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Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Real Estate in Greece

Rental Arbitrage Real Estate in Greece: Set sails and embark on the journey of arbitrage real estate in Greece – a clever tactic for creating passive income without the need for significant initial capital!

Rental Arbitrage Real Estate in Greece

arbitrage real estate greece

Rental Arbitrage Real Estate in Greece

Set sails and embark on the journey of arbitrage real estate in Greece – a clever tactic for creating passive income without the need for significant initial capital!

Rental Arbitrage Real Estate in Greece

Key Takeaways

  • Explore the dynamics of Airbnb rental arbitrage in the evolving real estate scene of Greece.
  • Gain crucial knowledge on startup expenses, cash return times, and effective strategies to connect with prospective landlords for successful arbitrage in Greece.
  • Examine the procedures, regulatory framework, and potential earnings of Airbnb arbitrage in Greece, utilizing Airbtics’ Airbnb host calculator to assess the feasibility of your investment.
  • An Airbnb host can earn an average monthly profit of €1,677 while doing rental arbitrage in Athens, Greece.

Maximizing Opportunities: Exploring Rental Arbitrage in Greece for Sustainable Real Estate Ventures

Embarking on rental arbitrage proves to be a favorable method for launching a short-term rental venture, offering the advantage of starting the business without the need for a substantial initial capital investment.

And you are most likely contemplating doing rental arbitrage in Greece. It’s understandable as this Mediterranean nation has become an attractive prospect for investors, owing to its vibrant tourist sector, robust short-term rental market, and economic growth.

Yet, it’s crucial to assess whether this business model can evolve into a sustainable investment. even with a modest initial investment, we can’t turn a blind eye to the fact that you are still putting some funds at risk. Because, ultimately, the objective is to generate income rather than accumulate significant debt.

This article explores the intricacies of arbitrage real estate in Greece, covering its legal and profitability aspects, and highlighting top cities for potential subletting. Keep reading for insights into this business model!

What is Airbnb Rental Arbitrage?

Also known as subletting, this practice involves a tenant renting out their leased property to another individual. In this scenario, the tenant assumes the role of a “sublessor” by listing the residence for short-term stays on platforms such as Airbnb and VRBO

This legal business model enables you to enter the Airbnb world with no money. The income from short-term rentals can offset the long-term lease costs, allowing you to keep the remaining surplus at the end of each month. 

Is Airbnb Arbitrage Legal in Greece?

Subletting a property is a worthwhile investment idea when you know what are you getting yourself into as you need to weigh the pros and the cons of this business model. Thus, it’s important to consider the short-term rental market conditions of the city you want to target as well as its rental regulations and subletting legality in Greece. 

While short-term rentals are legal in Greece as well as the rental arbitrage model, tenants must get written consent from their landlord before renting out the property to another person.

Therefore, subletting is permissible in the absence of a contrary agreement. However, the original lessor retains responsibility towards the landlord for any faults attributable to the sub-tenant. 

How Much Profit Can You Make from Subletting a Property in Greece?

Before investing your funds in a rental arbitrage business, it is essential to comprehend the potential profitability of a short-term rental in your chosen market. For example, suppose you are focusing on Athens, a highly desirable location for Airbnb investments.

By making use of a free Airbnb calculator, you can quickly discover the profitability of rental arbitrage in the Greek capital city.

arbitrage real estate greece

Profit & Monthly Expenses in Greece

According to Airbtics’ data, you can earn up to €2,721 per month for a 2-bedroom apartment in Athens alone. So you can expect that investing in a property in Greece can secure a positive cash flow.

airbtics-logo-300x87
Average Rent Price (2 BR) Airbnb Monthly Revenue Monthly Expense Monthly Profit
€500 €2,721 €544 €1,677

Average Rent Price (2 BR)

€500

Airbnb Monthly Revenue

€2,721

Monthly Expense

€544

Monthly Profit

€1,677

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses (€2,721 – €500 – €544 = €1,677).

airbnb arbitrage nz

Startup Cost in Greece

After getting an overview of your monthly expenses and revenue, let’s shift our focus to startup costs. Here’s the big question “How long does it typically take an investor to recover the startup cost?”. Let’s go straight to the point and take a look at this calculation:

airbtics-logo-300x87
Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
€3,000 2 months

Let’s say that the estimated startup cost for furnishings in Greece is around €2,000. To determine the total startup cost, you should add 2 months’ worth of average rent prices (€1,000). With a total startup cost of €3,000, the cash return time is calculated by dividing this by the monthly profit (€1,677). Thus, you can anticipate recovering the startup cost in approximately 2 months

If these results sound promising to you, then go ahead and look at other recommended areas for rental arbitrage in Greece.

Top 5 Profitable Cities for Arbitrage Real Estate in Greece 

Before investing in a specific Greek market, you need to research the best locations for short-term rental investments and consider factors like seasonality and local events that can affect the occupancy rates. This will help you to establish realistic expectations and guarantee your success.

Explore the top 5 cities in Greece, along with their annual revenue, monthly profit rates, cash return time, and more.

1. Corfu Town

Also known as Kerkyra, this city presents a cosmopolitan environment with plenty of leisure options and a strategic location overlooking the Ionian Sea. Moreover, the potential demand for short-term rentals, along with tourism and urban development on the island, increases the attractiveness for property investments.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €550 €2,582 €3,100 €1,516 2 months
2-BR €750 €3,051 €3,500 €1,691 2.1 months
3-BR €900 €4,332 €3,800 €2,566 1.5 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €500
  • Average Airbnb Revenue: €2,582
  • Startup Cost: €3,100
  • Monthly Profit: €1,516
  • Cash Return Time: 2 months

2 Bedrooms

  • Average Rent Price (Monthly): €750
  • Average Airbnb Revenue: €3,051
  • Startup Cost: €3,500
  • Monthly Profit: €1,691
  • Cash Return Time: 2.1 months

3 Bedrooms

  • Average Rent Price (Monthly): €900
  • Average Airbnb Revenue: €4,332
  • Startup Cost: €3,800
  • Monthly Profit: €2,566
  • Cash Return Time: 1.5 months

2. Rhodes Town

The enchanting Rhodes Town combines history, medieval architecture, and a lively atmosphere that could make anyone fall in love with this destination. Additionally, its striking natural landscapes, strong tourist market, and Mediterranean quality of life add attractiveness for those looking to invest in real estate in a lovely city in Greece.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €450 €2,050 €2,900 €1,190 2.4 months
2-BR €800 €2,876 €3,600 €1,501 2.4 months
3-BR €900 €3,749 €3,800 €2,099 1.8 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €450
  • Average Airbnb Revenue:
    €2,050
  • Startup Cost: €2,900
  • Monthly Profit: €1,190
  • Cash Return Time: 2.4 months

2 Bedrooms

  • Average Rent Price (Monthly): €800
  • Average Airbnb Revenue:
    €2,876
  • Startup Cost: €3,600
  • Monthly Profit: €1,501
  • Cash Return Time: 2.4 months

3 Bedrooms

  • Average Rent Price (Monthly): €900
  • Average Airbnb Revenue:
    €3,749
  • Startup Cost: €3,800
  • Monthly Profit: €2,099
  • Cash Return Time: 1.8 months

3. Chania

The charming city of Chania is a popular tourist destination in Crete, thanks to its distinctive history, Venetian architecture, and natural beauty. With a strong rental market, real estate market growth potential, and relatively affordable housing prices, Chania offers reasonable investment opportunities!

