Author: Shivam Kaushik

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage South Africa

Post author By Shivam Kaushik
Post date September 12, 2021

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What is Rental Arbitrage?

Rental Arbitrage is a profitable method of doing Airbnb in a rented property. This method is 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 that will be furnished and subleased on Airbnb and VRBO.

Rental Arbitrage is a smart technique to earn money in any type of property including 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 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.

To be specific, Cape Town is considered one of the digital nomad cities with high occupancy rates for Airbnb. According to Airbtics, an average host in Cape Town can earn up to $17,832 annually, especially during the peak seasons from November to January.

Assume you are renting a duplex in South Africa 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.

Check out this ultimate guide for corporate leasing & learn more about the business!

What are the things I need 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, and it will not be hard for the landlord to figure out that you are subletting and you might end up getting in trouble.

To convince 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 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 and make sure to timely pay the monthly lease on time and keep the situation beneficial for both parties.

Ensure the Property and Gain the landlord’s trust

Being on the safe side is always a good idea. From troubling 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.

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 Profit 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.

Pros and Cons

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

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 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.

Expense 1: Rental Deposits

A rental deposit is going to be one of the first 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 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 South Africa

With Airbnb accounting for over 93 percent of all accessible short-term rentals in Cape Town, it’s no surprise that the phrase “Airbnb” is on nearly every community scheme’s radar. There are presently 20,300 postings available in Cape Town, with more than 5,000 items available in Johannesburg.

While many people have hailed Airbnb for revolutionizing the renting sector in many places across the world, it has also been a significant target for governments, local governments, neighborhood councils, and, predictably, community groups.

The major reason for this objection is namely the belief that short-term rentals cause trouble to both homeowners and neighbors. Neighbors’ jealousy for not having the same business attitude to join the short-term rental revolution may get to this “annoyance.“

The second, less visible reason is that it has had a detrimental impact on the availability of homes for residents to utilize for regular long-term rentals.

However, no law in South Africa prohibits short-term rentals in general. To address the issue of short-term rentals, each city can create and enforce ordinances and zoning rules. Airbnb rules in Cape Town have no regulations expressly addressing these concerns.

If a city does not expressly ban short-term rentals, the next step is to review the laws and constitution of the Body Corporate or Homeowners Association, as applicable. The majority of these organizations will have leasing policies in place. If the regulations aren’t in favor, homeowners must talk to management agents about their potential Airbnb listing.

Reference | Property Law | Property24.com

Best areas for Rental Arbitrage South Africa

De Waterkant

According to our Airbtics Dashboard, De Waterkant is one of the top markets to start your rental arbitrage business. There are more than 273 Airbnb listings with 14 private rooms properties and 155 one-bedroom properties. The monthly revenue for most properties is more than $2,117 per month with occupancy being more than 76%.

Camps Bay

According to our Airbtics Dashboard, Camps Bay is the second-best market to start your Rental Arbitrage business in Africa. There are more than 293 Airbnb listings with 47 private rooms properties and 68 one-bedroom properties. The monthly revenue for most properties is more than $2,704/month with occupancy being more than 63%.

To see full data of South Africa – Click Here

Rental Arbitrage Arizona

Post author By Shivam Kaushik
Post date September 9, 2021

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Introduction

It’s an ultimate dream to own and purchase a property whether it’s for Airbnb or personal reasons. But the truth is, not everyone can afford to do so. The good news is that there is a viable and more affordable option called rental arbitrage!

If you’re wondering about Arizona’s Airbnb rules, process, and profitability – then this article is for you. 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 Arizona to help you make the best investment decisions. 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 Arizona 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 allowed in Arizona?

Yes, Airbnb rental arbitrage is certainly legal in the state of Arizona. The Arizona government provides detailed information about their shared housing rules, including occupancy restrictions, guest record keeping, and minimum stay requirements. Violating these requirements may result in penalties and suspension or cancellation of your registration number.

This list is not exhaustive, but it should be a good start in understanding local laws. If you have any questions, it’s recommended to contact the Ministry of Planning and Development or consult a local tax attorney. Here are some of the Airbnb rules in Arizona that you should take note of:

Arizona’s Short-Term Leasing Regulations

The Arizona Council approved the “Short-Term Vacation Leasing Regulations” in January 2020. This requires vacation or short-term rental owners to register with the city government and provide emergency and complaint contact information.

The decree also outlines the prohibited uses of vacation rentals and imposes penalties for violations ($500 for the first violation, $1,000 for the second violation within 12 months, and $ 3,500 for the third violation within 12 months). Check Arizona city’s website for more information on short-term rental rules.

Arizona’s Rental Registration

All residential rental units, including vacation and short-term rentals, must be registered in Maricopa County under ARS 331902. You can register your rental through this link.

Hotel and Rental tax

Arizona requires owners and operators of hotels and certain rental properties to apply for permits. You should refer to Chapter 14 of the City Code to determine whether these rules apply to your list.

Taxes

Arizona assesses sales tax on real estate leases and additional tax on temporary housing. Guests who qualify as “permanent residents” or those who stay for 30 days or more are exempted from temporary accommodation tax.

Arizona also imposes a temporary lodging tax on guests staying less than 30 days.

Housing and Construction Standards

Phoenix has established rules and regulations for the construction, design, and maintenance of buildings. This includes regulations on habitability, health, and safety. Certain regulations that apply to residential and non-residential uses may be relevant to your listing.

