What is Rental Arbitrage?
Rental Arbitrage is a method similar to house hacking, however, the only difference is that you don’t own the house. Instead, you convince a landlord to lease you a property that will be furnished and subleased on Airbnb and VRBO.
Rental Arbitrage is a smart technique to earn money in any type of property including multifamily houses, duplexes, or triplexes. You can easily use the money from your short-term rental to pay off your lease and profit some more. If you own a duplex or triplex then it is pretty straightforward and easy. You can live in one section and rent out the other – which is also known as house hacking. People use this after taking a loan on a property and use the rent to pay off the mortgage. The short-term rental income helps you pay for the long-term lease that you have on the house. This helps you keep the difference at the month-end after paying for the long-term lease.
If you have recently secured an awesome house contract deal for the first time and would like to check if there are other legal templates that you can present, then this article is for you! Keep reading to learn more about various agreement templates with free downloadable links:
Simple One Page Lease Agreement
LEASE AGREEMENT
This Agreement is made by and between:
Landlord/Lessor Tenant/Lessee
{{name}} {{name}}
This is to certify that I, (name), landlord/lessor agrees to lease my property located in:
{{ Full address, eg: 34th Street, French Village, New York City, NY, United States }}
The lease period shall be for {{TIME, 1 year}}, starting on {{DATE: Thursday, July 7,2022}} and shall end and may be renewable {{TIME, 1 year}} thereafter, on the agreed amount of {{$}} to be paid {{monthly/annually}}, and the amount of {{$}} to be paid upon the execution of this agreement.
TERMS AND CONDITIONS
1. Use of Property
The Property leased shall only be used for short term let purposes.
2. Utilities
The Tenant agrees to pay for the utilities and other services used in the property on the continuity of the lease of the Property.
3.Furnishings
The leased premises contains the following property furnishings: 8 cubic feet Refrigerator, gas stove, microwave oven, dishwasher, fully automatic washing machine, telephone. Damages and repairs shall be borne by the tenant.
4. Acknowledgment
The parties hereby acknowledge and understand the terms herein set forth in this Agreement. Signed on this {day} day of {month}, {year}.
Landlord/Lessor Tenant/Lessee
{{name}} {{name}}
__________ __________
House Rental Agreement
| Landlord Information | Tenant Information |
|---|---|
| {{name}} | {{name}} |
| {{address}} 95 Barby Point, 732 Miller Road Denton, Texas, 76205 United States | {{email}} [email protected] {{phone number}} +58 (47) 794-2199 |
| {{phone number}} +58 (47) 794-2199 | {{number of occupants}} |
| Rental Information | |
|---|---|
| {{name}} | {{name}} |
| House Rental Address | Rent Amount per month |
| {{address}} | {{$$$}} |
| Start Date of Agreement {{date}} | Security Deposit {{$$$}} |
| End Date of Agreement {{date}} | Late Charges {{$$$}} |
| Date of First Payment Due {{date}} | Payment Method {{Option 1}} |
| Pay Period {{date}} | Collected by {{name}} |
TERMS AND CONDITIONS
This House Rental Agreement made on {dateOfExecution} between {LandlordName} (Landlord) and the {TenantName} (Tenant).
I. ACKNOWLEDGMENT
The Landlord agrees to rent the house to the Tenant under these terms in its present condition located at
{HouseRentalAddress}
The Tenant acknowledges the terms of this Agreement and complies.
II. AGREEMENT TERM
This House Rental Agreement will begin on {StartDate} and end on {EndDate}. After this, a renewal agreement will be created for the new term.
III. MONTHLY RENTAL
The monthly rental shall be {RentAmount} per month.
Payments will be made by {PaymentMethod}.
The monthly rental shall be collected by {CollectedBy} {payPeriod}.
If the tenant failed to pay within {number of days} after the due date, late charges of {LateCharges} will be applied.
IV. SECURITY DEPOSIT
The Tenants agree to pay a security deposit if {SecurityDeposit}.
The Security Deposit is to be refunded upon leaving the residency, terminating this contract, and returning the keys to the Landlord.
The Security Deposit will cover for any damage to the premise.
This Security Deposit will also cover in case the Tenant fails to pay the utility bills.
V. UTILITY
Tenants will be responsible for paying all utilities like electricity, water, gas, telephone, cable, and internet.
VI. MAINTENANCE AND DAMAGES
Tenant shall keep the premises in good condition.
