Chapter 1: The New Income Frontier

In today's world, the pursuit of additional income streams is more relevant than ever. Many are eager to explore quick ways to earn money, and I am no exception. As someone who naturally leans towards introversion, I came to a crucial realization: depending solely on a single income source could lead to future regret. This led me to master the art of selling.

From a young age, I dabbled in selling various items, including basketball cards and shoes, to earn quick cash. As I grew older, my entrepreneurial spirit continued, and I found myself selling eggs, meal replacements, and even workshop programs, all while managing my primary career as an accountant.

One income source that particularly piqued my interest is real estate, specifically rental properties. While many flock to platforms like Airbnb for income, I've discovered ways to generate revenue from real estate without relying on these services.

Chapter 2: The Art of Networking

To successfully engage with rental properties, the first step is to compile a list of available rentals. It's essential to connect with property owners directly and present them with a concise pitch.

To initiate this process, you could search for property listings online and send a brief introductory message. For example: "Hi John, are you the owner?" Responses can vary, but you might hear:

• "I am the property manager."
• "I am a real estate agent."
• "Yes, I own the property."

Consider adding a brief note about the value of your services, such as managing rental contracts, tenant onboarding, and key duplication. Once you receive a positive response from the property owner, you're set to proceed.

Don't stress over rental contracts; you can find standard templates readily available.

Once you've identified a potential property owner, introduce yourself: "Hi, I'm Sam, a property manager and agent. Could I request more photos to share with my clients? My typical commission is equivalent to one month's rent."

Chapter 3: Finding Your Niche

In our case, we had friends with rental units who became our first clients. We approached them about taking on property management responsibilities, especially since many lived far from their properties. To sweeten the deal, we offered reduced commission rates to encourage them to switch from their current management.

Apart from reaching out to friends, you can also advertise on platforms like Rentpad and Craigslist. Additionally, consider joining community groups on Facebook where individuals seek rentals in specific areas.

For instance, my wife once struck up a conversation with some international tenants in our building and quickly shared information about our rental listings, even providing her contact number.

Don't hesitate to network; seize opportunities to promote your services.

Chapter 4: Preparing for Property Viewings

Once leads begin to materialize and prospects agree to view properties, it's vital to confirm arrangements and secure access to the site. Contact the building or property management to clarify visitor requirements and whether rental prices include association fees.

On the day of the viewing, reach out to the potential tenant to confirm the appointment, as some may change their minds. Arrive early to familiarize yourself with the property and be prepared to answer questions.

In our locality, rental condos typically range between $500 and $800 monthly, depending on size and amenities.

Chapter 5: Understanding Rental Arbitrage

In the context of rental income, the term "arbitrage" is often used within the Airbnb framework, while in traditional rentals, it's known as subleasing. However, not all properties allow subleasing, so it's crucial to check with the owner beforehand.

Subleasing involves renting a property and then re-renting it to someone else. To profit, you need to negotiate a lower rental price with the owner and charge a higher rate to the subtenant.

To successfully navigate this, it's beneficial to have prior rental transactions under your belt. My wife and I once rented a bare one-bedroom condo, furnished it, and then decided to lease it while relocating during the pandemic.

Instead of leaving the unit vacant and continuing to pay rent, we sought permission from the owner to sublease it. We initially rented the place for $340 and managed to lease it at $480, resulting in an annual profit of $1,680, not to mention the additional $280 from the security deposits.

In total, we secured a profit of $1,960—a lucrative income stream that can be replicated across other properties.

Are you ready to embark on your rental journey?

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