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Rental Arbitrage Real Estate in Greece

Last updated on January 1st, 2024

Rental Arbitrage Real Estate in Greece: Set sails and embark on the journey of arbitrage real estate in Greece – a clever tactic for creating passive income without the need for significant initial capital!

Rental Arbitrage Real Estate in Greece

arbitrage real estate greece

Rental Arbitrage Real Estate in Greece

Set sails and embark on the journey of arbitrage real estate in Greece – a clever tactic for creating passive income without the need for significant initial capital!

Rental Arbitrage Real Estate in Greece

Key Takeaways

  • 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.

arbitrage real estate greece

Profit & Monthly Expenses in Greece

According to Airbtics’ data, you can earn up to €2,721 per month for a 2-bedroom apartment in Athens alone. So you can expect that investing in a property in Greece can secure a positive cash flow.

airbtics-logo-300x87
Average Rent Price (2 BR) Airbnb Monthly Revenue Monthly Expense Monthly Profit
€500 €2,721 €544 €1,677

Average Rent Price (2 BR)

€500

Airbnb Monthly Revenue

€2,721

Monthly Expense

€544

Monthly Profit

€1,677

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses (€2,721 – €500 – €544 = €1,677).

airbnb arbitrage nz

Startup Cost in Greece

After getting an overview of your monthly expenses and revenue, let’s shift our focus to startup costs. Here’s the big question “How long does it typically take an investor to recover the startup cost?”. Let’s go straight to the point and take a look at this calculation:

airbtics-logo-300x87
Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
€3,000 2 months

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.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €550 €2,582 €3,100 €1,516 2 months
2-BR €750 €3,051 €3,500 €1,691 2.1 months
3-BR €900 €4,332 €3,800 €2,566 1.5 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €500
  • Average Airbnb Revenue: €2,582
  • Startup Cost: €3,100
  • Monthly Profit: €1,516
  • Cash Return Time: 2 months

2 Bedrooms

  • Average Rent Price (Monthly): €750
  • Average Airbnb Revenue: €3,051
  • Startup Cost: €3,500
  • Monthly Profit: €1,691
  • Cash Return Time: 2.1 months

3 Bedrooms

  • Average Rent Price (Monthly): €900
  • Average Airbnb Revenue: €4,332
  • Startup Cost: €3,800
  • Monthly Profit: €2,566
  • Cash Return Time: 1.5 months

2. Rhodes Town

The enchanting Rhodes Town combines history, medieval architecture, and a lively atmosphere that could make anyone fall in love with this destination. Additionally, its striking natural landscapes, strong tourist market, and Mediterranean quality of life add attractiveness for those looking to invest in real estate in a lovely city in Greece.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €450 €2,050 €2,900 €1,190 2.4 months
2-BR €800 €2,876 €3,600 €1,501 2.4 months
3-BR €900 €3,749 €3,800 €2,099 1.8 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €450
  • Average Airbnb Revenue:
    €2,050
  • Startup Cost: €2,900
  • Monthly Profit: €1,190
  • Cash Return Time: 2.4 months

2 Bedrooms

  • Average Rent Price (Monthly): €800
  • Average Airbnb Revenue:
    €2,876
  • Startup Cost: €3,600
  • Monthly Profit: €1,501
  • Cash Return Time: 2.4 months

3 Bedrooms

  • Average Rent Price (Monthly): €900
  • Average Airbnb Revenue:
    €3,749
  • Startup Cost: €3,800
  • Monthly Profit: €2,099
  • Cash Return Time: 1.8 months

3. Chania

The charming city of Chania is a popular tourist destination in Crete, thanks to its distinctive history, Venetian architecture, and natural beauty. With a strong rental market, real estate market growth potential, and relatively affordable housing prices, Chania offers reasonable investment opportunities!

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €600 €2,026 €3,200 €1,021 3.1 months
2-BR €850 €2,675 €3,700 €1,290 2.9 months
3-BR €950 €3,545 €3,900 €1,886 2.1 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €600
  • Average Airbnb Revenue: €2,026
  • Startup Cost: €3,200
  • Monthly Profit: €1,021
  • Cash Return Time: 3.1 months

2 Bedrooms

  • Average Rent Price (Monthly): €850
  • Average Airbnb Revenue: €2,675
  • Startup Cost: €3,700
  • Monthly Profit: €1,290
  • Cash Return Time: 2.9 months

