Category: Airbnb Rental Arbitrage

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Seattle

Post author By Yukta Debnath
Post date November 28, 2021

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What is Rental Arbitrage?

Rental Arbitrage is a method similar to house hacking. But unlike house hacking in Rental Arbitrage, you don’t own the house. Instead, you convince a landlord to lease you a property which you then furnish and sublease on Airbnb and VRBO.

Rental Arbitrage is a really good method to do in multifamily houses, duplexes, or triplexes. You can easily use the money from your short-term rental to pay off your lease and also profit some more. If done right this can be a full-fledged business in itself. If you own a duplex or triplex then it is pretty straightforward. You can live in one section and rent out the other. This is known as house hacking. People use this after taking a loan on a property and use the rent to pay off the mortgage. The short-term rent helps you pay for the long-term lease that you have on the house. This helps you keep the difference at the month-end after paying for the long-term lease. Let’s take an example to help you understand Rental Arbitrage better.

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

Things to do before getting started?

How to convince the landlord

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

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

Learn the step-by-step procedures of Rental Arbitrage and become a pro in the business!

Points to tell an indecisive landlord.

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

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

Ensure the Property and Gain landlords’ trust

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

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

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

Pro’s and Con’s

The initial cost of starting Rental Arbitrage Seattle?

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

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

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

But this doesn’t mean Rental Arbitrage can be done with no or very tight budget. There will be some upfront costs that you would have to bear. Having some extra cash is also a good thing to have. It will help pay off the lease in not-so-profitable months in case bookings don’t happen right away.

Expense 1: Rental Deposits

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

Expense 2: Furnishing

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

Do it yourself!!! iPhones have good cameras. Will save you some money.

Expense 4: Cleaning Services

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

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

Expense 5: Legal Consultation

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

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

Legality and Regulations in Seattle

License Criteria

The City of Seattle’s short-term rental code sets clear rules and license needs for short-term rental hosts. You may need to apply for one of four distinct types of licenses.

Here’s a quick rundown of each license:

Tax certificate for a business license

Business license taxes are payable by anyone providing short-term stays in Seattle. It is necessary to get this certificate before applying for your short-term rental or bed & breakfast operator’s license. Each calendar year, a Seattle business license is valid until the end of December. For all your listings, you only need one business license. Each calendar year, a Seattle business license is valid until the end of December.

Operator’s license for STRs

If you want to host short-term stays in Seattle, you’ll need a short-term rental operator’s license. Short-term rental licenses are set to expire on their anniversary date. The City of Seattle allows you to apply for a license online. You’ll need to add the number and end date to your Airbnb listings once you get your short-term rental operator’s license.

A short-term rental operator’s license permits you to rent out up to two of your own housing units for brief periods of time. Your primary house must be where you keep your motor vehicle, driver’s license, voter registration, or other similar documents, the city says. The other could be a supplementary dwelling, such as a vacation home or second home, that you also own.

Ordinance on Rental Regulation and Inspection (RRIO)

If you host a second house, such as a vacation home or second house, you’ll need a Rental Registration and Inspection Ordinance (RRIO) registration number. By meeting these requirements, the property can be inspected by the city.

It’s worth noting that RRIO demands an inspection during the first two years of registration. You don’t have to wait for an inspection before applying for an STR license.

License for a bed and breakfast operator

A bed and breakfast operator’s license is necessary if you operate a bed and breakfast. The City of Seattle allows you to apply for a license online. The license is $75 and has an end date. You’ll need to add your bed and breakfast operator’s license to your business license after you get it.

Taxes on the local level

Rentals within the city of Seattle are subject to a short-term rental tax. Yet, inside the state of Washington, Airbnb collects and remits state and local taxes on your behalf. The guest handles all state and local taxes.

Use of the land

Land use in Seattle neighborhoods is governed by the Seattle Land Use Code. In Seattle, short-term rental is a type of lodging operation that involves renting a dwelling unit, including a partial unit, for less than 30 consecutive nights. Some types of properties, such as waterfront properties and properties on the water, such as houseboats, do not allow short-term rentals. Other standards that pertain to your property, such as parking and noise rules, must also be met.

Code of the Building and Construction Industry

The Seattle Building and Construction Code covers construction, design, maintenance, habitability, health, and safety. Unless they are RVs, tents, garages, treehouses, tiny houses, boats, or live/work units, you can arrange short-term rentals in most buildings created as dwellings.

Reference|Airbnb.co

Best areas for Rental Arbitrage in Seattle

Some obvious places come to mind when thinking of Seattle like West Seattle, Central District, and many more. According to Airbtics Dashboard, two of the best areas to invest in Seattle are:

1. Wallingford

According to our Airbtics Dashboard, Wallingford is the top market to start your Rental Arbitrage business. Currently, there are overall more than 132 Airbnb properties with an average occupancy rate of 89%, a daily rate of $152, and annual revenue of $50,102.

