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How to Start Airbnb in Canada

How to start airbnb in canada, this question is in every new host’s mind when starting out their journey. Let’s get the answers today!

How to Start Airbnb in Canada

how to start airbnb in canada

How to Start Airbnb in Canada

How to start airbnb in canada, this question is in every new host’s mind when starting out their journey. Let’s get the answers today!

If you’re wondering how to start Airbnb in Canada, you’ve come to the right blog. Before we get to the answers to your questions, let’s talk about Airbnb.

Most people who start their STR (Short-Term Rental) journey usually do it as a side hustle. Many are looking to rent out a spare room, a second home, an attic, or a vacation home. On average, an Airbnb income potential is $1,000/-month as a side hustle. But there are many hosts doing STR as a full-fledged business and making a fortune. In fact, most people making a fortune doing Airbnb full-time are mostly doing Rental Arbitrage.

Here’s what you need to know about Airbnb

Airbnb has established itself as a stronghold in the real estate industry, connecting property owners with individuals who want to learn about different cultures and activities. Airbnb, a prominent short-term home rental service, offers both homeowners and visitors new options. When done correctly, Airbnb hosting can help you earn a lot of money. If you have spare space in your home, Airbnb might be a great way to supplement your income or perhaps convert your hobby into a full-time job.

How Airbnb works for hosts?

Airbnb offers a variety of hosting choices, including renting out the extra room in your house, renting out your complete home, and hosting local experiences. Here’s a step-by-step guide on how Airbnb works for hosts:

1. You must first create a free Airbnb account in order to start renting out the extra room in your house.

how to start airbnb in canada

Then, in the upper right-hand corner of the page, click “become a host.”

how to start airbnb in canada

2. The next step is to establish a listing for your space. A listing is similar to a profile page for the place you wish to rent which issimilar to a social media profile. The more attractive and descriptive your page is, the more people will see it.

3. It’s a good idea to make your area as appealing as possible and learn how to take the best Airbnb photos. What should your fee be? Airbnb assists you in determining pricing by displaying local averages.

On Airbnb, you can also make money by hosting an experience. “Airbnb experiences are activities created and conducted by locals who are passionate about what they do. They go above and beyond traditional tours or seminars by immersing guests in a host’s unique world,” according to the Airbnb website.

how to start airbnb in malaysia

If you wish to host an experience, look over Airbnb’s quality guidelines for experience criteria. Basically, the visitor must be given access to something, be able to participate in something, and be given a unique perspective. Design your experience after studying the quality requirements and submitting it to Airbnb for approval. You are now ready to publish and host your experience after it has been authorized.

2. Airbnb host requirements in Canada: 
  • Non-residential

Given the fact that collecting rent from Canadian real estate or disposing of Canadian real estate might make you liable to Canadian income tax, determining whether you are a resident or non-resident of Canada can be rather complicated.

You must pay Canadian income taxes if you are a non-resident of Canada and have taxable rental income in Canada as a consequence of your Airbnb taxes. The income tax treaty between Canada and the United States, however, can offset the tax rate. You should follow the guidelines described in Income Tax Guide Under Section 216 since you are receiving rental income.

However, you can decrease the amount of tax you owe by filing a separate Canadian tax return to report your rental income.

  • Residential

If you are deemed a Canadian resident, you must adhere to the tax regulations that apply to residents. Except for Quebec citizens, Airbnb hosts in Canada are required to report their Airbnb revenue to the Canada Revenue Agency (CRA). Your gains from rental activities will most likely be deemed rental income if you include typical amenities that are common to all rentals, such as heat, electricity, in-suite laundry, and parking. If you offer extra services like cleaning, security, or meals, you will be deemed a company.

Before you second-guess yourself, remember that because you’re reporting the income, you’re also eligible to deduct expenses linked to that revenue.

3. What are the  tax benefits that Airbnb hosts claim in Canada?

Whether your Airbnb revenue is classified as rental or company income, you’ll want to deduct as many qualified costs as possible to lower your tax bill. Here are some examples of vacation rental charges you can claim:

  • The interest on your rent or mortgage
  • The cost of cleaning products or the cost of a cleaning service
  • The cost of new towels and bedding for guests
  • Any small additions or renovations to the guest area (i.e., adding a fresh coat of paint to the room)
  • The price of breakfast and snacks for visitors
  • Soap, shampoo, and other toiletry costs
  • Whether you rent a storage locker or place a lock on a cabinet, you may have to pay fees to store your belongings
  • The expense of adding a keypad or lockbox so that guests may check in themselves
  • The price of creating new keys
  • Any maintenance or administration costs you could pay to have your listing maintained by a third party
  • If you own your house, you will have to pay property taxes (only for the period your property was available for rent)
  • Travel expenses to and from your rental property to collect rent, check on visitors, prepare the property, and so on.
4. Responsible hosting in Canada
  • Cleanliness and good health- In general information about hosting places to stay, you may find information on Airbnb’s 5-step improved cleaning procedure.
5. Permissions and general regulations

It’s crucial to double-check that you’re allowed to host on your property. Contracts, legislation, and community rules are all examples of constraints. Consult a lawyer or your local government to learn more about the regulations, limits, and requirements that apply to your situation.

  • Permits and contractual agreements- Subletting and hosting are sometimes prohibited by leases, contracts, building regulations, and community rules. Examine any contracts you’ve signed or get in touch with your landlord, community council, or other government agency.
  • Mortgage stipulations- Check with your lender to see if there are any limits on subletting or hosting if your home has a mortgage (or any other type of debt).
  • Housing limitations that are subsidized- Subsidized housing frequently includes restrictions prohibiting unlicensed subletting. If you live in a subsidized housing neighborhood and want to become a host, contact your local housing authority or housing association.
  • Housemates- Consider creating a formal agreement with your housemates to outline expectations if you share a home with others. Housemate agreements might cover topics such as how often you expect to host, guest etiquette, revenue sharing, and more.
6. Courtesy

Helping your visitors understand appropriate practices for interacting with your community is an important part of being a responsible host. You’re helping to create a fantastic experience for everyone when you share local norms and customs with your guests.

  • Rules of the house- Your home rules can be entered in the Additional remarks area of your Airbnb account’s Listing information. When you express your expectations with your guests up front, they typically appreciate it.
  • Neighbours- If you’re going to host, it’s typically a good idea to notify your neighbors. This provides them the opportunity to express any issues or reservations they may have.
  • Parking- Inform your visitors about any parking restrictions in your building or area. For example:
    • Only park in an allotted spot on Tuesdays and Thursdays due to street cleaning
    • Don’t park on the west side of the street on Tuesdays and Thursdays due to street cleaning
    • Street parking is only accessible between 7 p.m. and 7 a.m.
  • Pets- To begin, check your lease or building bylaws to see if there are any pet restrictions. If you allow guests to bring their dogs, they’ll enjoy knowing where they can exercise them and dispose of their waste. If a guest’s pet annoys the neighbours, have a backup plan in place, such as the phone number of a local pet kennel.
7. Insurance

Work with your insurance agent or carrier to figure out what kind of responsibilities, restrictions, and coverage you’ll need for your individual situation.

  • Host Protection Insurance and Host Guarantee- The Host Guarantee and Host Protection Insurance offered by Airbnb provide minimal coverage for the stated damages and liabilities. These, however, do not replace homeowners’ or renters’ insurance, nor do they provide enough liability coverage. You may also be required to meet other insurance requirements.
  • Basic insurance benefits and liability- Check with your insurance agent or carrier to see if your homeowners or renters policy provides enough liability coverage and property protection for your listing.
Looking for the Best Canadian Cities for Airbnb Investments?

If you are looking for a lucrative Canadian rental market, make sure to check out the most profitable Airbnb locations in Canada!

8. How much can an Airbnb host earn in Canada?

While Airbnb occupancy rates in Canada vary per city, it’s important to know beforehand about your profit as a host. For instance, here is a graph of the average monthly revenue and occupancy rates of 5 major cities in Canada.

1. Airbnb Profitability in Toronto
  • Occupancy rate: 75%
  • Annual revenue: C$33,228
  • Average Daily Rate: C$131
how to start airbnb in canada
2. Airbnb Profitability in Quebec
  • Occupancy rate: 69%
  • Annual revenue: C$44,460
  • Average Daily Rate: C$179
how to start airbnb in canada
3. Airbnb Profitability in Vancouver
  • Occupancy rate: 87%
  • Annual revenue: C$57,119
  • Average Daily Rate: C$168
how to start airbnb in canada
4. Airbnb Profitability in Calgary
  • Occupancy rate: 67%
  • Annual revenue: C$27,328
  • Average Daily Rate: C$102
5. Airbnb Profitability in Ottawa
  • Occupancy rate: 65%
  • Annual revenue: C$27,605
  • Average Daily Rate: C$111
Ottawa-Airbnb

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Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Las Vegas

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    There is a low-cost gamble with a very high earning potential. You can augment your income by renting out a property without actually owning it. Rental Arbitrage enables this setup. It is a smart way to earn passive income with only minimal investment!

    In this guide, we’ll explain rental arbitrage in layman’s terms and provide some expert tips. We also included the best areas to do rental arbitrage in Las Vegas to help you make the best investment decisions. Stoked to learn more? Continue reading!

    What is Rental Arbitrage?

    Rental Arbitrage is a method similar to house hacking, where you rent out a spare room in your property. The difference between these two is you don’t need to own the house in rental arbitrage. Instead, you convince the property owner to allow you to sublease the house on Airbnb and VRBO.

    Can you do Airbnb Arbitrage in Las Vegas?

    Yes! Rental Arbitrage in Las Vegas is applicable to any type of residential real estate. These can be multi-room apartments, houses, condo units, duplexes, and triplexes. It is a smart way to add a stream of income through the short-term rental of your subtenants. This allows you to pay your own rent and earn more. 

    Assuming you are renting a duplex in Las Vegas for $1,800/month. You are living by yourself on either side and you decide to sublease the other on Airbnb.  Let’s say you listed it for $100/day and got 80% occupancy. This will bring in approximately $2,600 per month in revenue. Not only will it fully cover your rent, but it will give you a profit of $800. This, in a nutshell, is called rental arbitrage.

    Check out the wider definition of Rental Arbitrage based on the ultimate guide for STR investors!

    Legality and Regulations in Las Vegas

    Short-term rentals in Las Vegas are only permitted in owner-occupied properties with three or fewer bedrooms that are at least 660 feet distant from another short-term rental. Licensing, noise, and parking regulations all apply to rentals.

    Short-term rental license applicants need to fill out this form. The code enforcement officer will then inspect the property after the payment of the application and annual permit fees. See here for the complete list of application requirements.

    Please remember to follow Airbnb regulations in Las Vegas, particularly regarding noise, trash, and parking concerns. Las Vegas has an Airbnb complaint hotline 702-229-3500, so neighbors can easily report violations. 