3 Bedrooms

  • Average Rent Price (Monthly): €950
  • Average Airbnb Revenue: €3,545
  • Startup Cost: €3,900
  • Monthly Profit: €1,886
  • Cash Return Time: 2.1 months

4. Thessaloniki

Nestled on the shores of the Aegean Sea, Thessaloniki is an important city that blends its ancient history with modernity. Considering its steady economic growth, the presence of diverse cultural and educational institutions, and the significant historical heritage that attracts tourists, this city is a great destination for short-term rentals.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €450 €1,509 €2,900 €757 3.8 months
2-BR €570 €1,908 €3,140 €956 3.3 months
3-BR €700 €2,353 €3,400 €1,182 2.9 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €450
  • Average Airbnb Revenue: €1,509
  • Startup Cost: €2,900
  • Monthly Profit: €757
  • Cash Return Time: 3.8 months

2 Bedrooms

  • Average Rent Price (Monthly): €570
  • Average Airbnb Revenue: €1,908
  • Startup Cost: €3,140
  • Monthly Profit: €956
  • Cash Return Time: 3.3 months

3 Bedrooms

  • Average Rent Price (Monthly): €700
  • Average Airbnb Revenue: €2,353
  • Startup Cost: €3,400
  • Monthly Profit: €1,182
  • Cash Return Time: 2.9 months

5. Athens

Athens is widely known for its cultural, economic, and political importance. Moreover, it attracts a great influx of tourists yearly! The tourism sector’s growth and urban development projects, coupled with relatively low living costs compared to other European cities, offer attractive investment opportunities to property investors.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €600 €1,431 €3,200 €545 6 months
2-BR €800 €1,989 €3,600 €791 5 months
3-BR €1,100 €3,082 €4,200 €1,366 3.1 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €600
  • Average Airbnb Revenue: €1,431
  • Startup Cost: €3,200
  • Monthly Profit: €545
  • Cash Return Time: 6 months

2 Bedrooms

  • Average Rent Price (Monthly): €800
  • Average Airbnb Revenue: €1,989
  • Startup Cost: €3,600
  • Monthly Profit: €791
  • Cash Return Time: 5 months

3 Bedrooms

  • Average Rent Price (Monthly): €1,100
  • Average Airbnb Revenue: €3,082
  • Startup Cost: €4,200
  • Monthly Profit: €1,366
  • Cash Return Time: 3.1 months

How to Find Landlords for Airbnb Rental Arbitrage?

Investing in Airbnb rental arbitrage can be an excellent strategy for generating passive income. Yet, it may not be easy to find a landlord who permits subletting on Airbnb because only a few of them know about the process of rental arbitrage or are not fond enough of this business model. Thus, to convince a landlord, you must involve proactive and strategic efforts to explore this mutually beneficial opportunity. We also recommend using our rental arbitrage email template to add more creativity to your proposal!

Here are some ways that you can use to identify potential landlords for your Airbnb arbitrage in Greece:

  • Real Estate Platforms: Search for real estate platforms in NZ such as xe.gr, spitogatos, spiti24, or other websites to explore available rental properties and contact landlords.
  • Real Estate Agents: Establish connections with real estate agents who possess insights into possible rental properties in your target market as they can connect you with potential landlords.
  • Social Media & Networking: Don’t be shy and join online forums and communities centered around real estate in your chosen location. Platforms like BiggerPockets can offer valuable networking opportunities.

Additionally, ensure your interactions with landlords are conducted professionally and be ready to address any concerns they may have about subletting. 

Seizing Golden Opportunities: The Lucrative Landscape of Rental Arbitrage in Greece

arbitrage real estate greece

In summary, rental arbitrage real estate in Greece presents an enticing opportunity for investors looking to enter the short-term rental market with minimal initial capital investment. The potential profitability of subletting in Greece, especially in cities like Athens, Chania, Rhodes Town, Corfu Town, and Thessaloniki, underscores its viability as a lucrative venture. 

But to succeed in this venture, identifying landlords willing to engage in Airbnb subletting is crucial. Utilizing real estate platforms, collaborating with agents, and leveraging social media can aid in establishing connections and presenting the benefits of this mutually advantageous arrangement.

As you delve into the rental arbitrage world, reliable platforms like Airbtics can be valuable in evaluating market conditions, estimating potential revenue, and making informed investment decisions. This kind of comprehensive data can help entrepreneurs navigate the dynamic landscape of short-term rentals in Greece, ultimately contributing to the success and sustainability of their Airbnb ventures!

Explore More Profitable Locations in Greece!

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