Last updated on June 23rd, 2023
Airbnb rental arbitrage is indeed a profitable business for the majority of hosts, however, finding landlords that allow it could be a real challenge. In this article, we featured a rental arbitrage email template that you can follow along with different ways to find & convince landlords for Airbnb rental arbitrage. Continue reading to learn more!
FREE Airbnb Landlord Letter Template:
What is Airbnb Rental Arbitrage?
Airbnb rental arbitrage refers to the practice of renting properties and subletting them on Airbnb. While a few investors would prefer to purchase a property of their own, it’s a fact that not everyone is financially capable to do so. In this case, Airbnb investment through rental arbitrage is the best strategy to earn money!
Various Ways to Find Landlords for Airbnb Rental Arbitrage
By conducting area research and familiarizing yourself with the city’s rules & regulations, you can easily find rental arbitrage properties. However, it might be a struggle to find a landlord who will allow you to put up their property on Airbnb due to various reasons. Oftentimes, they prohibit short-term rentals because the property’s insurance coverage will be voided.
To save you precious time, here are various ways how you can find landlords that will allow Airbnb rental arbitrage:
1. Real Estate Websites
Renters in the digital world who are looking for properties online can easily connect with landlords. Some of the most recommended online real estate websites which allow you to filter by city, state, or ZIP code are:
However, you can also find apartment & condominium properties online on the following websites:
2. Search Engines & Marketplaces
There are numerous property owners who are leasing their properties and you can easily find them on Google & online marketplaces. Check out some of the most recommended marketplaces:
- Craigslist allows renters to specifically state what kind of property they are looking for. You can try typing in ‘landlords allowing Airbnb’ or ‘sublease property in (city name)’ and try other keywords to get you on the right track.
- Facebook marketplace has a vast community of landlords & renters, so you can try joining the right groups to lead you on the right path. Here are some of the finest Facebook groups that you can join:
3. Communicate with Landlords
If you are currently renting a space or know someone who is, then it’s also recommended to speak with them. Start by asking if there are vacant rooms or properties and let them know about your intentions of putting them up for rental arbitrage. They might also be able to recommend neighbors or local friends who are also interested in this idea!
4. Join Online Forums
By signing up for free and joining online forums such as Bigger Pockets and Reddit, it will be easier to find landlords and learn from other hosts. There’s nothing better than hearing the perspectives and experiences of hosts who found and convinced landlords for rental arbitrage!
How to Convince Landlords?
Property owners may not know much about the process of Airbnb rental arbitrage, which is why they need convincing! Here are some of the steps that you can follow to convince landlords:
1. Introduce yourself: Make a Great First Impression!
If you have existing listings on Airbnb, you can let the landlord know how you got started and how much profit you’re making monthly or annually. Given your experience, this will instantly make them feel that you are sincere and have good intentions for their property.
The majority of landlords are hesitant to allow renters because they worry about late payments & destruction of their property, so make sure to show them your reviews and gain their trust!
On the other hand, if you don’t have listings on Airbnb yet, don’t worry! You can still try to convince the landlord by ensuring on-time payments and presenting an Airbnb rental arbitrage contract that you can both agree on.
In addition to this, if your landlord already has listings on Airbnb, then you can try convincing them by letting them know that you intend to run the property as a lucrative business. This way, the landlord won’t have to worry about leasing the property.
2. Let the Landlord know about Airbnb’s Benefits
If the landlord has no idea about rental arbitrage, then they most probably need to learn more about how Airbnb works as well. Let the landlord know that Airbnb offers insurance that covers damages & a $1,000,000 Host Protection Policy.
Most importantly, pitch in about sharing profits & a shared percentage for each booking! Through this, your landlord can yield a higher rent.
3. Write a Rental Arbitrage Email Template
Reach out to a landlord and properly convince them with the following steps:
- Start with a professional introduction & present good intentions:
Warm greetings, {{landlord’s name}}!
My name is {{name}} and I am a professional {{investor/property manager/other appropriate business roles}} based in {{city/state}}.
I found your property for lease on {{website/other sources}} and instantly became interested to lease it for the sole purpose of putting it up on Airbnb.
- Declare an overview of your business. If you currently have listings on Airbnb, it’s also best to state it & provide a link for reference:
“I’ve been in the business industry for {{number of years/months}} and am truly dedicated to earning money as a lucrative income through Airbnb. For your reference, please feel free to check out my listings: ”
{{attach a screenshot from your Airbnb’s listings and review, along with a working link}}
- Introduce Technology to Convince Difficult Landlords. Let the landlord know about your CTA: Saving time & making more money!
I am looking forward to growing my Airbnb arbitrage business in the long run and would like to discuss more about turning your property into a profitable one!
You might be worried about typical concerns such as guests’ excessive noise, damages, or other complaints – don’t worry! I can assure you the following:
1. We’ll use Noise Aware technology to manage the noise level of the property and give you the report on this on a monthly basis.
2. Estimated risks and coverages are calculated using an algorithm calculator called InsuraGuest.
If you’re keen on this, let’s talk about the terms and conditions that we can both agree on.
Looking forward to your response.
Best regards,
{{your name}}
General Conclusion
Landlords that allow subleasing for Airbnb can be easily reached out to with the help of rental listing sites & search engines. On the other hand, the profitability of rental arbitrage is based on a certain number of factors including location, type of amenities, the current market, historical or future trends, and occupancy rates.
Airbtics is dedicated to providing accurate information about specific Airbnb locations in our market research dashboard, such as the average daily rate (ADR), occupancy rate, guest origins, and more! Try Airbtics now and stand out among your competitors.