    How do I get my first Airbnb arbitrage?

    1. Convince the landlord

    Let’s say you want to get into Rental Arbitrage. Now comes the big question, how to find a good property and how to convince the landlord. Later in the blog, we’ll be explaining how to find a good property by doing proper research using Airbnb analytics. In this section, we will be focusing more on how to convince landlords. As you’ll begin your Rental Arbitrage journey, you’ll come to know that this is the hardest part of the whole process.

    You need to be prepared and well-researched about the Airbnb demand in your area. Good communication skills will also come in handy here. Another thing to always keep in mind: never sublease without informing the landlord! There will be a huge number of people coming in and out when you’re sub-renting. It will only be a matter of time before the landlord figures out what you’re up to, and you might end up getting in trouble. 

    For convincing the landlord, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves.

    Points to tell an indecisive landlord.
    • Doing rental arbitrage is a full-time business. It doesn’t generate passive income like long-term leasing. You should try approaching older people who are looking for some sort of passive income.
      They are more likely to agree to a fixed long-term lease. You can also reach out to full-time working professionals or business owners. They will also be happy with a source of passive income until their property is well maintained. This brings us to our next point.
    • You’ll take care of the house better than a normal renter. As you are using the property for Airbnb, you will maintain it very well to make sure you get better reviews. Having a beat-up property isn’t good for business and you are more likely to monitor it often. 
      Not monitoring it will affect your revenue a lot. You may end up paying a huge sum of money for damages done by someone else. So telling this to the landlord might instill some confidence in them.
    • You can ensure timely monthly rent. You can tell the landlord that doing rental arbitrage is a full-time business with ups and downs. It doesn’t guarantee fixed income at all like long-term leasing. But if they lease it to you, you’ll make sure to pay the lease no matter what. Either from the money made after rental arbitrage or from your savings. You need to ensure timely monthly lease payments to gain the trust of the landlord.

    In conclusion, you need to take care of the property like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties. You can also use a free rental arbitrage email template and propose your ideas to landlords!

    2. Ensure the property and gain the landlord’s trust

    Being on the safe side is always a good idea. Use the right tools to ensure the property is safe, and the neighbors can go on with their lives happily while you do rental arbitrage. Many landlords will have this concern when renting out their property to you. They will be worried about neighbors raising noise complaints, and it’s a legitimate concern. To help you with all these problems, here are some suggestions that you can implement: 

    • SimpliSafe – These are home monitoring tools that you can install in the house to make sure no suspicious activity is happening there. Make sure to let the guests know about them and have their consent.
    • Auto host – Automatically screens problematic tenants.
    • Alexa Guard: If you already own an Alexa, you can use its Alexa guard feature to detect parties. It is an inbuilt feature that monitors changes in sound and sends you an alert in case the guests are having a party and making too much noise.
    • InsuraGuest – This insurance and tech company helps you with risk analysis and gives protection beyond Airbnb and VRBO policies.
    • Airbnb Calculator – Give your landlord ease of mind by providing income estimates backed by Airbnb data.

    Pros and Cons

    Be prepared for what you can expect from Rental Arbitrage in Las Vegas:

    • Pros
      • No purchase of property required
      • Low upfront costs
      • Opportunity to repeat and scale easily
      • Generate profit for other investments or business
    • Cons
      • Invest money and time in furnishing the property

    AIRBNB OCCUPANCY RATES IN US CITIES?

    We conducted in-depth research & utilized our Airbnb occupancy rate calculator to feature the occupancy rates of major cities!

    Airbnb data

    How much does it cost to start arbitrage?

    You can expect to spend anywhere between $3,000 to $5,000. This cost includes deposit, furnishing, amenities, legal paperwork, and LLC Incorporation.

    But doesn’t this contradict the low upfront cost of rental arbitrage? Well, these estimates vary from city to city. There is a possibility to do rental arbitrage for even less than this depending upon your situation and the type of property you lease.

    Still, the amount is much less than investing in a new property and getting a mortgage of thousands of dollars. Plus you won’t be on the hook for property maintenance expenses and being stuck for years with debt.

    But this doesn’t mean rental arbitrage can be done with zero or on a very tight budget. There will be some upfront costs that you will have to prepare for by having some extra cash on hand. It will help pay off the lease during the off-season.

    Expense 1: Rental Deposits

    A rental deposit is going to be your first major expense. You will need money to be able to sign a long-term lease with the landlord. For that, you will need a security deposit for your first and previous month’s rent. Sometimes you can negotiate with the landlord and use the first month’s rent as a security deposit.

    Expense 2: Furnishing

    Ideally, you should aim to lease a place that is semi-furnished. Furnishing a place from scratch can add anywhere from $3,000 to $5,000 to your initial capital. Not choosing the right property can make rental arbitrage not so low cost, so choose wisely.

    If the place is semi-furnished, then your best bet is to shop cheap for the rest of the stuff. You can go and find cheap supplies from places like Home Depot and IKEA. Sometimes even Walmart can have a hidden gem if you look closely.

    Expense 3: Photography

    It’s highly recommended to try DIY photography as a start to save money. You can even learn how to take the best Airbnb photos to highlight your listing! But if you have the budget, hiring a professional photographer is also an excellent option. 

    Expense 4: Cleaning Services

    This is not a starting cost, but you will end up spending on cleaning eventually. The best way to save money is to do it yourself initially if you have the skills and experience.

    If you have no experience or you don’t want to invest time in cleaning a place, then your best bet will be to hire a professional cleaner. This can cost you anywhere from $50 to $250 depending upon the size and location.

    Expense 5: Legal Consultation

    Maintaining a professional relationship with a real estate lawyer can be very helpful in the Airbnb business. Airbnb regulations keep updating and you would need some legal guidance on the way to adjust your business accordingly.

    They can also come in handy if you face any legal issues with the landlord or guests. They can help in damage claims and insurance as well in case of any mishappening.

    Best areas for Rental Arbitrage Las Vegas

    1. Henderson 
    Rental Arbitrage Las Vegas

    According to Airbtics Dashboard, Henderson is the top market for your rental arbitrage business. The area has 635 Airbnb listings that have an average annual revenue of $60,425 with a 64% occupancy rate. 

    2. Charleston Preservation

    Airbtics Dashboard, Charleston Preservation is the second-best market to start your Rental Arbitrage business. There are more than 232 Airbnb listings that have annual revenue of $32,254 and a 66% occupancy rate.

    Conclusion

    In summary, rental arbitrage in Las Vegas can be a very profitable side income. Since it does not require you to purchase a property, it’s also practical for beginners trying to be real estate players without spending millions.

    Leverage your rental arbitrage opportunities by using a free short-term rental estimator and determine the best areas that will bring long-term profitability!

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    All About Airbnb Hosting Tips

    Discover: How Much Can You Make on Airbnb?

    Do you want to start an Airbnb business but want to know first how much profit you can make? Then you’re reading the right article! If you want to calculate Airbnb income from your rental property, then feel free to use this calculator to get the exact numbers.

    The majority of people who start their STR (Short-Term Rental) journey are usually for the purpose of having a side hustle. Many are looking to rent out a spare room, a second home, an attic, or a vacation home. On average, most Airbnb hosts make roughly $1,000/-month on Airbnb as a side hustle. But there are also several hosts who are doing STR as a full-fledged business and making a fortune.

    In fact, did you know that most people who are making a fortune doing Airbnb full-time are mostly doing Rental Arbitrage? Since this does not require purchasing a property right away, it’s perfect for those who are on a limited budget and want to test the waters first!

    Airbnb Experiences Revenue: Based on Airbnb Host Experience

    Let’s face it, operating an Airbnb business can be lucrative as long as the right goals are met by conducting Airbnb market analysis. While the majority of hosts use Airbnb hosting tools to save time and boost their return on investment, it’s still important to rely your decisions on accurate data.

    Let’s reflect on this host’s story and learn about the average income for Airbnb:

    Jennifer Ward, an Airbnb host in Tallahassee, Florida. She was living with her dog in a 4-bedroom house working a 9-5 job. She decided to rent out 2 rooms as she was having a financial crisis due to her poor health. Also, she was worried about not having any source of passive income in case she was unable to work any longer. 

    So in 2018, she started renting 2 bedrooms on Airbnb. Being new to the business, she was quickly crushed by the competition. She told us that she used to get some bookings here and there but it wasn’t predictable. As a result, the income was not stable. 

    The average income from Airbnb that she received was ranging from $650 to $920 a month during that time. Also, the competition was very professional and was beating her by providing better amenities at cheaper prices. Furthermore, she wasn’t aware of what amenities she should provide and how to price the property correctly in different seasons.

    This led her to struggle for a while, but she slowly started talking to other hosts on FB Groups and Community. This led her to understand what she needs to improve and what others are doing in the industry. She upgraded the amenities and changed the decor of the house to make it cleaner and more professional in photos. 

    She also started using data to plan her pricing strategy to help her keep track of the competition. After 4 months of struggling, she saw an increase in booking and also consistency. This happened after learning all the minute details of this STR business

    Like Jennifer, there are many success stories out there. But as many success stories are out there so are unsuccessful ones. What’s the difference? Let’s take a look at what separates successful hosts from unsuccessful ones.

    how much can you make on airbnb

    Average Income on Airbnb

    Renting out on Airbnb is a great idea as it allows you to use an existing asset, your house, and make money from it. If you set up things properly it can even be a very passive source of income with little to no involvement of yours. This is the reason why  Airbnb short-term rentals are very lucrative.

    On average, Airbnb host earnings can be around $1,000 a month. But this number can be very different based on your location, property, and your hosting skills. If you are able to provide some kind of unique experience to your guests. Then you can even look at making 6 figures just from this side hustle of yours.

    How Much does it Cost to Start an Airbnb?

    Most travelers are used to luxury hotels and homestays when they are traveling. Your house might be a perfect abode for you and your needs, but you’ll have guests with different expectations. You might need to invest in the decor and remodeling of the house when you start your STR business. This can be very expensive or super cheap depending upon the current condition of your house.

    To begin with, you can always start by renting out the extra space in your home if you think that it won’t meet your financial status for the time being. Airbnb startup costs can range from $5,000 to $7,000, depending on your list of essentials for the room, kitchen, and bathroom amenities.

    At the same time, since you are competing with other hosts, some of whom are doing it full-time professionally. This results in people having higher expectations after staying in different homes. And if you aren’t able to match those expectations then you might end up getting average reviews and unsatisfied customers. This will impact a lot on your overall revenue in the long term.

    How much can you make on Airbnb in your neighborhood?

    Once you have made up your mind to start your own STR business, you might start thinking to yourself: Is my neighborhood good enough to attract a decent amount of tourist traffic? If it does, where does your house stand compared to the others? And exactly how much revenue do other properties generate in the neighborhood?