2. Ballard

According to our Airbtics Dashboard, Ballard is the second-best market to start your Rental Arbitrage business. There are more than 193 Airbnb listings with an average occupancy rate of 88%, a daily rate of $133 and an annual revenue of $46,004.

Tags Airbnb Rental Arbitrage, lat_47.6038321, lng_-122.330062

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage San Antonio

Post author By Yukta Debnath
Post date November 27, 2021

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Introduction

While San Antonio offers a low cost of living, that should not stop you from adding another stream of income. What if we tell you that you can earn easy money by renting out a property without actually owning it? Rental Arbitrage enables this setup. It is a smart way to earn passive income with only minimal investment!

In this guide, we’ll explain rental arbitrage in layman’s terms and provide some expert tips. We also included the best areas to do rental arbitrage in San Antonio 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 San Antonio is applicable to any type of residential real estate. These can be multi-room apartments, houses, condo units, duplexes, and triplexes. It is a smart way to add a stream of income through the short-term rental of your subtenants. This allows you to pay your own rent and earn more.

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

Learn more about corporate lease through this ultimate guide for STR investors!

Is Airbnb legal in San Antonio?

Yes! Investors just need to apply for a short-term rental permit for Airbnb operations in San Antonio. You can expect to receive your permit within 5 business days. This non-transferrable permit is required for each Airbnb property and is valid for 3 years.

2 Types of Short-Term Rentals in San Antonio:

San Antonio defines a short-term rental as a property for rent out to overnight guests for less than 30 consecutive days. San Antonio has 2 types:

Type 1 Short-Term Rental Permit is subject to the following conditions:
- The primary house of the owner or operator is on the property.
- There are no density restrictions.

Type 2 Short-Term Rental Permit i is subject to the following conditions:
- The property is not occupied as the owner’s or operator’s principal house.
- It is permitted by right but with density restrictions of up to 12.5% of units on a block face.
- If the property is in a multi-family structure, it cannot be more than 12.5% of the total number of units on the property. However, you request a special permit from the Board of Adjustment if your Airbnb business will exceed this percentage.

Requests for permits

For both types of STR licenses, you must produce proof of ownership documents. You’ll also need to show that the listing is your principal house for Type 1.

A $100 application fee, which is payable online by credit card or e-check
A floor plan sketch that shows sleeping spaces, the most number of visitors, any escape routes, and the location of fire extinguishers
Owner authorization. For rental arbitrage, please a notarized authorization from the owner.
The exception grant from the Board of Adjustment (if applicable)

How do I get into rental arbitrage?

1. Convince the landlord

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

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

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

Points to tell an indecisive landlord.

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

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

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

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

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

Pros and Cons

Be prepared for what you can expect from rental arbitrage in San Antonio:

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 USA CITIES?

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

How much does it cost to start arbitrage?

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

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

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

Expense 1: Rental Deposits

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

Expense 2: Furnishing

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

Expense 3: Photography

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

Expense 4: Cleaning Services

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

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

Expense 5: Legal Consultation

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

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

Best areas for Rental Arbitrage San Antonio

Some of the obvious places that you can think of in San Antonio are Downtown, Southtown, and First Woodlawn Lake. But two of the best choices for rental arbitrage top our list. The first one is:

1. Tobin Hill

According to Airbtics Dashboard, Tobin Hill is the top market to start your rental arbitrage business. There are more than 358 Airbnb listings with an average annual revenue of $31,291 and an occupancy rate of 56%.

2. Mission del Lago

According to Airbtics Dashboard, Mission del Lago is the second-best market to start your rental arbitrage business in San Antonio. There are more than 16 Airbnb listings with average annual revenue of $28,738 and an occupancy rate of 58%.

Conclusion

In summary, rental arbitrage in San Antonio 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 Calculator and determine the best areas that will bring long-term profitability!

Tags Airbnb Rental Arbitrage, lat_29.4246002, lng_-98.4951405

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Philadelphia

Post author By Yukta Debnath
Post date November 27, 2021

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What is Rental Arbitrage?

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

There’s so much to learn from Airbnb rental arbitrage business!

Things to do before getting started?

How to convince the landlord

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

Points to tell an indecisive landlord.

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

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

Ensure the Property and Gain landlords’ trust

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

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

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

Pro’s and Con’s

The initial cost of starting Rental Arbitrage Philadelphia?

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

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Do it yourself!!! iPhones have good cameras. Will save you some money.

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.

Expense 5: Legal Consultation

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

Legality and Regulations in Philadelphia

License for Commercial Activity

To rent your house as restricted lodging, you’ll need a Commercial Activity License. A Rental License is not necessary.

Permits

To rent your house for up to 30 days to one individual or group, you’ll need a Zoning Permit for Limited Lodging.