It is also important to understand and comply with the rules indicated in each contract. This includes but is not limited to leases, apartment or cooperative committee rules, HOA rules, or rules established by tenant organizations. Read your lease, and if applicable, consult with your landlord to avoid breaching contracts

How to start rental arbitrage in Arizona?

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 Arizona? 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

How much do Airbnb hosts make in Arizona?

Airbtics’ data confirm that an Airbnb host in Arizona, particularly in Scottsdale, can earn an average daily rate of $224. This is by operating a 2-bedroom apartment/flat alone! Airbnb hosts are expected to generate an annual revenue of $60,234 with a steady occupancy rate of 60%.

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

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.

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.

Best Areas for Rental Arbitrage Arizona

Some of the obvious places that you can think of in Arizona are Phoenix and Tucson. In general, Arizona’s population and employment growth are accompanied by economic growth elastic. This promotes the growth of Arizona’s real estate market.

Phoenix also encourages the city’s Airbnb business. As a real estate investor, given the positive financial metrics of Arizona short-term rentals, investing in Airbnb rental properties is recommended because of its positive financial metrics.

1. Phoenix

According to Airbtics Dashboard, Phoenix is the top market to start your rental arbitrage business. There are more than 3,107 Airbnb listings with 525 private rooms properties and 755 one-bedroom properties. The monthly revenue for most properties is more than $3,104.

2. Tucson

Airbtics confirms that Tucson is the second-best market to start your Rental Arbitrage business. There are more than 1,536 Airbnb listings with 210 private room properties and 434 one-bedroom properties. The monthly revenue for most properties is more than $2,525.

Conclusion

To sum it up, Airbnb rental arbitrage in Arizona provides exciting opportunities and promising income. Since it does not require you to purchase a property, it’s also practical for beginners! The big question is where are the best areas to do rental arbitrage in Arizona?

With the help of an STR analytics tool like Airbtics, you can easily discover the best areas to do rental arbitrage anywhere in the world. Leverage your opportunities in rental arbitrage by using an Airbnb income calculator and determine the best areas that will bring long-term profitability!

Tags Airbnb Rental Arbitrage, lat_33.4484367, lng_-112.074141

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Los Angeles

Post author By Shivam Kaushik
Post date September 8, 2021

Rental Arbitrage Los Angeles is a comprehensive guide to give you an idea about the arbitrage concept and get you started with your journey.

Home > Resources > Airbnb Rental Arbitrage >

Rental Arbitrage Los Angeles is a comprehensive guide to give you an idea about the arbitrage concept and get you started with your journey.

August 16, 2023

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 that 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 Los Angeles 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 approximately $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.

Find out more about Rental Arbitrage Business and stand out like a pro!

What are the things I need 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 Vacation rental 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 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 monthly leases and keep the situation beneficial for both parties.

Ensure the Property and Gain the landlord’s trust

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.
Vacation 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.

Pro’s and Con’s

WANT TO SEE THE AIRBNB OCCUPANCY RATES IN LA?

View the free Airbnb occupancy rates data in all the cities of the world!

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

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

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

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

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 Los Angeles

With over 40,000 Airbnb listings, Los Angeles is one of the largest cities in the United States of America and a popular destination for short-term rentals. In 2018, the city’s house-sharing ordinance was updated, and the new legislation went into force on July 1st, 2019. The following is a thorough city guide to Los Angeles’ home-sharing legislation and short-term rental regulations, so anybody may host correctly.

Hosts may lease their short-term rental homes for a total of 120 days each year. Operators can, however, request an exception that will allow them to rent out their houses for longer than the 120-day limit.

In addition, short-term rental hosts must:

Enroll with the town and pay the fee
View their registered number on ads; and
Obtain approval from the city.
Check for safety features such as functional smoke detectors, fire extinguishers, and emergency exit information.

Short-term rental sites like Airbnb, HomeAway, and VRBO are also subject to the new ordinance’s restrictions. They are not permitted to handle bookings for rentals that are not listed with the city or have exceeded the yearly rental limit. Such platforms may have to pay $1,000 daily penalty if the regulations are violated. Platforms must also include information on the city’s hosts.

Reference | Keycafe Blog | Avalara.com

Best areas for Rental Arbitrage in Los Angeles

1. Venice

According to our Airbtics Dashboard, La Jolla is the top market to start your Rental Arbitrage business. There are more than 1,494 Airbnb listings with 286 private rooms properties and 435 one-bedroom properties. The monthly revenue for most properties is more than $5,597/month with occupancy being more than 64%.

2. Bel Air

According to our Airbtics Dashboard, Bel Air is the second-best market to start your Rental Arbitrage business. There are more than 1,102 Airbnb listings with 255 private rooms properties and 258 one-bedroom properties. The monthly revenue for most properties is more than $5,171/month with occupancy being more than 52%.

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Short-Term Rental Data

Find unsaturated neighborhoods with the highest occupancy history.

Unlock Worldwide
Short-Term Rental Data

Find unsaturated neighborhoods with the highest occupancy history.

Airbnb Investing For Beginners: Investment Strategies for Short-Term Rental Success

Ramon Meris September 15, 2023

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Tags Airbnb Rental Arbitrage, lat_34.0536909, lng_-118.242766

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage London

Post author By Shivam Kaushik
Post date September 4, 2021

Introduction

Subletting a property in London is legal as long as a custom agreement is settled with the landlord. This process is also known as rental arbitrage, which is an excellent way to generate passive income. Are you looking for expert ways to do rental arbitrage in London but aren’t sure how?

