Boost eSignature Legitimacy for Sublease Agreement in Australia with airSlate SignNow

How to eSign a document: e-signature legitimacy for Sublease Agreement in Australia

yes you can Airbnb without owning any property but you knew that already everybody knows that it's called subletting but it's not illegal you just need the landlord's permission there's a lot to this conversation but we're going to make this pretty short my name is Sean Rock I have 150 airb properties been doing this like 7 years never owning a single one of them made Millions it's been fun you can do this too let's go Welcome Back YouTube world so yes uh this is my area of expertise so just fast facts you can have a property that you don't own you can sign a lease for it the landlord can and will give you permission if you present yourself the right way you can either write that into the lease your permission just Hardline it into the lease or you can use something called the leas adendum and now the leasa denm is probably something we should talk about so subscribe for more of course just at least give me a subscribe that's all I'm asking for now what's in the Le and denim could be really interesting there's some basic stuff and there's some big stuff that you can add in it's basically what you think you can get away with the premise of Alisa Den it outlines a relationship modification that could go in the lease but we use a Lisa denim because sometimes landlords are too too scared to change the lease in its entirety in a lease of denim it's easier for them to read like one page and go okay this is cool I'll sign that but it modifies the whole lease in a way what a leasa denim would say is that this one page of terms if it contradicts with the lease then the page of terms overwrites anything in the lease that it contradicts does it make sense the lease and denim will outline the parties it'll say you are the tenant the landlord's the landlord it'll mention the address it'll just reference the address usually called premise or property and then it'll say this onepage document or two-page document uh is purposed to outline the terms of an agreement between the landlord and tenant you know while at least is active at premise and then we start putting the stuff in the Lisa Denim and we're going to talk about what goes in there now there's things that you need to put in the Lisa Denim and there's things that you're going to want to put in the lisad denim now I have a Lisa denim for my cracking superos students but you can really just use this video in combination with a video I already shared years ago guys I'm going to put a link to that in the description and just click on the link here if you want that one also I have something called a Master Lease it's a big fat document cost me thousands and thousands of dollars to get to make to pay to have made now that is a document I also provide for free to my cracking superos students and it's rarely ever used it's only used for like my absolute biggest deals you know how I'll do 20 30 or 40 doors at one time so Master relase is helpful for that if you want that thousands of dollars document you'd have to join that but you don't need it yet if you're still you know playing a small game so you're good there landlord understands that the nature of the tenants business is to provide this location or premise as an accommodation for very length of stays including shortterm stays as applicable by local regulations landlord shall allow the tenant to conduct all matters of business required in order to profitably run their short- terminal accommodation business landlord understands what you do they understand what your business is and they're giving you permission to conduct your business activities now there's going to be stuff that you're going to want in there and there's going to be some stuff that landlords want in there and this is where negotiation becomes super important another video that's normally in cracking superos but I also have it for free here on on YouTube is my video how to negotiate go watch that video because if you've never done sales before you've never negotiated for before you come to a table with a landlord to try to get permission to Airbnb their property you're going to want to learn to negotiate because you want to pitch this as a benefit to them because if you can get them to really like this idea they'll give you more cool stuff and they'll ask for Less stuff in return if you don't do a good job negotiating the landlord might require you in this addendum they might modify it that you'll have to have a certain type of insurance policy that you're going to have a higher security deposit the landlord will have access to a co-hosting account where they can see the guests that you're taking in the landlord can make you responsible for repairs stuff like that now there's things that you should never allow a landlord to add in like you're not going to share your profits with them or Revenue you're not going to pay more than Market rent you'll never going to do that now a lot of you might go well what if I need to to get my first deal you shouldn't because the reason why is the nature of this type of business model getting a landlord to rent you their property and you put it on the market you're taking a spread out of the market you're not going to make more money because you you paid more rent you're still going to collect the same amount of cash so paying more rent automatically makes the deal worse it just does in addition a landlord who's asking you to pay more rent or you know asking you to share your profits he is now in the mindset that he is doing you a favor and he wants some topside off of your deal and that is not how we pitch our business model now I have a very strict sales system that I teach my students one of the premises of the sales system as we make our approach is really to align this as a benefit for the landlord we're looking for landlords who are willing to see this as a benefit to them cuz they need a red check too right and if we can make this seem Mutual they're not going to have this high on their Force kind of approach where