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €600 €2,026 €3,200 €1,021 3.1 months
2-BR €850 €2,675 €3,700 €1,290 2.9 months
3-BR €950 €3,545 €3,900 €1,886 2.1 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €600
  • Average Airbnb Revenue: €2,026
  • Startup Cost: €3,200
  • Monthly Profit: €1,021
  • Cash Return Time: 3.1 months

2 Bedrooms

  • Average Rent Price (Monthly): €850
  • Average Airbnb Revenue: €2,675
  • Startup Cost: €3,700
  • Monthly Profit: €1,290
  • Cash Return Time: 2.9 months

3 Bedrooms

  • Average Rent Price (Monthly): €950
  • Average Airbnb Revenue: €3,545
  • Startup Cost: €3,900
  • Monthly Profit: €1,886
  • Cash Return Time: 2.1 months

4. Thessaloniki

Nestled on the shores of the Aegean Sea, Thessaloniki is an important city that blends its ancient history with modernity. Considering its steady economic growth, the presence of diverse cultural and educational institutions, and the significant historical heritage that attracts tourists, this city is a great destination for short-term rentals.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €450 €1,509 €2,900 €757 3.8 months
2-BR €570 €1,908 €3,140 €956 3.3 months
3-BR €700 €2,353 €3,400 €1,182 2.9 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €450
  • Average Airbnb Revenue: €1,509
  • Startup Cost: €2,900
  • Monthly Profit: €757
  • Cash Return Time: 3.8 months

2 Bedrooms

  • Average Rent Price (Monthly): €570
  • Average Airbnb Revenue: €1,908
  • Startup Cost: €3,140
  • Monthly Profit: €956
  • Cash Return Time: 3.3 months

3 Bedrooms

  • Average Rent Price (Monthly): €700
  • Average Airbnb Revenue: €2,353
  • Startup Cost: €3,400
  • Monthly Profit: €1,182
  • Cash Return Time: 2.9 months

5. Athens

Athens is widely known for its cultural, economic, and political importance. Moreover, it attracts a great influx of tourists yearly! The tourism sector’s growth and urban development projects, coupled with relatively low living costs compared to other European cities, offer attractive investment opportunities to property investors.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €600 €1,431 €3,200 €545 6 months
2-BR €800 €1,989 €3,600 €791 5 months
3-BR €1,100 €3,082 €4,200 €1,366 3.1 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €600
  • Average Airbnb Revenue: €1,431
  • Startup Cost: €3,200
  • Monthly Profit: €545
  • Cash Return Time: 6 months

2 Bedrooms

  • Average Rent Price (Monthly): €800
  • Average Airbnb Revenue: €1,989
  • Startup Cost: €3,600
  • Monthly Profit: €791
  • Cash Return Time: 5 months

3 Bedrooms

  • Average Rent Price (Monthly): €1,100
  • Average Airbnb Revenue: €3,082
  • Startup Cost: €4,200
  • Monthly Profit: €1,366
  • Cash Return Time: 3.1 months

How to Find Landlords for Airbnb Rental Arbitrage?

Investing in Airbnb rental arbitrage can be an excellent strategy for generating passive income. Yet, it may not be easy to find a landlord who permits subletting on Airbnb because only a few of them know about the process of rental arbitrage or are not fond enough of this business model. Thus, to convince a landlord, you must involve proactive and strategic efforts to explore this mutually beneficial opportunity. We also recommend using our rental arbitrage email template to add more creativity to your proposal!

Here are some ways that you can use to identify potential landlords for your Airbnb arbitrage in Greece:

  • Real Estate Platforms: Search for real estate platforms in NZ such as xe.gr, spitogatos, spiti24, or other websites to explore available rental properties and contact landlords.
  • Real Estate Agents: Establish connections with real estate agents who possess insights into possible rental properties in your target market as they can connect you with potential landlords.
  • Social Media & Networking: Don’t be shy and join online forums and communities centered around real estate in your chosen location. Platforms like BiggerPockets can offer valuable networking opportunities.

Additionally, ensure your interactions with landlords are conducted professionally and be ready to address any concerns they may have about subletting. 

Seizing Golden Opportunities: The Lucrative Landscape of Rental Arbitrage in Greece

arbitrage real estate greece

In summary, rental arbitrage real estate in Greece presents an enticing opportunity for investors looking to enter the short-term rental market with minimal initial capital investment. The potential profitability of subletting in Greece, especially in cities like Athens, Chania, Rhodes Town, Corfu Town, and Thessaloniki, underscores its viability as a lucrative venture. 

But to succeed in this venture, identifying landlords willing to engage in Airbnb subletting is crucial. Utilizing real estate platforms, collaborating with agents, and leveraging social media can aid in establishing connections and presenting the benefits of this mutually advantageous arrangement.

As you delve into the rental arbitrage world, reliable platforms like Airbtics can be valuable in evaluating market conditions, estimating potential revenue, and making informed investment decisions. This kind of comprehensive data can help entrepreneurs navigate the dynamic landscape of short-term rentals in Greece, ultimately contributing to the success and sustainability of their Airbnb ventures!

Explore More Profitable Locations in Greece!

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Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Find unsaturated neighborhoods with the highest occupancy history.

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Airbnb Rental Arbitrage All About Airbnb

A beginner’s guide to Airbnb Arbitrage

A beginner’s guide to Airbnb Arbitrage: 4 steps to have a successful first Airbnb arbitrage property. What is Airbnb arbitrage? You rent a property from a landlord, furnish it, and list it on Airbnb. You earn more than what you pay to the landlord.

A beginner’s guide to Airbnb Arbitrage

Airbnb arbitrage

A beginner’s guide to Airbnb Arbitrage

Airbnb Arbitrage is amazing. You can start this as a side hustle, but you can scale this up to build enough wealth for you to achieve financial freedom.

You can start your first rental arbitrage unit in a matter of 1-2 weeks as long as you make right progress. Here are 3 key tasks you need to complete. 

Airbnb Arbitrage is amazing. You can start this as a side hustle, but you can scale this up to build enough wealth for you to achieve financial freedom. 

What is Airbnb arbitrage? You rent a property from a landlord, furnish it, and list it on Airbnb. You earn more than what you pay to the landlord. You can start this without your own property and with very little capital.

Is it legal? Mostly, yes. Agree with your landlord. Check Airbnb regulations in your city. Many cities allow Airbnb. 

You can start your first rental arbitrage unit in a matter of 1-2 weeks as long as you make right progress. Here are 3 key tasks you need to complete. 

1. Market research (Tip: Use Airbnb analytics to finish this in a few minutes) 

2. View properties & sign the contract (Tip: Use secret software to get access to landlord-approved properties for rent.)

3. Furnishing

Start with market research

Find the goldmine areas. Find an area with abundant available long-term rentals in the market. At the same time, travelers should love this area. In other words, It is a property with a huge pricing gap between long-term and short-term rental. 

Via market research, you must get an answer for the 3 things. 1) What’s the short-term rental rule there? 2) What area has some serious pricing gaps? 3) What type of properties? 