For Visitor Accommodation, you’ll need a Zoning Permit:

To rent out your house for 30 days or less.
If you are not living in the property as your primary house.

Demands for housing

– Smoke alarms are a must:

One in each of the bedrooms.
In the hallway, near the bedrooms.
On every level of the house, including the basement.

Install carbon monoxide alarms

Within 15 feet of every bedroom’s entrance, or within 15 feet of every bed in sleeping areas if there isn’t an enclosed bedroom.
In the center of the room, but not in front of a restroom door or within 5 feet of a cooking appliance.
You are not allowed to put up signs for lodging on your property.

More than three people (including the owner and tenants) cannot live in the home if they are not related by blood, marriage, life partnership, adoption, or foster-child status.

What you must tell your tenants

– Provide residents with information on trash and recycling collection days, as well as restrictions on disposal, between the hours of 8AM and midnight.

Renters need adequate garbage bins, which you must provide.
Excessive noise is unlawful, with fines and penalties imposed on violators.
The owner or their designee must provide the renters with contact information. The contact person must deal with complaints from tenants.

Record-keeping

– Residents who rent their homes for a short period of time must keep records for at least a year that show:

that the home was their principal house;
the dates the home was on rent; and
the number of tenants.

Hotel Tax in the City

– Hotel operators pay the City of Philadelphia Hotel Tax monthly. There is an 8,5% tax on rental income.

Reference| Phila.gov

Best areas for Rental Arbitrage Philadelphia

Some obvious places come to mind when thinking of Philadelphia like Bella Vista, Center City and Fairmount. But two of the best choices for rental arbitrage top our list. The first one is:

1. Old City

According to our Airbtics Dashboard, Old City is the top market to start your Rental Arbitrage business. There are more than 1,923 Airbnb listings with 431 private rooms properties and 611 one-bedroom properties. Monthly revenue for most properties is more than $1,717/month with occupancy being more than 35%.

2. Fish Town

According to our Airbtics Dashboard, Fish Town is the second-best market to start your Rental Arbitrage business. There are more than 3,309 Airbnb listings with 900 private rooms properties and 880 one-bedroom properties. Monthly revenue for most properties is more than $1,686/month with occupancy being more than 36%.

To see full data of Philadelphia – Click Here

FIND STATS FOR YOUR CITY – CLICK HERE

Rental Arbitrage Orlando

Post author By Yukta Debnath
Post date November 26, 2021

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What is Rental Arbitrage?

Rental Arbitrage is a really good method to do in a multifamily house, duplexes, or triplexes. You can easily use the money from your short-term rental to pay off your lease and also profit some more. If done right this can be a full-fledged business in itself. If you own a duplex or triplex then it is pretty straightforward. You can live in one section and rent out the other. This is known as house hacking. People use this after taking a loan on a property and use the rent to pay off the mortgage. The short-term rent helps you pay for the long-term lease that you have on the house. This helps you keep the difference at the month-end after paying for the long-term lease. Let’s take an example to help you understand Rental Arbitrage better.

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

Read more in detail about short-term rental arbitrage to make sure that you’re on the right track!

Things to do before getting started?

How to convince the landlord

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

Points to tell an indecisive landlord.

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

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

Ensure the Property and Gain landlords’ trust

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

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

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

Pro’s and Con’s

The initial cost of starting Rental Arbitrage Orlando?

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

Expense 1: Rental Deposits

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

Expense 2: Furnishing

Most of the time you should always aim to lease a semi-furnished place. As someone with a fully furnished home might be doing short-term rentals themselves. Also furnishing a place from scratch can add anywhere from $3,000 to $5,000 to your initial capital. Not choosing the right property can make Rental Arbitrage not so low cost, so choose wisely.

Expense 3: Photography

Do it yourself!!! iPhones have good cameras. Will save you some money.

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.

Expense 5: Legal Consultation

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

Legality and Regulations in Orlando

Residents in Orlando can now register their home as a home-sharing house as of July 1, 2018. Yet, there is one snag: you cannot rent out your entire home. Homes, so, are being approved for house sharing to advertise on Airbnb and other similar sites. To receive a short-term rental permit from the city of Orlando, you must first submit an application.

A short-term rental property permit for anyone who wants to use a section of their home for a short-term rental is necessary.

You must complete these conditions to rent out a piece of your house for a short-term rental.

If you have a residential rental property, you can only rent out half of it.
You can only rent out half of your home;
You can only rent out half of your home;
Only one reservation can get done at a time.

You must collect sales tax besides possessing a short-term rental property permit. The Florida Department of Revenue will need you to register. Short-term rentals are often known as “transient” rental arrangements.

Apart-hotels Licensing

Apart-hotels are becoming popular among residential complexes, and Orange County is approving them. It’s a reliable source of cash that’s also pretty appealing. Many apartments from a complex are rented out by property management businesses. After that, you may rent them out on short-term rental sites like Airbnb. Only a few properties in Orlando were approved for master leases or corporate leases.