they're dogmatic they're all up in our business they're trying to raise our rent all the time they're being douches we can have good business with good landlords and everybody is happy you do not want a landlord who thinks that he's getting one off on you right you do not want a landlord who thinks he can charge you more money you will not like that business relationship things that you would like to negotiate for some of these might be hard to digest but yes you can do these is either no security deposit or a flat small security deposit like $300 per door the ability to use a security deposit Bond instead of an actual security deposit which is like a non-refundable Bond you pay 10 or 15% of its value and it's held for the landlord still at a smaller rate like maybe $1,000 Max so you're paying $150 for a security deposit Bond but you never get that $150 back because hopefully you never move out of the unit anyway it's not going to matter you you just don't want to lock up money into security deposit it's bad for your cash flow so you want to negotiate a different type of security deposit agreement for places that have made us pay like full month security deposits we've done what's called a security deposit burnoff where after a half a year and then a year and then a year and a half we slowly get that security deposit back so we've done burn-offs before that's a cool Pro tip you also want to negotiate free rent or discounts on rent or both and yes you can do that we'll get 8% off market rate we'll also get eight or 10 weeks of rent for free my last deal in Houston we got nine weeks of rent for free the deal that I was just working on in Austin where we painted all those walls I got 10 weeks of rent for free there it is just honestly a part of the negotiation and if we sell the deal the right way we can get the free free rent that of course is a cracking suos thing like I said um there's some things that will stay private because if I gave everybody in the planet my script for free rent then it takes away my ability to get free rent I'm sorry there's some things I just won't give you guys for free because we can't spit it off into the whole world I still like my free rent and I want to keep that but for those of you with sales experience um it might start making sense and you might actually find your own way to a free rent script eventually otherwise for those of you without sales experience like I said cracking super host surprisingly you want a longer release than a shorter release this actually is good for you the reason why is because you're getting possession of a property and you're going to buy furniture and if you're only able to make money on that property for one year so you return an investment is weighed against your furniture costs and then a year of Revenue but if you can spend the same amount of money for furniture but then get two years of Revenue off of that lease it's much better for you that's much better for your again your risk profile the longer lease is actually good for you further since we're negotiating with a landlord there's more at play here that we really want to be careful for we want to take a look at the property and we want to get to know them a little bit because you need to make sure you pick the right property and the the right landlord everybody would love an A-Class high-rise new build property problem is the rents can be pretty high on those so you'll have to do your market research and make sure that it looks like the market can support that because the more rent you pay like I said the less room for a spread there is you're going to have to find new ways to create value the housekeeping Market is pretty high on cost right now and so I would probably recommend doing cheaper properties where you can get slightly longer stays on average to keep your housekeeping cost down until you can learn my system for hiring housekeepers by the hour and yes this is an another thing that we do we pay $4 to $17 an hour for our housekeepers right now a lot of people don't believe it but imagine if you owned a housekeeping company that was charging you to clean your house what is that housekeeping company paying their housekeepers the W the hotel right across the street from me they pay about $4 or $15 for their housekeepers too businesses pay hourly all the time and you can do that if you did more average properties ones that aren't as impressive there might be more room for what you would call Value creation you take a property that doesn't seem so good on paper necessarily it doesn't seem so good as a long-ter rental and you can do some magical stuff in order to make that property look way way cool in the photos and now if it's well marketed on Airbnb you can keep your calendar full at a good nightly rate and you have more room for margin I recently just did a video where I took very plain units in Austin the same one where I got the 10 weeks of rent for free now that I'm Renning the company again I went down and I refurnished those you take a very boring place it's very cheap and then you can flip that into multiple different looks I have two separate green looks one is super masculine and I love it cuz green is my favorite color one is this blue and green very neutral gender neutral but also very vibrant and fun and then the other one's pink pink and purple and I actually love this unit to death it's so playful and it's probably one of everybody's favorites so far from what I've been told but I'd actually like to know what you think in the comments out of the three which of these would you stay in which would you prefer because I'm still looking to paint a few more another couple of colors and I could probably use some direction on that so thank you and with that said these cheaper properties will then have things that you need to look for that landlord may be more of an absentee landlord that doesn't do repairs and so when you go and tour property you want to see what state of repair is the place in do you trust this landlord to repair things quickly when you report them we have a property in Houston that we are having some issues where the building is just