO
You think that when somebody's running an HMO that they're getting top rent for it.

That they're achieving more than what you could offer as a rent-to-renter, and often that's not true.

In the video I give two examples, these are exact examples from landlords who have called us up recently.

When HMOs are badly managed they can lose money.

2 Gross rent v Net rent - Don’t compare apples with pears

Landlords know what the gross rent they want to achieve is but do not know the total of all the costs that hit their bottom line such as utility bills, maintenance and voids. Many landlords don’t know what they pay for these and so they don’t know how much money they are really making, if any.

This is what I mean by net rent.
You’re offering let rent because you are taking on the costs a landlord is currently paying and you need to explain that.
Also you’ll need to demonstrate what the costs are so that the landlord can appreciate it.

I’ve seen this is fairly typical for landlords not to be consciously aware of all the costs.
For many landlords it is not their main business and they also have other businesses or a job and often a family, so their HMO is not their focus.

We have a process to bring this out so that landlords can appreciate the costs they already pay and why your offer is actually more and not less!

How do you warm up the cold leads on SpareRoom?

Let’s start from your baseline an your three Bs.

1. Believe in you
2. Believe in the value of the service that your offering
3. Be persistent

Offer landlords what they want
What the landlords want is

To let their properties quickly
To let their properties to long term tenants
To let their properties to somebody who will pay the rent on time
To let their properties to someone who will look after the property

So essentially landlords are looking for exactly what you offer.

Landlord Letters - A way to generate more warm leads
Compare the situation of talking to landlords on spareroom with a warm lead where the landlord calls you.

You send them a letter in the post in which you demonstrate your value and what you can offer and when they call you.

It's much easier, because nobody calls you because they're delighted with a service that they're already receiving and because they've got no problems at all.

Everyone's calling you for a reason and all you then have to do is find out what the reason is, and then you're able to solve the problem.

So it's just a much, much easier and better conversation.

How to Get Landlords Calling You
You know what I'm gonna say, you know we're known for the perfectly crafted, magnetic marketing letter to landlords.

Hmmn interesting, show me the letters

Now we send out to a very niche set of landlords in our local area that are in the exact areas that we want to deal with and the exact number of rooms that we are looking for.

So we don't go wide, we go narrow, and we get a really good response on the letter's front, and some people have been receiving our letters for over a year, a year and a half when they start calling us, and that's fine.

Regular letters leads to more calls from people who want our help. And it will work for you too.

Speak soon
Stephanie & Nicky
xx

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