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Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Belfast

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 Belfast, its profitability, and the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!

What is Rental Arbitrage? 

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

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

Here’s a proof! In Belfast, Andrew manages 65 listings and I’m pretty sure he doesn’t own the all properties. He made £882,232 in the last 12 months.  

Belfast airbnb rental arbitrage

How much can I make with rental arbitrage in Belfast?

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 Belfast City Centre, located in the BT1 district. Overall, Belfast ranks 5th in the UK for rental yield!

Since this neighborhood has generally lower prices than the rest of the UK with an average cost of living, Belfast entices more and more investors yearly! Now that we have the best neighborhood to invest in Belfast, let’s talk about profitability and monthly expenses.

 

Belfast airbnb rental arbitrage
Profit & Monthly Expense in Belfast

Based on Airbtics’ data, you can earn a whopping £4,126 per month for a 3-bedroom apartment in Belfast City Centre alone. With the data provided, you can certainly tell that investing in a property in Belfast is profitable!

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
£1,063 £2,855 £571 £1,221

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£2,855-£1,063-£571= £1,221).

 Startup Cost in Belfast

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

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
£4,126 3.3 months

The average estimated startup cost (for furnishing) in Belfast is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£2,126). Now that we have a total startup cost of £4,126, cash return time can be calculated by dividing this by the monthly profit (£1,221).

Given your monthly revenue of £1,221, it will take approximately 3.3 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 Belfast!

Best Areas for Rental Arbitrage in Belfast

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

1. Belfast City Centre (BT1)

Numerous investors prefer this area because of the attractive rental yields and solid ROI! Not to mention Belfast City Centre’s steady growth in rent and upward growth in property value. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £738 £1,628 61% £156
2-bedrooms £860 £2,478 71% £192
3-bedrooms £1,063 £2,855 74% £215

According to our Airbtics Dashboard, there are more than 290 Airbnb listings with 51 private room properties and 125 one-bedroom properties in this area. The monthly revenue for most properties in Belfast City Centre is more than £2,272 per month with occupancy being more than 56%.

2. Belmont (BT4)

According to a recent study about Belfast investment, this neighborhood’s capital growth is the strongest in all of the Belfast areas! It is also slightly in the upmarket area with great accessibility for transportation. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £695 £1,556 75% £97
2-bedrooms £866 £1,805 72% £89
3-bedrooms £1,550 £2,460 71% £118

This area has a total of 54 Airbnb listings with 18 private room properties and 28 one-bedroom properties. The monthly revenue for most properties in Belmont is more than £1,4567 per month with occupancy being more than 57%.

3. Woodstock (BT6)

Last but not least, one of the ideal development opportunities for excellent yields — Woodstock! Investors are targetting young professional markets in this area and it has been popular for HMO’s. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £861 £1,155 82% £97
2-bedrooms £900 £2,353 77% £126
3-bedrooms £1,000 £2,587 70% £182

This area has a total of 115 Airbnb listings with 48 private room properties and 65 one-bedroom properties in this area. The monthly revenue for most properties in Woodstock is more than £1,550 per month with occupancy being more than 53%.

how much can you make on airbnb

Short-term rental regulations in Belfast

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

  • The need for planning permission will depend on the extent to which the short-term holiday let changes the character of the use of the property and the degree to which it impacts its surroundings.
  • All tourist accommodation providers in Northern Ireland (for example, anyone offering overnight sleeping accommodation to tourists for a fee) must receive certification by Tourism NI before they can trade.
  • Under Northern Ireland’s regulations, Airbnb properties are classed as self-catering accommodation. All hosts are required to apply for a certificate that costs £40 and is valid for up to four years.

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 Bristol

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 Bristol, its profitability, and the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!

What is Rental Arbitrage? 

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

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

Here’s a proof! In Bristol, Mairead manages 20 listings and I’m pretty sure she doesn’t own the all properties. Mairead made £630,855 in the last 12 months.  

Bristol airbnb rental arbitrage

How much can I make with rental arbitrage in Bristol?

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 Bristol City Centre, located in the BS1 district with an estimated increase of student accommodation developments by 2028!

Since this neighborhood massively covers both student houses & incorporates a wide range of tourist attractions, it has become a preferred area for investors! Now that we have the best neighborhood to invest in Bristol, let’s talk about profitability and monthly expenses.

Bristol airbnb rental arbitrage
Profit & Monthly Expense in Bristol

Based on Airbtics’ data, you can earn a whopping £4,047 per month for a 3-bedroom apartment in Bristol City Centre alone. With the data provided, you can certainly tell that investing in a property in Bristol is profitable!

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
£1,837 £4,047 £809 £1,401

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£4,047-£1,837-£809 = £1,401).

