Last updated on September 4th, 2023
Do you want to have financial freedom through passive income? Here’s a great way to do so: Invest in a property! And no – 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 Surfers Paradise, its profitability, along 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 Surfers Paradise, Jason manages 73 listings and I’m pretty sure he doesn’t own all the properties. Overall, he made A$8,497,628 in the last 12 months.
Is Rental Arbitrage Profitable in Surfers Paradise?
In order to start a rental arbitrage in Australia, particularly in Surfers Paradise, it’s primarily important to take note of the overall cost & potential revenue.
For instance, the best neighborhood to invest in is Chevron Island, which is an urban island that is accessible to public transport and the main tourist area. Using Airbtics’ income generator, you can easily distinguish that rental arbitrage in Surfers Paradise is profitable!
Profit & Monthly Expense in Surfers Paradise
Based on Airbtics’ data, you can earn a whopping A$10,751 per month for a 3-bedroom apartment in Chevron Island alone. With the data provided, you can certainly tell that investing in a property in Surfers Paradise is profitable.
| Average Rent Price | Airbnb Monthly Revenue | Monthly Expense | Monthly Profit |
|---|---|---|---|
| A$3,693 | A$10,751 | A$2,150 | A$4,907 |
Source: Airbtics dashboard
The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses (A$10,751 – A$3,693 – A$2,150 = A$4,908).
Startup Cost in Surfers Paradise
Now that you have an overview of how much your monthly expense and revenue, let’s talk about the startup 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 |
|---|---|
| A$9,386 | 2 months |
The average estimated startup cost (for furnishing) in Surfers Paradise is around A$2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (A$7,386). Now that we have a total startup cost of A$9,386, cash return time can be calculated by dividing this by the monthly profit (A$4,908).
Given your monthly revenue of A$4,908, it will take approximately 2 months time to get back the startup cost in Surfers Paradise!
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 Surfers Paradise.
Best Areas for Rental Arbitrage in Surfers Paradise
Before investing in a particular area in Surfers Paradise, 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 Surfers Paradise ranked by their annual revenue, along with their occupancy & daily rates!
1. Chevron Island
Popular for holidaymakers and entrepreneurs, Chevron Island is one of the nicest places to invest in because it is situated in the heart of Surfers Paradise. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Chevron Island:
| Type of Bedrooms | Average Rent Price | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| 1-bedroom | A$1,825 | A$4,074 | 76% | A$180 |
| 2-bedrooms | A$1,955 | A$6,631 | 70% | A$251 |
| 3-bedrooms | A$3,693 | A$10,751 | 87% | A$393 |
According to our Airbtics Dashboard, there are more than 27 Airbnb listings with 2 condo properties and 16 one-bedroom properties in this area. The monthly revenue for most properties in Chevron Island is more than A$3,168 per month with occupancy being more than 66%.
2. Macintosh Island
If you are looking to invest in a property in the middle of Surfers Paradise, then Macintosh Island is definitely one of the most recommended areas! Check out the Airbnb data such as the average revenue, occupancy rates, and more in Macintosh Island:
| Type of Bedrooms | Average Rent Price | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| Studio | A$1,374 | A$2,759 | 63% | A$165 |
| 1-bedroom | A$2,259 | A$4,381 | 83% | A$155 |
| 2-bedrooms | A$3,150 | A$5,258 | 83% | A$300 |
This area has a total of 12 Airbnb listings with 2 private room properties and 1 one-bedroom property. The monthly revenue for most properties in Macintosh Island is more than A$4,546 per month with occupancy being more than 83%.
3. Golden Coast Beach
Targetting the majority of tourists in general? Golden Coast Beach is situated near restaurants and markets, which makes it accessible to visitors. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Macintosh Island:
| Type of Bedrooms | Average Rent Price | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| 1-bedroom | A$1,999 | A$3,620 | 82% | A$236 |
| 2-bedrooms | A$2,911 | A$4,261 | 82% | A$377 |
| 3-bedrooms | A$3,476 | A$6,540 | 83% | A$702 |
This area has a total of 861 Airbnb listings with 50 private room properties and 346 one-bedroom properties in this area. The monthly revenue for most properties in Golden Coast Beach is more than A$4,151 per month with occupancy being more than 63%.
LOOKING FOR MORE PROFITABLE CITIES TO INVEST IN AIRBNB IN AUSTRALIA?
If you want to discover other top rental markets in Australia, go ahead and check out the Airbnb demand by city!
Short-term rental regulations in Surfers Paradise
To begin with, it’s certainly important to be familiar with the Airbnb rules in Surfers Paradise to make sure that your business will run smoothly. Here are some of the short-term rental regulations and laws to take note of:
- It is required to apply for a development approval if you’re not residing in the property and using your entire dwelling for short-term letting in the Gold Coast City Council.
- To obtain a business licence and market a property as tourist accommodation, the property’s zoning must list tourist accommodation or temporary accommodation as a permitted use. Properties with residential zoning may not be marketed as available to tourists, for any length of time.
- It is also necessary to give consideration to registered covenants that may affect a property development, rental pool and other covenants may place restrictions and obligations on property use.
Rental Properties in Surfers Paradise
To run an Airbnb rental arbitrage in Australia, you can look at property websites and get a grasp of the ranging prices in Surfers Paradise:
1. Homely
2. Rent AU
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!