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 London to help you make the best investment decisions. Stoked to learn more? Continue reading!

What is Rental Arbitrage?

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 allowed in London?

Rental arbitrage is allowed in the UK, particularly in London. It’s also good to know that a standard rental agreement cannot be used as this process is a breach of contract. For instance, if you have an Assured Shorthold Tenancy Agreement (AST), it cannot be used as a legal basis to do rental arbitrage. A separate contract indicating that the landlord allows you to sublet the property is necessary to avoid legal charges.

The Government of London provides detailed information about housing rules. This includes occupancy restrictions, guest record keeping, and minimum stay requirements. Violating these requirements may result in penalties and suspension or cancellation of your registration number. Here are some of the Airbnb rules in London that you should take note of:

1. London’s 90-day annual limit

The 90-Day Airbnb rule in London states that a property can’t be let out for more than 90 days per year. This rule only applies to entire houses listed in the Greater London area as of 2023. It’s best not to ignore this rule as you can be fined up to £20,000!

2. Planning Permit

If you’re wondering, do you need a permit for Airbnb in London? Here’s the answer! The planning permit issued by London’s City Council also allows you to rent it out throughout the year. This can be obtained if you want to exceed the 90-day limit. UK regulations state that anyone who rents a home for more than 90 days in a calendar year must obtain planning permission.

This is called temporary sleeping accommodations. If you plan to rent your accommodation as a short-term rental using a third-party platform such as Airbnb or other sites, you must first apply for a building permit from the city hall.

3. Municipal Tax

London’s Deregulation Act also requires all persons responsible for providing short-term rental accommodation to have a legal obligation to pay municipal tax.

In any case, you must obtain a gas safety certificate for the property and conduct a fire risk assessment once a year. Your property must also provide smoke detectors and carbon monoxide alarms.

4. Confirm with your landlord

London’s City Council recommends that you confirm with your landlord first before listing your accommodation on booking sites such as Airbnb. This is regardless if you want to apply for planning permission or not. It is also recommended that you confirm any lease, insurance, or mortgage policy that states restrictions on short-term rentals.

How to start rental arbitrage in London?

1. Convince the landlord

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.

2. Ensure the property and gain the landlords’ trust

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.

How much can I make with Rental Arbitrage in London?

Airbtics’ data confirm that an Airbnb host in London, particularly in the city centre, can earn an average nightly rate of £258. This is by operating a 2-bedroom apartment/flat alone! Airbnb hosts are expected to generate an annual revenue of £66,159 with a steady occupancy rate of 85%.

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

You can expect to spend anywhere between £2,500 to £4,000. This includes deposit, furnishing, amenities, legal paperwork, and LLC Incorporation.

Expense 1: Rental Deposits

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 £2,500 to £4,000 to your initial capital. Not choosing the right property can make rental arbitrage not so low cost, so choose wisely.

Expense 3: Photography

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 £40 to £2,500 depending upon the size and location.

Expense 5: Legal Consultation

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.

LOOKING FOR PROFITABLE LOCATIONS IN LONDON?

Check out the best up and coming places to buy in London!

Best Areas for Rental Arbitrage in London

Some of the obvious places that you can think of in London are Lambeth and Southwark. You can consider these areas when buying investment properties in London.

London’s population and employment growth are accompanied by economic growth elastic. This promotes the growth of London’s real estate market. Lambeth also encourages the city’s Airbnb business. As a real estate investor, given the positive financial metrics of London short-term rentals, investing in Airbnb rental properties is recommended because of London’s positive financial metrics.

1. Lambeth

According to Airbtics Dashboard, Lambeth is the top market to start your rental arbitrage business. There are overall more than 1,099 Airbnb listings and a host can expect to earn a daily rate of £101. $143. The annual monthly revenue for most properties in Lambeth is £29,095 with an occupancy rate of 93%.

2. Southwark

Airbtics’ data confirm that Dashboard, Southwark is the next best area to start your rental arbitrage business. There are more than 1,270 Airbnb listings and a host can expect to earn a daily rate of £119. The annual revenue for most properties in Southwark is £34,653 with an occupancy rate of more than 92%.

Conclusion

In summary, rental arbitrage in London 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 is the best area to do rental arbitrage in London?

Starting an Airbnb business in the UK can certainly be profitable as long as you find the best areas to begin with. While there are several properties for sale, not all of them will provide excellent returns. This is where accurate data and research can back you up to make the best investment decisions.

Comparing occupancy rates in London has never been easier to do manually. But with the help of an STR analytics tool like Airbtics, it was discovered that the Islington borough has the highest Airbnb occupancy rate of 71%. Leverage your opportunities in rental arbitrage by using a free Airbnb calculator and determine the best areas that will bring long-term profitability!

Tags Airbnb Rental Arbitrage, lat_51.5013012, lng_-0.117287

All About Airbnb Hosting Tips

Top 12 Property Management Companies in Florida

Post author By Shivam Kaushik
Post date September 4, 2021

Why these Property Management Companies located in Florida?

The Aim of this list is to give you a resource of reliable Top 11 Property Management Companies in Florida. 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 Florida.

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

Ziprent

Ziprent aims to provide the most efficient property management experience for their landlords and tenants. Through the perfect integration of technology and hands-on customer service, their platform provides the highest level of property monetization, maintenance, and utilization at the lowest cost possible. They charge flat fees with best-in-class service so that leaves more money in your pocket. Get started with by having them find you a tenant for $1,250 or have them fully manage the property for $125 per month.

