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

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

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

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

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

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

What is Airbnb Rental Arbitrage?

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

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

Is Airbnb Arbitrage Legal in Greece?

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

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

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

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

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

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

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

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

Top 5 Profitable Cities for Arbitrage Real Estate in Greece 

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

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

1. Corfu Town

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