Rental arbitrage is a business model where hosts rent a property long-term then sublet short term through advertisements on platforms like Airbnb, VRBO, or Homeaway. It's a way to operate a short term rental “STR” business and earn passive income through real estate without actually owning a property.
Traditional real estate investments can be capital intensive (down payment, financing a loan, monthly mortgage payments, maintenance and repairs, homeowner's insurance, property taxes). With arbitrage, all you need to do is pay your first months rent, pay the damage/security deposit, and cover start up costs to get your property ready.
Again, you don’t own the property, so let's say the roof needs to be replaced or this is a major plumbing issue, that's on the landlord. Landlords have to pay multiple expenses, whereas a rental arbitrage host only has one fixed monthly rental rate (and maybe utilities).
In order for your business to succeed and exponentially grow, you need to integrate automated services to be scalable. After set up, your business will be automated so you could have multiple properties in different states, without the need to be on site.
If you make the right decisions about location and your marketing strategy, STR is way more profitable than a long term renter.
In February 2022, I was scrolling instagram when I found a real estate enthusiast who was fixated on rental arbitrage (renting a property then subletting with property owner’s permission). He said he was clearing 1 million a month, without owning any property and I was absolutely mind blown. Over the next few days, I scoured the internet for all things rental arbitrage by watching youtube videos, listening to podcasts, ordering books, and following new gurus on social media. I also completed an introductory course. Then, I created my LLC and overnighted business cards.
Within days, I got my first “yes” from a landlord and secured my first lease. Within 8 months, I bought my own property to rent short term on AIRBNB. After eight more months, I got another arbitrage property. Two months later, I secured another arbitrage property. And most recently, I added property management to my portfolio.
I currently manage 5 AIRBNBs in two different states. I’m aN AIRBNB Superhost and VRBO Premiere Host with 400+ five star reviews. IN NOVEMBER 2024, I surpassed 1 million in revenue AFTER ONLY 2.5 years.
But, I also want you to benefit from this lucrative business model so I created a step-by-step guidebook teaching you how to get started with your first AIRBNB. Introducing The AG Method, Amanda’s Guide to Arbitrage Gains.
Corporate Lease Breakdown: Why I recommend signing your lease and operating under an LLC, Setting up LLC, Business, Bank Accounts, Building Business Credit; Breakdown of Start Up Costs to Expect
The Landlord Talk and Business Pitch: Making Initial Contact, my exact script for my business model pitch with landlords of prospective properties and how to overcome their common objections.
The Lease: What to look for on a lease agreement and an editable corporate short term rental lease agreement with addendum for clarification as to your business practices. I am not an attorney, however, I have been working in the field of investigating, regulating and reviewing legal contracts for years.
Set Up: Check in/Check Out Process, STR essentials checklist, a customizable welcome sign as well as recommendations on furnishing and decorating on a budget.
Research Overview: Finding your property, projecting numbers for profit with your editable Excel calculator based on rent, costs and occupancy rate, overview of city regulations and laws as well as occupancy tax requirements
What Will You Learn?
Optimize and Boost: How to create a listing that is priced to book immediately; best practices for how to run comps, price your listing, photograph unit, boost algorithm on your advertisement site and get to the top of the search page.
How to Automate/Set Up Services/Scale/Staying Organized: Keyless Entry, Cleaning, Renter's Insurance, Handyman, Management, Tax Overview
The Process
This is a comprehensive step-by-step guide to start and run your Airbnb business. It includes research and prep guidance, business pitch teachings, links to necessary websites, recommended products to effectively run your business, templates, scripts, drafted leas agreement, profit calculator, checklists, a welcome sign, and so much more!
This short term rental lease agreement is an editable digital download intended to protect you, your business, the sub-tenants and the landlord's property. This lease is specific to those who operate their short term rental under their LLC, therefore signing a corporate lease agreement (what is taught in my course). The lease agreement and addendum clarifies the tenant’s intention with the property and acknowledges that the property owner understands that he/she is authorizing the tenant (LLC) to sub-lease as a short term rental.
Please be advised, I am NOT an attorney, however, I’ve worked within the field of investigating, regulating, and reviewing legal contracts for years. The information provided is for informational and educational purposes. It does not constitute legal, financial or tax advice. This lease also does not promise liability coverage. You assume the sole responsibility of relying on this information at your own risk. This document may not be reproduced or used in any manner without written permission from the owner.
"There is so much amazing, helpful information, loads of content, and laid out so well! Highly recommend for anyone wanting to dabble in this market, everything you need in one spot!"
- CRYSTAL S.
This AirBNB guidebook is amazing and worth every penny! This is easily over $500 value. I’ve seen courses that charge thousands and you don’t get half of what this guidebook offers. First off, I love that it’s clear, organized and easy to read. You literally get EVERYTHING you need to get started and maintain/scale after (guidance on establishing LLC, setting up my business accounts, researching and finding a profitable property with an excel spreadsheet to run numbers, scripts for how to communicate with landlords to get a yes, a complete corporate lease agreement you can edit, step by step guidance on how to create airbnb account/settings with every section for your listing build out, and every detail in between). I also love how the course comes with lifetime access to a Facebook group where you can ask follow up questions.
- nicky
This guide is awesome ! It’s like teaching a baby how to walk 💯 Thank you Amanda! Just got my first yes !
- tophaa
Love this guide! My husband and I really enjoyed going through it together. Super easy to follow and amazing information making it easy for someone with zero knowledge on this subject to be successful. Cannot wait for our first rental arbitrage property to launch!
- erica s.