 Startup Cost in Bristol

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

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
£5,674 4.1 months

The average estimated startup cost (for furnishing) in Bristol is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£3,674). Now that we have a total startup cost of £5,674, cash return time can be calculated by dividing this by the monthly profit (£1,401).

Given your monthly revenue of £1,401, it will take approximately 4.1 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 Bristol!

Best Areas for Rental Arbitrage in Bristol

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

1. Bristol City Centre (BS1)

Numerous investors prefer this area because they are targeting young professionals as Bristol’s employment rate continues to rise! Not to mention Bristol’s booming technology and splendid university city which boosts the overall rental growth demand. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £1,282 £2,341 79% £130
2-bedrooms £1,804 £3,320 70% £205
3-bedrooms £1,837 £4,047 76% £256

According to our Airbtics Dashboard, there are more than 256 Airbnb listings with 42 private room properties and 129 one-bedroom properties in this area. The monthly revenue for most properties in Bristol City Centre is more than £2,914 per month with occupancy being more than 54%.

2. Clifton (BS8)

This neighborhood enjoys a huge rental demand due to its accessibility to the city centre with plenty of natural spaces and upmarket local shops. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £1,039 £2,517 75% £141
2-bedrooms £1,431 £3,333 73% £215
3-bedrooms £1,858 £4,976 72% £342

This area has a total of 459 Airbnb listings with 112 private room properties and 246 one-bedroom properties. The monthly revenue for most properties in Clifton is more than £2,601 per month with occupancy being more than 53%.

3. Easton (BS5)

Last but not least, Bristol’s most affordable area, Easton! Investors find this area tempting because of its lowest property prices and good yields of 4-5%. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £996 £1,977 59% £123
2-bedrooms £1,313 £2,000 70% £138
3-bedrooms £1,571 £4,844 59% £245

This area has a total of 121 Airbnb listings with 47 private room properties and 69 one-bedroom properties in this area. The monthly revenue for most properties in Easton is more than £1,806 per month with occupancy being more than 51%.

how much can you make on airbnb

Short-term rental regulations in Bristol

To begin with, it’s certainly important to be familiar with the Airbnb rules in Bristol 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 pay a Council tax in Bristol. You can pay in 12 monthly installments, but the payments can only begin at the start of the financial year, which runs from April to March.
  • If you are a registered provider of social housing and own or manage houses in multiple occupations, you may not need a licence.
  • When determining a property licence application, there’s no requirement for the property to have planning consent. However, to comply with planning legislation, planning consent may need to be obtained.

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 Nottingham

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 Nottingham, its profitability, and the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!

What is Rental Arbitrage? 

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

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

Here’s a proof! In Nottingham, Steve manages 59 listings and I’m pretty sure he doesn’t own the all properties. He made £1,025,635 in the last 12 months.  

Nottingham Airbnb rental arbitrage

How much can I make with rental arbitrage in Nottingham?

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 Lenton, located in the NG7 district which ranks the highest yields (averaging 8.89%) in Nottingham. 

Since this neighborhood massively covers both student houses, it has become a desirable area for these tenant groups! Now that we have the best neighborhood to invest in Nottingham, let’s talk about profitability and monthly expenses.

Nottingham Airbnb rental arbitrage
Profit & Monthly Expense in Nottingham

Based on Airbtics’ data, you can earn a whopping £3,799 per month for a 3-bedroom apartment in Lenton alone. With the data provided, you can certainly tell that investing in a property in Nottingham is profitable!

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
£1,136 £3,799 £760 £1,903

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£3,799-£1,136-£760 = £1,903).

 Startup Cost in Nottingham

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

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
£4,272 2.2 months

The average estimated startup cost (for furnishing) in Nottingham is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£2,272). Now that we have a total startup cost of £4,272, cash return time can be calculated by dividing this by the monthly profit (£1,903).

Given your monthly revenue of £1,903, it will take approximately 2.2 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 Nottingham!

Best Areas for Rental Arbitrage in Nottingham

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

1. Lenton (NG7)

Lenton is popular for its student houses where you can achieve 8.89% yield! Due to the high demand for rentals, this neighborhood has become one of the prime hotspots for property investment in Nottingham. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £697 £1,087 69% £105
2-bedrooms £1,010 £2,215 63% £153
3-bedrooms £1,136 £3,799 70% £182

According to our Airbtics Dashboard, there are more than 157 Airbnb listings with 83 private room properties and 97 one-bedroom properties in this area. The monthly revenue for most properties in Lenton is more than £1,811 per month with occupancy being more than 48%.

