How To Handle The 5 Most Common Rent-To-Rent Objections?
Do you know how to overcome Rent-to-Rent objections?
Discover the top five most common Rent-to-Rent objections and how to overcome them...
In today's episode, I want to explore the five most common Rent-to-Rent objections and how to handle them.
Number 1 - How can you guarantee my rent? It's too good to be true, how can you guarantee my rent?
Answer
This is our business model. Keep it simple. We have enough units, and we have covered out the downside to guarantee your rent.
In my business, we have managed to pay all rent for the entirety of COVID.
Number 2 - You are a new company, what happens if you go bust? Who is liable for the rent?
A valid concern, and if you are a limited company, you would not personally be liable should that company fold. To be honest with you, there's not much you can say or do, although this would apply to all companies.
Answer
I understand your concerns; others have felt the same way too. However, this is our business, it's going really well, and there's currently huge demand. We're are very confident we can deliver.
Number 3 - Agency checks.
After an agent accepts an offer, you are likely to receive many forms to fill out. Asking for personal guarantors, company credit checks etc. (which is not going to be successful if you are a new company.)
Answer
I have found that if you can build a good rapport with the agent, and you put down a Company Let Fee then you should have a good chance.
It's important to remember is it is still down to the Landlord to make the final decision regardless of the results of the checks. That's why it's so important to focus on relationship building.
Listen to this week's episodes to discover two further common objections and how to handle them.
In this episode, you will discover
The top 5 most common Rent-to-Rent objections
Why relationship building is so important
The importance of the correct agreements
How to handle excuses
Listen to my new podcast and subscribe! Available on iTunes, Google, Spotify and others or click “play” on the player below!
Join a community of likeminded people with ambitious property goals, where I post daily property insights and motivational content request to join my Creative Cashflow FB group here.
As always, if you have any questions, please don't hesitate to contact me directly. You can direct message me on Facebook or join and ask me your questions within the Creative Cashflow Community.
Podcast Transcript↓
[00:00:56] Simon here. Welcome to another episode of the podcast today. I'm going to be looking at how to handle the five most common rent to rent objections. If you're having any issues, if you're having any trouble getting deals across the line today could be for you. These are tried and trusted. Everybody I've ever seen has these objections and everybody I've ever spoken to can overcome them through the secrets.
[00:01:27] I'm going to share with you today. So if you're brand new to the episode, subscribe, stay tuned, spread the word, drop a little review. If you don't mind or help stone, it all helps us grow. And I really, really, really appreciate it. That's all I ask. You know, I share all this golden nuggets. I just need a few reviews of pleased.
[00:01:49] Just spend 30 seconds. Give us, uh, given us a little review, if you can. Cool. Without further ado, we're going to get into it. We're going to keep it sharp quick, straight to the point and simple today. So number one, it's too good to be true. How can you guarantee my rent? Hey, I get this a lot. The answer to this question is as follows.
[00:02:19] This is our business model. Simple as that, this is our business model. We have enough units. We've covered our downside to be able to guarantee your rent come what may. And in my personal business, we managed to pay all our landlords rent for the entirety of COVID. One landlord. Um, there was a portfolio landlord.
[00:02:45] They managed to get mortgage holidays throughout. So they passed the benefit onto us. We've already paid them back for that. And that's what it is. So that's how you get around that number to your new company. So what happens if you go bust who's liable for the rent? And they've got a point because basically if you are a limited company, it's a separate entity.
[00:03:11] So you personally will not be liable should that company fold. But to be honest with you, there's not much you can really say or do in terms of that could be that the same with every company. You know, you could argue that if you're getting a service from a company and the same happens to them, You wouldn't get the rest of your service.
[00:03:35] So once again, I would respond to that by saying, sure. I understand your concerns. Others have felt the same too, but our business is going really, really well. There's huge demand at the moment, and we're very confident we can deliver, and that will largely be down to the mat of rapport and the relationship you've built with the landlord or the agent.
[00:04:00] Number three. And it's a massive, massive one. Sorry, my phone ringing. Hopefully that's not, I'm a tenant and have a leak early joking. I've got it a bit more systemised than that. Now. Number three, agency checks. So you go and see your property. It works. You put an offer in you get the offer accepted and then.
[00:04:22] The agent starts sending you these forms and asking for all kinds of things, personal guarantee, guarantors, you know, company credit check references. When your company is only four weeks old, once again, you can only do what you can do. But what I've generally found is that if you build rapport and if the agents like you, and if you put down the company, let fee.
[00:04:52] Then you should be, you should have a better chance. Okay. Because you have to remember that a lot of these checks are down to the landlord to make the final decision or the agency does, is do the checks. So if somebody doesn't pass a credit check or somebody doesn't pass a reference in, and the landlord still wants to go with you, then you've got the deal.
[00:05:15] So what I recommend is focus on relationship building. Focus on building rapport, make sure you're likeable and pay the initial finder's fee. And if you pay the fee, usually the agent will start to work in your favour as well, because they want to keep the fee number for legal.
[00:05:37] Of course, you need to make sure that you've got all the right agreements for direct to vendor deals and that you know how to work with agency. Agreements, because you don't want to be signing agreements that don't cover you. When we say guaranteeing rent, we are guaranteeing rent. However, the has to be naturally some limitations and some terms within that fair ones for both the landlord and the agent and us, but they've got to be some terms.
[00:06:11] For example, during the deep COVID, when I was taking properties on, I was putting COVID clauses and all my agreement, which protected me and protected my clients. And I actually had a situation where some of my airline clients, you know, um, their shifts went right down and they struggled to make rent payment.
[00:06:35] And we was able to work something out due to that clause. So you need to make sure that you've got the right clause is not just to cover you, but to cover the landlord. And finally, number five, I'm just going to call this excuses by the way, landlords agents, everybody, they lie. That's just one of the, one of the things in life.
[00:06:58] People want to save your feelings. They don't want to hurt your feelings. So they lie. And one of the most common excuses you probably would have heard is the landlord wants a family mattress. Just not actually factual because there's good families and there's bad families, you know, there's good company.
[00:07:18] Let's in this bad company. Let's, you know, I've seen family. Let's where they've had five kids crayons on walls, two dogs. Um, messed up carpets in fact, have left fleas within the property. You don't want a family like that. So all you can really do is reframe that question and try to get down to the root of what their concern is and help them out.
[00:07:45] Hey, another downside of families is families tend to move on because families want to buy a property where we're guaranteed rent for three to five years, we don't do company let's. That just means that you have not managed to get to the decision maker and sell yourself correctly, either that, or it's such a big estate agent let's engage in that the decision makers are aware way, way, way up in the boardroom.
[00:08:12] And yeah, that's, that's a lost cause. So hope that's useful keeping today short and sweet, but if you can just get one thing from this episode, Just realise that all these objections are normal. I've had them all before all my mentees. I've had them all before. It's just about how you get past them, having the confidence, having the know-how and let me know.
[00:08:35] DME comment on Instagram, Simons before line. Let me know if, if you've had these, if you find these tactics useful, I'd love to know if this episode can help one person get a deal, then I've done my job. So. That's all for me. I'll see you next Monday. Take care.
[00:09:04] Thanks for listening. For more information, check out simonsmithonline.com. See you next time.