What is Rental Arbitrage?

Rental Arbitrage

HOW TO MAKE MONEY ON AIRBNB WITHOUT OWNING PROPERTY

What is rental arbitrage?

Rental Arbitrage is an innovative model that entrepreneurial minded people have begun using over the past few years to make cash flow on Airbnb with no (or little) money, no credit and no property!

I myself take advantage of this opportunity and currently operate four Airbnbs in the city of Buffalo, NY. An Rental Arbitrage, also known as or Airbnb arbitrage or Airbnb rerental as I often call it, is the act of renting an apartment, furnishing it and then listing and operating the property as a short-term rental on platforms such as Airbnb. Of course you must do this with the property owners full knowledge and understanding or risk getting evicted from your rental. I started my first rerental a little over a year ago at 21 years old and have been having a blast growing this as my first real business.

I will share some numbers with you guys on my latest rerental to give you an idea of what you could make with an Airbnb Rerental.

My latest property is in a central location in Buffalo which grossed just under $2500 in its first full month on Airbnb (September of 2019). It was booked 26 out of 30 nights with 12 different reservations. It is a 1 bdrm/1 bath that sleeps 2 people. After the apartment is set up I can for the most part run the whole operation from my phone to communicate with guests and cleaners. I utilize some automated messages for guests and send some messages manually. I have cleaners’ schedules automatically updated to their google calendars.

Gross Profit: $2447

Expenses:

Rent: -$950 (Includes Utilities)

Cleaners: -$444 ($37 per cleaning, $30 for cleaner, $7 for laundromat service)
Cleaning Supplies: -$50
Wifi: -$50
Insurance: -$50 (Specific Insurance for Short-Term Rentals)
3rd party Airbnb software: -$8.50 ($34 per month/4 rerental properties)

Total Expenses: $1552.50

Net Profit: $894

Nearly a thousand dollars a month in mostly passive income is nothing to scoff at. In fact, I net more cash flow than even my Landlord (who still has to pay utilities out of my rent)! And this is a system that can be repeated over and over again and automated to a tee. The Landlord of this property is even looking to give us more units because we are better than most any tenant. We pay rent on time, willing to pay a little higher rent than market value and we have the place professionally cleaned and staged between each stay. We are just as incentivized as the property owner to keep the place in good order! It is much better than your average owner-tenant relationship. If you are an entrepreneurial minded person or someone who is just looking for an extra side revenue source this is a serious business model to consider.

Photos of my latest Airbnb Rerental: 

Living Room

Painted an awkward wall with chalkboard paint and had a friend draw some amazing designs and recommendations for the local area.

Bedroom

Kitchen

Bathroom

Buffalo, NY



Thank you for reading! This is my first blog post and I will continue to make more posts about Airbnb Rerentals to teach others how to start their own rental arbitrage business!

I will also be making more posts about general Airbnb, Real Estate, and entrepreneurship in the future! Here are some links where you can find me in the meantime.

Here is a link to all 4 of my Airbnb listings:

https://www.airbnb.com/wishlists/621381127/join?invite_code=VJCQHFTD&inviter_id=172444411

Follow my new page on Instagram for more information and daily Airbnb tips/updates:

https://www.instagram.com/airbnb_rerental/

My ebook on Airbnb Rerentals is coming soon! Title below:

Airbnb Rerentals: How to make cashflow on Airbnb with no money, no credit and no property!

Written by: Christian Bauman