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 Winnipeg, 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 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 Winnipeg, Alberto manages 27 listings and I’m pretty sure he doesn’t own all the properties. He made C$376,856 in the last 12 months.
How much can I make with rental arbitrage in Winnipeg?
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 Downtown, home to Winnipeg’s commercial core.
Since this neighborhood is close to the top attractions in Winnipeg, it has had an exceptional rental demand over the years!
Profit & Monthly Expense in Winnipeg
Based on Airbtics’ data, you can earn a whopping C$2,659 per month for a 2-bedroom apartment in the Downtown area alone. With the data provided, you can certainly tell that investing in a property in Winnipeg is profitable!
| Average Rent Price | Airbnb Monthly Revenue | Monthly Expense | Monthly Profit |
|---|---|---|---|
| C$1,412 | C$2,659 | C$532 | C$715 |
Source: Airbtics dashboard
The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and the monthly expenses (C$2,659-C$1,412-C$532= C$715).
Startup Cost in Winnipeg
Now that you have an overview of how much your monthly expense and revenue is, let’s talk about the start-up cost! How long does it take for an investor like you 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 |
|---|---|
| C$4,824 | 7 months |
The average estimated startup cost (for furnishing) in Winnipeg is around C$2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (C$2,824). Now that we have a total startup cost of C$4,824, cash return time can be calculated by dividing this by the monthly profit (C$715).
Given your monthly revenue of C$715, it will take approximately 7 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 Winnipeg!
Best Areas for Rental Arbitrage in Winnipeg
Before investing in a particular area in Winnipeg, 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 Winnipeg ranked by their annual revenue, along with their occupancy & daily rates!
1. Downtown
Downtown is the oldest urban area in Winnipeg, but it offers so much more than one may expect! From nightclubs to museums, hockey games, local artisan handicrafts, this is cretainly a perfect area for property investors. Here’s what you can expect in this neighborhood:
| Type of Bedrooms | Average Rent Price (pcm) | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| 1-bedroom | C$1,095 | C$1,985 | 80% | C$116 |
| 2-bedrooms | C$1,412 | C$2,659 | 80% | C$149 |
| 3-bedrooms | C$1,649 | C$7,259 | 51% | C$1,013 |
According to our Airbtics Dashboard, there are more than 164 Airbnb listings with 7 private rooms and 77 one-bedroom properties in this area. The monthly revenue for most properties in the Downtown area is more than C$3,319 per month with occupancy being more than 67%.
2. River – Osborne
Recognized as one of the most famous landmarks in the city, The Osborne-River Building is located in this area. This is also situated right next to Downtown so everything is accessible! Here’s what you can expect in this neighborhood:
| Type of Bedrooms | Average Rent Price (pcm) | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| 1-bedroom | C$1,045 | C$1,902 | 82% | C$107 |
| 2-bedrooms | C$1,490 | C$2,263 | 84% | C$137 |
| 3-bedrooms | C$1,600 | C$2,100 | 69% | C$162 |
This area has a total of 52 Airbnb listings with 23 condo properties and 23 one-bedroom properties. The monthly revenue for most properties in River – Osborne is more than C$2,790 per month with occupancy being more than 67%.
3. Wolseley
Known as the home of Winnipeg jets, Wolseley is an incredibly diverse neighbourhood with various professionals and families. Here’s what you can expect in this neighborhood:
| Type of Bedrooms | Average Rent Price (pcm) | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
|---|---|---|---|---|
| 1-bedroom | C$875 | C$1,985 | 83% | C$101 |
| 2-bedrooms | C$1,120 | C$2,436 | 61% | C$145 |
| 3-bedrooms | C$1,550 | C$2,038 | 84% | C$157 |
This area has a total of 32 Airbnb listings with 4 condo properties and 6 two-bedroom properties in this area. The monthly revenue for most properties in Wolseley is more than C$2,924 per month with occupancy being more than 67%.
LOOKING FOR OTHER RECOMMENDED CITIES TO INVEST IN AIRBNB IN CANADA?
Make sure to also check the Airbnb revenue in Canada‘s top cities.
Short-term rental regulations in Winnipeg
To begin with, it’s certainly important to be familiar with the Airbnb rules in Winnipeg to make sure that your business will run smoothly. Currently, there are no regulations on short-term rentals in Winnipeg, but here are some of the recent updates to take note of:
- City development officials in Winnipeg are planning to spend the next six months working on regulations for short-term rentals that could require owners to register with the city and submit to criminal background checks.
- The city may also limit the number of short-term rentals in a specific block or individual condominium unit, restrict the rentals to primary residences and make them subject to the same 5% municipal accommodation tax hotels are required to pay.
Rental Properties in Winnipeg
Winnipeg is home to world-class museums & galleries and is known to have a very active cultural life! To run an Airbnb rental arbitrage in Canada, you can look at property websites and get a grasp of the ranging prices in Winnipeg:
1. Rent Canada
2. Kijiji
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!
