Arbitrage leasing is a real estate investing strategy that involves leasing a property from a landlord and renting it out on apps like Airbnb and VRBO³. It's also called rental arbitrage¹. This strategy focuses on buying rental properties at the right price to generate cash flow from them¹. You rent an apartment or home at the market rate on a long-term basis, then market it to vacationers and temporary guests at a higher rate per night or month³.
The goal of arbitrage leasing is to make a profit by renting out a property for more than you pay in rent². This can be done by finding properties that are undervalued or underutilized and then renting them out for more than you pay in rent². The key to success with this strategy is finding properties that are in high demand and that can be rented out for more than you pay in rent².
Arbitrage leasing can be a great way to make money in real estate without having to own any property². However, it's important to note that this strategy comes with risks³. For example, if you're unable to rent out the property for as much as you're paying in rent, you could end up losing money³. Additionally, if you're unable to find renters for your property, you'll be stuck paying rent on an empty apartment or home³.
It is important to do your research and understand the risks involved before getting started. Thunderbird Law, PLLC can assist individuals or companies looking to draft an arbitrage lease with property owners. There are many considerations in preparing such a lease and researching local regulations or HOA covenants.
If you are looking for assistance in drafting an arbitrage lease in Arizona contact Thunderbird Law, PLLC at 480-455-3520 today.
(1) Airbnb Arbitrage Guide (2023) | PropertyClub. https://propertyclub.nyc/article/airbnb-arbitrage Accessed 4/7/2023.
(2) Rental Arbitrage: Airbnb, Vrbo, and Homeaway Strategies. https://topdollarinvestor.com/rental-arbitrage-properties/ Accessed 4/7/2023.
(3) Rental Arbitrage: $200k in Profit Without Owning Any Property. https://www.sidehustlenation.com/rental-arbitrage/ Accessed 4/7/2023.