flooding in part of it whenever it rains and of course the landlord's trying to fix the rain problem but he just doesn't seem to understand his building enough to know where the water's coming from they reflashed the whole building is what I heard but the next rain came and we still had a flood so we have these cheaper properties that look great but one of our four-month long tenants just reported that they are having a a flood issue in the their living room a small one but it's still there and these are the kinds of things that could happen with a b-class property so you do want to be careful for the properties that you choose you do want to ask enough like thorough questions to make sure that the state of the building is good and as you have this conversation with the landlord you can find out if the landlord's a generally nice person or not if you have a landlord that has a lot of ego and kind of combative and dismissive you're going to find that your relationship with them isn't going to be largely positive now the cool thing about rental Arbitrage especially right now housing prices might actually pull back they could legitimately pull back this next year so to buy a house doesn't really have an advantage because you're not going to get appreciation over the next year now a year from now if the market pulls back you might find a cool buying opportunity and then there would be more advantages to buying but with rental Arbitrage if you're not looking to get appreciation from the property that you own it cost about 1/8 of the price to set up an Airbnb as an Arbitrage as opposed to buying because when you buy investment properties you have to put 20% down put this all together into one big enchilada if you find a landlord who's cool who is willing to do business is willing to grow with you is trying to buy some properties that's just all they do if you can pick up eight times as many units by doing Arbitrage than buying you could give that landlord a lot of business you can give them a lot of leases so if you get a landlord that you like and they like you and you're doing good business as they go buy more properties and they're spending all the money to get the appreciation and The Debt Pay down then you can just pick those properties up as rentals and hopefully get a sweetheart rent deal and you can continue to make a high cash flow business with very little money out of pocket you might find that you grow to a position where you have 20 30 50 doors and you might want to switch to buying because you just can't grow anymore there might be a point that you as a business owner owner just have a hard time running 50 properties so if you're going to run 50 Max and you're already at 50 you might as well switch to ownership at that point because you might make more money per property that way right you make more money per dollar with Arbitrage and I will say on that note if you are thinking about doing rental Arbitrage a recession could be a cool time to do it chat GPT seems to think that starting a business in recession could be a good idea because there could still be strong demand in certain sectors but there's less people getting into business because of the recession and you might have an opportunity to get supplies or labor at a cheaper cost and what's funny is in previous videos I had to talk about this right now if you were to start an Airbnb business whether you bought or do Arbitrage you could get People's Furniture on the cheap there's people exiting the industry right now and as suppliers leave the industry and guests stay in the industry there'll be less suppliers and more money for all the suppliers and you as a host would be technically a supplier cuz you're supplying an apartment chat GPT seems to agree start your business in a recession learn to fight while it's tough get good at this while it's tough that way you don't have to learn to get good at this if a recession smacked you in the face face in the middle of being a business are I think starting while it's hard is probably a cool way to do it because then you have this humble sense of respect for the industry instead of thinking it was so easy and then getting smacked like everybody else is right now a lot of people who are quitting right now were good hosts when it was easy they're not good hosts when it's hard hunt down some furniture from people who are looking to sell to get out make them a payment arrangement you don't even have to pay full price for the furniture up front you'll say hey I'll make you payments over 6 months you find a landlord to sign a Lisa denim with you remember watch the video that I did years ago on the Lisa denim just for another Breeze through of what all goes in there cuz it's a legal document it's pretty much all the same and with that said I'm not a lawyer guys I'm just telling you what I use from the lawyers that I've paid these are the documents I'm using from lawyers that I've paid for this stuff so yes I paid thousands of dollars tens and tens of thousands of dollars to multiple lawyers as a business owner it just comes with a territory so I hope that my expenses and experience can give you guys an opportunity at making your first $100,000 a year seven figures a year I hope that for you guys I was able to do it it's a pretty easy industry I think anybody can if you care enough to grow a business and stay disciplined you can do it this is going to be fun and I'm here to help if you need anything put it in the comments as always and of course I have a free Facebook group with about 50,000 hosts that know a lot of stuff too and we all chat in there so if you want more of a court of public opinion approach to a question and you don't want just my answer alone go into the free Facebook group the hosts of AR andb automated to ask your question to a bunch of hosts you can even get some answers on What markets are good what type of furniture is best maybe some opinions on different softwares that people are using and other stuff down there's a lot of stuff to know lots to learn and you can do it and again thank you for watching this video as always I'll see you on the other [Music] side