Offering your apartment (or a room in your apartment) as a short-term rental on a platform like Airbnb or VRBO could be a great way to make some extra cash. While most people assume they have to own property before building an Airbnb business, you can actually become a host while renting, at least in some situations. This is what’s known as rental arbitrage.
Rental arbitrage, in short, means you rent an apartment, condo, apartment, single-family home, or even a room from a landlord, then list it on sites like Airbnb and VRBO, among others, and collect the difference.
There are three key things to understand in making rental arbitrage work for you.
- You need to know whether your lease allows short-term rentals (STRs), or at least whether it does not explicitly prohibit them
- You need to understand all local regulations that apply to STRs, and
- You need to get your landlord on board
What are Airbnb, VRBO, and other similar sites?
Sites like Airbnb and VRBO are online platforms that provide an alternative to hotels and motels for travelers seeking accommodations. These sites list houses, apartments, condos, and even individual rooms for rent for any number of days..
They essentially provide the listing platform for hosts to market their rental and then charge the property host various fees for bookings made through their platform. As a host, you have control and flexibility over who rents your space and what amenities you include.
Renting out your apartment as a short-term rental can be a great way to meet new people and generate some extra cash so you can possibly travel more yourself. Many guests seek out the Airbnb-type experience because it can be more convenient and personal than conventional hotels and motels.
If your lease allows you to rent your apartment as a short-term rental through sites like Airbnb, you’ll need to make preparations and consider factors like security, parking, and other tenancy terms.
What is Airbnb rental arbitrage?
Airbnb…