2. West Bridgford (NG11)

This neighborhood is an upmarket location near Nottingham city centre. This may be a higher-end residential area, but many investors are taking the risk to invest anyway because of its close proximity to sporting attractions and water attractions. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £733 £1,100 61% £91
2-bedrooms £939 £2,543 66% £162
3-bedrooms £1,584 £2,861 58% £181

This area has a total of 98 Airbnb listings with 33 private room properties and 58 one-bedroom properties. The monthly revenue for most properties in West Bridgford is more than £1,827 per month with occupancy being more than 48%.

3. Beeston (NG9)

Last but not least, Nottingham’s most accessible and fashionable area, Beeston! Investors find this area attractive because of its accessibility to the city centre and cheaper buy to lets. You can expect up to a 4% rental yield in Beeston. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £685 £1,306 70% £77
2-bedrooms £867 £2,611 75% £130
3-bedrooms £995 £2,138 68% £138

This area has a total of 31 Airbnb listings with 13 private room properties and 21 one-bedroom properties in this area. The monthly revenue for most properties in Beeston is more than £1,243 per month with occupancy being more than 50%.

how much can you make on airbnb

Short-term rental regulations in Nottingham

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

  • Required to apply for a licence before you rent your property.
  • A resident landlord and family can have up to two lodgers living in the house, where this is the case, you do not require a selective licence. Read more about the selective licensing in Nottingham for more details.
  • If you have three or more lodgers, the house may require an HMO licence (under the additional or mandatory licensing scheme). 

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 Sheffield

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 Sheffield, its profitability, and the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!

What is Rental Arbitrage? 

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

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

Here’s a proof! In Sheffield, Stephanie manages 29 listings and I’m pretty sure she doesn’t own the all properties. She made £270,978 in the last 12 months.  

49B29F

How much can I make with rental arbitrage in Sheffield?

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 Sheffield City Centre, located in the S1 district which ranks the highest yields (averaging 7.83%) in Sheffield. 

Since this neighborhood massively covers both student and residential properties, it has become a desirable area for these tenant groups! Now that we have the best neighborhood to invest in Sheffield, let’s talk about profitability and monthly expenses.

Sheffield airbnb rental arbitrage
Profit & Monthly Expense in Sheffield

Based on Airbtics’ data, you can earn a whopping £3,588 per month for a 3-bedroom apartment in Sheffield City Centre alone. With the data provided, you can certainly tell that investing in a property in Sheffield is profitable!

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
£1,045 £3,588 £718 £1,825

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£3,588-£1,045-£718 = £1,825).

 Startup Cost in Sheffield

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

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
£4,090 2.2 month

The average estimated startup cost (for furnishing) in Sheffield is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£2,090). Now that we have a total startup cost of £4,090, cash return time can be calculated by dividing this by the monthly profit (£1,825).

Given your monthly revenue of £1,825, it will take approximately 2.2 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 Sheffield!

Best Areas for Rental Arbitrage in Sheffield

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

1. Sheffield City Centre (S1)

Sheffield City Centre is a fast-growing city living market which has yields ranging from 6.85%! Due to the high demand for city-centre living from Sheffield’s vast population of students and professionals, S1 has the best rental yield. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £682 £1,849 62% £151
2-bedrooms £1,020 £2,587 65% £218
3-bedrooms £1,253 £1,683 64% £347

According to our Airbtics Dashboard, there are more than 326 Airbnb listings with 74 private room properties and 175 one-bedroom properties in this area. The monthly revenue for most properties in Sheffield City Centre is more than £1,621 per month with occupancy being more than 43%.

2. Rotherham (S60)

One of the most affordable neighborhoods in East Sheffield, Rotherham offers excellent rental yields! Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £427 £1,220 53% £83
2-bedrooms £538 £1,349 71% £147
3-bedrooms £680 £1,624 54% £135

This area has a total of 54 Airbnb listings with 20 private room properties and 29 one-bedroom properties. The monthly revenue for most properties in Rotherham is more than £1,099 per month with occupancy being more than 42%.

3. Whirlow (S11)

Last but not least, Whirlow is one of the most up-and-coming areas in Sheffield! Because of the cosmopolitan and trendy nature of this area, investors can expect up to a 4% rental yield and attractive capital growth returns. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £654 £1,523 70% £82
2-bedrooms £858 £2,538 72% £112
3-bedrooms £1,077 £3,708 79% £196

This area has a total of 28 Airbnb listings with 7 private room properties and 15 one-bedroom properties in this area. The monthly revenue for most properties in Whirlow is more than £1,908 per month with occupancy being more than 58%.

how much can you make on airbnb

Short-term rental regulations in Sheffield

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

  • Register with the Private Rented Solutions Scheme
  • If you have more than one property to rent you will need to submit a separate registration form for each one
  • It is required to pay a Council tax in Sheffield

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 Newcastle

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 Newcastle, its profitability, and the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!

What is Rental Arbitrage? 