    To answer all your doubts and give you an accurate estimate of revenue and occupancy rate in your neighborhood, you can use Airbtics. By entering your address in the search bar, you can seamlessly go through your preferred neighborhood and compare the performance of your competitors in one comprehensive dashboard – helpful to make the wisest investment decision!

    airbtics dashboard

    How Much Taxes Would I Pay for my Airbnb Income?

    If you rent out your property for more than 14 days in a calendar year, then you need to disclose your Airbnb Revenue to the IRS. In addition to this, f 10% of the total days it’s rented out to visitors, then you’ll need to disclose your Airbnb revenue and costs to the IRS. 

    If you earned more than $20,000 or made 200 or more reservations in a calendar year, you’ll need to submit Form 1099-K. If you fail to submit the 1099 form, then the company you are using to do STR can withhold 28% of your revenue generated. So it’s better to do the proper paperwork as you’ll pay far less than 28% if you file your taxes!

    Apart from paying Uncle Sam, hosts also have to pay a fee of 3% to Airbnb. There are some variations to this. If you’re an Airbnb Plus host who lives in Italy or has an exceptionally rigorous cancellation policy, your fee percentage will be higher. For all hosts with Airbnb listings in China, the fees will be a whopping 10%.

    When planning out your first Airbnb, it’s very important to keep all these costs in mind. Taking note of all the taxes and service fees will help you calculate accurate profits when planning out.

    Expectation management

    It’s easy to get excited to see booking come in and revenue go up after you get better at hosting. But the real profit is after paying off the IRS, cleaners, repairs, maintenance, and replacing damages.

    After talking to many hosts we found out that you can expect to spend anywhere from 10 to 20% on repairs, cleaning, and other business expenses. Many new hosts don’t factor in all these expenses and end up not generating a profit in the long run.

    To manage this, one shouldn’t go all in at once. Start slowly, rent out 1 room and see if you were able to generate a profit after all the expenses are paid off. This progressive method will save you from making a huge loss that will take a long time to recover from.

    Always keep a rule of thumb to set aside 30% of revenue for operational costs. This is based on the volume of reservations and the quantity of the procedures, such as the management and cleaning services.

    Conclusion

    The Airbnb hosts that often make the most are those who have an entrepreneurial mindset and treat their rental properties as a company. There are many advantages to becoming a host, but it’s important to remember that doing it well requires effort and spending money on operational expenses.

    In order to track your potential Airbnb profit, you can always do your research online or ask several hosts on forums such as Bigger Pockets, Quora, and Reddit. It could certainly be difficult to accurately estimate your revenue manually, which is why you’ll notice that the majority of professional hosts use short-term rental analytics tools.

    In the digital era where everything is almost available at the tip of your fingers, don’t waste your time and energy on investing in the wrong property! Try Airbtics today and get ahead of your competitors in the market.

     

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    Airbnb Rental Arbitrage All About Airbnb

    Rental Arbitrage Texas

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      Introduction

      Rental arbitrage in Texas is one of the popular ways to earn a passive side income through Airbnb. If you wish to start but don’t know how – then you’ve come to the right article!

      In this guide, we’ll explain rental arbitrage in layman’s terms and provide some expert tips. We also included the best areas to do rental arbitrage in Texas and a comparison between Texas cities. At the end of the article, you’ll learn how to make the best investment decision by doing rental arbitrage in Texas. Stoked to learn more? Continue reading!

      What is Rental Arbitrage?

      Rental Arbitrage is an expert technique where you sublease a property for the sole purpose of Airbnb. This is initially allowed with the property owner’s or landlord’s approval.  Rental arbitrage is somehow similar to house hacking, except that you don’t own the property. Instead, you convince a landlord to lease you a property that you can then furnish and sublease on Airbnb and VRBO.

      Rental Arbitrage is an efficient method for multifamily houses, duplexes, or triplexes. You can easily use the money from your short-term rental to pay off your lease and profit some more. If done right, this can be a full-fledged business!

      If you own a duplex or triplex property, then it is pretty straightforward. You can live in one part of the house and rent out the other. This process is known as house hacking. Property investors try this method after taking a loan on a property and use the rent to pay off the mortgage. The short-term rent will help you pay for your property’s long-term lease. This helps you keep the difference at the month-end after paying for the long-term lease. 

      Here’s a perfect example to understand how rental arbitrage works. Assume that you are renting a duplex in Texas for $1,800/month. You are living by yourself in the property and you decide to sublease an extra room on Airbnb. Let’s say you listed it for $100/day and got 80% occupancy. This will generate approx $2,600/month in revenue. Not only will it help you pay off your complete rent, but give you a profit of $800. This, in a nutshell, is called Rental Arbitrage.

      Is Rental Arbitrage legal in Texas?

      Here’s the good news: short-term rental laws in Texas are minimal and it’s certainly legal to do rental arbitrage.! Property investors are keen to invest in this location since short-term rentals are allowed in Texas. According to Texas STR laws, Texas does not impose any state-level regulations and limitations. However, major cities have various licensing requirements for Airbnb hosts.

      For instance, Airbnb rules in Houston follow a Code of Ordinance that defines and regulates short-term rentals within city limits. All hosts should strictly follow laws regarding building and housing standards. Whether it is for multiple dwellings, condominiums, or rent-stabilized buildings, it’s always best to visit the local city hall to learn more about their process. 

      Short-term rental restrictions in Austin

      Although sections of the code have been successfully challenged in court,  Airbnb property investment in Austin reveals that some of the best neighborhoods for Airbnb are Zilker, West Oak Hill, and North Austin. The good news is that short-term rentals are permitted in Austin. This cityAustin has established restrictions on short-term rentals within its city limits. There are three types of short-term rental facilities identified in the ordinance:

      • Single-family, multifamily, or duplex properties that are owned by the same person.
      • Non-owner-occupied single-family or duplex properties
      • Non-owner-occupied multifamily properties

      Austin’s Airbnb rules For each type of property, the city requires a short-term rental license to operate for all property types. Type 2 properties are subject to the most restrictions, limiting them to commercially zoned areas such as the Central Business District (CBD) and the Downtown Mixed Use (DMU) region.

      How to start rental arbitrage in Texas?

      1. Convince the landlord

      Let’s say you want to get into rental arbitrage. You may be wondering, how do I find rental arbitrage properties and how should I convince the landlord? Later in the blog, we’ll be explaining how to find a good property by doing proper research using short-term rental analytics. In this section, we will be focusing more on how to convince a landlord to do rental arbitrage. As you’ll begin your rental arbitrage journey, you’ll come to know that this is the hardest part of the whole process.

      You need to be prepared and well-researched about the popularity of Airbnb in your area. Having good communication skills will also come in handy! Here’s one thing that you should always keep in mind: never sublease without informing the landlord. There will be a huge number of people coming in and out when you’re sub-renting, so the landlord will most likely figure out that you are subletting and you might end up getting in trouble.

      When convincing the landlord, rule number one is to always talk about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So in return, they lease the property to you instead of renting it by themselves.

      Points To Tell An Indecisive Landlord:
      • Doing rental arbitrage is a full-time business. It doesn’t generate passive income like long-term leasing. You should try approaching older people who are looking for some sort of passive income.
        They are more likely to agree to a fixed long-term lease. You can also reach out to full-time working professionals or business owners. They will also be happy with a source of passive income until their property is well maintained. This brings us to our next point.
      • You’ll take care of the house better than a normal renter. As you are using the property for Airbnb, you will maintain it very well to make sure you get better reviews. Having a beat-up property isn’t good for business and you are more likely to monitor it often. 
        Not monitoring it will affect your revenue a lot. You may end up paying a huge sum of money for damages done by someone else. So telling this to the landlord might instill some confidence in them.
      • You can ensure timely monthly rent. You can tell the landlord that doing rental arbitrage is a full-time business with ups and downs. It doesn’t guarantee fixed income at all like long-term leasing. But if they lease it to you, you’ll make sure to pay the lease no matter what. Either from the money made after rental arbitrage or from your savings. You need to ensure timely monthly lease payments to gain the trust of the landlord.

      In conclusion, you need to take care of the property and treat it like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties. You can also use a free rental arbitrage email template and propose your ideas to landlords!

      2. Ensure the property and gain the landlords’ trust

      Being on the safe side is always a good idea. You need to make sure you are using the right tools to ensure that the property is safe and neighbors aren’t bothered by guests. Many landlords will have this concern when renting out their property to you. They will be worried about neighbors raising noise complaints and it’s a legitimate concern. To help you with all these problems, here are some suggestions that you can implement: 

      • SimpliSafe– These are home monitoring tools that you can install in the house to make sure no suspicious activity is happening there. Make sure to let the guests know about them and have their consent.
      • Auto host– Automatically screens problematic tenants.
      • InsuraGuest– This insurance and tech company helps you with risk analysis and gives protection beyond Airbnb and VRBO policies.
      • Airbnb Profit Calculator– Give your landlord ease of mind by providing income estimates backed by Airbnb data.

      On a side note, you can also integrate the majority of these tools with short-term rental management software such as Hostaway or Guesty.

      Pros and Cons

      What are the pros and cons of doing rental arbitrage in Texas? Here’s the part where you can set your expectations:

      • Pros
        • No need to own, invest, or purchase a property 
        • Low upfront costs
        • Higher chances to repeat and scale easily
        • Generated profit can be used for other investments or businesses
      • Cons
        • Invest money and time in furnishing the property

      What are the initial costs of starting Rental Arbitrage in Texas?

      You can expect to spend anywhere between $3,000 to $5,000. This includes deposit, furnishing, amenities, legal paperwork, and LLC Incorporation.

      But doesn’t this contradict the Low upfront cost of Rental Arbitrage? Well, these estimates vary from city to city. There is a possibility to do rental arbitrage for even less than this depending upon your situation and the type of property you lease.

      Still, the amount is lesser than investing in a new property and getting a mortgage of thousands of dollars. In addition to this, you won’t be on the hook for property maintenance expenses and being stuck for years with debt.

      But this doesn’t mean that rental arbitrage can be done with zero or a very tight budget. There will be some upfront costs that you have to expect so it’s ideal to own some extra cash is also a good thing to have. This will help pay off the lease during the off-season in case bookings don’t happen right away. Check out some of the expenses that you have to prepare for:

      Expense 1: Rental Deposits

      A rental deposit is going to be one of the first major expenses. You will need money to be able to sign a long-term lease with the landlord. For that, you will need a security deposit and the first and last month’s rent. Sometimes you can negotiate with the landlord and use the first month’s rent as a security deposit.

      Expense 2: Furnishing

      Most of the time, you should always aim to lease a place that is semi-furnished. Furnishing a place from scratch can add anywhere from $3,000 to $5,000 to your initial capital. Not choosing the right property can make rental arbitrage not so low cost, so choose wisely.