More Info

Miami

Address: 25 SE 2nd Ave ste 550, Miami, FL 33131

Phone: (786) 313-5247

Email: [email protected]

Jacksonville

Address: 1200 Riverplace Blvd, Jacksonville, FL 32207

Phone: (904) 371-7311

Email: [email protected]

Tampa

Address: 610 E Zack St suite 110 3080, Tampa, FL 33602

Phone: (656) 207-7191

Email: [email protected]

Orlando

Address: 255 S Orange Ave suite 104, Orlando, FL 32801

Phone: (689) 303-6407

Email: [email protected]

Campbell Property Management LLC

Established in 1953, Campbell property management has been serving the people of South Florida for more than 6 decades now. They have expanded to more than 6 cities in South Florida. With a renewal rate of more than 98%, they are one of the best property managers out there currently in operation. Their timely responsiveness and frequent updates to all of their clients have been a major factor in this success. Clear cancellation policies and extensive knowledge of the local area are also a big plus point. They have an image of being trustworthy and professional and have 6 decades of experience to back it as well.

More Info

Deerfield Beach – Headquarters
1215 East Hillsboro Boulevard
Deerfield Beach, FL 33441
Phone: (954) 427-8770
Fax: (954) 427-6692

Lake Worth
9897 Lake Worth Road, Suite 304
Lake Worth, FL 33467
Phone: (561) 432-2703
Fax: (561) 432-2181

Jupiter
401 Maplewood Drive, Suite 23
Jupiter, FL 33458
Phone: (561) 203-7910
Fax: (561) 277-2481

Central Broward
3500 Gateway Drive, Suite 202
Pompano Beach, FL 33069
Phone: (954) 968-4481
Fax: (954) 970-9367

West Broward
8010 N. University Drive, First Floor
Tamarac, FL 33321
Phone: (954) 739-1600
Fax: (954) 739-1604

Port St. Lucie
525 NW Lake Whitney Place, Suite 202
Port St. Lucie, FL 34986
Phone: (772) 218-5405
Fax: (561) 277-2481

Miami
1680 Michigan Avenue, Suite 700 #200
Miami Beach, FL 33139
Phone: (305) 942-2490

Premier Property Management LLC

Premier Property Management has 40 years of experience in management and long history of great service. This company is definitely one of the top 10 Property Management companies in Florida. They have a team size of 10 based in Naples, Fl. One of the reasons for their success is, providing peace of mind to their clients. They take on all the work from start to finish. To name a few Marketing, Photography, Virtual Walkthroughs, Tenant Screening, and Background Checks and all can be tracked using their online portal. This level of convenience and detail is what brought them to this list of the top 10 property management companies in Florida.

More Info

Premier Property Management

739 5th Avenue S

Naples, FL 34102

PHONE: 239-321-6650
FAX: 888-352-8646

EMAIL: [email protected]

Pristine Property Management LLC

Pristine Property Management manages residential, multi-family and commercial properties in the Miami and Fort Lauderdale metropolitan areas – representing clients from the US, Europe and Latin America. They provide a personalized level of attention to each of their clients and their properties, which allows them to gain the trust of many people.

More Info

PRISTINE PROPERTY MANAGEMENT LLC
9480 NE 2nd Ave #128
Miami Shores, FL 33138

Phone: 305.400.4842
Email: [email protected]

Smart Move Short Term Property Management

Founded in 1992 by Larry Isakowitz, Smart Move is really a smart move if you are looking for Airbnb property management in Florida. They are based out of Fort Lauderdale and have a vast knowledge of the local market. According to their website, they have served more than 100,000 guests and clients which is a feat in itself. Their full-fledged service, which includes Professional Photography, Overseeing Renovations, Managing Maintenance and Repairs & Collecting, and Distribution of rent is a huge plus.

More Info

Smart Move Accommodations
412 SE 23rd Street,
Fort Lauderdale, FL 33316

Email: [email protected]
Phone: (954) 525-9559
Fax: (954) 527-0595
Skype: smartmovecrew

Hours of Operation
8:30 AM – 5:30 PM EST
Monday – Friday
For After-hours and weekends, please call the office number (954) 525-9559
Press #9 and leave message – we will return the call as soon as possible.

The Realty Medics

Founded by Thomas Weclew in 2004, The Realty Medics is an Orlando-based property management company. Though they serve more than 29 areas in Florida. They are a great property manager if you are based outside of the US. Their diverse team of 30+ employees is very experienced in handling clients from outside of the US.

More Info

The Realty Medics

10027 University Blvd
Orlando, FL 32817

Phone: (321) 947-7653
Fax: (407) 965-3312

Property Management Inc

Founded by Stevem Hart PMI is a trusted franchise in the world of Property Management. They have more than 300+ partners scattered throughout the country and 40+ scattered throughout just Florida. If you are looking for someone reliable with a presence all across the state of Florida then look nowhere else. Their experience and professionalism have been tested & proven over the last 13 years of their operation and their clients love them. Their rapid growth and expansion act as a seal of approval for that.

More Info

Address
2940 Maple Loop Dr.
Suite 104 Lehi, UT 84043

Phone: 801-407-1301
Email [email protected]

Central Florida Property Management

CFPM is one of the best property managers in Central Florida. Why do we say that? Well, their flexible and transparent policies and great reviews have to do a lot with it. They are a locally owned business as well and have extensive knowledge of the Central Florida Area. Their Network in this area ensures high occupancy of your property all the time. They have also heavily invested in their online portal and financial reporting to deliver accurate data to their clients 24/7.