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

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

Here’s a proof! In Newcastle, Ryan manages 18 listings and I’m pretty sure that he doesn’t own the all properties. He made £432,910 in the last 12 months.  

Newcastle Airbnb rental arbitrage

How much can I make with rental arbitrage in Newcastle?

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 Newcastle City Centre, located in the NE1 district which ranks the highest yields (averaging 8.16%) in Newcastle. 

Since this neighborhood offers a variety of options from period properties to building apartment blocks, it attracts the majority of investors. Not to mention that it is near the tourist attractions such as the Tyne Bridge & Newcastle Cathedral, which boosted rental demand and yields! Now that we have the best neighborhood to invest in Newcastle, let’s talk about profitability and monthly expenses.

Newcastle Airbnb rental arbitrage
Profit & Monthly Expense in Newcastle

Based on Airbtics’ data, you can earn a whopping £2,327 per month for a 2-bedroom apartment in Newcastle City Centre alone. With the data provided, you can certainly tell that investing in a property in Newcastle is profitable!

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
£1,031 £2,327 £465 £831

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£2,327-£1,031-£465 = £831).

 Startup Cost in Newcastle

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

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
£4,062 2 months

The average estimated startup cost (for furnishing) in Newcastle is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£2,062). Now that we have a total startup cost of £4,062, cash return time can be calculated by dividing this by the monthly profit(£831).

Given your monthly revenue of £831, 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 Newcastle!

Best Areas for Rental Arbitrage in Newcastle

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

1. Newcastle City Centre (NE1)

This area is incredibly attractive to investors because of its waterfront rental properties and historic buildings. It also has an exciting yield of 8.16%! Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £733 £1,877 60% £137
2-bedrooms £1,013 £2,327 65% £177
3-bedrooms £1,220 £2,119 54% £174

According to our Airbtics Dashboard, there are more than 132 Airbnb listings with 15 private room properties and 45 one-bedroom properties in this area. The monthly revenue for most properties in Newcastle City Centre is more than £830 per month with occupancy being more than 86%.

2. Jesmond (NE2)

One of the most popular student property areas in Newcastle, Jesmond offers an average rental yield of 4%. Because this area is usually filled with student lets and shared student properties, there are relatively cheaper property prices! Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £671 £1,875 65% £129
2-bedrooms £867 £1,862 71% £148
3-bedrooms £1,143 £2,320 49% £184

This area has a total of 55 Airbnb listings with 25 private room properties and 34 one-bedroom properties. The monthly revenue for most properties in Jesmond is more than £829 per month with occupancy being more than 60%.

3. Gosforth (NE3)

Last but not least, Gosforth is a sweet suburb situated near the city center. Many investors prefer to have buy-to-let properties in this area because it is near Newcastle airport & A1 motorway. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £699 £2,264 58% £131
2-bedrooms £950 £2,737 78% £142
3-bedrooms £1,332 £1,956 63% £93

This area has a total of 29 Airbnb listings with 6 private room properties and 11 one-bedroom properties in this area. The monthly revenue for most properties in Gosforth is more than £1,239 per month with occupancy being more than 29%.

how much can you make on airbnb

Short-term rental regulations in Newcastle

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

  • Energy Performance Certificates (EPC’s) are needed whenever a property is built, sold, and rented. A holiday accommodation that’s rented out for less than 4 months a year or is let out under a licence does NOT need an EPC.
  • It is required to pay Council tax in Newcastle.
  • Any property with five or more people who form unrelated households, and share amenities such as a kitchen or bathroom, must have an HMO licence. Learn more about an HMO licence in Newcastle.

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 Liverpool

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 Liverpool, its profitability, and the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!

What is Rental Arbitrage? 

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

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

Here’s a proof! In Liverpool, Katy, Joe & Team manages 78 listings and I’m pretty sure they don’t own the all properties. They made £2,825,823 in the last 12 months!  

Liverpool airbnb rental arbitrage

How much can I make with rental arbitrage in Liverpool?

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 Liverpool City Centre, located in the L1 district which ranks the highest yields (averaging 9.33%) in Liverpool. 

Since this neighborhood covers the city centre and is a popular student area, Liverpool City Centre has boosted rental demand and yields! Now that we have the best neighborhood to invest in Liverpool, let’s talk about profitability and monthly expenses.

Liverpool airbnb rental arbitrage
Profit & Monthly Expense in Liverpool

Based on Airbtics’ data, you can earn a whopping £5,162 per month for a 3-bedroom apartment in Liverpool City Centre alone. With the data provided, you can certainly tell that investing in a property in Liverpool is profitable!

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
£1,161 £5,162 £1,032 £2,969

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£5,162-£1,161-£1,032 = £2,969).

 Startup Cost in Liverpool

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

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
£4,322 1 month

The average estimated startup cost (for furnishing) in Liverpool is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£2,322). Now that we have a total startup cost of £4,322, cash return time can be calculated by dividing this by the monthly profit (£2,969).

Given your monthly revenue of £2,969, it will take approximately 1 month 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 Liverpool!

Best Areas for Rental Arbitrage in Liverpool

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

1. Liverpool City Centre (L1)

Liverpool City Centre is popular for its purpose-built student accommodation, which has yields ranging from 6.8 – 9.33%! With popular destinations nearby, the rental growth continuously increases in this area. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £682 £1,849 62% £151
2-bedrooms £1,020 £2,587 65% £218
3-bedrooms £1,253 £1,683 64% £347

According to our Airbtics Dashboard, there are more than 368 Airbnb listings with 46 private room properties and 158 one-bedroom properties in this area. The monthly revenue for most properties in Liverpool City Centre is more than £2,968 per month with occupancy being more than 35%.

2. Edge Hill (L7)

One of the most popular student property areas in Liverpool, Edge Hill offers an average rental yield of 9.79% and has cheaper property prices! Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
Studio-type £750 £1,001 82% £35
1-bedroom £544 £821 72% £56
2-bedrooms £872 £1,435 66% £96

This area has a total of 44 Airbnb listings with 11private room properties and 19 one-bedroom properties. The monthly revenue for most properties in Edge Hill is more than £275 per month with occupancy being more than 33%.

3. Wavertree (L15)

Last but not least, Liverpool’s thriving student neighborhood – Wavertree! Many investors turn their properties in this area into houses of multiple occupancy since it is popular to students and business professionals. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £675 £2,217 66% £104
2-bedrooms £721 £2,002 58% £77
3-bedrooms £850 £1,504 56% £143

This area has a total of 74 Airbnb listings with 39 private room properties and 36 one-bedroom properties in this area. The monthly revenue for most properties in Wavertree is more than £1,098 per month with occupancy being more than 45%.

how much can you make on airbnb

Short-term rental regulations in Liverpool

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

  • No restriction on the number of days. It can be for as long as 6 months.
  • It is required to pay a Council tax in Liverpool.
  • Any property with five or more people who form unrelated households, and share amenities such as a kitchen or bathroom, must have an HMO licence. Learn more about an HMO licence in Liverpool.

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 Southampton

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 Southampton, its profitability, and the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!

What is Rental Arbitrage? 

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

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

Here’s a proof! In Southampton, Gaia manages 32 listings and I’m pretty sure she doesn’t own the all properties. She made £128,516 in the last 12 months.  

Southampton Airbnb rental arbitrage

How much can I make with rental arbitrage in Southampton?

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 Ocean Village, located in the SO14 district which has the highest yields (averaging 6.9%) in Southampton. 

Since this neighborhood covers the city centre and is a hotspot for student rentals, Ocean Village has boosted rental demand and yields! Now that we have the best neighborhood to invest in Southampton, let’s talk about profitability and monthly expenses.

Southampton Airbnb rental arbitrage
Profit & Monthly Expense in Southampton

Based on Airbtics’ data, you can earn a whopping £2,587 per month for a 2-bedroom apartment in Ocean Village alone. With the data provided, you can certainly tell that investing in a property in Southampton is profitable!

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
£1,019 £2,587 £517 £1,050

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£2,587-£1,019-£517 = £1,050).

Startup Cost in Southampton

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

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
£4,039 4 months

The average estimated startup cost (for furnishing) in Southampton is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£2,038). Now that we have a total startup cost of £4,039, cash return time can be calculated by dividing this by the monthly profit (£1,050).

Given your monthly revenue of £1,050, it will take approximately 4 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 Southampton!

Best Areas for Rental Arbitrage in Southampton

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

1. Ocean Village (SO14)

This area is a mixed-use marina, residential, business, and leisure development on the south coast of England that attracts numerous investors. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £731 £951 64% £111
2-bedrooms £1,020 £2,587 56% £175
3-bedrooms £1,253 £1,683 64% £209

According to our Airbtics Dashboard, there are more than 48 Airbnb listings with 12 private room properties and 30 one-bedroom properties in this area. The monthly revenue for most properties in Ocean Village is more than £1,049 per month with occupancy being more than 66%.

2. Shirley (SO15)

Located near the northwest of the city centre, Shirley has its own high street along with a selection of schools and hospitals in Southampton. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £718 £1,712 73% £94
2-bedrooms £822 £1,670 64% £136
3-bedrooms £1,193 £2,715 58% £172

This area has a total of 245 Airbnb listings with 109 private room properties and 164 one-bedroom properties. The monthly revenue for most properties in Shirley is more than £978 per month with occupancy being more than 52%.