Zoning Regulations

On its website, Airbnb provides a wealth of information on local rules in various places. . This information is useful in establishing whether your home complies with the Airbnb rules and legislation. Before moving forward with Airbnb, we recommend meeting with a local legal or tax specialist.

The Land Development Code

It is a set of rules that governs land use. Orlando City Code contains information that is relevant under the Land Development Code. The majority of land use in Orlando is overseen by this. You can check here to determine if your listing complies with any zoning regulations. “Apartment,” “accessory apartment,” “dwelling,” “bed and breakfast facility,” “commercial dwelling unit,” “commercial usage,” “dwelling,” “dwelling unit,” “group housing,” “hotel,” “motel,” “residential use,” and “owner-occupied home sharing” are all crucial terms to look for when searching.

Housing and Building Codes

You should review the rules and regulations governing the smallest building construction, design, and maintenance standards. Regulations on habitability, health, and safety should all be considered. Your listing may be subject to some limitations. The Orlando City Code contains the Building Code and the Minimum Standards Code.

Registration of a company

The city of Orlando requires all firms to get a business tax receipt. The Orlando City Code can assist you in determining whether these rules apply to your listing.

Owner-Occupied Home Sharing In Orlando, you must register for owner-occupied home sharing. The Home Sharing Registration page has further information about fees, registration requirements, and the registration application.

Because of Orlando’s zoning restrictions, this is necessary. When renting out a piece of your home, they need you to be present.

Taxes in Orange County

Within the city of Orlando, Orange County collects tourist development taxes. Hotels, inns, tourist homes or houses, and other home-sharing properties are all subject to these taxes.

For transitory rental accommodations in Orlando, you must collect sales tax. You will need to collect this from each renter because you can only offer short-term rental alternatives due to zoning rules.

Other Regulations

There are a few more rules to investigate and understand. These include other contracts or rules that bind you.

Leases, condo board or co-op rules, HOA rules, or rules set by tenant organizations could all be examples. Checking with your landlord is the best method to find and understand these. You might be able to locate them in your lease agreement as well.

Reference| Ericadiazteam

Best areas for Rental Arbitrage Orlando

Some obvious places come to mind when thinking of Orlando like Lake Underhill, Mills 50 and Rose Isle. But two of the best choices for rental arbitrage top our list. The first one is:

1. Parramore

According to our Airbtics Dashboard, Parramore is the top market to start your Rental Arbitrage business. There are more than 17,185 Airbnb listings with 3,598 private rooms properties and 2,160 one-bedroom properties. Monthly revenue for most properties is more than $3,090/month with occupancy being more than 50%.

2. South Eola

According to our Airbtics Dashboard, South Eola is the second-best market to start your Rental Arbitrage business. There are more than 15,235 Airbnb listings with 3,457 private rooms properties and 2,085 one-bedroom properties. Monthly revenue for most properties is more than $3,034/month with occupancy being more than 48%.

To see full data of Orlando – Click Here

FIND STATS FOR YOUR CITY – CLICK HERE

Rental Arbitrage Nashville

Post author By Yukta Debnath
Post date November 26, 2021

Table of Contents

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What is Rental Arbitrage?

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

Learn more about Airbnb Rental Arbitrage through this guide!

Things to do before getting started?

How to convince the landlord

For the convincing, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves. You can advise the Landlord about Texas general insurance for landlords to protect themselves. In this way, you will also gain his trust and make sure he knows you are also looking out for him.

Points to tell an indecisive landlord.

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

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

Ensure the Property and Gain landlords’ trust

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

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

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

Pro’s and Con’s

The initial cost of starting Rental Arbitrage Nashville?

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

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Do it yourself!!! iPhones have good cameras. Will save you some money.

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.

Expense 5: Legal Consultation

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

Legality and Regulations in Nashville

In Nashville, there are now two categories of short-term rental permits:

Owner Occupied (the owner of the property stays on-site throughout the guest’s stay)
Non-Owner Occupation (property owner does not live in the home and guest has access to the entire space)

Owner-Occupied Permits

An owner-occupied permit has fewer limitations, owing to the lack of zoning rules.

Two documents establishing the owner’s principal home on the property. A Tennessee driver’s license, state ID card, IRS W2 form, or bank statement will all suffice.
The document’s address must match the address on file with the Davidson County clerk’s office.

The property’s owner must live on-site and be a natural person (rather than a business entity such as an LLC). In other words, you apply for permission in your own name as an individual. Single-family and two-family zones may only issue one permit per lot. If there are two houses on the property, the same owner must own both and live in one of them as a primary house. If you live on a property zoned Specific Plan (SP) or Planned Unit Development (PUD), you may need to take extra measures before obtaining a permit.