More Info

333 N Ferncreek Ave
#101, Orlando, FL 32803

Phone: (407) 429-4834
Email: [email protected]

Gulf Coast Property Management

Gulf Coast Property Management should be your go-to choice if looking in Bradenton Area, Florida. They have a vast knowledge of the area and surroundings. They serve both long-term and Airbnb property management, clients. This flexibility makes them a good choice for anyone who is in the future wanting to switch to Airbnb Management from traditional renting. Having them as your managers gives you the flexibility to make the decision to switch whenever you are comfortable. Plus you don’t have to change your management company.

More Info

Address
501 Village Green Pkwy #21
Bradenton,
Florida 34209

Office Hours
Mon-Fri: 9:00am – 5:30pm
Sat: 9:00am – 5:00pm

Phone – (941) 827-0706
Email – [email protected]
——————————–

Address
11051 Gatewood Drive
Lakewood Ranch,
Florida 34211

Phone – (941) 782-1559
Email – [email protected]
————————–

Address
243 N Lime Ave.
Sarasota, Florida 34237

Phone – (941) 213-4800
Email – [email protected]
——————————-

Address
1846 S. Tamiami Trail, Suite 15,
Venice, Florida 34293
United States (US)

Phone – (941) 552-4200
Email – [email protected]

R. Russell Property Inc

R.Russell Property was established in 1982 with the aim to provide the best property management service to the people of central Florida. They serve more than 25 areas in Florida as of now (List available in the more info). Their strong understanding of the local market and their network is what gives them an upper hand over any other firm out there. They have managed more than 7,000 homes to date and the majority of their client seemed to be very satisfied with their services.

More Info

R. Russell Properties, Inc.
498 Palm Springs Drive, Ste 210
Altamonte Springs, FL 32701-7805

(407) 339-2233 | (407) 339-2238
[email protected]

Vacasa

Luxury Property Management Care

Founded by Liran Koren and Sivan Gerges, and headquartered in Boca Raton, FL, Luxury Property Management Care is Florida’s Only Full-Service Property Management Services and Investment Concierge. We do more than just manage real estate—we add immediate and quantifiable value to your business that more than offsets our fees. In short, we’re not a line item expense but the savviest investment you can make that will keep generating you more wealth for years to come. Real estate investing can be your ticket to boundless wealth, or a bottomless money pit. The real difference between those landlords living the dream of running a real estate empire that generates endless passive income and those forced to work every day to stay above water is all about finding the right property management partner.

More Info

Property Management Office
9950 Peninsula Corp Cir APT 2008, Boca Raton, FL 33487

(561) 468-3973 | (561) 362-2275

[email protected]

HIGHEST OCCUPANCY RATES IN FLORIDA?

We have that! Check out the average Airbnb occupancy rates by city & learn more.

Tags Hosting Tips

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Canada

Post author By Shivam Kaushik
Post date September 2, 2021

Table of Contents

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Introduction

The great white north offers a wide range of opportunities for financial freedom. In fact, you can earn easy money 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 Canada 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.

Airbnb rental arbitrage in Canada is applicable to 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. Here’s an example to help you understand rental arbitrage better.

Assume you are renting a duplex in Calgary for C$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 C$100 per day and got 80% occupancy. This will bring in approx C$2,600/month in revenue. Not only will it help you pay off your complete rent, but it will also give you a profit of C$800. This, in a nutshell, is called rental arbitrage.

Is rental arbitrage legal?

Yes, but rules vary per city in Canada. Quebec requires registration of short-term rentals of fewer than 31 days to get a license. Quebec was also the first Canadian province to regulate short-term rentals.

Registration of all short-term rental properties is also a must in Toronto. Airbnb operators are also required to pay a 4% Municipal Accommodation Tax.

On the other hand, the City of Vancouver only issues short-term rental licenses for main residences. This requires hosts to live on the property while operating their Airbnb.

Hosts in the City of Edmonton must have a business license for their short-term rentals. The same also applies in the City of Calgary.

How do I get into rental arbitrage?

1. Convince the landlord

Let’s say you want to get into rental arbitrage. Now comes the big question, how do 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 Canada:

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 CANADIAN CITIES?

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

How much does it cost to start an Airbnb arbitrage?

You can expect to spend anywhere between C$3,000 to C$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 C$3,000 to C$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

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 C$50 to C$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 Canada

Some of the most popular places in Canada are Port Credit and Old Quebec. Here are the top two choices for rental arbitrage top our list:

1. Downtown Victoria

Airbtics Dashboard confirms Downtown Victoria as the top market to start your Rental Arbitrage business. There are more than 569 Airbnb listings with average annual revenue of more than C$61,016 and an occupancy rate of 88%

2. Downtown Vancouver

Airbtics Dashboard shows Downtown Vancouver as the second-best market to start your Rental Arbitrage business. There are more than 326 Airbnb with annual revenue of C$75,508 and an 88% occupancy rate.

Looking for the Best Canadian Cities for Airbnb Investments?

If you are looking for a profitable Canadian rental market, make sure to check out more Airbnb statistics in Canada!

Conclusion

In summary, rental arbitrage in Canada 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!

Tags Airbnb Rental Arbitrage, lat_48.4259452, lng_-123.3656903

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Chicago

Post author By Shivam Kaushik
Post date September 1, 2021

Table of Contents

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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.

Assume you are renting a duplex in Chicago 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 approximately $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.

Read more about Short-term Rental Arbitrage and be guided accordingly!