      If the place is semi-furnished, then your best bet is to shop for cheap and affordable amenities. You can go and find cheap supplies from places like Home Depot and IKEA. Sometimes even Walmart offers hidden gems if you look closely.

      Expense 3: Photography

      It’s highly recommended to try DIY photography as a start to save money. You can even learn how to take the best Airbnb photos to highlight your listing! But if you have the budget, hiring a professional photographer is also an excellent option. 

      Expense 4: Cleaning Services

      This is not a starting cost, but you will eventually end up spending on cleaning services. The best way to save money is to do the cleaning by yourself if you have the time, skills, and experience.

      If you have no experience or don’t want to invest time in cleaning a place, then your best bet will be to hire a professional cleaner. This can cost you anywhere from $50 – $250 depending upon the size and location.

      Expense 5: Legal Consultation

      Maintaining a professional relationship with a real estate lawyer can be very helpful in the Airbnb business. Airbnb regulations are constantly changing and you will need some legal guidance to adjust your business accordingly.

      Legal guidance can also come in handy if you face any legal issues with the landlord or guests. They can help in damage claims and insurance in case of any mishappening.

      How much do Airbnb hosts make in Texas?

      Airbtics’ data confirm that an Airbnb host in Texas, particularly in Dallas, can earn an average daily rate of $141. This is by operating a 2-bedroom apartment/flat alone! Airbnb hosts are expected to generate an annual revenue of $34,201 with a steady occupancy rate of 62%.

      Best areas for Rental Arbitrage Texas

      In order to gauge the top places for rental arbitrage in Texas, it is necessary to create a comparison of occupancy rates in Texas cities. Let’s take a look at the top 2 locations:

      1. OAK LAWN
      Rental Arbitrage Texas

      According to Airbtics’ Dashboard, Oak Lawn is the top market to start your rental arbitrage business. There are more than 535 Airbnb listings with 15 private rooms properties and 321 one-bedroom properties. The monthly revenue for most properties is more than $3,253.

      2.  DOWNTOWN AUSTIN

      Airbtics confirms that Downtown Austin is the second-best market to start your rental arbitrage business. There are more than 370 Airbnb listings with 20 private rooms properties and 157 one-bedroom properties. The monthly revenue for most properties is more than $5,173.

      Conclusion

      In summary, rental arbitrage in Texas can be a very profitable side income. Since it does not require you to purchase a property, it’s also practical for beginners! The big question is where to do rental arbitrage – Houston, Dallas, San Antonio, or other cities?

      Comparing occupancy rates in Texas cities has never been easier to do manually. But with the help of an STR analytics tool like Airbtics, it was discovered that Austin has the highest Airbnb occupancy rate of 66%. Leverage your opportunities in rental arbitrage by using a free Airbnb calculator and determine the best areas that will bring long-term profitability!

      Categories
      Airbnb Rental Arbitrage All About Airbnb

      Rental Arbitrage Spain


      Table of Contents
        Add a header to begin generating the table of contents

        What is Rental Arbitrage?

        Rental Arbitrage is a method similar to house hacking, however, the only difference is that you don’t own the house. Instead, you convince a landlord to lease you a property which will be furnished and subleased on Airbnb and VRBO.

        Rental Arbitrage is a smart technique to earn money in any type of property including a multifamily house, duplexes, or triplexes. You can easily use the money from your short-term rental to pay off your lease and profit some more. If you own a duplex or triplex then it is pretty straightforward and easy. You can live in one section and rent out the other – which is also known as house hacking. People use this after taking a loan on a property and use the rent to pay off the mortgage. The short-term rental income helps you pay for the long-term lease that you have on the house. This helps you keep the difference at the month-end after paying for the long-term lease.

        Assume you are renting a duplex in Spain for €1,800/month. You are living by yourself on one of the sides and you decide to sublease the other on Airbnb. Let’s say you listed it for €100/day and got 80% occupancy. This will bring in approx €2,600/month in revenue. Not only will it help you pay off your complete rent, but give you a profit of $800. This, in a nutshell, is called Rental Arbitrage.

        Learn everything you need to know about the Airbnb Rental Arbitrage business and stand out among your competitors!

        Things to do before getting started?

        How to convince the landlord

        Let’s say you want to get into Rental Arbitrage. Now comes the big question, how to find a good property and how to convince the landlord. Later in the blog, we’ll be explaining how to find a good property by doing proper research using Airbnb data analytics. In this section, we will be focusing more on how to convince landlords. As you’ll begin your Rental Arbitrage journey, you’ll come to know that this is the hardest part of the whole process.

        You need to be prepared and well researched, good communication skills come in handy here. Also, one thing to always keep in mind: never sublease without informing the landlord, there will be a huge number of people coming in and going out when you’re sub renting, it will not be hard for the landlord to figure out that you are subletting and you might end up getting in trouble.

        For the convincing, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves.

        Points to tell an indecisive landlord.
        • Doing Rental Arbitrage is a full-time business. It doesn’t generate passive income like long-term leasing. You should try approaching older people who are looking for some sort of passive income. They are more likely to agree to a fixed long-term lease. You can also reach out to full-time working professionals or business owners. They will also be happy with a source of passive income till their property is well maintained. This brings us to our next point.
        • You are more likely to take care of the house than a normal renter. As you are using the property to do business you will take good care of it to make sure you get better reviews. Having a beat-up property isn’t good for business and you are more likely to monitor it often. Not monitoring it will affect your revenue a lot. You may end up paying a huge sum of money for damages done by someone else. So telling this to the landlord might instill some confidence in them.
        • You can ensure timely monthly rent. You can tell the landlord that doing Rental Arbitrage is a full-time business with ups and downs. It doesn’t guarantee fixed income at all like long-term leasing. But if they lease it to you, you’ll make sure to pay the lease no matter what. Either from the money made after rental arbitrage or from your savings. You need to ensure timely monthly lease payments to gain the trust of a landlord.

        In conclusion, you need to take care of the property like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties.

        Ensure the Property and Gain landlords trust

        Being on the safe side is always a good idea. From trouble guests to bothering landlords. You need to make sure you are using the right tools to ensure the property is safe and neighbours are happy. Many landlords will have this concern when renting out their property to you. They will be worried about neighbours raising noise complaints. It is a legitimate concern. To help you with all these problems, here are some suggestions that you can implement and have peace of mind.

        • Simply Safe – These are home monitoring tools that you can install in the house to make sure no suspicious activity is happening there. Make sure to let the guests know about them and have their consent.
        • Auto host – Automatically screens problematic tenants.
        • Alexa Guard: If you already own an Alexa, you can use its Alexa guard feature to detect parties. It is an inbuilt feature that monitors changes in sound and sends you an alert in case the guests are having a party and making too much noise.
        • InsuraGuest – This insurance and tech company helps you with risk analysis and gives protection beyond Airbnb and VRBO policies.
        • Airbnb Investment Calculator – Give your landlord ease of mind by providing income estimates backed by Airbnb data.

        You can integrate the majority of these tools with a PMS of your choice.

        Airbnb data

        Pro’s and Con’s
        rental arbitrage pros and cons

        The initial cost of starting Rental Arbitrage Spain?

        You can expect to spend anywhere between €3,000 to €5,000. This cost includes Deposit, Furnishing, Amenities, Legal Paperwork, and LLC Incorporation.

        But doesn’t this contradict the Low upfront cost of Rental Arbitrage? Well, these estimates vary from city to city. There is a possibility to do Rental Arbitrage for even less than this depending upon your situation and the type of property you lease.

        Still, the amount is lesser than investing in a new property and getting a mortgage of thousands of dollars. In addition to this, you won’t be on the hook for property maintenance expenses and being stuck for years with debt.

        But this doesn’t mean Rental Arbitrage can be done with zero or very tight budget. There will be some upfront costs that you have to expect so it’s ideal to own some extra cash is also a good thing to have. This will help pay off the lease during off-season in case bookings don’t happen right away.

        Expense 1: Rental Deposits

        A rental deposit is going to be one of the first and major expenses. You would need money to be able to sign a long-term lease with the landlord. Therefore, you will need a security deposit, along with your payment for the first and last month’s rent. Sometimes you can negotiate with the landlord and use the first month’s rent as a security deposit.

        Expense 2: Furnishing

        Most of the time you should always aim to lease a place that is semi-furnished. As someone with a fully furnished home might be doing short-term rentals themselves. Also furnishing a place from scratch can add anywhere from €3,000 to €5,000 to your initial capital.

        If the place is semi-furnished, then your best bet is to shop for cheap stuff. You can go and find cheap supplies from places like Home Depot and IKEA. Sometimes even Walmart can have a hidden gem if you look closely.

        Expense 3: Photography

        Do it yourself! iPhones have good cameras. DIY photography will save you some money.

        Expense 4: Cleaning Services

        This is included in the starting costs, but you will eventually end up spending on cleaning services. The best way to save money is to do it yourself initially if you have the skills and experience.

        If you have no experience or you don’t want to invest time in cleaning a place. Then your best bet will be to hire a professional cleaner. This can cost you anywhere from €50 to €250 depending upon the size and location.

        Maintaining a professional relationship with a Real Estate lawyer can be very helpful in the Airbnb business. Airbnb regulations keep updating and you would need some legal guidance on the way to adjust your business accordingly.

        They can also come in handy if you face any legal issues with the landlord or guests. They can help in damage claims and insurance as well in case of any mishappening.

        Legality and Regulations in Spain

        To set up short-term rentals in most Spanish autonomous communities, property owners need a specific license. This permit certifies that a flat or home is properly equipped and meets all legal sanitary standards.

        In most autonomous communities, short-term single-room occupancy is forbidden. Property owners who rent out short-term tourist accommodations must get a license. The following are the requirements for holiday rentals that require a license:

        • residential property
        • rented out to visitors for short periods of time (from a few days to one or two months) 
        • rented through booking systems 
        • marketed on specialized websites, platforms, and applications (e.g., Airbnb, TripAdvisor, VRBO, etc).

        Property owners in Spain must have a certificate of occupancy issued when the building is placed into operation to obtain this license. They must also fulfill certain ventilation, air conditioning, hot water, fire safety, and furniture requirements.

        In addition, the landlord must carry insurance that covers things like tenant health and injuries, property damage, and break-ins.

        Region Specifics-

        Except in Castilla La Mancha, Castile and Leon, La Rioja, Murcia, and Extremadura, obtaining a short-term rental licence is required. Authorities are preparing to enact similar measures in that country as well. The autonomous community determines the licensing rules for this activity.

        Owners who break local laws face a fine set by each autonomous town. It spans from €2,000 to €150,000 in Andalusia, and from €9,000 to €90,000 in Barcelona. At the end of each year, owners must report their rental revenue to local tax authorities as well as their home nation.

