Airbnb Arbitrage explained

How Airbnb arbitrage works and how to get started

Basics of Airbnb Arbitrage

Airbnb Arbitrage is when you rent a property from a landlord and then sublease that property on Airbnb with their permission. As you list it on Airbnb and begin to start taking bookings you profit the difference from the rent and what you make on airbnb.

Lets take a look at some numbers

Let’s say you decide to rent a property for $1,500 a month. You decide to rent that property for $250 a night on Airbnb. By having guests occupy that airbnb for 8-10 nights a month, that’s $2,000-$2,500. After paying your rent you profit $500-$1,000 or more depending on your occupancy rate

Operational Cost

Some operational costs to consider when considering becoming a airbnb host are

professional cleaning

snacks

furniture

Wifi & Tv

Utilities

How much to get started

Starting an Airbnb business incurs varying costs depending on factors such as location, property type, and target audience. Renting out a house or apartment involves additional expenses, including redecorating and furnishing. Creating a unique and cozy atmosphere is essential to compete with other hosts, with an estimated cost of $1,500 per bedroom and an additional $2,000 to $3,000 for common areas. Balancing durability and comfort is crucial in preparing the property for short-term rental.