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 Jacksonville, 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 Jacksonville, Mark manages 57 listings and I’m pretty sure that he doesn’t own all the properties. He has made $7,004,437 in the last 12 months.
Is Rental Arbitrage Profitable in Jacksonville?
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 Springfield, which is one of the most attractive & charming neighborhoods in Jacksonville.
Using Airbtics’ income generator, you can easily discover that rental arbitrage in Jacksonville is profitable.
Profit & Monthly Expense in Jacksonville
Based on Airbtics’ data, you can earn a whopping $4,684 per month for a 2-bedroom apartment in Downtown alone. With the data provided, you can certainly tell that investing in a property in Jacksonville is profitable.
| Average Rent Price | Airbnb Monthly Revenue | Monthly Expense | Monthly Profit |
|---|---|---|---|
| $1,725 | $4,684 | $937 | $2,022 |
Source: Airbtics dashboard
The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses ($4,684 – $1,725 – $937 = $2,022).
Startup Cost in Jacksonville
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 |
|---|---|
| $5,540 | 3 months |
The average estimated startup cost (for furnishing) in Jacksonville is around $2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price ($3,450). Now that we have a total startup cost of $5,450, cash return time can be calculated by dividing this by the monthly profit ($2,022).
Given your monthly revenue of $2,022, it will take approximately 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 Jacksonville.
Best Areas for Rental Arbitrage in Jacksonville
Before investing in a particular area in Jacksonville, 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 Jacksonville ranked by their annual revenue, along with their occupancy & daily rates!
1. Riverside
This neighborhood in Jacksonville has trendy gastropubs and restaurants. Riverside is also recognized as one of the safest neighborhoods in Jacksonville. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Riverside:
| Type of Bedrooms | Average Rent Price | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| 1 bedroom | $1,150 | $2,245 | 78% | $117 |
| 2-bedroom | $1,250 | $2,557 | 82% | $133 |
| 3-bedroom | $1,885 | $3,766 | 79% | $204 |
According to our Airbtics Dashboard, there are more than 87 Airbnb listings with 10 condo property and 3 one-bedroom properties in this area. The monthly revenue for most properties in Riverside is more than $2,213 per month with occupancy being more than 75%.
2. Springfield
Springfield is an up-and-coming trendy area that offers exciting places to visit including breweries and public art. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Springfield:
| Type of Bedrooms | Average Rent Price | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| 1 bedroom | $875 | $1,840 | 81% | $108 |
| 2-bedroom | $1,250 | $2,020 | 67% | $118 |
| 3-bedroom | $1,495 | $3,794 | 61% | $215 |
This area has a total of 73 Airbnb listings with 14 private room properties and 43 one-bedroom properties. The monthly revenue for most properties in Springfield is more than $1,873 per month with occupancy being more than 63%.
3. Downtown
This neighborhood is the main business district which generally targets business professionals and tourists. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Downtown:
| Type of Bedrooms | Average Rent Price | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| 1 bedroom | $1,269 | $2,082 | 80% | $104 |
| 2-bedroom | $1,725 | $4,684 | 31% | $792 |
| 3-bedroom | $2,530 | $3,630 | 43% | $228 |
This area has a total of 46 Airbnb listings with 3 private room properties and 26 one-bedroom properties. The monthly revenue for most properties in Downtown is more than $2,594 per month with occupancy being more than 48%.
Short-term rental regulations in Jacksonville
To begin with, it’s certainly important to be familiar with the Airbnb rules in Jacksonville to make sure that your business will run smoothly. Here are some of the short-term rental regulations and laws to take note of:
- Short-term vacation rentals are permitted in zoning districts in Florida where residential uses are permitted.
- If you are a property owner or a licensed agent for a property management company, you must apply for a short-term vacation rental certificate for every property being used as a short-term vacation rental.
- All existing short-term vacation rentals that require a certificate are required to make an application to the City of Jacksonville Beach. You can register your short-term rental property to the planning and development department at city hall located at 11 3rd Street North.
- If you are an owner-occupied dwelling with a unit renting 50% or less, you are not subject to the short-term vacation rental regulations. However, registration with county and state taxing authorities is still required.
Rental Properties in Jacksonville
To run an Airbnb rental arbitrage in Florida, you can look at property websites and get a grasp of the ranging prices in Jacksonville:
1. Zillow
2. Trulia
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:
- 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:
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:
- Craigslist allows renters to specifically state what kind of property they are looking for. You can try typing in ‘landlords allowing Airbnb’ or ‘sublease property in (city name)’ and try other keywords to get you on the right track.
- Facebook marketplace has a vast community of landlords & renters, so you can try joining the right groups to lead you on the right path. Here are some of the finest Facebook groups that you can join:
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!