What are the things I need 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 short-term rental 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 a landlord’s trust.

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 landlord’s 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.
Airbnb ROI 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.

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

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

Expense 1: Rental Deposits

Expense 2: Furnishing

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.

Expense 5: Legal Consultation

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 Chicago

Chicago Government site provides more information about Chicago’s shared housing rules, including occupancy restrictions, guest record keeping, and minimum stay requirements. Penalties for violating these requirements may result in the suspension or cancellation of your registration number. You may also be fined.

Visit the City of Chicago website for more information.

The City of Chicago requires a “vacation rental” license. Section 46300 of the Municipal Code contains information on licensing procedures and the responsibilities of holiday rental permit holders.

Vacation rental houses can be advertised or published through platforms such as Airbnb, but they must be registered and approved by BACP before they can be listed on the intermediary platform.

The landlord must publish the permit number of his property on his listing. Additional details are provided on the City of Chicago Commercial Licensing page, including fee and process information.

Bed and Breakfast Permit

The City of Chicago requires a “Bed and Breakfast” permit. Section 46290 of the Municipal Code contains information on the licensing procedures and duties of bed and breakfast licensees.

B&B can advertise or publish rental information through platforms such as Airbnb, but it must be registered and approved by BACP before it can be listed on the intermediary platform. The landlord must publish the permit number of his property on his listing. Additional details are provided on the City of Chicago Commercial Licensing page, including fee and process information.

Hotel License

The City of Chicago requires a “hotel” license. Section 46180 of the Municipal Code contains information on licensing procedures and the duties of hotel license holders.

hotels can advertise or publish rents through platforms such as Airbnb, but they must first register and obtain BACP approval before they can be listed on the intermediary platform. The landlord must publish the permit number of his property on his listing. Additional details are provided on the City of Chicago Commercial Licensing page, including fee and process information.

Zoning Regulations

The Chicago Zoning Regulations stipulate the city’s zoning requirements and land use. You should refer to the Zoning Regulations and the Shared Housing Amendments to the Municipal Code in 2016, 2017, and 2020-here to see if your list covers any zoning requirements or definitions of use.

Taxes

Chicago imposes a 4.5% hotel room tax, a 4% shared housing surcharge, and a 2% domestic violence surcharge, including any cleaning fees for bookings of 29 nights or less. Airbnb collects and remits these taxes and fees in Chicago. For more information, please click here.

Cook County also imposes a 1% hotel accommodation tax on list prices, including any cleaning fees for bookings of 29 nights or less. Airbnb collects and remits this tax in Cook County.

Other rules

It is also important to understand and abide by other contracts or rules that require you, such as rules for leases, apartments or cooperative committees, rules for homeowners’ associations, or rules set by tenant organizations. Read your lease, and if applicable, consult your landlord.

Reasons for these laws and regulations

As more and more commercial investors enter the vacation rental business, these laws and regulations are formulated to control the general rental market in the region and make accommodation affordable for locals.

In the next section, we will be suggesting the 2 best areas to start your rental arbitrage journey in Chicago. For specific neighbourhoods of these cities and data of different cities check out Airbtics.

References: Airbnb | City of Chicago

Best areas for Rental Arbitrage in Chicago

Some obvious places come to mind when thinking of Chicago like Heart of Chicago, and West Town. You can consider these areas when buying investment properties in these neighbourhoods of the Chicago real estate market.

Chicago’s population and employment growth are accompanied by economic growth elastic, which promotes the growth of the Chicago real estate market. West town promotes the city’s Airbnb business. As a real estate investor, given the positive financial metrics of Chicago short-term rentals, investing in Airbnb rental properties in Chicago is recommended.

1. West town

According to our Airbtics Dashboard, West town is the top market to start your Rental Arbitrage business. Overall, there are more than 9,948 Airbnb listings out of which 1 bedroom is 3,112 in Chicago where Airbnb helped in Monthly revenue for most properties being more than $2,000/month with occupancy being more than 44%.

2. Heart of Chicago

According to our Airbtics Dashboard, the Heart of Chicago is the top area to start your Rental Arbitrage business. Overall, there are more than 4,000 Airbnb listings out of which 1 bedroom is 1,400 in Chicago where Airbnb helped in Monthly revenue for most properties being more than $2,258/month with occupancy being more than 56%.

See Full Stats for Chicago – Click Here

FIND STATS FOR YOUR CITY – CLICK HERE

Read More: Rental Arbitrage California

Tags Airbnb Rental Arbitrage, lat_41.8755616, lng_-87.6244212

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Melbourne

Post author By Shivam Kaushik
Post date September 1, 2021

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Introduction:

The monthly cost of a Melbourne resident is over AUD $1,000 excluding rent. 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 Melbourne to help you make the best investment decisions. Stoked to learn more? Continue reading!

What is Rental Arbitrage?

Rental Arbitrage in Melbourne 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.

Assuming you are renting a duplex in Melbourne 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.

Go over this essential guide for Airbnb Rental Arbitrage and learn more about the business!

Short-Term Rental Regulations in Melbourne

Short-term rentals are allowed in Melbourne. The manager has the option to lease the space as long as the operations do not break any rent or tenant contracts. In case of violations, proprietors can sue the managers under the rules set out by authorities.

No Drafting Requirements for Short Stays in Melbourne

There are currently no restrictions in any zones for normal rental units or short-term rentals in the city of Melbourne.

Penalties for Violations

While there are zoning restrictions for either normal or short-term rentals in Melbourne, both hosts and visitors can be fined if applicable guidelines in the Owners Corporations Act 2006 are violated. These include noise complaints as well as maintaining peace and order in the neighborhood. Complaints must be written to the concerned manager of the property whose owner will then decide the kind of action to be taken.

Hosts with three violations within two years may be prohibited from continuing a short-term rental business.

Short-Term Rental Regulations in Melbourne

No Drafting Requirements for Short Stays in Melbourne

There are currently no restrictions in any zones for normal rental units or short-term rentals in the city of Melbourne.

Penalties for Violations

Hosts with three violations within two years may be prohibited from continuing a short-term rental business.

How do I start an Airbnb arbitrage in Melbourne?

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.

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.

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

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 Melbourne:

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 & utilized our Airbnb occupancy rate calculator to feature the occupancy rates of major cities!

The initial cost of starting rental arbitrage in Melbourne

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 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

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.

Expense 3: Photography

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

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 Melbourne

Some of the obvious places that you can think of in Melbourne are Richmond, Footscray, and Fitzroy. But two of the best choices for rental arbitrage top our list.

1. St Kilda

According to Airbtics Dashboard, St Kilda is the top market to start your rental arbitrage business. There are more than 486 Airbnb listings. The annual revenue for most properties is more than AUD $49,151 with an occupancy rate as high as 83%.

2. Prahran

According to Airbtics Dashboard, Prahran is another top market to start your rental arbitrage business. There are more than 35 Airbnb listings that have an average annual revenue of AUD $51,111 with also a very high occupancy rate of 83%.

Conclusion

In summary, rental arbitrage in Melbourne 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!

Tags Airbnb Rental Arbitrage, lat_-37.8142176, lng_144.9631608

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage San Diego

Post author By Shivam Kaushik
Post date August 31, 2021

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What is Rental Arbitrage?

Assume you are renting a duplex in San Diego 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 more about Rental Arbitrage contracts & business with the help of this guide!

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 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 really 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.

Now for the convincing, rule number one is, 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 for 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 instil 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.
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.

What is the initial cost of starting rental arbitrage in San Diego?

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

Expense 1: Rental Deposits

Expense 2: Furnishing

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.

Expense 5: Legal Consultation

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 San Diego

This year in February City Council approved guidelines governing short-term rentals or rental arbitrage. The guidelines require a permit to work an STR unit, set up limits on the number of licenses a host might get, make a reasonable cover-up on the total number of entire homes STR units, and make an authorizing interface to follow, oversee and uphold all parts of the STR. Licenses will be needed to work an STR in the City of San Diego starting July 1, 2022.

The Short-Term Rentals ordinance will separate city short-term rentals into four categories:

Part-time rentals- Leased for a total of 20 days or less each year. The proprietor or long-lasting occupant doesn’t have to live nearby during the short-term rentals.
Home-sharing rentals- Leasing a room in the home for over 20 days out of each year insofar as the property owner resides on sight. Home sharing incorporates duplex properties and qualified adornment abiding units and granny flats when the host lives nearby.
Whole-home rentals- Rentals for over 20 days out of each year where the owner doesn’t stay nearby. The number of licenses given won’t surpass 1% of San Diego’s complete lodging units outside the Mission Beach Community Planning Area.
Whole-home rentals in Mission Beach- The number of licenses given won’t surpass 30% of the Mission Beach Community Planning Area.
Visitor two-night least stays required.

Renters who have effectively observed San Diego’s rental laws in the past will benefit. Also, the legalization has a good-neighbourhood policy wherein the two hosts and visitors could be fined up to $1,000 for disregarding rental regulations.

Best areas for Rental Arbitrage San Diego

Some obvious places come to mind when thinking of San Diego like Carmel mountain ranch, and pacific beach. But two of the best choices for rental arbitrage top our list. The first one is:

La Jolla

According to our Airbtics Dashboard, La Jolla is the top market to start your Rental Arbitrage business. There are more than 599 Airbnb listings with 105 private rooms properties and 119 one-bedroom properties. The monthly revenue for most properties is more than $24,253/month with occupancy being more than 72%.

Del Mar Heights

According to our Airbtics Dashboard, Del Mar Heights is the second-best market to start your Rental Arbitrage business. There are more than 581 Airbnb listings with 131 private rooms properties and 102 one-bedroom properties. The monthly revenue for most properties is more than $13,856/month with occupancy being more than 66%.

See Full Stats for Fort Lauderdale – Click Here

FIND STATS FOR YOUR CITY – CLICK HERE

Read More: Airbnb Rental Arbitrage California

Tags Airbnb Rental Arbitrage, lat_32.7174202, lng_-117.1627728

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Houston

Post author By Shivam Kaushik
Post date August 30, 2021

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Introduction

Houston, Texas has plenty of great opportunities for property investors. Purchasing an investment property for sale in Houston is not always ideal for those who are on a limited budget. So is there an affordable option? There are two words: Rental arbitrage!

If you’re thinking of starting your rental arbitrage journey in Houston, continue reading. In this article, we’ll feature the best areas to do rental arbitrage in Houston. We also added the initial costs, expected Airbnb revenue in Houston, and more.

What is Rental Arbitrage?

Is Airbnb rental arbitrage in Houston legal?

The good news is that Airbnb rental arbitrage in Houston is certainly legal. Houston’s Construction and Housing Standards Act regulates construction and standards for the design and maintenance of buildings. This includes regulations on habitability, health, and safety.