        Reference | Tranio

        Best areas for Rental Arbitrage Spain

        1. Gràcia

        Rental Arbitrage Spain

        According to our Airbtics Dashboard, Gràcia is the top market to start your Rental Arbitrage business. There are more than 889 Airbnb listings with 267 private rooms properties and 186 one-bedroom properties. The monthly revenue for most properties is more than $3,489/month with occupancy being more than 83%.

        2. Malasaña

        https://app.airbtics.com/airbnb-data/0/0/malasa%C3%B1a,%20madrid

        According to our Airbtics Dashboard, Malasaña is the second-best market to start your Rental Arbitrage business. There are more than 982 Airbnb listings with 456 private rooms properties and 167 one-bedroom properties. The monthly revenue for most properties is more than 2,597/month with occupancy being more than 80%.

        To see full data of Spain- Click Here

        FIND STATS FOR YOUR CITY – CLICK HERE

        Read More – Rental Arbitrage Australia

        Categories
        Airbnb Rental Arbitrage All About Airbnb

        Rental Arbitrage Miami


        Table of Contents
          Add a header to begin generating the table of contents

          What is Rental Arbitrage?

          Rental Arbitrage is a method similar to house hacking, however, the only difference is that you don’t own the house. Instead, you convince a landlord to lease you a property which will be furnished and subleased on Airbnb and VRBO.

          Rental Arbitrage is a smart technique to earn money in any type of property including a multifamily house, duplexes, or triplexes. You can easily use the money from your short-term rental to pay off your lease and profit some more. If you own a duplex or triplex then it is pretty straightforward and easy. You can live in one section and rent out the other – which is also known as house hacking. People use this after taking a loan on a property and use the rent to pay off the mortgage. The short-term rental income helps you pay for the long-term lease that you have on the house. This helps you keep the difference at the month-end after paying for the long-term lease.

          Assume you are renting a duplex in Miami for $1,800/month. You are living by yourself on one of the sides and you decide to sublease the other on Airbnb. Let’s say you listed it for $100/day and got 80% occupancy. This will bring in approx $2,600/month in revenue. Not only will it help you pay off your complete rent, but give you a profit of $800. This, in a nutshell, is called Rental Arbitrage.

          Do you want consistent cash flow? Read this article about the Rental Arbitrage business and become a pro!

          Things to do before getting started?

          How to convince the landlord

          Let’s say you want to get into Rental Arbitrage. Now comes the big question, how to find a good property and how to convince the landlord. Later in the blog, we’ll be explaining how to find a good property by doing proper research using Airbnb data analytics. In this section, we will be focusing more on how to convince landlords. As you’ll begin your Rental Arbitrage journey, you’ll come to know that this is the hardest part of the whole process.

          You need to be prepared and well researched, good communication skills come in handy here. Also, one thing to always keep in mind: never sublease without informing the landlord, there will be a huge number of people coming in and going out when you’re sub renting, it will not be hard for the landlord to figure out that you are subletting and you might end up getting in trouble.

          For the convincing, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves.

          Points to tell an indecisive landlord.
          • Doing Rental Arbitrage is a full-time business. It doesn’t generate passive income like long-term leasing. You should try approaching older people who are looking for some sort of passive income. They are more likely to agree to a fixed long-term lease. You can also reach out to full-time working professionals or business owners. They will also be happy with a source of passive income till their property is well maintained. This brings us to our next point.
          • You are more likely to take care of the house than a normal renter. As you are using the property to do business you will take good care of it to make sure you get better reviews. Having a beat-up property isn’t good for business and you are more likely to monitor it often. Not monitoring it will affect your revenue a lot. You may end up paying a huge sum of money for damages done by someone else. So telling this to the landlord might instill some confidence in them.
          • You can ensure timely monthly rent. You can tell the landlord that doing Rental Arbitrage is a full-time business with ups and downs. It doesn’t guarantee fixed income at all like long-term leasing. But if they lease it to you, you’ll make sure to pay the lease no matter what. Either from the money made after rental arbitrage or from your savings. You need to ensure timely monthly lease payments to gain the trust of a landlord.

          In conclusion, you need to take care of the property like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties.

          Ensure the Property and Gain landlords trust

          Being on the safe side is always a good idea. From trouble guests to bothering landlords. You need to make sure you are using the right tools to ensure the property is safe and neighbors are happy. Many landlords will have this concern when renting out their property to you. They will be worried about neighbors raising noise complaints. It is a legitimate concern. To help you with all these problems, here are some suggestions that you can implement and have peace of mind.

          • Simply Safe – These are home monitoring tools that you can install in the house to make sure no suspicious activity is happening there. Make sure to let the guests know about them and have their consent.
          • Auto host – Automatically screens problematic tenants.
          • Alexa Guard: If you already own an Alexa, you can use its Alexa guard feature to detect parties. It is an inbuilt feature that monitors changes in sound and sends you an alert in case the guests are having a party and making too much noise.
          • InsuraGuest – This insurance and tech company helps you with risk analysis and gives protection beyond Airbnb and VRBO policies.
          • Short-term Rental Calculator – Give your landlord ease of mind by providing income estimates backed by Airbnb data.

          You can integrate the majority of these tools with a PMS of your choice.

          Airbnb data

          Pro’s and Con’s

          rental arbitrage pros and cons

          What is the initial cost of starting rental arbitrage in Miami?

          You can expect to spend anywhere between $3,000 to $5,000. This cost includes Deposit, Furnishing, Amenities, Legal Paperwork, and LLC Incorporation.

          But doesn’t this contradict the Low upfront cost of Rental Arbitrage? Well, these estimates vary from city to city. There is a possibility to do Rental Arbitrage for even less than this depending upon your situation and the type of property you lease.

          Still, the amount is lesser than investing in a new property and getting a mortgage of thousands of dollars. In addition to this, you won’t be on the hook for property maintenance expenses and being stuck for years with debt.

          But this doesn’t mean Rental Arbitrage can be done with zero or very tight budget. There will be some upfront costs that you have to expect so it’s ideal to own some extra cash is also a good thing to have. This will help pay off the lease during off-season in case bookings don’t happen right away.

          Expense 1: Rental Deposits

          A rental deposit is going to be one of the first and major expenses. You would need money to be able to sign a long-term lease with the landlord. Therefore, you will need a security deposit, along with your payment for the first and last month’s rent. Sometimes you can negotiate with the landlord and use the first month’s rent as a security deposit.

          Expense 2: Furnishing

          Most of the time you should always aim to lease a place that is semi-furnished. As someone with a fully furnished home might be doing short-term rentals themselves. Also furnishing a place from scratch can add anywhere from $3,000 to $5,000 to your initial capital.

          If the place is semi-furnished, then your best bet is to shop for cheap stuff. You can go and find cheap supplies from places like Home Depot and IKEA. Sometimes even Walmart can have a hidden gem if you look closely.

          Expense 3: Photography

          Do it yourself! iPhones have good cameras. DIY photography will save you some money.

          Expense 4: Cleaning Services

          This is included in the starting costs, but you will eventually end up spending on cleaning services. The best way to save money is to do it yourself initially if you have the skills and experience.

          If you have no experience or you don’t want to invest time in cleaning a place. Then your best bet will be to hire a professional cleaner. This can cost you anywhere from $50 to $250 depending upon the size and location.

          Expense 5: Legal Consultation

          Maintaining a professional relationship with a Real Estate lawyer can be very helpful in the Airbnb business. Airbnb regulations keep updating and you would need some legal guidance on the way to adjust your business accordingly.

          They can also come in handy if you face any legal issues with the landlord or guests. They can help in damage claims and insurance as well in case of any mishappening.

          Legality and Regulations in Miami

          There are a variety of state, county, and city requirements and regulations to follow when operating a short-term rental in Miami and Miami Beach. The following is a detailed breakdown of the short-term rental regulations in Miami-Dade County, as well as the cities of Miami and Miami Beach.

          Miami Dade County

          • A Certificate of Use from Miami-Dade County is required to run a short-term rental in the county.
          • The Certificate of Use in Miami-Dade is valid for one year and can be renewed annually as long as all conditions are still completed and there are no outstanding fines or liens for violations of the County Code in Miami-Dade.
          • The responsible party or host must reside in the short-term rental property for more than six months per calendar year for properties in designated Estate or Low-Density Residential regions.
          • When a property is utilized as a vacation rental, the CU must be posted in a prominent position within the vacation rental that is readily accessible to visitors and must include, at a minimum, the name, address, and phone number of the responsible party as well as the vacation rental’s maximum occupancy.
          • The responsible party or host must reside in the short-term rental property for more than six months per calendar year for properties in designated Estate or Low-Density Residential regions.
          • Along with zone restrictions, the responsible party of a short-term rental must keep a register of all guests’ identities and dates of stay, which the Miami-Dade county can review.

          North Beach short-term rentals

          Short-term rentals are strictly prohibited at North Beach, although they may be permitted if certain conditions are met. Reservations for the full home for a minimum of seven nights are permitted in this region. They must also pay resort taxes. In addition to these requirements, a fee of $1,000 is required to apply for a Certificate of Use for running short-term rentals in North Beach.

          Reference | Keycafe | Guestable

          Best areas for Rental Arbitrage Miami

          1. Little Havana

          rental arbitrage miami little havana

          According to our Airbtics Dashboard, Little Havana is the top market to start your Rental Arbitrage business. There are more than 18,589 Airbnb listings with 3,911 private rooms properties and 5,821 one-bedroom properties. The monthly revenue for most properties is more than $4,842/month with occupancy being more than 65%.

          2. Little Haiti

          rental arbitrage miami little haiti

          According to our Airbtics Dashboard, Little Haiti is the second-best market to start your Rental Arbitrage business. There are more than 3,351 Airbnb listings with 607 private rooms properties and 1,022 one-bedroom properties. The monthly revenue for most properties is more than $4,768/month with occupancy being more than 62%.

          To see full data of Miami – Click Here

          Find Stats for your City – CLICK HERE

          Read More – Rental Arbitrage Australia

          Categories
          Alternatives & Reviews

          Mashvisor Review: Is It Still useful in 2023?

          Mashvisor is one of the data analytics tool software in the market which was launched in 2014. Its major purpose is to help real estate investors to strategize their businesses based on accurate data. 

          But the real question is this: Is Mashvisor still useful in 2023?

          In this article, we’ll find the answer to this question and feature Mashvisor’s products, pricing, and reviews. We also added a list of great Mashvisor alternatives in the last part – continue reading to learn more!

          What is Mashvisor?

          Mashvisor is a property analytics data tool. It is designed to help real estate investors to acquire good investment properties. Its process is finding potential good deals and using the data to predict their performance on long and short-term leasing.

          How does Mashvisor obtain data?

          Mashvisor has multiple channels from which it obtains its data. It exports the same data from various channels to verify the accuracy of data by comparing it to multiple sources. Some of their sources are Realtor.com, Zillow, MLS, Airbnb, Auciton.com, and Roofstock among others.