Non-Owner Occupied Permits

Due to the limited zones where rentals are allowed, short-term rental permits for non-owner-occupied properties are more difficult to get.
The address on the application must be the same as the one on file with the Davidson County clerk’s office.
You can renew your permit once a year, but you cannot renew it if you sell your property or transfer ownership. AR2A, R, and RS zones will not grant new permits.

Sales Tax and Business Registration

Property owners in Metro Nashville and the State of Tennessee are required to get a business license and collect various state and local taxes.

Hotel and motel tax

According to the Short Term Rental Properties Ordinance, Nashville charges a hotel/motel tax. Likewise, Tennessee collects sales tax.

Reference| tnvirtuallaw

Best areas for Rental Arbitrage Nashville

Some obvious places come to mind when thinking of Nashville like Downtown, the Gulch and East Nashville. But two of the best choices for rental arbitrage top our list. The first one is:

1. 12 South

According to our Airbtics Dashboard, 12 South is the top market to start your Rental Arbitrage business. There are more than 1,173 Airbnb listings with 80 private rooms properties and 289 one-bedroom properties. Monthly revenue for most properties is more than $5,128/month with occupancy being more than 48%.

2. Music Row

According to our Airbtics Dashboard, Music Row is the second-best market to start your Rental Arbitrage business. There are more than 3,296 Airbnb listings with 244 private rooms properties and 1162 one-bedroom properties. Monthly revenue for most properties is more than $4,565/month with occupancy being more than 48%.

To see full data of Nashville – Click Here

FIND STATS FOR YOUR CITY – CLICK HERE

Rental Arbitrage Austin

Post author By Yukta Debnath
Post date November 25, 2021

Table of Contents

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What is Rental Arbitrage?

Before we discuss Rental Arbitrage Austin, we must first grasp what Rental Arbitrage is. Rental Arbitrage is a method similar to house hacking. But unlike house hacking in Rental Arbitrage, you don’t own the house. Instead, you convince a landlord to lease you a property which you then furnish and sublease on Airbnb and VRBO.

Rental Arbitrage is a really good method to do in a multifamily house, duplexes, or triplexes. You can easily use the money from your short-term rental to pay off your lease and also profit some more. If done right, this can be a full-fledged business in itself. If you own a duplex or triplex, then it is pretty straightforward. You can live in one section and rent out the other. This is known as house hacking. People use this after taking a loan on a property and use the rent to pay off the mortgage. The short-term rent helps you pay for the long-term lease that you have on the house. This helps you keep the difference at the month-end after paying for the long-term lease. Let’s take an example to help you understand Rental Arbitrage better.

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

Evaluate your options about Airbnb Rental Arbitrage through this helpful guide!

Things to do before getting started?

How to convince the landlord

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

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

Points to tell an indecisive landlord

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

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

Ensure the Property and Gain landlords’ trust

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

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

The initial cost of starting Rental Arbitrage Austin?

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

Expense 1: Rental Deposits

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

Expense 2: Furnishing

Most of the time, you should always aim to lease a semi-furnished place. As someone with a fully furnished home might be doing short-term rentals themselves. Also, furnishing a place from scratch can add anywhere from $3,000 to $5,000 to your initial capital. Not choosing the right property can make Rental Arbitrage not so low cost, so choose wisely.

Expense 3: Photography

Do it yourself!!! iPhones have good cameras. Will save you some money.

Expense 4: Cleaning Services

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

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

Expense 5: Legal Consultation

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

Legality and Regulations in Austin

Austin’s city limits have some pretty strict laws about short-term rentals. A complicated permitting process governs short-term rentals. A permit to run a short-term rental in Austin is impossible if it is not your primary house.
The law governing short-term rentals (STRs) is strict. It is important to understand the Texas restrictions if you plan to invest in property, in central Texas.
In Austin, there are a variety of short-term rental options:

1. Owner-Occupied – (single-family, multifamily, or duplex)

Are either owner-occupied or linked to an owner-occupied primary house.
It must have at least a sleeping area (with a shared bathroom), and the owner is usually on-site during the rental process. To qualify, the property must be owner-occupied or affiliated with an owner-occupied primary residential unit. A deed registered with the Travis or Williamson County clerk’s office must match your application for ownership.

2. Non-Owner Occupied – (single-family or duplex)

Aren’t owner-occupied or connected to an owner-occupied main house? Are these single-family or duplex homes? Include the rental of a whole house. The city regulates the number of STRs that can operate within each census tract.

Your application must match the information on the deed recorded with the Travis County Clerk’s office or the Williamson County Clerk’s office.

By 2022, second-class short-term rentals will no longer be permitted in residential areas but may be permitted in business areas.

3. Non-Owner Occupied – (Multifamily)

These properties are not owned by the owners. Are part of a property with multiple uses (apartments, condos, etc.). Include the rental of a whole house or apartment. Document the total number of buildings on the land, as well as the number of units per building.