The Tenant will be responsible for any damage caused which means the Tenant will should all the expenses in fixing it.
Tenants shall follow reasonable standards of cleanliness.
Written permission from the landlord is needed for any alterations.
The Landlord may enter the premises for the purposes of inspection, repair, maintenance, and emergency.
VII. OCCUPANCY
The number of occupants is limited to {NumberofOccupants}. It will only be occupied by the Tenant and his/her guests will have to be registered & pay {tourist tax or any fees applicable}.
VIII. RULES and REGULATIONS
Pets are not allowed on the premises. Smoking is prohibited on the premises.
IX. PEACE AND ORDER
Tenants are not allowed to keep firearms, bows, combat knife and other weapons on the premises.
Tenants agree not to use the premises in a way to disturb the peace in the neighborhood.
X. ABANDONMENT
If the Tenant abandons the house, the Landlord has the right to enter the house by any means without liabilities.
The Landlord is allowed to presume that Tenant abandoned the premise if the furniture and other items were removed.
If the house is unoccupied for a period of {number of days} consecutive days without written notification to the Landlord, it will be considered as abandonment.
XI. AMENDMENTS
This Agreement can only be changed or modified through the written consent of both parties.
XII. GOVERNING LAW
This agreement shall be governed under the laws of the {HouseRentalAddress:country}.
We, the undersigned, hereby agreed that we have read this agreement and bounded by its terms and conditions.
Landlord/Lessor Signature Tenant/Lessee Signature
{{name}} {{name}}
Rental Agreement
LEASE AGREEMENT
ACKNOWLEDGMENT
This agreement was made and executed on {Agreement Date}.
Below are the parties involved in acknowledging this agreement:
| TENANT INFORMATION | LANDLORD INFORMATION |
|---|---|
| {Name} | {Name} |
| {Phone Number} | {Phone Number} |
| {Email Address} | {Email Address} |
The address of the rental property is: {(rentalProperty:addr_linel), (rentalProperty:city), (rentalProperty:state), (rentalProperty:postal}.
TERM / PERIOD
The Rental period will be on {date} at {time} and it will end on {date} at {time}. If the tenant wishes to extend, a new agreement will be created.
PAYMENT
The rental amount will be {Rental Amount}. Payments will be made by {Payment Method}. The rental payment will be collected by {name}. The reservation fee is {amount}.
SECURITY DEPOSIT
The tenant agrees to pay a security deposit of {initial amount}. This will be refunded when the tenant leaves the property or when this agreement is terminated. This will be used to cover any damage to the property as necessary.
OCCUPANCY
Electricity, water, gas, telephone, cable, and internet connection {add other utilities that are applicable} will be covered by the landlord. The tenant is responsible for taking good care of the furniture and appliances. The tenant will pay for any repair or replacement if any equipment was damaged during their stay.
MAINTENANCE, PEACE & ORDER, AND OTHERS
- The tenant should follow and implement the standard of cleanliness to the property.
- The tenant should keep the property in good condition.
- Pets are {allowed / prohibited} in the rental property.
- Smoking is {allowed / prohibited} in the rental property.
- The tenants are not allowed to keep firearms, bows, and other weapons in the rental property.
- The tenants agree not to use the property in a way to disturb the peace in the surroundings or environment.
- The tenant’s personal property is not covered in the insurance purchased by the landlord against loss, theft, and negligence.
INDEMNIFICATION
The tenant indemnifies the landlord and the property free and harmless against any liabilities like accidents, loss of property, injury, or death of any person.
AMENDMENT
This agreement can only be changed or modified with written consent or permission from both the landlord and the tenant.
GOVERNING LAW
This agreement shall be governed under the laws of the State of {rentalProperty:state}.
The undersigned, hereby agreed that both parties read the agreement and acknowledge it.
_____________ _____________
Tenant Landlord
{name} {name}
CONCLUSION
Now that you have an overview of various rental arbitrage contracts, it’s important to conduct a market research to skyrocket your cash return in the business! Market research is highly valuable as it has the potential to earn a substantial profit because data = knowledge.
You can use data to identify the cause of problems and predict future trends using an Airbnb calculator. This will help you to make informed decisions and implement evidence-based strategies for your rental arbitrage business.
Other than having the determination to succeed in rental arbitrage, it’s important to assure that you understand data is one of your strongest assets!
As an Airbnb host in the new normal setup, you have to expect that most guests would look for their safety and security during their stay. You might want to consider having the following sanitation and safety amenities at hand:
