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Airbnb Rental Arbitrage in Charlottesville

Are you interested in achieving financial independence through passive income? Here’s a disclaimer: you don’t need to own a property to start the Airbnb rental arbitrage business.

In this article, we featured the entire process of Airbnb rental arbitrage in Charlottesville, its profitability, along with the best areas and neighborhoods. 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 Charlottesville, Miranda manages 13 listings and there’s a huge possibility that she doesn’t own all the properties. She has made $563,324 in the last 12 months.  

Charlottesville airbnb rental arbitrage

Is Rental Arbitrage Profitable in Charlottesville?

Before you dive in and start putting out your hard-earned money on a property, it’s important to know how much profit you can make. For instance, the best neighborhood to invest in is Fifeville, where an average host can earn $3,715 monthly for a 1-bedroom apartment.

Using Airbtics’ income generator, you can easily discover that rental arbitrage in Charlottesville is profitable.

Charlottesville airbnb rental arbitrage
Profit & Monthly Expense in Charlottesville

Based on Airbtics’ data, you can earn a whopping $8,280 per month for a 3-bedroom apartment in Fifeville alone. With the data provided, you can certainly tell that investing in a property in Charlottesville is profitable.

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
$1,973 $8,280 $1,656 $4,651

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses ($8,280 – $1,973 – $1,656 = $4,651).

 Startup Cost in Charlottesville

Now that you have an overview of how much your monthly expense & 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:

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
$5,946 1.3 months

The average estimated startup cost (for furnishing) in Charlottesville is around $2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price ($3,946). Now that we have a total startup cost of $5,946, cash return time can be calculated by dividing this by the monthly profit ($4,651). 

Given your monthly revenue of $4,651, it will take approximately 1.3 months time to get back the startup cost! In such a short period of time, you can already expect profit and consider starting your 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 Charlottesville.

Best Areas for Rental Arbitrage in Charlottesville

Before investing in a particular area in Charlottesville, 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 boroughs in Charlottesville ranked by their annual revenue, along with their occupancy & daily rates!

1. Belmont

Situated at the downtown pedestrian mall, Belmont offers a vast selection of restaurants, music venues, green spaces, and artistic buildings. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Belmont:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $1,225 $3,054 92% $150
2-bedroom $1,673 $4,185 80% $236
3-bedroom $1,973 $5,358 93% $361

According to our Airbtics Dashboard, there are more than 57 Airbnb listings with 6 private room properties and 22 one-bedroom properties in this area. The monthly revenue for most properties in Belmont is more than $3,702 per month with occupancy being more than 76%.

2. North Downtown

This neighborhood in Charlottesville is one of the most admired neighborhoods in the area by property investors because of its affordability. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Charlottesville

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $1,588 $4,675 79% $234
2-bedroom $2,200 $5,573 86% $259
3-bedroom $2,750 $7,249 77% $595

This area has a total of 40 Airbnb listings with 3 private room properties and 27 one-bedroom properties. The monthly revenue for most properties in North Downtown is more than $3,614 per month with occupancy being more than 65%.

3. Fifeville

Fifeville is primarily a residential area but there are also commercial activities and locally owned businesses. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Fifeville:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $1,438 $3,715 92% $203
2-bedroom $1,700 $3,851 92% $251
3-bedroom $1,973 $8,280 96% $473

This area has a total of 25 Airbnb listings with 6 private room properties and 9 one-bedroom properties. The monthly revenue for most properties in Fifeville is more than $3,291 per month with occupancy being more than 88%.

how much can you make on airbnb

Short-term rental regulations in Charlottesville

To begin with, it’s certainly important to be familiar with the Airbnb rules in Charlottesville to make sure that your business will run smoothly. Here are some of the short-term rental regulations and laws to take note of:

  • Every person engaging in the business of short-term rental of tangible personal property shall file annually an application for a certificate of registration with the commissioner of revenue.
  • The certificate issued is not assignable and shall be valid only for the person in whose name it is issued and the place of business designated.
  • Continuous rentals that last 30 days or longer are exempt from transient occupancy tax. For those who are claiming exempt rentals, documentation including a copy of the short-term lease or the recap spreadsheet from the online rental platform (AirBnB, VRBO, etc…) is required.

Rental Properties in Charlottesville

There are plenty of best places to Airbnb in Virginia, particularly in Charlottesville. Here are the ranging prices of rental properties in Charlottesville:

1. Apartments
sublet in charlottesville
2. Zillow
sublet in charlottesville

How to Find Landlords for Airbnb Rental Arbitrage

Airbnb investment through rental arbitrage is one of the best strategies to have passive income. However, it could be a challenge to find a landlord that allows their property for subletting on Airbnb. You can also convince a landlord by following the rental arbitrage email template & be extra creative! 

Here are ways how you can find landlords that allow Airbnb rental arbitrage:

  1. Real Estate Websites

Renters in the digital world who are looking for properties online can easily connect with landlords. Some of the most recommended online real estate websites which allow you to filter by city, state, or ZIP code are:

However, you can also find apartment & condominium properties online in the following websites:

  1. Search Engines & Marketplaces

There are numerous property owners who are leasing their properties and you can easily find them on Google & online marketplaces. Check out some of the most recommended marketplaces:

  1. Communicate with Landlords

If you are currently renting a space or know someone who is, then it’s also recommended to speak with them. Start by asking if there are vacant rooms or properties and let them know about your intentions of putting them up for rental arbitrage. They might also be able to recommend neighbors or local friends who are also interested in this idea!

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