Are you interested in achieving financial independence through passive income? Here’s a disclaimer: you don’t need to own a property to start the Airbnb rental arbitrage business!
In this article, we featured the entire process of Airbnb rental arbitrage in Kissimmee, its profitability, along with the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!
What is Rental Arbitrage?
Rental Arbitrage is a perfect way to start an Airbnb business with no money. By convincing landlords to lease you a property, you can furnish and sublease it on Airbnb and VRBO. No need for you to buy a property.
It is perfectly legal and is a proven scalable business model. In my podcast, I have spoken to various entrepreneurs doing Airbnb arbitrage full-time.
Here’s a proof! In Kissimmee, David manages 20 listings and there’s a huge possibility that he doesn’t own all the properties. He has made $1,123,639 in the last 12 months.
Is Rental Arbitrage Profitable in Kissimmee?
Before you dive in and start putting out your hard-earned money on a property, it’s important to know how much profit you can make. For instance, the best neighborhood to invest in is Bella Vida, which is popular due to its close proximity to universal theme parks and various chic restaurants.
Using Airbtics’ income generator, you can easily discover that rental arbitrage in Kissimmee is profitable.
Profit & Monthly Expense in Kissimmee
Based on Airbtics’ data, you can earn a whopping $3,428 per month for a 3-bedroom apartment in Bella Vida alone. With the data provided, you can certainly tell that investing in a property in Kissimmee is profitable.
Average Rent Price | Airbnb Monthly Revenue | Monthly Expense | Monthly Profit |
---|---|---|---|
$1,899 | $3,428 | $686 | $843 |
Source: Airbtics dashboard
The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses ($3,428 – $1,899 – $686 = $843).
Startup Cost in Kissimmee
Now that you have an overview of how much your monthly expense & revenue, let’s talk about the start-up cost. How long does it take for an investor to get back the startup cost? Let’s take a look at this calculation:
Total Startup Cost (Average startup cost + 2 months rent price) | Cash Return Time |
---|---|
$5,798 | 7 months |
The average estimated startup cost (for furnishing) in Kissimmee is around $2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price ($3,798). Now that we have a total startup cost of $5,798, cash return time can be calculated by dividing this by the monthly profit ($843).
Given your monthly revenue of $843, it will take approximately 7 months time to get back the startup cost! In such a short period of time, you can already expect profit and consider starting your second unit for rental arbitrage. If this sounds promising to you, then go ahead and look at the other best areas for rental arbitrage in Kissimmee.
Best Areas for Rental Arbitrage in Kissimmee
Before investing in a particular area in Kissimmee, you have to take a look at the top markets and number of listings to set your expectations towards success. Check out the top 3 boroughs in Kissimmee ranked by their annual revenue, along with their occupancy & daily rates!
1. Foxhall
Foxhall offers cozy properties for all kinds of tenants at a very reasonable price. With a few minutes away from famous attractions including Walt Disney World. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Foxhall:
Type of Bedrooms | Average Rent Price | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
---|---|---|---|---|
1 bedroom | $1,295 | $2,088 | 81% | $122 |
2-bedroom | $1,650 | $3,384 | 87% | $135 |
3-bedroom | $1,999 | $3,175 | 90% | $129 |
According to our Airbtics Dashboard, there are more than 12 Airbnb listings with 1 condo property and 3 one-bedroom properties in this area. The monthly revenue for most properties in Foxhall is more than $1,947 per month with occupancy being more than 71%.
2. Bella Vida
Located in the central part of Kissimmee, Bella Vida is a resort community that offers various shopping centres and cafes. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Bella Vida:
Type of Bedrooms | Average Rent Price | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
---|---|---|---|---|
1 bedroom | $1,437 | $2,609 | 82% | $88 |
2-bedroom | $1,565 | $2,285 | 97% | $115 |
3-bedroom | $1,899 | $3,428 | 90% | $158 |
This area has a total of 36 Airbnb listings with 24 private room properties and 1 one-bedroom property. The monthly revenue for most properties in Bella Vida is more than $1,689 per month with occupancy being more than 87%.
3. Bermuda Bay
This neighborhood is ideal for first-time investors in Kissimmee because of its accessibility to major roads. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Bermuda Bay:
Type of Bedrooms | Average Rent Price | Average Airbnb Revenue | Occupancy Rates | Average Daily Rate |
---|---|---|---|---|
1 bedroom | $1,502 | $2,544 | 91% | $78 |
2-bedroom | $1,941 | $2,763 | 90% | $91 |
3-bedroom | $2,160 | $3,343 | 91% | $154 |
This area has a total of 26 Airbnb listings with 3 private room properties and 15 one-bedroom properties. The monthly revenue for most properties in Bermuda Bay is more than $2,570 per month with occupancy being more than 87%.
Short-term rental regulations in Kissimmee
To begin with, it’s certainly important to be familiar with the Airbnb rules in Kissimmee to make sure that your business will run smoothly. Here are some of the short-term rental regulations and laws to take note of:
- Conditional Use Permit may be required. Kissimmee requires many operators of short-term rentals to apply for and obtain a conditional use permit from the City.
- Hosts will also need to apply for and obtain a business tax receipt specific to short-term rentals.
- Kissimmee enforces rules and regulations specifying minimum construction, design, and maintenance standards for buildings, including regulations on habitability, health, and safety based on Florida building codes.
Rental Properties in Kissimmee
To run an Airbnb rental arbitrage in Florida, you can look at property websites and get a grasp of the ranging prices in Kissimmee:
1. Apartments
2. For Rent
How to Find Landlords for Airbnb Rental Arbitrage
Airbnb investment through rental arbitrage is one of the best strategies to have passive income. However, it could be a challenge to find a landlord that allows their property for subletting on Airbnb. You can also convince a landlord by following the rental arbitrage email template & be extra creative!
Here are ways how you can find landlords that allow Airbnb rental arbitrage:
- 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 in the following websites:
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:
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!