As more and more commercial investors enter the vacation rental business, laws and regulations were formulated. The reason for this is to control the general rental market in the region and make accommodation affordable for locals. Check out the various short-term rental laws in Houston:

Multi-Family Housing Law

This law applies to three or more buildings with multiple independent rental units classified into managed leases and non-custodial leases.

Rents Stayed

This arrangement requires the owner to be in the property for the entire stay. The length of stay of the hosted lease may be limited, but during this period, guests can enter all areas of the rented unit.

Non-Accommodation Leases

Houston’s multi-family housing laws prohibit non-accommodation leases of less than 30 days. The law only applies to “A-class residential buildings” in the area.

Condominium

When considering a condominium, the landlord should verify whether the building is an “A” class building. In this case, the multiple dwelling law applies. In addition, the building’s Homeowners’ Association (HOA) may have enacted restrictive regulations that make renting space a challenge.

Rent-stable buildings

Rent-stable buildings put more restrictions on landlords, especially if you can charge the amount of rent. One thing to remember is that it is actually illegal to make a profit on such buildings through vacation rentals.

However, since these units generally do not have specific regulations on short-term rentals, it’s less likely to have problems. The landlord must be considerate of other people in the building and set specific rules for guests to avoid any mishaps.

Houston has quite a few regulations that need to be scrutinized carefully. Learning about local laws regarding short-term leases will help you worry less about breaching the laws. If necessary, it’s advisable to consult a local attorney’s advice to avoid penalties and be on the right track.

How to start rental arbitrage in Houston?

1. Convince the landlord

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.

2. Ensure the property and gain the landlords’ trust

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.

How much can I make with Airbnb in Houston?

If you’re wondering, is Airbnb profitable in Houston? We found out using an Airbnb income calculator! Airbtics’ data confirm that an Airbnb host in Houston can earn an average daily rate of $112. 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%.

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

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

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

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.

Expense 5: Legal Consultation

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.

Pros and Cons

What are the pros and cons of doing rental arbitrage in Houston? 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

Best areas for Rental Arbitrage in Houston

Some of the obvious places that you can think of in Houston are Southwest Houston and Midtown. In general, Houston’s population and employment growth are accompanied by economic growth elastic. This promotes the growth of Houston’s real estate market.

Houston also encourages the city’s Airbnb business. As a real estate investor, given the positive financial metrics of Houston short-term rentals, investing in Airbnb rental properties is recommended because of its positive financial metrics.

1. Midtown

According to Airbtics Dashboard, Midtown is the top market to start your rental arbitrage business. There are overall more than 224 Airbnb listings out of which 112 are 1-bedroom properties. The monthly revenue for most properties is more than $1,978 with an occupancy rate of 54%.

2. Southwest Houston

Airbtics confirms that Southwest Houston is the second-best market to start your rental arbitrage business. There are more than 1,751 Airbnb listings with 256 private rooms properties and 800 one-bedroom properties. The monthly revenue for most properties is more than $1,728.

Conclusion

In summary, rental arbitrage in Texas can be a very profitable side income. Particularly in Houston as it’s one of the major cities! Since it does not require you to purchase a property, it’s also practical for beginners. The big question is which are the best neighborhoods in Houston to do rental arbitrage?

The good news is that you can easily discover the most profitable Airbnb locations with the help of Airbtics’ Discovery Tool. Leverage your opportunities in rental arbitrage by using a free Airbnb calculator and determine the best areas that will bring long-term profitability!

Tags Airbnb Rental Arbitrage, lat_29.7589382, lng_-95.3676974

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What is Rental Arbitrage?

What are the things I need to do before getting started?

How to convince the landlord?

Points to tell an indecisive landlord:

Ensure the Property and Gain the landlord’s trust

Pros and Cons

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

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Expense 4: Cleaning Services

Expense 5: Legal Consultation

Legality and Regulations in South Africa

Best areas for Rental Arbitrage South Africa

Introduction

What is Rental Arbitrage?

Is rental arbitrage allowed in Arizona?

Arizona’s Short-Term Leasing Regulations

Arizona’s Rental Registration

Hotel and Rental tax

Taxes

Housing and Construction Standards

How to start rental arbitrage in Arizona?

1. Convince the landlord

Points To Tell An Indecisive Landlord:

2. Ensure the property and gain the landlords’ trust

Pros and Cons

Pros

Cons

How much do Airbnb hosts make in Arizona?

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

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Expense 4: Cleaning Services

Expense 5: Legal Consultation

Best Areas for Rental Arbitrage Arizona

1. Phoenix

2. Tucson

Conclusion

What is Rental Arbitrage?

What are the things I need to do before getting started?

How to convince the landlord

Points to tell an indecisive landlord

Ensure the Property and Gain the landlord’s trust

Pro’s and Con’s

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

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Expense 4: Cleaning Services

Expense 5: Legal Consultation

Legality and Regulations in Los Angeles

Best areas for Rental Arbitrage in Los Angeles

1. Venice

2. Bel Air

Quick Links

Quick Links

Introduction

What is Rental Arbitrage?

Is rental arbitrage allowed in London?

1. London’s 90-day annual limit

2. Planning Permit

3. Municipal Tax

4. Confirm with your landlord

How to start rental arbitrage in London?

1. Convince the landlord

Points To Tell An Indecisive Landlord:

2. Ensure the property and gain the landlords’ trust

How much can I make with Rental Arbitrage in London?

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

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Expense 4: Cleaning Services

Expense 5: Legal Consultation

Best Areas for Rental Arbitrage in London

1. Lambeth

2. Southwark