          Each source has its own agenda and the type of data it provides. Websites like Realtor.com, Zillow, and MLS provide publically available property data. This includes physical description, past owner history, price, and size. 

          Whereas, Airbnb provides data on the short-term rental market, using which Mashvisor predicts the STR rental income of properties. Similarly, Roofstock helps in acquiring single-family houses that have a guarantee of a minimum rent. But, this is only on properties that have been not occupied or vacant for more than 45 days.

          The last source, Auction,  helps in gathering data on bank foreclosures. Residential properties that are for sale through offline or online auctions are monitored and their data is updated on Mashvisor using Auction.com API.

          Mashvisor Review

          Mashvisor has an average review score of 4.8 out of 5 on Trustpilot. This shows people somewhat like this tool but there is a lot of room for improvement still. In our AirDNA Review, it was discovered that the  majority of users had problems with pricing and inaccuracy

          According to users’ feedback on Mashvisor, it seems that most of the negative reviews and comments are related to the data quality. Some people are complaining about missing listings and properties and incomplete data. Having incomplete data can be a huge con as it can give wrong results when analyzing an area to make a wise investment decision.

          Mashvisor Review
          mashvisor review
          mashvisor review
          mashvisor review

          Mashvisor Dashboard

          In the last 9 years, Mashvisor has made significant improvements in its UI and data. The dashboard is very user-friendly and easy to use. For someone new, it shouldn’t be hard to get hang of the dashboard quickly.

          The color-coded “Heatmap” of the search function is especially useful. Users can sort the database for a specific variable such as listing price, cap rate, or cash on cash return with results displayed for neighborhoods in hues of “red” for low and “green” for high. 

          A prospective buyer, for example, would theoretically look for properties that are green for cash on cash return and red for market price. A user with unique search criteria can modify the search metrics at will. For example, an investor can quickly move from a cash purchase to a mortgage (and vice versa) with unique down payments, terms, and interest rates to see the impact on rates of return.

          heatmap

          Mashvisor Property Finder

          The properties identified through Mashvisor’s Property Finder should be further analyzed to ensure they meet an individual investor’s threshold for minimum returns. The process typically requires developing a spreadsheet of probable profits, expenses, and cash flows.

          Building a unique spreadsheet or a fill-in-the-blank model can be a daunting task for those who do not regularly work with spreadsheets. 

          Mashvisor’s Property Analysis tool is a mathematical model designed solely for residential real estate investors. Its format identifies the major categories of revenues and expenses which are necessary to calculate net operating income. Subsequently, it’s also related to rates of return and cap rates.

          Errors in the calculations arise because investors typically overestimate revenues and underestimate expenses. The model minimizes the chance of gross errors by populating revenue figures from data collected with the Property Search function. It also estimates costs(initial and ongoing costs) based on averages for comparable properties in the database. The software allows users to override each element to create a unique worksheet based on their experience that more accurately represents future results.

          Mashvisor’s analysis modeling also helps investors determine the best usage of a potential property. It compares returns for short-term Airbnb renting versus long-term leasing. In some markets, short-term rentals don’t make ideal investments!

          The Property Analysis model, in my opinion, successfully transforms a usually messy project into an elegant, easily understandable, and auditable result to make the right investment decision.

          mashvisor review

          Mashvisor Pricing 

          Mashvisor offers various plans and pricing. Each subscription  is billed quarterly with a free 7-day trial period:

          • Lite: Investors can focus on one or two city markets for $22.99 /month. The fee includes traditional rental and Airbnb income and ROI analysis based on actual rental comps.
          • Standard: For $69.99 monthly, a subscriber can discover profitable properties and markets, export 20 searches to Excel (every month), and compare various properties. 
          • Professional: For $99.99, investors can filter their property searches  to find multifamily and foreclosure properties, export 60 searches to Excel and property PDFs, and analyze property listings. 

          Mashvisor Alternatives

          Not satisfied with Mashvisor’s features and pricing? It’s certainly risky to spend efforts – and of course, money, if the software doesn’t provide everything you need.

          In fact, Mashvisor vs AirDNA are consistently compared, but none of them have proven accuracy according to reviews. AirDNA vs Mashvisor Let’s not forget the fact that Mashvisor’s data coverage is limited within the USA.

          The good news is that there are Mashvisor alternatives that are affordable, accurate and top-of-the-line in the market. Check out the comparison table below to identify the best Airbnb data tool software for you:

          alternatives
          alternatives

          Conclusion

          Mashvisor is considered one of the leading real estate investor software in the market. It has its own pros and cons – which you can already gauge based on the features, reviews, and pricing in this article. 

          In comparison to Mashvisor, Airbtics covers worldwide regions with specific markets that fully cover historical performance data, guest demographics, and more. Investing in the digital era shouldn’t be a difficult task as long as you’re using the right short-term rental analytics tool for your success!

          Categories
          Airbnb Rental Arbitrage All About Airbnb

          Rental Arbitrage United Kingdom

          Rental Arbitrage United Kingdom

          Table of Contents
            Add a header to begin generating the table of contents

            Introduction

            Real estate properties in the United Kingdom are one of the most coveted in the world. This jacks up the cost of rent, especially in its major cities.  But what if we tell you that you can augment your income by renting out a property without actually owning it? Rental arbitrage enables this setup. It is a smart way to earn passive income with only minimal investment!

            In this guide, we’ll explain rental arbitrage in layman’s terms and provide some expert tips. We also included the best areas to do rental arbitrage in the UK to help you make the best investment decisions. Stoked to learn more? Continue reading!

            What is Rental Arbitrage?

            Rental Arbitrage is a method similar to house hacking, where you rent out a spare room in your property. The difference between these two is you don’t need to own the house in rental arbitrage. Instead, you convince the property owner to allow you to sublease the house on Airbnb and VRBO.

            Rental arbitrage in the UK is applicable to any type of residential real estate. These can be multi-room apartments, houses, condo units, duplexes, and triplexes. It is a smart way to add a stream of income through the short-term rental of your subtenants. This allows you to pay your own rent and earn more. 

            Assuming you are renting a duplex in the United Kingdom £1,500/month. You are living by yourself on either side and you decide to sublease the other on Airbnb. Let’s say you listed it for  £87/day and got 80% occupancy. This will bring in approximately £2,250 per month in revenue. Not only will it fully cover your rent, but it will give you a profit of  £800. This, in a nutshell, is called rental arbitrage.

            Learn more about Rental Arbitrage Methods in this ultimate guide!

            Is rental arbitrage legal in the UK? 

            Yes, rental arbitrage is legal in the United Kingdom but regulations vary per city. Here are some city-specific Airbnb regulations:

            1. Greater London

            Short-term rentals are subject to planning limitations. According to Airbnb rules in London, a property can be classified as “temporary sleeping accommodation” if it is rented for less than 90 nights per year. However, the “90-night limit” is not used by every local planning authority. Therefore, owners must check if short-term rentals are allowed in their areas for rental arbitrage in London. 

            2. Edinburgh and Glasgow

            Property owners must need to get planning approval to convert their residential premises to short-term rentals according to their respective City Councils. For instance, planning permission is required to change a host’s residential dwelling to a short-term visitor accommodation in Edinburgh. This approach is the same as Airbnb rules in Glasgow.

            3. Northern Ireland

            Northern Ireland has recently passed short-term rental guidelines. One of which is requiring the host to obtain an official tourism certificate to start a short-term rental business. 

            How do I get started with rental arbitrage?

            1. Convince the landlord

            Let’s say you want to get into rental arbitrage. Now comes the big question, how to find a good property and how to convince the landlord. Later in the blog, we’ll be explaining how to find a good property by doing proper research using Airbnb analytics. In this section, we will be focusing more on how to convince landlords. As you’ll begin your rental arbitrage journey, you’ll come to know that this is the hardest part of the whole process.

            You need to be prepared and well-researched about the Airbnb demand in your area. Good communication skills will also come in handy here. Another thing to always keep in mind: never sublease without informing the landlord! There will be a huge number of people coming in and out when you’re sub-renting. It will only be a matter of time before the landlord figures out what you’re up to, and you might end up getting in trouble. 

            For convincing the landlord, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves.

            Points to tell an indecisive landlord
            • Doing rental arbitrage is a full-time business. It doesn’t generate passive income like long-term leasing. You should try approaching older people who are looking for some sort of passive income.
              They are more likely to agree to a fixed long-term lease. You can also reach out to full-time working professionals or business owners. They will also be happy with a source of passive income until their property is well maintained. This brings us to our next point.
            • You’ll take care of the house better than a normal renter. As you are using the property for Airbnb, you will maintain it very well to make sure you get better reviews. Having a beat-up property isn’t good for business and you are more likely to monitor it often. 
              Not monitoring it will affect your revenue a lot. You may end up paying a huge sum of money for damages done by someone else. So telling this to the landlord might instill some confidence in them.
            • You can ensure timely monthly rent. You can tell the landlord that doing rental arbitrage is a full-time business with ups and downs. It doesn’t guarantee fixed income at all like long-term leasing. But if they lease it to you, you’ll make sure to pay the lease no matter what. Either from the money made after rental arbitrage or from your savings. You need to ensure timely monthly lease payments to gain the trust of the landlord.

            In conclusion, you need to take care of the property like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties. You can also use a free rental arbitrage email template and propose your ideas to landlords!

            2. Ensure the Property and Gain the landlord’s trust

            Being on the safe side is always a good idea. Use the right tools to ensure the property is safe, and the neighbors can go on with their lives happily while you do rental arbitrage. Many landlords will have this concern when renting out their property to you. They will be worried about neighbors raising noise complaints, and it’s a legitimate concern. To help you with all these problems, here are some suggestions that you can implement: 

            • Simply Safe – These are home monitoring tools that you can install in the house to make sure no suspicious activity is happening there. Make sure to let the guests know about them and have their consent.
            • Auto host – Automatically screens problematic tenants.
            • Alexa Guard: If you already own an Alexa, you can use its Alexa guard feature to detect parties. It is an inbuilt feature that monitors changes in sound and sends you an alert in case the guests are having a party and making too much noise.
            • InsuraGuest – This insurance and tech company helps you with risk analysis and gives protection beyond Airbnb and VRBO policies.
            • Airbnb Calculator – Give your landlord ease of mind by providing income estimates backed by Airbnb data.

            Pros and Cons

            Be prepared for what you can expect from rental arbitrage in the United Kingdom:

            • Pros
              • No purchase of property required
              • Low upfront costs
              • Opportunity to repeat and scale easily
              • Generate profit for other investments or business
            • Cons
              • Invest money and time in furnishing the property

            AIRBNB OCCUPANCY RATES IN CITIES OF THE UNITED KINGDOM?

            We conducted in-depth research & utilized our Airbnb occupancy rate calculator to feature the occupancy rates of major cities!

            how much can you make on airbnb

            How much do I need to start Airbnb arbitrage? 

            You can expect to spend anywhere between £3,000 to £5,000. This cost includes deposit, furnishing, amenities, legal paperwork, and LLC Incorporation.

            But doesn’t this contradict the low upfront cost of rental arbitrage? Well, these estimates vary from city to city. There is a possibility to do rental arbitrage for even less than this depending upon your situation and the type of property you lease.

            Still, the amount is much less than investing in a new property and getting a mortgage of thousands of dollars. Plus you won’t be on the hook for property maintenance expenses and being stuck for years with debt.

            But this doesn’t mean that rental arbitrage can be done with zero or on a very tight budget. There will be some upfront costs that you will have to prepare for by having some extra cash on hand. It will help pay off the lease during the off-season.

            Expense 1: Rental Deposits

            A rental deposit is going to be your first major expense. You will need money to be able to sign a long-term lease with the landlord. For that, you will need a security deposit for your first and previous month’s rent. Sometimes you can negotiate with the landlord and use the first month’s rent as a security deposit.

            Expense 2: Furnishing

            Ideally, you should aim to lease a place that is semi-furnished. Furnishing a place from scratch can add anywhere from £3,000 to £5,000 to your initial capital. Not choosing the right property can make rental arbitrage not so low cost, so choose wisely.

            If the place is semi-furnished, then your best bet is to shop cheap for the rest of the stuff. You can go and find cheap supplies from places like B&Q and IKEA. Sometimes, even ASDA can have a hidden gem if you look closely.

            Expense 3: Photography

            It’s highly recommended to try DIY photography as a start to save money. You can even learn how to take the best Airbnb photos to highlight your listing! But if you have the budget, hiring a professional photographer is also an excellent option. 

            Expense 4: Cleaning Services

            This is not a starting cost, but you will end up spending on cleaning eventually. The best way to save money is to do it yourself initially if you have the skills and experience.

            If you have no experience or you don’t want to invest time in cleaning a place, then your best bet will be to hire a professional cleaner. This can cost you anywhere from £50 to £250 depending upon the size and location.

            Expense 5: Legal Consultation

            Maintaining a professional relationship with a real estate lawyer can be very helpful in the Airbnb business. Airbnb regulations keep updating and you would need some legal guidance on the way to adjust your business accordingly.

            They can also come in handy if you face any legal issues with the landlord or guests. They can help in damage claims and insurance as well in case of any mishappening.

            Best areas for Rental Arbitrage in the United Kingdom

            Some of the obvious places that come to mind when thinking of the United Kingdom are  Northern Headquarters, Baltic Triangle, and China town. Let’s take a look at two of the best areas to do rental arbitrage in the UK:

            1. JERICHO
            Rental Arbitrage United Kingdom

            Airbtics Dashboard shows that Jericho is the top market to start your Airbnb arbitrage in the UK. There are more than 101 Airbnb listings in Jericho with an average annual revenue of £49,927 and an occupancy rate of 93%.

            2. EDINBURGH NEW TOWN
            Rental Arbitrage United Kingdom

            Airbtics Dashboard presents  Edinburgh New Town as the second-best market to start your Airbnb rental arbitrage business. The area has 502 Airbnb listings that can generate an average annual revenue of  £56,522 with an 87% occupancy rate. 

            Conclusion

            In summary, rental arbitrage in the UK can be a very profitable side income. Since it does not require you to purchase a property, it’s also practical for beginners trying to be real estate players without spending millions.

            Leverage your rental arbitrage opportunities by using a free Airbnb Calculator and determine the best areas that will bring long-term profitability!

            Categories
            Airbnb Rental Arbitrage All About Airbnb

            Rental Arbitrage Australia

            Introduction

            Australia consistently ranks in the top ten most expensive countries to live in. But what if we tell you that you can augment your income by renting out a property without actually owning it? Rental Arbitrage enables this setup. It is a smart way to earn passive income with only minimal investment!

            In this guide, we’ll explain rental arbitrage in layman’s terms and provide some expert tips. We also included the best areas to do rental arbitrage in the Australia to help you make the best investment decisions. Stoked to learn more? Continue reading!

            What is Rental Arbitrage?

            Rental Arbitrage is a method similar to house hacking, where you rent out a spare room in your property. The difference between these two is you don’t need to own the house in rental arbitrage. Instead, you convince the property owner to allow you to sublease the house on Airbnb and VRBO.

            Rental Arbitrage in Australia is applicable to multi-room apartments, houses, and condo units – as well as duplexes, and triplexes. It is a smart way to add a stream of income through the short-term rental of your subtenants. This allows you to pay your own rent and earn more. 

            While Airbnb occupancy rates in Australia vary per city, it’s important to know that rental arbitrage in this country is certainly recovering from the global pandemic’s effects. For instance, the highest occupancy rate and monthly revenue in Darwin can assure an average host to earn AUD $4,520 for a 1 bed/1 bath apartment condo.

            Assuming you are renting a duplex in Sydney for AUD $1,800/month. You are living by yourself on either side and you decide to sublease the other on Airbnb. 

            Let’s say you listed it for AUD $100/day and got 80% occupancy. This will bring in approximately AUD $2,600/month in revenue. Not only will it fully cover your rent, but it will give you a profit of AUD $800. This, in a nutshell, is called Rental Arbitrage.

            If you want to learn more, let this Ultimate Guide About Rental Arbitrage answer all your inquiries!

            What is Rental Arbitrage?

            Rental Arbitrage is a method similar to house hacking, where you rent out a spare room in your property. The difference between these two is you don’t need to own the house in rental arbitrage. Instead, you convince the property owner to allow you to sublease the house on Airbnb and VRBO.

            Rental Arbitrage in Australia is applicable to multi-room apartments, houses, and condo units – as well as duplexes, and triplexes. It is a smart way to add a stream of income through the short-term rental of your subtenants. This allows you to pay your own rent and earn more. 

            While Airbnb occupancy rates in Australia vary per city, it’s important to know that rental arbitrage in this country is certainly recovering from the global pandemic’s effects. For instance, the highest occupancy rate and monthly revenue in Darwin can assure an average host to earn AUD $4,520 for a 1 bed/1 bath apartment condo.

            Assuming you are renting a duplex in Sydney for AUD $1,800/month. You are living by yourself on either side and you decide to sublease the other on Airbnb. 

            Let’s say you listed it for AUD $100/day and got 80% occupancy. This will bring in approximately AUD $2,600/month in revenue. Not only will it fully cover your rent, but it will give you a profit of AUD $800. This, in a nutshell, is called Rental Arbitrage.

            If you want to learn more, let this Ultimate Guide About Rental Arbitrage answer all your inquiries!

            Is Airbnb rental arbitrage legal in Australia?

            While Airbnb is legal in the land Down Under, the Australian government regulates the short-term rental industry by imposing shared housing rules such as occupancy restrictions, guest record keeping, and minimum stay requirements. Penalties for violating these requirements are either the suspension or cancellation of your registration number. Fines are also unavoidable.

            Each state has its own regulations for home rentals through Airbnb. This means that there’s a different set of laws for different types of rental arbitrage models in Australia

            1. Sub-lease or License?

            In New South Wales, local councils have the legal authority to determine if a person can rent out their home as a holiday rental through websites like Airbnb. If they do, sanctions can be carried out against them under the local council and State laws

            If you are planning on subleasing a property, then you need to get the landlord’s consent. This is usually done through a lease agreement. If you do not have the landlord’s consent, then you should apply for a license.

            2. Tax Implications

            The Australian Tax Office has policies that require Airbnb investors to declare their rental income on their tax returns and pay appropriate taxes.  

            Depending on how much rental payment you receive from your Airbnb, assessable income may consider some of the expenses that were incurred as a landlord. These can include commercial cleaning, repairs, and property maintenance.

            3. Regulatory Issues

            If you are a landlord using Airbnb, it is important to have public liability insurance. This is because the insurance policy does not include everything that you need to cover when renting out your property.

            If your home is rented through Airbnb, you should consider having the appropriate insurance to protect yourself against third-party claims. You may start considering fire or disability access regulations, as well as food, health, and safety concerns. 

            Websites such as Airbnb have provided accommodation options to people who are looking for a place to stay. However, the law is still developing.

            ​​How do I start an Airbnb arbitrage in Australia?

            1. Convince the landlord

            Let’s say you want to get into Rental Arbitrage. Now comes the big question, how to find a good property and how to convince the landlord. Later in the blog, we’ll be explaining how to find a good property by doing proper research using Airbnb analytics. In this section, we will be focusing more on how to convince landlords. As you’ll begin your Rental Arbitrage journey, you’ll come to know that this is the hardest part of the whole process.

            You need to be prepared and well-researched about the Airbnb demand in your area. Good communication skills will also come in handy here. Another thing to always keep in mind: never sublease without informing the landlord! There will be a huge number of people coming in and out when you’re sub-renting. It will only be a matter of time before the landlord figures out what you’re up to, and you might end up getting in trouble. 

            For convincing the landlord, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves.

            Points to tell an indecisive landlord.
            • Doing rental arbitrage is a full-time business. It doesn’t generate passive income like long-term leasing. You should try approaching older people who are looking for some sort of passive income.
              They are more likely to agree to a fixed long-term lease. You can also reach out to full-time working professionals or business owners. They will also be happy with a source of passive income until their property is well maintained. This brings us to our next point.
            • You’ll take care of the house better than a normal renter. As you are using the property for Airbnb, you will maintain it very well to make sure you get better reviews. Having a beat-up property isn’t good for business and you are more likely to monitor it often. 
              Not monitoring it will affect your revenue a lot. You may end up paying a huge sum of money for damages done by someone else. So telling this to the landlord might instill some confidence in them.
            • You can ensure timely monthly rent. You can tell the landlord that doing Rental Arbitrage is a full-time business with ups and downs. It doesn’t guarantee fixed income at all like long-term leasing. But if they lease it to you, you’ll make sure to pay the lease no matter what. Either from the money made after rental arbitrage or from your savings. You need to ensure timely monthly lease payments to gain the trust of the landlord.

            In conclusion, you need to take care of the property like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties. You can also use a free rental arbitrage email template and propose your ideas to landlords!

            2. Ensure the Property and Gain the landlord’s trust

            Being on the safe side is always a good idea. Use the right tools to ensure the property is safe, and the neighbors can go on with their lives happily while you do rental arbitrage. Many landlords will have this concern when renting out their property to you. They will be worried about neighbors raising noise complaints, and it’s a legitimate concern. To help you with all these problems, here are some suggestions that you can implement: 

            • Simply Safe – These are home monitoring tools that you can install in the house to make sure no suspicious activity is happening there. Make sure to let the guests know about them and have their consent.
            • Auto host – Automatically screens problematic tenants.
            • Alexa Guard: If you already own an Alexa, you can use its Alexa guard feature to detect parties. It is an inbuilt feature that monitors changes in sound and sends you an alert in case the guests are having a party and making too much noise.
            • InsuraGuest – This insurance and tech company helps you with risk analysis and gives protection beyond Airbnb and VRBO policies.
            • Airbnb Calculator – Give your landlord ease of mind by providing income estimates backed by Airbnb data.