3. City Centre (SO14)

Last but not least, Southampton’s City Centre is one of the best areas for professional lets because of its proximity to the tourists and business developments! Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £731 £2,061 70% £124
2-bedrooms £989 £2,555 66% £168
3-bedrooms £1,122 £3,600 63% £245

This area has a total of 20 Airbnb listings with 9 private room properties and 11 one-bedroom properties in this area. The monthly revenue for most properties in the City Centre is more than £1,658 per month with occupancy being more than 60%.

how much can you make on airbnb

Short-term rental regulations in Southampton

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

  • If you are a landlord renting out a property the responsibility for paying the Council Tax bill depends on what sort of letting arrangement you have. Usually, the tenants pay the Council Tax but, in some cases, the owner or landlord will pay the Council Tax bill even though there are tenants living there.
  • The property is let on a multi-tenancy basis rather than a single tenancy
  • The rent agreed was in respect of a room (or part) of the property only
  • Tenants sharing a property don’t have a tenancy for the same period
  • The tenancy agreement states an individual rents each rather than a collective rent (where there is more than one occupant) 

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 Leeds

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 Leeds, its profitability, and the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!

What is Rental Arbitrage? 

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

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

Here’s a proof! In Leeds, Rhifa manages 21 listings and I’m pretty sure she doesn’t own all the properties. She made £376,344 in the last 12 months.  

rental properties in leeds

How much can I make with rental arbitrage in Leeds?

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 Leeds City Centre, located in the LS1 district which has an average yield of 5.97% in Leeds. 

Since this neighborhood is situated in the inner-city, business professionals and students are mostly within this area. Therefore, boosting rental demand and yields!

Leeds airbnb rental arbitrage
Profit & Monthly Expense in Leeds

Based on Airbtics’ data, you can earn a whopping £2,128 per month for a 3-bedroom apartment in Leeds City Centre alone. With the data provided, you can certainly tell that investing in a property in Leeds is profitable!

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
£1,230 £2,128 £425 £472

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£2,128-£1,230-£425 = £472).

 Startup Cost in Leeds

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
£4,460 9 months

The average estimated startup cost (for furnishing) in Leeds is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£2,460). Now that we have a total startup cost of £4,460, cash return time can be calculated by dividing this by the monthly profit (£472).

Given your monthly revenue of £472, it will take approximately 9 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 Leeds!

Best Areas for Rental Arbitrage in Leeds

Before investing in a particular area in Leeds, 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 neighbouroods in Leeds ranked by their annual revenue, along with their occupancy & daily rates!

1. Leeds City Centre (LS1)

This is the most preferred area by investors who are looking to achieve a higher monthly income. Leeds City Centre is filled with tremendous businesses and is becoming a commercialised area in Yorkshire. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £656 £2,334 73% £120
2-bedrooms £928 £2,970 67% £167
3-bedrooms £1,230 £2,128 60% £264

According to our Airbtics Dashboard, there are more than 302 Airbnb listings with 41 private room properties and 144 one-bedroom properties in this area. The monthly revenue for most properties in Leeds City Centre is more than £1,447.06 per month with occupancy being more than 53%.

2. Armley (LS6)

This neighborhood is a popular location for Leeds property investors due to low house prices and consistent rental growth. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
1-bedroom £525 £910 58% £67
2-bedrooms £625 £961 65% £97
3-bedrooms £894 £1,302 45% £152

This area has a total of 37 Airbnb listings with 21 private room properties and 28 one-bedroom properties. The monthly revenue for most properties in Armley is more than £203 per month with occupancy being more than 41%.

3. Morley (LS27)

Morley is becoming one of the most popular investment hotspots in the city of Leeds because of its community feel and has shown some of the strongest growth in the UK property market. Here’s what you can expect in this neighbourhood:

Type of Bedrooms Average Rent Price (pcm) Average Airbnb Revenue Occupancy Rates Average Daily Rate
Studio Type £525 £2,527 58% £134
1-bedroom £542 £2,527 33% £67
2-bedrooms £712 £1,386 32% £90

This area has a total of 16 Airbnb listings with 4 private room properties and 8 one-bedroom properties in this area. The monthly revenue for most properties in Morley is more than £637 per month with occupancy being more than 61%.

how much can you make on airbnb

Short-term rental regulations in Leeds

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

  • Mandatory Licensing of Houses in Multiple Occupation (HMO)
    If the property consists of a mixture of self-contained flats and flats where the tenant has to go out of their flat usually through a communal area to make use of an amenity as described above (whether for their exclusive use or not), then this may require an HMO licence. In addition, properties let above commercial premises may require an HMO licence.
  • In order to even advertise your property, it is a legal requirement to have an EPC Energy Performance Certificates (EPC) for each property. Once an EPC is obtained, it is valid for 10 years unless the property is sold and a new EPC must be obtained at that point.
  • Employers’ liability insurance is a legal requirement if you employ anyone at your holiday home – i.e. if you have a host, housekeeper, cleaner, or gardener.
  • If you have a mortgage, your lender will require you to have building insurance.
  • If the property is leasehold, the terms and conditions might prevent short-term letting, so check your lease and speak to the freeholder.