Owners must follow the appropriate geographic caps. The ownership information on your application must correspond to the deed recorded with the Travis County Clerk’s office or the Williamson County Clerk’s office.

Let’s take a look at how you may lawfully rent out your property for a short period

Licensing

Owners of Short-Term Rentals (STRs) must get an operating license each year. This rule applies to any property (including rooms and guest homes) that is to rent for less than 30 days in a row.

Adhere to the Document Rule:

Fill out the application for a short-term rental license ($567.00). (Non-refundable) Fee total (including a $50.00 notification fee)
Property Insurance Proof
Get an Occupancy Certificate
Valid driver’s license
All third-party agents will need to get written permission from the owners to check property compliance.

Compliance

Ensure that your license is updated on a yearly basis. Property owners must submit the following documentation to the Austin Code Department each year.

Hotel Occupancy Tax Payment Proof
Evidence of Property Insurance
Fees for renewing your operating license = $310.00 (Non-refundable). Renew it before the license expires.

If the limits are broken, the property owners might risk a $2,000 fine and the loss of their operating license.

Reference| Hostaway

Best areas for Rental Arbitrage Austin

Some obvious places that come to mind when thinking of Austin like North Austin, South Congress and Bouldin Creek. But two of the best choices for rental arbitrage top our list. The first one is:

1. Austin Hills

According to our Airbtics Dashboard, Austin Hills is the top market to start your Rental Arbitrage business. There are more than 106 Airbnb listings with 11 private rooms properties and 32 one-bedroom properties. Monthly revenue for most properties is more than $7,091/month with occupancy being more than 54%.

2. Downtown Austin

According to our Airbtics Dashboard, Downtown Austin is the second-best market to start your Rental Arbitrage business. There are more than 2,290 Airbnb listings with 745 private rooms properties and 301 one-bedroom properties. Monthly revenue for most properties is more than $5,104/month with occupancy being more than 49%.

To see full data of Austin – Click Here

FIND STATS FOR YOUR CITY – CLICK HERE

Tags Airbnb Rental Arbitrage, lat_30.2711286, lng_-97.7436995

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Charlotte

Post author By Shivam Kaushik
Post date October 21, 2021

Table of Contents

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What is Rental Arbitrage?

Rental Arbitrage is a really good method to do in a multifamily house, duplexes, or triplexes. You can easily use the money from your short-term rental to pay off your lease and also profit some more. If done right, this can be a full-fledged business in itself. If you own a duplex or triplex then it is pretty straightforward. You can live in one section and rent out the other. This is known as house hacking. People use this after taking a property loan and using the rent to pay off the mortgage. The short-term rent helps you pay for the long-term lease that you have on the house. This helps you keep the difference at the month-end after paying for the long-term lease. Let’s take an example to help you understand Rental Arbitrage better.

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

Learn more about Rental Arbitrage Methods & become a pro!

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

How to convince the landlord

Points to tell an indecisive landlord

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

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

Ensure the Property and Gain landlord’s trust

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

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

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

The initial cost of starting Rental Arbitrage Charlotte?

You can expect to spend anywhere between $3,000 to $5,000. This cost consists of everything including 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.

Expense 1: Rental Deposits

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

Expense 2: Furnishing

Expense 3: Photography

Do it yourself!!! iPhones have good cameras. Will save you some money.

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.

Expense 5: Legal Consultation

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

Legality and Regulations in Charlotte

The Charlotte-Mecklenburg Police Department keeps a free registry for both short- and long-term rentals in Charlotte municipal limits. Owners of houses that meet specified “disorder risk” standards must register, while everyone else can opt out. Learn more about how to register a residential rental property.

The service allows owners and property managers to be contacted about incidents that may be attributed to the registered property, as well as receive email alerts about training and other safety initiatives. Hosts with listings in Charlotte are encouraged to register, as the service allows owners and property managers to be contacted about incidents that may be attributed to the registered property.

Zoning- The Zoning Ordinance of Charlotte governs the majority of land uses in the city. You should check it to verify if your listing complies with any zoning or usage restrictions. Boarding homes and bed and breakfasts have their own set of restrictions.

Business license- All people conducting business within Charlotte’s city limits must get a business license. As part of the approval process, a fire inspection is necessary, and the city’s Planning, Design & Development Department will examine the application for conformity with city rules and regulations.

Norms for construction and housing- Charlotte enforces rules and regulations that set minimum building construction, design, and maintenance requirements, as well as regulations governing habitability, health, and safety. Your listing may be subject to laws and restrictions that apply to both residential and non-residential usage.

Sales tax and room occupancy tax- Room occupancy taxes are assessed by the County of Mecklenburg on rents charged for stays of less than 90 days in hotels, motels, corporate housing, and comparable facilities such as private houses. Furthermore, the state of North Carolina levies sales tax on gross receipts from such rentals.