            Pros and Cons

            Be prepared for what you can expect from Rental Arbitrage in Australia:

            • Pros
              • No purchase of property required
              • Low upfront costs
              • Opportunity to repeat and scale easily
              • Generate profit for other investments or business
            • Cons
              • Invest money and time in furnishing the property

            AIRBNB OCCUPANCY RATES IN AUSTRALIAN CITIES?

            We conducted in-depth research to feature the best cities to host Airbnb in Australia!

            What is the initial cost of starting a rental arbitrage in Australia?

            You can expect to spend anywhere between AUD $3,000 to AUD $5,000. This cost includes Deposit, Furnishing, Amenities, Legal Paperwork, and LLC Incorporation.

            But doesn’t this contradict the low upfront cost of rental arbitrage? Well, these estimates vary from city to city. There is a possibility to do rental arbitrage for even less than this depending upon your situation and the type of property you lease.

            Still, the amount is much less than investing in a new property and getting a mortgage of thousands of dollars. Plus you won’t be on the hook for property maintenance expenses and being stuck for years with debt.

            But this doesn’t mean rental arbitrage can be done with zero or on a very tight budget. There will be some upfront costs that you will have to prepare for by having some extra cash on hand. It will help pay off the lease during the off-season.

            Expense 1: Rental Deposits

            A rental deposit is going to be your first major expense. You will need money to be able to sign a long-term lease with the landlord. For that, you will need a security deposit for your first and previous month’s rent. Sometimes you can negotiate with the landlord and use the first month’s rent as a security deposit.

            Expense 2: Furnishing

            Ideally, you should aim to lease a place that is semi-furnished. Furnishing a place from scratch can add anywhere from AUD $3,000 to AUD $5,000 to your initial capital. Not choosing the right property can make rental arbitrage not so low cost, so choose wisely.

            If the place is semi-furnished, then your best bet is to shop cheap for the rest of the stuff. You can go and find cheap supplies from places like Home Depot and IKEA. Sometimes even Walmart can have a hidden gem if you look closely.

            Expense 3: Photography

            It’s highly recommended to try DIY photography as a start to save money. You can even learn how to take the best Airbnb photos to highlight your listing! But if you have the budget, hiring a professional photographer is also an excellent option. 

            Expense 4: Cleaning Services

            This is not a starting cost, but you will end up spending on cleaning eventually. The best way to save money is to do it yourself initially if you have the skills and experience.

            If you have no experience or you don’t want to invest time in cleaning a place, then your best bet will be to hire a professional cleaner. This can cost you anywhere from AUD $50 to AUD $250 depending upon the size and location.

            Expense 5: Legal Consultation

            Maintaining a professional relationship with a Real Estate lawyer can be very helpful in the Airbnb business. Airbnb regulations keep updating and you would need some legal guidance on the way to adjust your business accordingly.

            They can also come in handy if you face any legal issues with the landlord or guests. They can help in damage claims and insurance as well in case of any mishappening.

            Best areas for Rental Arbitrage in Australia

            Some obvious places like Brisbane and Melbourne come to mind when thinking of Australia. You can consider these areas when buying investment properties to enter the Australian real estate market.

            Australia’s population and workforce are accompanied by elastic economic growth, which boosts the Australian real estate market. Given the positive financial metrics of Australia’s short-term rentals, investing in Airbnb rental properties in Australia is recommended for any real estate investors

            1. BRISBANE
            Rental Arbitrage Australia

            According to our Airbtics Dashboard, Brisbane is the top market to start your Rental Arbitrage business. Currently, there are overall more than 372 Airbnb listings with an average occupancy rate of 96% and annual revenue of A$68,768. Airbnb businesses are allowed in Brisbane as long as hosts have a short-term rental permit from the city council.

            2. MELBOURNE
            Rental Arbitrage Australia

            According to our Airbtics Dashboard, Melbourne is also one of the top areas to start your Rental Arbitrage business. There are overall more than 8,315 Airbnb property listings with an average occupancy rate of 80%, a daily rate of A$167, and annual revenue of A$50,491. Airbnb is legal in Melbourne even without a planning permit.

            Conclusion

            In summary, rental arbitrage in Australia can be a very profitable side income. Since it does not require you to purchase a property, it’s also practical for beginners trying to be real estate players without spending millions.

            Leverage your rental arbitrage opportunities by using a free Airbnb estimator and determine the best areas that will bring long-term profitability!

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            Top 10 Property Management Companies in California

            Why these Property Management Companies?
            The Aim of this list is to give you a resource of reliable Top 10 Property Management Companies in California. This list is compiled by checking all of these property management companies on several parameters. Reliability, Experience, Past Reviews, Existing Portfolio, Customer Service, Market Reputation and use of Technology to name a few. All the management companies on this list are the best at what they do. You get our seal of approval to choose any of them for your management needs in California. 

            Ps: These companies are not ranked in any particular order. 

            Real Property Management San Francisco has been around for over 25 years. They are one of the best because of their reliable system, local expertise, and streamlined process. Also thier simple approach to secure property management and investment at minimal cost with maximum returns is what makes them one of the best. Subsiquently they provide services from evaluation of tenants, leasing, maintenance, and expulsion. Real Property Management have solutions for all types of landlords, the ones with multiple rentals or unintentional landlords.

            California coast
            115 Lomita St
            El Segundo, CA 90245
            Phone: (310) 535-2150

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            Chandler Properties was founded by its CEO, Carolyn, in 1979. It aims to provide complete property management services from large to small apartments, buildings, and independent homeowners. With an expert and customized team, they aim to provide the highest level of services for all property needs.  For example property rental management, maintenance, tenant screening, etc.

            Chandler Properties
            2799 California Street
            San Francisco, CA 94115

            3475 California Street2799
            San Francisco, CA 94118 
            Phone: (415) 921-5733
            Email: [email protected]

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            Founded by Kyle and Bryant, True Door Property Management, one of the top property management companies in California. They had been taking care of the property management needs of owners in Stanton and throughout Orange County. Their Staff includes a local passionate and knowledgeable team of experts who provide solutions to maximize returns on property. Additionally,  True Door experts keep a track of the market’s conditions and recommend their clients from time to time about property potentials. 

            TrueDoor Property Management
            15234 Transistor Lane
            Huntington Beach, CA 92649
            Phone:  (714) 899-2200

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            Established in 1989, Pinnacle Property Management is a licensed company from the Department of Real Estate, based in Los Angeles. Serving the Southern California community for more than 30 years now. They had been providing complete expert services to the property owner from tenant screening, marketing, to 24 hrs property maintenance. Certainly, Pinnacle has an excellent reputation in the market and has a huge portfolio to back it up.

            Pinnacle Property Management
            22700 Crenshaw Blvd.
            Torrance, CA 90505
            Email: [email protected]
            Phone: (310) 530-0606
            Fax: (310) 626-9786

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            Started in 2016, Mynd has its headquarters in Oakland, California, serving around 8000 properties in 16 markets.  With a highly skilled team and innovative technology, it provides customized solutions to the small residential sector in real estate. They do this by increasing the efficiency of the owner and providing a comfortable living for the tenants. It is amongst the top property management companies in California.

            Mynd Property Management
            1611 Telegraph Ave #1200
            Oakland, California 94612
            Phone: 510-607-9292

            Area’s Served-
            SF East Bay
            SF North Bay
            SF South Bay
            Sacramento
            San Diego
             

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            A family-owned company, Rent Pros Property Management, has been serving the Sacramento area for the past 30 years. They are amongst the top property management companies in California. Specializing in Single Family Homes, Condos, Duplexes, Fourplexes, and small apartment buildings with less than 16 units. They aim to give a stress-free and profitable service with smooth handling of issues related to the property rentals for their clients

            RentPros Property Management
            730 Sunrise Ave, Suite #130
            Roseville, CA 95661
            DRE #01391164
            Phone: (916) 789-3500

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            Cal Western provides property management services in San Jose and throughout Silicon Valley. Being the owners and investors themselves they have the advantage to use their personal as well as professional experience while providing the services. They specialize in leasing/renting the property. Ensuring the maximum profitability to the owner, suitable tenants, frequent maintenance is what makes them one of the best.

            Cal-Western
            1270 South Winchester Blvd.,
            Suite 127 San Jose, CA 95128
            Phone: (408) 554-1818
            Fax:  (408) 246-8941
            Email:  [email protected]

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            A South Bay-based, 20 years old family-owned and operated  property management company. Jamison Management Company deals with single family and multi family pay properties. With a licensed team of Real Estate brokers and Certified professionals managers, they commit towards providing a reliable and profitable well being of its clients. They serve the area of South Bay with great focus to their properties at Hawthorne and the Beach Cities. They provide all-around service from management and broking.

            Jamison Management Company
            107 W Torrance Blvd Suite 104
            Redondo Beach, CA 90277
            Phone: (310) 798-9154
            Fax: (310) 798-9164

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            Alliance Property Management has its operations in Sonoma County – serving communities such as Santa Rosa, Windsor, Rohnert Park, and the surrounding areas. They target safe and comfortable staying conditions for tenants with a highly responsive maintenance team and providing stress-free, profitable services for the owners. Their aim is to serve a first-class housing experience for both the owners and tenants and their past reviews act as a proof of that.

            Alliance Property Management
            1101 College Avenue Suite 250
            Santa Rosa, CA 95404
            Phone: 707-524-8380
            Fax: 707-527-1255
            Email: [email protected]

            Area’s Served-
            Santa Rosa
            Cloverdale
            Rohnert Park
            Windsor
            Rincon Valley
            Sebastopol
            Sonoma

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            Management One was established in the year 1983 by Ron at Inland Empire of Southern California. With the experience of over 30 years, the organization has leased more than 10000 properties and managing thousands. More than 3000 owners from Riverside, Corona, Moreno Valley, and Perris have entrusted their properties with them. They dedicated the success of their company with qualitative leadership, expert and creative management skills. Vision provided by Ron is the guide for the company as well as the current system in use by the sub-offices.

            Management One Property Management
            6800 Indiana Ave Suite 110,
            Riverside, CA 92506
            Phone: 951.735.2000
            Fax: 951-924-7241
            Email: [email protected]

            Area’s Served-
            Riverside
            Moreno Valley
            Perris
            Corona
            Eastvale
            Rancho Cucamonga
            Ontario
            Fontana

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