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

The Ultimate Guide: How to Find Rental Arbitrage Properties

Are you wondering how to find rental arbitrage properties? In this article, we will show you the best ways to find profitable properties!

Rental Arbitrage Properties

Are you wondering how to find rental arbitrage properties? In this article we will show you the best ways to find profitable properties!

Here is a simple concept of the Airbnb Arbitrage business: I have $10,000. What’s the fastest way to double this? I’d say rental arbitrage. In one of our interviews with an Airbnb host, we met a 21-year-old who rented three $1,000/mo condos in Miami, furnished them, and rented them out to generate $8,000 monthly revenue.

So, how can I find rental arbitrage properties? You can find them on property websites, Craiglist, realtors, social media, and so on. Then, you need to pitch to landlords to get permission to run the property as a short-term rental. In this blog, we will go in-depth to show you how you can find profitable rental properties like a pro!

Airbnb is undoubtedly an additional channel for people who are looking for extra income. However, they also have one common misinterpretation of the whole Airbnb idea:

You need to own a property in order to begin investing in Airbnb.

Quite frankly, it’s NOT necessary to own a property at all! You’d be surprised to know that there are numerous strategies that you can use to try out short-term rental investments without owning a property! In this article, you can learn how to find rental arbitrage properties and follow a step-by-step guide on how to set up and manage your Airbnb rental.

What is Airbnb rental arbitrage?

Airbnb rental arbitrage is renting one or more properties for the sole purpose of subletting them on Airbnb & other similar short-term rental platforms. In fact, this is the best way to try out the short-term rental industry without spending big bucks. Also, this will help you save up money if property ownership is one of your goals. 

This is how you do rental arbitrage in 3 simple ways:

Step 1. Find landlords who will allow you to arbitrage their property.

Step 2. Furnish it, take nice Airbnb photos, and upload them on Airbnb and similar platforms.

Step 3.  Wait for bookings!

Is Airbnb rental arbitrage legal?

It depends on the city. And in the areas where Airbnb arbitrage is legal, there are varying laws and guidelines that hosts must adhere to. In order for your business to successfully operate, make sure to check if it’s necessary to apply for a permit or license before starting to invest in Airbnb rental arbitrage.

5 Ways to Find Rental Arbitrage Properties

1. Look for properties on the best rental listing sites

Differentiate the properties in your preferred area and categorize them with ease according to the size & amenities of properties. Here are the top 3 of the most recommended listing sites:

    • Apartments.com – one of the major rental portals with simple tools designed for DIY landlords or small property management companies. 
    • Zillow
    • Zumper
2. Find an Airbnb-friendly landlord

 Some landlords may think subletting is illegal, but there are certainly numerous owners who allow subleasing. If you want to find an Airbnb-friendly landlord, cast your net wide and look them up on Google, Facebook Marketplace, and Craigslist! 

Then, send your pitch!

Be creative. Here’s my tip. This is just an example, and you can tweak this to find your own profitable property acquisition pipeline.

I noticed that many “expats” are not fond of advertising their properties to the local people. They tend to use Facebook groups for expats to look for tenants. Quite often, they are not even in the city, so they are looking for someone to take over and just maintain their property at a cheap price.. Just type “Expats in CITY_NAME (E.g. Lisbon)” on Facebook.

3. Join local real estate investor meetings & spark relationships

Through networking, you can easily meet people and get leads from them for your preferred property. You can also visit meetup.com and type in your target city. You now have access to real estate-related meetings & events!

4. Speak to your local real estate agents about finding the best rental arbitrage property

You can easily find local real estate agents online. Be honest with them that you want to start a rental arbitrage business. Tell them you are aiming to manage 20+ properties within the next 6 months if that’s your plan. This kind of pitching works well with realtors as you can potentially become their significant source of income. Here are some of the most recommended websites:

    • Realtor.com – the most extensive real estate website which is affiliated with the National Association of Realtors. 
Rental Arbitrage Properties
    • Trulia branded as the best mobile app, you can easily look for real estate properties.
Rental Arbitrage Properties
5. Speak to Airbnb hosts 

You might not have expected this! Try reaching out to Airbnb hosts with listings that have 0 reviews, bad photos, and bad descriptions. Even better if they have a lower than 50% host response rate. Most likely, they are the homeowners who aren’t making good money but may be open to renting out their property via rental arbitrage!