For example, when I started it in Liverpool, UK, I found there’s no city-wise regulation, but it depends on which building. Some buildings are strictly for residential but not all. The downtown area has very high short-term rental demand compared to long-term rental. I found out small Studio & 1-bed type flat in well well-maintained building is the most popular on Airbnb in the area.  

Regulation 

What sort of regulation does your city have? Is there a limit on how many days you can rent it out as a short-term rental? Do you need to get a short-term rental permit? Clear this out. Search on Google, and check out the local government website. 

Find high-demand neighborhoods 

You can use the heatmap feature from the Airbtics app. The intensity of color represents the guest’s demand. Therefore, the dark red areas have a high occupancy rate. This will show you the Airbnb hotspots. In my case, the downtown area is the only hotspot with many short-term rentals available. 

Type of property

On the right side of the map, you can see the top-performing Airbnb listings in the area. Check out some of them and see which type of properties you could go after. 

You can think in terms of the number of bedrooms (e.g. Studio vs 2 bedrooms) and type of properties (e.g. high-rise, modern). 

Acquire your first property

Acquiring the first property may sound challenging, but your first landlord may accept your offer too. Most landlords are not too keen on short-term rentals. Their three main concerns are complaints from their neighbors, excessive wear and tear, and unable to collect monies from you.

The best way is to meet the landlords face to face and talk with them. Many landlords are open to this. Building the trust is the key. 

Here are a few pointers to convince the landlord for your first property.

  • Offer 5-10% higher rental fee 
  • Offer a higher amount of deposit 
  • Pay a few months rent in advance 
  • Monthly report on their property on property damages 
  • You’ll use noise monitoring software to quickly address situations in which neighbors may feel uncomfortable 
  • You’ll sign up for short-term rental insurance 

If you are in the US, then try out a software called Airvana. On their website, you can find properties for rent that the landlords have already approved for rental arbitrage. Airvana use Airbtics data to power their market intelligence side. 

Furnish your property

If this is your first property, start lean, and invest in better items as you make more money. For a 1-bedroom apartment, you can furnish a basic listing under $2,000. Providing a kitchen isn’t a must. 

For an Airbnb property, you need to choose your theme and color palette. This will drastically improve your listing on photos and attract short-term guests. 

Here are examples of basic amenities you need

  • Refrigerator 
  • Dining table and chairs 
  • Sofa 
  • Bed frame 
  • Mattress 
  • Pillows 
  • Linen 
  • Closet organizer 
  • Decorative items
furnish your property

We have an in-depth article on the Airbnb startup cost. Here’s an example of how you can furnish your listing from scratch with $3,300.

Publish an Airbnb Listing

It’s surprisingly easy to publish a listing. One can publish a listing in 30 minutes. Once you publish, potential guests can see your listing and start booking. 

The most important part here is to use really nice pictures of your Airbnb. If it’s your first time, hire a professional who has done this before in your area. Your listing doesn’t have any reviews so guests can only rely on your listing’s picture before making a reservation. 

 

 Start with renting out a room, not the entire property

Are you a student or just got your first job? One idea for you. Rent an entire property with 3-4 bedrooms. You can live in one of the rooms and rent out the rest of the rooms on Airbnb. I did this personally when I was living in London in the UK. My Airbnb guests covered my entire rent. When my parents visited me in London, I just blocked the calendars on Airbnb so that I could use the entire property for my family. This would have been not possible with a long-term tenant. 

This also taught me good lessons on how to operate an Airbnb business efficiently. 

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Find unsaturated neighborhoods with the highest occupancy history.

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Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage NZ

Airbnb Rental Arbitrage NZ: Explore the world of Airbnb rental arbitrage in NZ – a savvy strategy for generating passive income without the need for substantial upfront capital!

Airbnb Rental Arbitrage NZ

airbnb arbitrage nz

Airbnb Rental Arbitrage NZ

Explore the world of Airbnb rental arbitrage in NZ – a savvy strategy for generating passive income without the need for substantial upfront capital!

Airbnb Rental Arbitrage NZ

Key Takeaways

  • This blog navigates you through the process of Airbnb rental arbitrage in the evolving landscape of New Zealand.
  • Uncover essential insights on startup costs, cash return times, and how to find potential landlords for successful arbitrage in NZ.
  • Delve into the process, regulations, and potential profits of Airbnb arbitrage in NZ, and use Airbtics’ Airbnb host calculator to evaluate your venture’s viability.

Airbnb Arbitrage in NZ: A Guide to Profitable Short-Term Rentals with Minimal Initial Investment

Rental arbitrage emerges as an ideal way to start a short-term rental business without the need for large upfront capital as you won’t have to buy a property straight away. 

Since you came into this blog, we assume that you are thinking of doing rental arbitrage in New Zealand. This island country became quite the catch for investors thanks to its strong tourist market, solid short-term rental market, and flourishing economy.

Yet, it’s important to consider if this type of business would turn into a viable investment. Why? Because even if you won’t invest a large amount of money, that doesn’t mean you won’t be putting some funds at stake. And the primary goal is to generate income rather than incur significant debt.

In this article, we delve deeper into the entire process of Airbnb rental arbitrage in NZ, its legality, and profitability, along with some of the top cities to consider subletting in. Keep reading to find out more about this business model.

What is Airbnb Rental Arbitrage?

Rental arbitrage, also known as subletting, is the practice in which a tenant rents out the property they have leased to another person. In this case, the tenant becomes a “sublessor” by listing the dwelling for short-term use on platforms like Airbnb and VRBO.

This is a legal business model that allows you to begin your venture into the Airbnb world with no money. The short-term rental income can help you cover the long-term lease on the property, allowing you to keep the remaining surplus at the end of each month after paying the long-term lease. 

Is Airbnb Arbitrage Legal in NZ?

Wondering if rental arbitrage is worth it? Subletting a property is a worthwhile investment idea. But first, you need to know what are you getting yourself into. It’s important to consider the short-term rental market conditions of the city you want to target as well as its rental regulations and subletting laws in NZ. 

Short-term rentals are legal in New Zealand. However, lessors and sublessors must review the rental rules set by the local councils in NZ, as certain regions may require property registration and obtaining resource consent. 

Doing rental arbitrage is also legal in NZ, but tenants must speak with their landlord a get written consent before renting out the property to another person. The conditions for this will also depend on whether the rental will be a holiday or long-term:

  1. If a tenant sublets their residence on a long-term basis, they must sign a written residential tenancy agreement with the subtenant. This sub-tenancy agreement follows standard tenancy rules of the Residential Tenancies Act
  2. For holiday sublets as they are not covered by the Act, no residential tenancy agreement is needed, but the landlord’s consent is still required.

Subletting a property without the landlord’s permission is considered an unlawful act that must be avoided. Otherwise, this may result in a financial penalty of up to $1,000 and potential compensation owed to the landlord.

How Much Profit Can You Make from Subletting a Property in New Zealand?

Before investing your money in a rental arbitrage business, it’s crucial to understand the potential profit of a STR in your target market. For instance, let’s say you’re targeting Auckland, particularly its central business district, a sought-after location for Airbnb investment. 