Reference | Airbnb.co.in

Best areas for Rental Arbitrage Charlotte

1. South End

According to our Airbtics Dashboard, South End is the top market to start your Rental Arbitrage Charlotte business. There are more than 652 Airbnb listings with 84 private rooms properties and 261 0ne-bedroom properties. The monthly revenue for most properties is more than $3,007/month.

2. Charlotte center city

According to our Airbtics Dashboard, Charlotte center city is the second-best market to start your Rental Arbitrage business. There are more than 848 Airbnb listings with 117 private rooms properties and 333 one-bedroom properties. The monthly revenue for most properties is more than $2,904/month.

To see full data of Charlotte – Click Here

FIND STATS FOR YOUR CITY – CLICK HERE

Rental Arbitrage Philippines

Post author By Shivam Kaushik
Post date October 2, 2021

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Introduction

Owning a house is every Filipino’s dream, and renting out is already considered a luxury afforded to just a few. But what if we tell you that you can rent out a property without actually owning it? Rental Arbitrage enables this setup. It is a smart way to earn passive income with only minimal investment!

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

What is Rental Arbitrage?

Rental Arbitrage 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.

Assume that you are renting a three-story house in Makati for $1,800 (approximately Php 99,000) per month. You are living by yourself on the top floor, and you decide to sublease the rest of the house on Airbnb.

Let’s say you listed it for $100 (Php 5,500) per day and got 80% occupancy. This will bring in approximately $2,600 or Php 143,000 monthly revenue. Not only will it fully cover your rent, but it will give you a profit of $800 (Php 44,000). This, in a nutshell, is called Rental Arbitrage.

Is Rental Arbitrage allowed in the Philippines?

Condominium apartments mostly comprise the listings on Airbnb Philippines. This entices owners to buy and rent out adjacent units for a steady stream of passive income. However, the comings and goings of short-term renters in the neighborhood are seen as a compromise on the building’s security. Furthermore, some condominium unit owners place a high value on the development’s exclusivity. They view short-term rental as a business that lowers property values.

Some condominium communities have established bylaws that discourage Airbnb lessors within the buildings. One of which is the association prohibiting rent of fewer than 60 days. Since Airbnb monthly rentals in the Philippines rarely meet this condition, this restriction prevents short-term rental operations from taking place at all.

The Condominium Act of 1966 governs the legal relationships between developers and condominium unit owners. The act spells forth the rights and responsibilities of a condominium unit buyer, as well as the authorities of the condominium association or company that oversees the project.

Owners who do not support Airbnb business miss a very important point. The Act clearly grants condominium unit owners the right to ownership, which allows them to lease their units to any renters as part of their ownership rights.

The Act only grants the building management’s corporate functions, which only cover “common areas…project management, and such other purposes as may be required, incidental, or convenient to the fulfillment of said purposes.” While condominium associations can justify prohibiting short-term rental operations on the grounds of building security, these concerns are not at all significant and cannot encroach on any individual’s right to ownership. As long as you Airbnb business permit in the Philippines, your short-term rental business is legal to operate.

How To Start Rental Arbitrage in the Philippines?

1. Convince the landlord

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

Points to tell an indecisive landlord.

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

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

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

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

Pros and Cons

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

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

How Much Can I Make from Rental Arbitrage in the Philippines?

Airbtics’ data confirm that an Airbnb host in Manila, particularly in Makati City, can earn an average nightly rate of $49 or approximately Php 2695. This is by operating a 2-bedroom apartment/flat alone! Airbnb hosts are expected to generate an annual revenue of $6,166 (Php 339,130) with a steady occupancy rate of 34%.

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

You can expect to spend anywhere between Php 165,000 ($3,000) to 275,000 ($5,000). This cost includes deposit, furnishing, amenities, legal paperwork, and LLC incorporation.

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

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

Expense 1: Rental Deposits

Expense 2: Furnishing

Ideally, you should aim to lease a place that is semi-furnished. Furnishing a place from scratch can add anywhere from Php 165,000 to Php 275,000 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 CW Home Depot and IKEA. Sometimes even Puregold can have a hidden gem if you look closely.

Expense 3: Photography

Expense 4: Cleaning Services

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

If you have no experience or you don’t want to invest time in cleaning a place, then your best bet will be to hire a professional cleaner. This can cost you anywhere from Php 2,500 to Php 8,000 depending upon the size and location.

Expense 5: Legal Consultation

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

Best areas for Rental Arbitrage Philippines

1. Dasmariñas

According to Airbtics Dashboard, Dasmariñas is the top market to start your rental arbitrage business. There are more than 47 Airbnb listings with 390 private rooms properties and 267 one-bedroom properties. The annual revenue for most properties is more than $1,183 or Php 65,065 with occupancy being more than 9%.