You can speak with them and let them know that you can give them guaranteed income every month for the next 12-24 months. They might love the idea.

How much profit can you earn with Airbnb rental arbitrage?

Monthly profit = Revenue from Airbnb bookings – (Expenses and rent)

Starting cost = Furnishing cost + deposit + first-month rent  

Let’s conclude that you already found the perfect property that’s suitable for your budget and would like to start putting it up on Airbnb. For instance, you found a 2-bedroom apartment for rent in San Diego that costs $1,875 per month. Using an Airbnb calculator, you can gauge your monthly expenses & one-time costs accurately.

Rental Arbitrage Properties

How to start rental arbitrage?

Airbtics has an extensive library of guides on rental arbtitrage. Click the link and check it out! There are some successful rental arbitragers, and do you know their secret? 

They know how to leverage tools & technologies! 

Airbtics is designed for you to find emerging and profitable areas to start your rental arbitrage business. Use our tool to figure out the following important key points:

  • Find a location that produces the highest profit & STR demand.
  • Look for a market that has at least above 50% occupancy rate annually.
  • Discover the number of Airbnb listings in your preferred market, the international traveler ratio, historical trends, and so much more!

Bonus: Check out the best places to rent Airbnb in Canada!

Data Analytics For Finding Airbnb Arbitrage Properties

In this article, we have learned various ways to find rental arbitrage properties. And if you don’t do your research carefully, it may take some time to find the best one for you. Or worse, you may end up with a really bad property.

However, if you are interested in investing and learning more through market research, then use only the precise STR analytics tool to gain accurate insights into your target Airbnb market.

Unlock Worldwide
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.

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Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Vancouver

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    Introduction

    Vancouver is the most expensive Canadian city to live in, but what if we tell you that you can augment your income by renting out a property without actually owning it? Rental arbitrage enables this setup. It is a smart way to earn passive income with only minimal investment!

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

    What is Rental Arbitrage?

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

    Rental Arbitrage in Vancouver 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. Here’s an example to help you understand rental arbitrage better.

    Assume you are renting a duplex in Vancouver 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.

    Airbnb Legality and Regulations in Vancouver

    The City of Vancouver requires all short-term rental operators to have a business license and post the license number in all forms of advertisements.  The other important rules for vacation rentals in Vancouver are as follows:

    Permitted
    • Only operates from your major residence – the home where you live, as an owner or renter, and use for bills, identification, taxes, and insurance. 
    • Secondary homes or basement suites if the operator lives there full-time and it is their principal residence.
    Not Permitted
    • In ancillary buildings (such as a garage, art studio, trailer, or boat) or Rental 100 buildings.
    • Residences that are subject to the Empty Homes Tax (the tax applies to homes that aren’t the owner’s primary residence or aren’t rented for an extended period of time). Airbnb, a prominent short-term home rental service, offers both homeowners and visitors new options.

    Vancouver can fine short-term rental operators for:

    • Operating and listing or advertising Airbnb property without a valid business license
    • Having a short-term rental that isn’t their primary abode.
    • Managing a business’s Airbnb/Home-away/etc. account.
    • Allowing your visitors to stay in a risky location.

    First-time offenders might face fines of up to C$1,000, while repeat offenders could face prosecution and fines of up to C$10,000. Due to a lack of larger monetary agreements, the city appears to be fining owners C$1,000 at a time.

    If you’re still not sure, the City of Vancouver provides a comprehensive checklist that covers everything you’ll need to get a license.

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

    1. Convince the landlord

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

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

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

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

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

    2. Ensure the property and gain 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 Vancouver:

    • 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 can you make on airbnb

    The initial cost of starting a rental arbitrage in Vancouver

    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

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

    Expense 4: Cleaning Services

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

    If you have no experience or you don’t want to invest time in cleaning a place, then your best bet will be to hire a professional cleaner. This can cost you anywhere from 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 Vancouver

    Some of the obvious places that you can think of in  Vancouver are Gastown, Yaletown, East Vancouver, and many more. But two of the best choices for rental arbitrage top our list.

    1. Coal Harbour
    Rental Arbitrage Vancouver

    According to Airbtics Dashboard, Coal Harbour is the top market to start your rental arbitrage business. There are more than 136 Airbnb listings in the area with annual revenue of C$80,699 with a 91% occupancy rate.

    2. Downtown Eastside
    Rental Arbitrage Vancouver

    According to Airbtics Dashboard, Downtown Eastside is the second-best market to start your Rental arbitrage business. There are more than 217 with an average annual revenue of C$75,859 from an occupancy rate of 89%.

    Conclusion

    In summary, rental arbitrage in Vancouver 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 profit estimator and determine the best areas that will bring long-term profitability!

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