By making use of a free Airbnb calculator, you can quickly discover the profitability of rental arbitrage in New Zealand.

airbnb arbitrage nz

Profit & Monthly Expense in New Zealand

According to Airbtics’ data, you can earn up to $4,595 per month for a 2-bedroom apartment in Auckland CBD alone. So you can expect that investing in a property in New Zealand can secure a positive cash flow.

airbtics-logo-300x87
Average Rent Price (2 BR) Airbnb Monthly Revenue Monthly Expense Monthly Profit
$2,500 $4,595 $919 $1,176

Average Rent Price (2 BR)

$2,500

Airbnb Monthly Revenue

$4,595

Monthly Expense

$919

Monthly Profit

$1,176

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses ($4,595 – $2,500 – $919 = $1,176).

airbnb arbitrage nz

Startup Cost in New Zealand

After getting an overview of your monthly expenses and revenue, let’s shift our focus to startup costs. Here’s the big question “How long does it typically take an investor to recover the startup cost?”. Let’s go straight to the point and take a look at this calculation:

airbtics-logo-300x87
Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
$7,000 6 months

Let’s say that the estimated startup cost for furnishings in New Zealand is around $2,000. To determine the total startup cost, you should add 2 months’ worth of average rent prices ($5,000). With a total startup cost of $7,000, the cash return time is calculated by dividing this by the monthly profit ($1,176). Thus, you can anticipate recovering the startup cost in approximately 6 months

If these results sound promising to you, then go ahead and look at other recommended areas for rental arbitrage in New Zealand.

Top 3 Profitable Locations for Airbnb Arbitrage in NZ

Prior to making an investment in a specific New Zealand market, you need to research the best locations for short-term rental investments and consider factors like seasonality and local events that can affect the occupancy rates. This will help you to establish realistic expectations and guarantee your success.

Explore other top cities aside from Auckland in New Zealand, along with their annual revenue, monthly profit rates, cash return time, and more.

1. QUEENSTOWN

Queenstown is a popular destination for tourists with breathtaking surroundings, featuring crystal-clear lakes, snow-capped mountains, and lush landscapes. For this reason, it has become an attractive area for investors targeting the hospitality and short-term rental sectors.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR $2,383 $4,484 $6,766 $1,204 6 months
2-BR $3,250 $7,324 $8,500 $2,609 3 months
3-BR $3,683 $9,502 $9,366 $3,919 2 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): $2,383
  • Average Airbnb Revenue: $4,484
  • Startup Cost: $6,766
  • Monthly Profit: $1,204
  • Cash Return Time: 6 months

2 Bedrooms

  • Average Rent Price (Monthly): $3,250
  • Average Airbnb Revenue: $7,324 
  • Startup Cost: $8,500
  • Monthly Profit: $2,609
  • Cash Return Time: 3 months

3 Bedrooms

  • Average Rent Price (Monthly): $3,683
  • Average Airbnb Revenue: $9,502
  • Startup Cost: $9,366
  • Monthly Profit: $3,919
  • Cash Return Time: 2 months

2. WELLINGTON

The capital city of New Zealand presents a compelling option for real estate investment due to its different strengths. Wellington is a political and administrative hub but also offers plenty of recreational activities and a thriving cultural scene that attracts visitors. Additionally, is home leading educational institution that attracts a high influx of students.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR $1,603 $2,518 $5,206 $411 13 months
2-BR $2,297 $3,383 $6,594 $409 16 months
3-BR $2,816 $4,592 $7,632 $858 9 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): $1,603
  • Average Airbnb Revenue:
    $2,518
  • Startup Cost: $5,206
  • Monthly Profit: $411
  • Cash Return Time: 13 months

2 Bedrooms

  • Average Rent Price (Monthly): $2,297
  • Average Airbnb Revenue: $3,383
  • Startup Cost: $6,594
  • Monthly Profit: $409
  • Cash Return Time: 16 months

3 Bedrooms

  • Average Rent Price (Monthly): $2,816
  • Average Airbnb Revenue: $4,592
  • Startup Cost: $7,632
  • Monthly Profit: $858
  • Cash Return Time: 9 months

3. CHRISTCHURCH

Christchurch stands as an attractive destination for real estate investment, shaped by its healthy real estate market, great quality of life, and economic growth. Additionally, the city underwent significant rebuilding efforts after the earthquakes in 2010 and 2011. This has led to new infrastructure developments and modernization which makes the city more appealing to investors.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR $1,040 $1,999 $4,080 $559 7 months
2-BR $1,712 $2,430 $5,424 $232 23 months
3-BR $2,123 $3,167 $6,246 $411 15 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): $1,040
  • Average Airbnb Revenue: $1,999
  • Startup Cost: $4,080
  • Monthly Profit: $559
  • Cash Return Time: 7 months

2 Bedrooms

  • Average Rent Price (Monthly): $1,712
  • Average Airbnb Revenue: $2,430
  • Startup Cost: $5,424
  • Monthly Profit: $232
  • Cash Return Time: 23 months

3 Bedrooms

  • Average Rent Price (Monthly): $2,123
  • Average Airbnb Revenue: $3,167
  • Startup Cost: $6,246
  • Monthly Profit: $411
  • Cash Return Time: 15 months

How to Find Landlords for Airbnb Rental Arbitrage?

Investing in Airbnb rental arbitrage can be an excellent strategy for generating passive income. Yet, it may not be easy to find a landlord who permits subletting on Airbnb because not many of them know about the process of rental arbitrage or are not fond enough of this business model. Thus, to convince a landlord, you must involve proactive and strategic efforts to explore this mutually beneficial opportunity. We also recommend using our rental arbitrage email template to add more creativity to your proposal!

Here are some ways that you can use to identify potential landlords for your Airbnb arbitrage in NZ:

  • Real Estate Platforms: Search for real estate platforms in NZ such as Realestate.co.nz, OneRoof.co.nz, Trademe.co.nz, or other websites to explore available rental properties and contact landlords.
  • Real Estate Agents: Establish connections with real estate agents who possess insights into possible rental properties in your target market as they can connect you with potential landlords.
  • Social Media & Networking: Don’t be shy and join online forums and communities centered around real estate in your chosen location. Platforms like BiggerPockets can offer valuable networking opportunities.

Additionally, ensure your interactions with landlords are conducted in a professional manner and be ready to address any concerns they may have about subletting. 

Let’s wrap up: Should you do Airbnb Arbitrage in NZ?

Airbnb rental arbitrage presents a great opportunity for those seeking to enter the short-term rental industry in New Zealand without the need for significant upfront capital. The potential for passive income is evident, and the country’s strong tourist market, flourishing economy, and solid short-term rental market contribute to its appeal to investors.

So should you go ahead and do Airbnb arbitrage in NZ? Well, this is a question that only you can answer after weighing all the pros and cons of this business model as well as its profitability. New Zealand is a market full of opportunities that can certainly deliver you rewarding financial results.

To succeed in rental arbitrage, it’s essential to learn about local regulations, follow legal requirements, and strategically connect with landlords open to this mutually beneficial arrangement.

Moreover, thorough research is necessary to understand the market conditions. Thus, modern analytics tools like Airbtics Dashboard can provide investors like you with data-driven insights that can help the success of your short-term rental venture!

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Find unsaturated neighborhoods with the highest occupancy history.

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Airbnb Rental Arbitrage All About Airbnb

An Insider’s View on STR Investment: Is Rental Arbitrage Worth It?

Is rental arbitrage worth it

As an investor, one of the biggest questions you will have before you put money into anything is whether it would be a worthy investment. It is wise to know if you will profit from your business venture, especially if you are investing thousands of dollars. After all, the main goal is to earn more money and not to go deep into debt. 

Since you are in this blog, we assume that you are looking into investing in the rental arbitrage business model and were wondering whether it would be a good investment. In that case, we won’t waste your time on introductions so let’s dive right into what you need to know about rental arbitrage below:

What Is Rental Arbitrage? 

Rental arbitrage is a business model wherein a tenant rents a property from a landlord and subleases the apartment to other people for short-term use on platforms like Airbnb and VRBO.  

How Much Can You Make in a Rental Arbitrage?

There are a lot of factors that contribute to identifying how much profit you will make in a rental arbitrage. These factors include the property size, property type, occupancy rate, and rental location. The closer your property is to tourist spots, the higher your income potential will be. Thus, we recommend researching the best cities for Airbnb business.

To calculate your income potential, you can use Airbnb calculators like Airbtics which will present you with accurate market data and actionable analytics that will lead you straight to the most profitable property to invest in.

Is Rental Arbitrage Worth It?

The short answer is yes, rental arbitrage is worth your investment. BUT, there is a hidden increment to it that most investors miss: rental arbitrage is ONLY worth it if you know what you are getting yourself into. 

What we mean by this is having industry knowledge of short-term rentals along with the legalities of rental arbitrage in the cities you want to invest in. One other thing is knowing the rental arbitrage pros and cons. 

You wouldn’t want to jump into an investment only knowing the bright side of things. This will make you unable to prepare for the possible risks. On the other hand, you also wouldn’t want to just focus on the dangers of your investment otherwise you might miss a good opportunity. 

We recommend looking deep into both the pros and cons of rental arbitrage before you consider getting into the short-term rental business using a rental arbitrage model. With that said, let us guide you into the cons you should look out for and the pros you can look forward to!

The Pros and Cons of Rental Arbitrage

Every investment has pros and cons and rental Airbnb rental arbitrage is no exception. The more aware you are of the strengths and weaknesses of your business, the more likely it is for you to succeed. 

Below, you will see the biggest pros and cons of rental arbitrage:

Rental Arbitrage Pros

To boost your mood for your investment, let us introduce to you first the advantages of investing in rental arbitrage. Allow us to bring your attention to the bright side of things and show you why you should give your rental arbitrage investment a go. 

Advantage 1: You Can Have High-Profit Potential 

Let’s be honest here, the number one reason why investors are interested in rental arbitrage is that it has a high-profit potential. The great thing about this is that they aren’t wrong. You can truly earn significant profit through rental arbitrage. 

On average, you can make 2 or 3 times the amount you pay for rent in a rental arbitrage. Let us say you are paying $3,000 and you earn $9,000 monthly, you still have $6,000 to spare. Even if your monthly expenses would (sans rent) reaches $1,000, you still have $5,000 to pocket and that is not an amount you can easily make in other investments. 

Advantage 2: You Can Decide Where to Invest

Perhaps one of the biggest reasons why people opt for investing in rental arbitrage instead of purchasing a property is because they have the liberty to move around. 

What do we mean by this? Let us say you purchased property to be used as an Airbnb in New York City then suddenly, there is a new strict NYC regulation being implemented. You cannot possibly move your property to a new city so your investment will go down the drain since the city ordinance heavily restricts short-term rentals. 

Meanwhile, if you invest in a rental arbitrage, you can find more profitable neighborhoods and change locations if it turns out that the property you selected is not as profitable as you imagined. 

Indeed you are tied to a 2 or 3 years contract in rental arbitrage, but it is nothing compared to the somewhat permanence of owning the property yourself. 

Advantage 3: You Can Help Build Capital for Future Investments

With a smaller upfront cost, rental arbitrage is your best option if you want to build capital for your future investments. 

What we love about this business model is that you are not tied to anything long-term. At the most, your contract will require you to rent the property for 3 years but that is it. The cost to start can also range from $5,000 to $10,000, which isn’t bad considering that it has high-return potential.  

Unlike other investments, there is no need for you to wait years to see a return on investment. Cash flows quickly, which is ideal for your future investment plans. 

Advantage 4: You Need Less Capital Investment

Since you are not actually purchasing a property and only renting it long-term, the amount you pay for in a rental arbitrage is less than what you could expect from a mortgage. This is perfect if you don’t have considerable capital to work with. 

For more information about the startup cost of an Airbnb, you can check out the blog Airbnb Startup Cost: Tips, List of Things to Purchase, & Expenses

Advantage 5: Low Maintenance Investment 

Rental arbitrage is a strategy that involves looking for below-market-rate properties in profitable locations and renting them out for a higher price. With that said, if you constantly earn at least twice the price you pay for your rent, your Airbnb can practically run itself. This means that your profit would be capable enough to sustain your ongoing cost while also giving you much to look forward to when it comes to net income.

Rental Arbitrage Cons

Now that the advantages had been set, it is now time to discuss the more unsavory side of rental arbitrage that you will rarely see being talked about. 

While no one likes the notion of cons, you need to be aware of these drawbacks to better prepare yourself for the business you are venturing to. With that said, let us guide you on the things you need to watch out for when it comes to rental arbitrage below: 

Disadvantage 1: Rental Arbitrage Is Dependent on Good Economy

Short-term rentals are usually offered to tourists who are looking for a cheaper alternative to hotels as well as lodgings with a home-like feeling. 

How does this relate to the con mentioned above? Well, you can only imagine that there are fewer tourists around during a bad economy. Remember the global financial crisis of 2008 and 2009? Airline stocks experienced up to 68% decline and up to 74% of hotels, resorts, and other similar businesses fell. 

Another more recent example is the Covid19 pandemic. Almost every country in the world shut down tourism during the initial year when the virus spread and this only means one thing for short-term rental businesses: a loss of income. 

In March 2020, it is reported that European short-term rental reservations had dropped by up to 80% leaving the revenue of hosts down by more than 50%. 

Fortunately, circumstances like this rarely happen if not at all. Moreover, since the travel restrictions have been lifted, the tourism industry has once again come to life with even more vigor. The excited tourists who are gearing up to explore the world again after long months and years of heavy restrictions might just be what your investment need.  

Disadvantage 2: Unpredictable income

There are bad days and there are good days on Airbnb and this is most often a result of seasonal preference by the guests. 

Let’s say you rented a rental arbitrage in Seaside California, this property will see the highest profits during summer when people are likely to go to the beach. However, it is not the same story in winter when people are more likely to go to rentals near ski resorts. 

This can be a drawback especially since you are bound to a contract to pay the lease for the property regardless if there are bookings or not. 

One way to curve this is to take advantage of the good days and increase your online visibility to ensure full bookings when your rental is in season. You can also offer your properties for a lower price during the off-season to attract more guests. 

Disadvantage 3: Local rules and regulations

Recently, there had been a lot of crackdowns on short-term rental properties, especially in the United States. In the article What You Need to Know About the Airbnb Regulations NYC, it is stated that by January 9, all short-term rental owners in New York City are required to register in OSE. it is up to OSE if they will approve your property, if not, you might just have to find another city.

Regulations like this pose a risk for rental arbitrageurs since they can cut off your business unexpectedly. It’s just as this rental property investor in Biggerpockets said: 

Is rental arbitrage worth it
Disadvantage 4: No authority in the property

As a renter yourself, you have no authority over the property you are leasing. The landlord can suddenly implement a strict rule in their building that might inconvenience your guest and you will have no say in it because the property isn’t yours. 

Should You Invest in a Rental Arbitrage?

With all the pros and cons of rental arbitrage laid out before you, the only question left is whether you should proceed with the investment or not. This is a question that only YOU can answer. 

Weigh in the advantages and disadvantages that we have mentioned in the article and see whether the pros outweigh the cons and vice versa for you. 

One thing we can leave you with is that while there are certain drawbacks in rental arbitrage, these disadvantages are often a result of unpredictability and instability in the market, which can happen in any industry you choose. At the end of the day, you will have to decide if your fear of the things you can’t predict will prevent you from taking advantage of a market full of opportunities.   

Categories
Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Pittsburgh

Are you interested in achieving financial independence through passive income? Here’s a disclaimer: you don’t need to own a property to start the Airbnb rental arbitrage business.

In this article, we featured the entire process of Airbnb rental arbitrage in Pittsburgh, its profitability, along with the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage.

What is Rental Arbitrage? 

Rental Arbitrage is a perfect way to start an Airbnb business with no money. By convincing landlords to lease you a property, you can furnish and sublease it on Airbnb and VRBO. No need for you to buy a property.

It is perfectly legal and is a proven scalable business model. In my podcast, I have spoken to various entrepreneurs doing Airbnb arbitrage full-time. 

Here’s a proof! In Pittsburgh, Matthew manages 22 listings and there’s a huge possibility that he doesn’t own all the properties. He has made $719,794 in the last 12 months.  

Pittsburgh airbnb rental arbitrage

Is Rental Arbitrage Profitable in Pittsburgh?

Before you dive in and start putting out your hard-earned money on a property, it’s important to learn how much profit you can make. For instance, the best neighborhood to invest in is Shadyside, which is known for its eclectic shopping scene, gay clubs, craft beer spots, and upscale boutiques.

Using Airbtics’ income generator, you can easily discover that rental arbitrage in Pittsburgh is profitable.

Pittsburgh airbnb rental arbitrage
Profit & Monthly Expense in Pittsburgh

Based on Airbtics’ data, you can earn a whopping $5,887 per month for a 3-bedroom apartment in Shadyside alone. With the data provided, you can certainly tell that investing in a property in Pittsburgh is profitable.

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
$2,350 $5,887 $1,177 $2,360

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses ($5,887 – $2,350 – $1,177 = $2,360).

 Startup Cost in Pittsburgh

Now that you have an overview of how much your monthly expense & revenue, let’s talk about the start-up cost. How long does it take for an investor to get back the startup cost? Let’s take a look at this calculation:

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
$6,700 3 months

The average estimated startup cost (for furnishing) in Pittsburgh is around $2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price ($4,700). Now that we have a total startup cost of $6,700, cash return time can be calculated by dividing this by the monthly profit ($2,360). 

Given your monthly revenue of $2,360, it will take approximately 3 months time to get back the startup cost! In such a short period of time, you can already expect profit and consider starting your second unit for rental arbitrage. If this sounds promising to you, then go ahead and look at the other best areas for rental arbitrage in Pittsburgh.

Best Areas for Rental Arbitrage in Pittsburgh

Before investing in a particular area in Pittsburgh, you have to take a look at the top markets and number of listings to set your expectations towards success. Check out the top 3 suburbs in Pittsburgh ranked by their annual revenue, along with their occupancy & daily rates!

1. Bloomfield

This neighborhood is popular for its hip scene and Italian-American heritage. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Bloomfield:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $1,000 $2,473 85% $105
2-bedroom $1,379 $2,967 89% $144
3-bedroom $1,725 $4,738 73% $173

According to our Airbtics Dashboard, there are more than 59 Airbnb listings with 2 condo property and 35 one-bedroom properties in this area. The monthly revenue for most properties in Bloomfield is more than $2,603 per month with occupancy being more than 74%.

2. Shadyside

Considered one of the safest neighborhoods in Pittsburgh, Shadyside has close proximity to high-end schools and the majority of renters are international students. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Shadyside:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $1,395 $2,483 87% $117
2-bedroom $1,845 $2,568 86% $197
3-bedroom $2,350 $5,887 84% $653

This area has a total of 33 Airbnb listings with 5 private room properties and 17 one-bedroom property. The monthly revenue for most properties in Shadyside is more than $2,262 per month with occupancy being more than 72%.

3. Lawrenceville

Lawrenceville is known for its beautiful thriving art galleries and offers an exciting nightlife experience. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Lawrenceville:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $1,200 $2,331 84% $106
2-bedroom $1,845 $3,407 84% $185
3-bedroom $2,625 $4,445 68% $278

This area has a total of 59 Airbnb listings with 9 private room properties and 28 one-bedroom properties. The monthly revenue for most properties in Lawrenceville is more than $2,417 per month with occupancy being more than 68%.

how much can you make on airbnb

Short-term rental regulations in Pittsburgh

To begin with, it’s certainly important to be familiar with the Airbnb rules in Pittsburgh to make sure that your business will run smoothly. To date, there are currently no strict short-term rental regulations in Pittsburgh. However, Pittsburgh Council has proposed the following regulations this year which indicated the following:

1. Council legislation would require short-term rental operators to be licensed by the city and renew annually.
2. Owners would have to keep records of anyone who entered the property and establish a contact person available to authorities in an emergency.
3. The proposed policy also included a limit of how long a guest could stay to 15 days.

Rental Properties in Pittsburgh

To run an Airbnb rental arbitrage in Pittsburgh, you can look at property websites and get a grasp of the ranging prices:

1. Coldwell Banker Realty
sublet in pittsburgh
2. Realtor
sublet in pittsburgh

How to Find Landlords for Airbnb Rental Arbitrage

Airbnb investment through rental arbitrage is one of the best strategies to have passive income. However, it could be a challenge to find a landlord that allows their property for subletting on Airbnb. You can also convince a landlord by following the rental arbitrage email template & be extra creative! 

Here are ways how you can find landlords that allow Airbnb rental arbitrage:

  1. Real Estate Websites

Renters in the digital world who are looking for properties online can easily connect with landlords. Some of the most recommended online real estate websites which allow you to filter by city, state, or ZIP code are:

However, you can also find apartment & condominium properties online in the following websites:

  1. Search Engines & Marketplaces

There are numerous property owners who are leasing their properties and you can easily find them on Google & online marketplaces. Check out some of the most recommended marketplaces:

  1. Communicate with Landlords

If you are currently renting a space or know someone who is, then it’s also recommended to speak with them. Start by asking if there are vacant rooms or properties and let them know about your intentions of putting them up for rental arbitrage. They might also be able to recommend neighbors or local friends who are also interested in this idea!

Airbtics
Categories
Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Brooklyn

Are you interested in achieving financial independence through passive income? Here’s a disclaimer: you don’t need to own a property to start the Airbnb rental arbitrage business. Learning about important Airbnb key metrics including average daily rates & annual revenue is just one step to forecasting successful investment. For instance, occupancy rates in New York City vary on your preferred area.

In this article, we featured the entire process of Airbnb rental arbitrage in Brooklyn, its profitability, along with the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage.

What is Rental Arbitrage? 

Rental Arbitrage is a perfect way to start an Airbnb business with no money. By convincing landlords to lease you a property, you can furnish and sublease it on Airbnb and VRBO. No need for you to buy a property.

It is perfectly legal and is a proven scalable business model. In my podcast, I have spoken to various entrepreneurs doing Airbnb arbitrage full-time. 

Here’s a proof! In Brooklyn, Vida manages 23 listings and there’s a huge possibility that she doesn’t own all the properties. She has made $464,376 in the last 12 months.  

Brooklyn airbnb rental arbitrage

Is Rental Arbitrage Profitable in Brooklyn?

Before you dive in and start putting out your hard-earned money on a property, it’s important to know how much profit you can make. For instance, the best neighborhood to invest in is Park Slope where an average host can earn $6,903 monthly for a 3-bedroom apartment.

Using Airbtics’ income generator, you can easily discover that rental arbitrage in Brooklyn is profitable.

Brooklyn airbnb rental arbitrage
Profit & Monthly Expense in Brooklyn

Based on Airbtics’ data, you can earn a whopping $6,903 per month for a 3-bedroom apartment in Park Slope alone. With the data provided, you can certainly tell that investing in a property in Brooklyn is profitable.

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
$4,200 $6,903 $1,381 $1,322

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses ($6,903 – $4,200 – $1,381 = $1,322).

 Startup Cost in Brooklyn

Now that you have an overview of how much your monthly expense & revenue, let’s talk about the start-up cost. How long does it take for an investor to get back the startup cost? Let’s take a look at this calculation:

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
$10,400 8 months

The average estimated startup cost (for furnishing) in Brooklyn is around $2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price ($8,400). Now that we have a total startup cost of $10,400, cash return time can be calculated by dividing this by the monthly profit ($1,322). 

Given your monthly revenue of $1,332, it will take approximately 8 months time to get back the startup cost! In such a short period of time, you can already expect profit and consider starting your second unit for rental arbitrage. If this sounds promising to you, then go ahead and look at the other best areas for rental arbitrage in Brooklyn.

Best Areas for Rental Arbitrage in Brooklyn

Before investing in a particular area in Brooklyn, you have to take a look at the top markets and number of listings to set your expectations towards success. Check out the top 3 suburbs in Brooklyn ranked by their annual revenue, along with their occupancy & daily rates:

1. Williamsburg

This neighborhood is known for food enthusiasts and offers an excellent selection of wine & cheese. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Williamsburg:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $2,600 $4,143 98% $250
2-bedroom $3,199 $5,029 95% $308
3-bedroom $3,800 $6,412 93% $552

According to our Airbtics Dashboard, there are more than 810 Airbnb listings with 314 private room properties and 284 one-bedroom properties in this area. The monthly revenue for most properties in Williamsburg is more than $4,121 per month with occupancy being more than 87%.

2. Crown Heights

Crown Heights’ street festivals, diverse communities, and historic architecture attract the majority of tourists in Brooklyn. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Crown Heights:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $2,025 $3,477 93% $164
2-bedroom $2,350 $3,477 91% $233
3-bedroom $3,000 $5,282 89% $307

This area has a total of 492 Airbnb listings with 232 private room properties and 133 one-bedroom property. The monthly revenue for most properties in Crown Heights is more than $3,811 per month with occupancy being more than 77%.

3. Park Slope

Park Slope has pedestrian-friendly sidewalks and a street full of restaurants, slope bars, and food markets. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Downtown Park Slope:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $2,775 $4,614 97% $195
2-bedroom $3,495 $5,688 95% $334
3-bedroom $4,200 $6,903 97% $372

This area has a total of 179 Airbnb listings with 50 private room properties and 75 one-bedroom properties. The monthly revenue for most properties in Park Slope is more than $4,827 per month with occupancy being more than 90%.

how much can you make on airbnb

Short-term rental regulations in Brooklyn

To begin with, it’s certainly important to be familiar with the Airbnb rules in Brooklyn to make sure that your business will run smoothly. Here are some of the short-term rental regulations and laws to take note of:

  • Hosts are prohibited from renting out their entire home as an STR, even if one owns or lives in the building. When renting a private room in an apartment or home as an STR, the host must be present during the stay.
  • NYS Multiple Dwelling Law prohibits short-term rentals in buildings with three or more units.
  • New York City Building Code prohibits short-term leasing in one and two family homes.
  • In order to have short-term (less than 30 days) guests, a property owner or renter should take note of the following:
    1. You must be present during your guests’ stay if it is for less than 30 days and share your apartment or home.
    2. You may have up to two paying guests staying in your household for fewer than 30 days, only if every guest has free and unobstructed access to every room and each exit within the apartment.
    3. Internal doors cannot have key locks that allow guests to leave and lock their rooms behind them. All occupants need to maintain a common household, which means, among other things, that every member of the family and all guests have access to all parts of the dwelling unit. Internal doors with such key locks create barriers to escaping in an emergency and may result in the issuance of a temporary vacate order.
  • Under the NYC Administrative Code, property owners are responsible for ensuring their properties are maintained in a safe and code-compliant manner at all times. Property owners can and will be issued violations for any illegal short-term rentals at their property — even if it is conducted by tenants without the consent of the landlords.

Rental Properties in Brooklyn

There are plenty of best places to Airbnb in New York, particularly in Brooklyn. Here are the ranging prices of rental properties in Brooklyn:

1. Compass
sublet in Brooklyn
2. Trulia
sublet in Brooklyn

How to Find Landlords for Airbnb Rental Arbitrage

Airbnb investment through rental arbitrage is one of the best strategies to have passive income. However, it could be a challenge to find a landlord that allows their property for subletting on Airbnb. You can also convince a landlord by following the rental arbitrage email template & be extra creative! 

Here are ways how you can find landlords that allow Airbnb rental arbitrage:

  1. Real Estate Websites

Renters in the digital world who are looking for properties online can easily connect with landlords. Some of the most recommended online real estate websites which allow you to filter by city, state, or ZIP code are:

However, you can also find apartment & condominium properties online in the following websites:

  1. Search Engines & Marketplaces

There are numerous property owners who are leasing their properties and you can easily find them on Google & online marketplaces. Check out some of the most recommended marketplaces:

  1. Communicate with Landlords

If you are currently renting a space or know someone who is, then it’s also recommended to speak with them. Start by asking if there are vacant rooms or properties and let them know about your intentions of putting them up for rental arbitrage. They might also be able to recommend neighbors or local friends who are also interested in this idea!

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Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Savannah

Are you interested in achieving financial independence through passive income? Here’s a disclaimer: you don’t need to own a property to start the Airbnb rental arbitrage business.

In this article, we featured the entire process of Airbnb rental arbitrage in Savannah, its profitability, along with the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage.

What is Rental Arbitrage? 

Rental Arbitrage is a perfect way to start an Airbnb business with no money. By convincing landlords to lease you a property, you can furnish and sublease it on Airbnb and VRBO. No need for you to buy a property.

It is perfectly legal and is a proven scalable business model. In my podcast, I have spoken to various entrepreneurs doing Airbnb arbitrage full-time. 

Here’s a proof! In Savannah, Mary manages 63 listings and there’s a huge possibility that she doesn’t own all the properties. She has made $5,868,897 in the last 12 months.  

savannah airbnb rental arbitrage

Is Rental Arbitrage Profitable in Savannah?

Before you dive in and start putting out your hard-earned money on a property, it’s important to know how much profit you can make. For instance, the best neighborhood to invest in is the North Historic District, which is popular for its culture, art, museums, historic monuments and forts of the Revolutionary and Civil War eras.

Using Airbtics’ income generator, you can easily discover that rental arbitrage in Savannah is profitable.

savannah airbnb rental arbitrage
Profit & Monthly Expense in Savannah

Based on Airbtics’ data, you can earn a whopping $12,585 per month for a 3-bedroom apartment in North Historic District alone. With the data provided, you can certainly tell that investing in a property in Savannah is profitable.

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
$4,300 $12,585 $2,517 $5,768

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses ($12,585 – $4,300 – $2,517 = $5,768).

 Startup Cost in Savannah

Now that you have an overview of how much your monthly expense & revenue, let’s talk about the start-up cost. How long does it take for an investor to get back the startup cost? Let’s take a look at this calculation:

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
$10,600 2 months

The average estimated startup cost (for furnishing) in Savannah is around $2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price ($8,600). Now that we have a total startup cost of $10,600, cash return time can be calculated by dividing this by the monthly profit ($5,768). 

Given your monthly revenue of $5,768, it will take approximately 2 months time to get back the startup cost! In such a short period of time, you can already expect profit and consider starting your second unit for rental arbitrage. If this sounds promising to you, then go ahead and look at the other best areas for rental arbitrage in Savannah.

Best Areas for Rental Arbitrage in Savannah

Before investing in a particular area in Savannah, you have to take a look at the top markets and number of listings to set your expectations towards success. Check out the top 3 suburbs in Savannah ranked by their annual revenue, along with their occupancy & daily rates!

1. Metropolitan

This neighborhood is situated in the central part of Savannah where there are vast Hispanic business communities. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Metropolitan

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $1,050 $3,456 93% $142
2-bedroom $2,000 $5,929 83% $214
3-bedroom $2,400 $5,492 85% $244

According to our Airbtics Dashboard, there are more than 57 Airbnb listings with 3 condo properties and 10 one-bedroom properties in this area. The monthly revenue for most properties in Metropolitan is more than $2,422 per month with occupancy being more than 80%.

2. North Historic District

The North Historic District of Savannah is one of the preferred suburbs by tourists due to the nearby attractions including the Savannah Historic, Theatre, City Market, Wright Square, and more. Check out the Airbnb data such as the average revenue, occupancy rates, and more in North Historic District:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $2,690 $6,011 88% $237
2-bedroom $3,125 $7,910 85% $310
3-bedroom $4,300 $12,585 81% $567

This area has a total of 267 Airbnb listings with 25 private room properties and 129 one-bedroom property. The monthly revenue for most properties in North Historic District is more than $5,574 per month with occupancy being more than 77%.

3. Victorian District East

Known as Savannah’s most walkable neighborhood, Victorian District East offers a combination of commercial and historical architecture. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Victorian District East:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $2,379 $4,471 92% $200
2-bedroom $2,600 $6,595 89% $248
3-bedroom $3,057 $8,976 87% $381

This area has a total of 60 Airbnb listings with 17 private room properties and 21 one-bedroom properties. The monthly revenue for most properties in Victorian District East is more than $4,227 per month with occupancy being more than 84%.

how much can you make on airbnb

Short-term rental regulations in Savannah

To begin with, it’s certainly important to be familiar with the Airbnb rules in Savannah to make sure that your business will run smoothly. Here are some of the short-term rental regulations and laws to take note of:

  • It is required to secure an STVR certificate in the city 
  • STVRs are permitted within the short-term vacation rental overlay district, which includes the Downtown, Victorian and Streetcar local historic districts. Outside of this overlay, they are only permitted in certain Business and Agriculture zoning classifications (B-C, B-N, B-L and A-1).
  • A separate application must be obtained for each property used as a STVR.
  • The zoning conditions for short-term rentals in Savannah are:
    1.  No more than 2 adults per bedroom plus 2 adults for each rental unit  
    2. No change to the outside appearance of the dwelling unit or premises 
    3. Parking – Studio-up to 3 bedrooms: The requirement for the type of dwelling unit, 4+ bedrooms: The requirement for the type of dwelling unit, plus 1 space for every 2 additional bedrooms.
  • For properties rented for 90-days or less, hotel/motel taxes must be remitted on the first 30 days of the rental.

 

Rental Properties in Savannah

To run an Airbnb rental arbitrage in Savannah, you can look at property websites and get a grasp of the ranging prices:

1. Zillow
sublet in savannah
sublet in savannah

How to Find Landlords for Airbnb Rental Arbitrage

Airbnb investment through rental arbitrage is one of the best strategies to have passive income. However, it could be a challenge to find a landlord that allows their property for subletting on Airbnb. You can also convince a landlord by following the rental arbitrage email template & be extra creative! 

Here are ways how you can find landlords that allow Airbnb rental arbitrage:

  1. Real Estate Websites

Renters in the digital world who are looking for properties online can easily connect with landlords. Some of the most recommended online real estate websites which allow you to filter by city, state, or ZIP code are:

However, you can also find apartment & condominium properties online in the following websites:

  1. Search Engines & Marketplaces

There are numerous property owners who are leasing their properties and you can easily find them on Google & online marketplaces. Check out some of the most recommended marketplaces:

  1. Communicate with Landlords

If you are currently renting a space or know someone who is, then it’s also recommended to speak with them. Start by asking if there are vacant rooms or properties and let them know about your intentions of putting them up for rental arbitrage. They might also be able to recommend neighbors or local friends who are also interested in this idea!

Airbtics
Categories
Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Reno

Are you interested in achieving financial independence through passive income? Here’s a disclaimer: you don’t need to own a property to start the Airbnb rental arbitrage business.

In this article, we featured the entire process of Airbnb rental arbitrage in Reno, its profitability, along with the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage.

What is Rental Arbitrage? 

Rental Arbitrage is a perfect way to start an Airbnb business with no money. By convincing landlords to lease you a property, you can furnish and sublease it on Airbnb and VRBO. No need for you to buy a property.

It is perfectly legal and is a proven scalable business model. In my podcast, I have spoken to various entrepreneurs doing Airbnb arbitrage full-time. 

Here’s a proof! In Reno, Majid manages 24 listings and there’s a huge possibility that he doesn’t own all the properties. He has made $1,231,021 in the last 12 months.  

Reno airbnb rental arbitrage

Is Rental Arbitrage Profitable in Reno?

Before you dive in and start putting out your hard-earned money on a property, it’s important to know how much profit you can make. For instance, the best neighborhood to invest in is West University where an average host can earn $3,396 monthly for a 3-bedroom apartment.

Using Airbtics’ income generator, you can easily discover that rental arbitrage in Reno is profitable.

Reno airbnb rental arbitrage
Profit & Monthly Expense in Reno

Based on Airbtics’ data, you can earn a whopping $3,396 per month for a 3-bedroom apartment in West University alone. With the data provided, you can certainly tell that investing in a property in Reno is pro