2. Maharlika Village

According to Airbtics Dashboard, Maharlika Village is the second-best market to start your Rental Arbitrage business. There are more than 23 Airbnb listings with 438 private rooms properties and 746 one-bedroom properties. The annual revenue for most properties is more than $1,023 or Php 56,265 with occupancy being more than 5%.

Conclusion

In summary, rental arbitrage in the Philippines 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 landlords without spending millions.

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

Tags Airbnb Rental Arbitrage, lat_14.3270819, lng_120.9370871

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Las Vegas

Post author By Shivam Kaushik
Post date September 30, 2021

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

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

What is Rental Arbitrage?

Can you do Airbnb Arbitrage in Las Vegas?

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

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

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

Legality and Regulations in Las Vegas

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

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

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

How do I get my first Airbnb arbitrage?

1. Convince the landlord

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

Points to tell an indecisive landlord.

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

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

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

Pros and Cons

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

Pros

- No purchase of property required
- Low upfront costs
- Opportunity to repeat and scale easily
- Generate profit for other investments or business

Cons

- Invest money and time in furnishing the property

AIRBNB OCCUPANCY RATES IN US CITIES?

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

How much does it cost to start arbitrage?

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

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Expense 4: Cleaning Services

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

Expense 5: Legal Consultation

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

Best areas for Rental Arbitrage Las Vegas

1. Henderson

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

2. Charleston Preservation

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

Conclusion

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

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

Tags Airbnb Rental Arbitrage, lat_36.1672559, lng_-115.148516

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Texas

Post author By Shivam Kaushik
Post date September 28, 2021

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Introduction

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

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

What is Rental Arbitrage?

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

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

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

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

Is Rental Arbitrage legal in Texas?

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

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

Short-term rental restrictions in Austin

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

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

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

How to start rental arbitrage in Texas?

1. Convince the landlord

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

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

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

Points To Tell An Indecisive Landlord:

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

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

2. Ensure the property and gain the landlords’ trust

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

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

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

Pros and Cons

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

Pros
- No need to own, invest, or purchase a property
- Low upfront costs
- Higher chances to repeat and scale easily
- Generated profit can be used for other investments or businesses
Cons

- Invest money and time in furnishing the property

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

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

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

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

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

Expense 1: Rental Deposits

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

Expense 2: Furnishing

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

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

Expense 3: Photography

Expense 4: Cleaning Services

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

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

Expense 5: Legal Consultation

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

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

How much do Airbnb hosts make in Texas?

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

Best areas for Rental Arbitrage Texas

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

1. OAK LAWN

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

2. DOWNTOWN AUSTIN

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

Conclusion

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

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

Tags Airbnb Rental Arbitrage, lat_30.2680536, lng_-97.7447642

🎉 FREE WEBINAR - July 24th, 11am / 8pm CET - Learn Airbtics in 7 Minutes - Revenue and Market Analysis Tips and Best Practices!

What is Rental Arbitrage?

Things to do before getting started?

How to convince the landlord

Points to tell an indecisive landlord.

Ensure the Property and Gain landlords’ trust

Pro’s and Con’s

The initial cost of starting Rental Arbitrage Seattle?

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Expense 4: Cleaning Services

Expense 5: Legal Consultation

Legality and Regulations in Seattle

License Criteria

Tax certificate for a business license

Operator’s license for STRs

Ordinance on Rental Regulation and Inspection (RRIO)

License for a bed and breakfast operator

Taxes on the local level

Use of the land

Code of the Building and Construction Industry

Best areas for Rental Arbitrage in Seattle

1. Wallingford

2. Ballard

Introduction

What is Rental Arbitrage?

Is Airbnb legal in San Antonio?

2 Types of Short-Term Rentals in San Antonio:

Requests for permits

How do I get into rental arbitrage?

1. Convince the landlord

Points to tell an indecisive landlord.

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

Pros and Cons

Pros

Cons

How much does it cost to start arbitrage?

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Expense 4: Cleaning Services

Expense 5: Legal Consultation

Best areas for Rental Arbitrage San Antonio

1. Tobin Hill

2. Mission del Lago

Conclusion

What is Rental Arbitrage?

Things to do before getting started?

How to convince the landlord

Points to tell an indecisive landlord.

Ensure the Property and Gain landlords’ trust

Pro’s and Con’s

The initial cost of starting Rental Arbitrage Philadelphia?

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Expense 4: Cleaning Services

Expense 5: Legal Consultation

Legality and Regulations in Philadelphia

License for Commercial Activity

Permits

Demands for housing

Install carbon monoxide alarms

What you must tell your tenants

Record-keeping

Hotel Tax in the City

Best areas for Rental Arbitrage Philadelphia

1. Old City

2. Fish Town

What is Rental Arbitrage?

Things to do before getting started?

How to convince the landlord

Points to tell an indecisive landlord.

Ensure the Property and Gain landlords’ trust

Pro’s and Con’s

The initial cost of starting Rental Arbitrage Orlando?

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography