Airbnb Rental Arbitrage in Brisbane
Do you want to have financial freedom through passive income? Invest in a property! Disclaimer: You don’t need to own a property at all in the Airbnb rental arbitrage business. In fact, some of the most important factors that investors should consider are the occupancy rates, and rental yields and they also must choose the best place for investment property in Australia.
In this article, we featured the entire process of Airbnb rental arbitrage in Brisbane, its profitability, Airbnb key metrics including occupancy and average daily rates, along with the best areas for investment.
Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage.
What is Rental Arbitrage?
Rental Arbitrage is a perfect way to start an Airbnb business with no money. By convincing landlords to lease you a property, you can furnish and sublease it on Airbnb and VRBO. No need for you to buy a property!
It is perfectly legal and is a proven scalable business model. In my podcast, I have spoken to various entrepreneurs doing Airbnb arbitrage full-time.
Here’s a proof! In Brisbane, Lee and Diane manage 92 listings and I’m pretty sure they don’t own all the properties. Overall, they made A$4,433,523 in the last 12 months.
Is Rental Arbitrage Profitable in Brisbane?
In order to start a rental arbitrage in Australia, particularly in Brisbane, it’s primarily important to take note of the overall cost and potential revenue.
For instance, the best neighborhood to invest in is New Farm. This neighborhood continues to be recognized as one of Brisbane’s top suburbs because of its transportation accessibility and entertainment options. Using Airbtics’ income generator, you can easily distinguish that rental arbitrage in Brisbane is profitable.
Profit & Monthly Expense in Brisbane
Based on Airbtics’ data, you can earn a whopping A$9,178 per month for a 3-bedroom apartment in New Farm alone. With the data provided, you can certainly tell that investing in a property in Brisbane is profitable.
Source: Airbtics dashboard
The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses (A$9,178 – A$5,649 – A$1,836 = A$1,693).
Startup Cost in Brisbane
Now that you have an overview of how much your monthly expense and revenue, let’s talk about the start-up cost! How long does it take for an investor to get back the startup cost? Let’s take a look at this calculation:
The average estimated startup cost (for furnishing) in Brisbane is around A$2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (A$11,298). Now that we have a total startup cost of A$13,298, cash return time can be calculated by dividing this by the monthly profit (A$1,693).
Given your monthly revenue of A$1,693, it will take approximately 8 months time to get back the startup cost of A$13,298.
In such a brief period of time, you can already expect profit and can even start considering a second unit for rental arbitrage. If this sounds promising to you, then go ahead and look at the other best areas for rental arbitrage in Brisbane!
Best Areas for Rental Arbitrage in Brisbane
Before investing in a particular area in Brisbane, you have to take a look at the top markets and number of listings to set your expectations towards success. Check out the top 3 suburbs in Brisbane ranked by their annual revenue, along with their occupancy & daily rates!
1. Frog’s Hollow
Located in Brisbane’s central district, this neighborhood has an impressive selection of tourist attractions! Check out the Airbnb data such as the average revenue, occupancy rates, and more in Frog’s Hollow:
According to our Airbtics Dashboard, there are more than 195 Airbnb listings with 35 condo properties and 99 one-bedroom properties in this area. The monthly revenue for most properties in Frog’s Hollow is more than A$4,046 per month with occupancy being more than 66%.
2. New Farm
New Farm is also recognized as the Little Italy of Brisbane. This neighborhood has a dynamic nightlife, the grandest parks, and picnic areas. Check out the Airbnb data such as the average revenue, occupancy rates, and more in New Farm:
This area has a total of 77 Airbnb listings with 27 private room properties and 21 one-bedroom property. The monthly revenue for most properties in New Farm is more than A$4,117 per month with occupancy being more than 56%.
3. Fortitude Valley
This neighborhood is home to one of the state’s most culturally diverse communities and offers the best nightlife for tourists! Check out the Airbnb data such as the average revenue, occupancy rates, and more in Fortitude Valley:
This area has a total of 115 Airbnb listings with 24 private room properties and 58 one-bedroom properties in this area. The monthly revenue for most properties in Fortitude Valley is more than A$4,230 per month with occupancy being more than 57%.
