How To Find Rental Arbitrage Properties? [5 Ways]

Airbnb is a great way to rent out properties on a short-term basis around the globe. 

Many hosts think they need to buy and own property to get into the short-term rental, but this is not the whole truth. You can indeed earn from Airbnb without owning a property. 

One way to do so is rental arbitrage—lease a property from the owner for the long term and then sublet it for a short stay to earn profit from the rental price difference. 

Airbnb rental arbitrage lets you enter the real estate industry without a big investment. 

However, one challenge here is finding properties where you can do that arbitrage thing. Not every homeowner and state allows re-renting a property. 

Do you want to learn different ways to hunt such properties? Here are a few:

1. Use Rental Listing Sites
2. Ask Your Own Landlord
3. Find New Landlords Online
4. Attend Local Real Estate Investor Meetings
5. Speak Directly to Under-performing Airbnb Hosts

1. Use Rental Listing Sites

Online rental listing sites are the easiest place to start. They help you find rental properties in your target area, compare different listings, and filter results based on your needs.

Some of the best websites you can use are Apartment.com, Zillow, and Zumper. 

Each of these websites has its own unique attributes. For example, Apartments.com is good for beginners with easy use and filters (prices, location, size, amenities). 

On the other hand, Zillow primarily focuses on buying and selling homes and rentals, while Zumper solely focuses on renting properties.

Take your time browsing these websites. Look for properties in high-demand areas, near tourist attractions, or in neighborhoods that are popular with travelers. Save the ones that match your budget and seem suitable for Airbnb guests.

Don’t forget to read the details about lease terms to ensure subletting is allowed.

2. Ask Your Own Landlord

If you live in a rented property, you can ask your current landlord. 

The only condition here is that you should have a good reputation in their eyes. If so, it is gonna be a lot easier for you to get permission to be a reliable tenant. 

Communicate your idea and highlight the benefits for both of you. For example, you can offer them a certain percentage of rental profit if they let you do short-term rental. 

If they hesitate to rent the entire property, ask for a part of it, like a spare room. 

Is your landlord still unsure? If so, ask for the other landlords who might be interested. Landlords have contacts with each other, and can help you find the right one. 

3. Find New Landlords Online

Instead of asking from existing landlords, you can find new property owners, too. 

Many landlords hesitate to sublet their property. This is because they are typically unaware of the STR platform. However, you can find landlords who are willing to let you re-rent their properties, and you can find them via:

• Facebook Marketplace (search the properties directly on the platform)
• Craigslist
• Google searches (search like “Airbnb-friendly Landlords in [city name]” to find specific forums, property management companies, and other sources)

Once you find such landlords, it is time to win them with a solid pitch. 

Include benefits for them, such as consistent payment and how you handle the upkeep. If they agree, prepare and sign a written agreement with permission to sublet. 

You can also look in your local neighborhood for “For Rent” signs in front of the properties. If you find any, pitch your offer to landlords in person. 

4. Attend Local Real Estate Investor Meetings

Another way to find rental properties is via networking. 

While property owners may not be interested in Airbnb arbitrage, investors are for sure. They have multiple properties, and their sole goal is to get the maximum out of them.

And if you offer them better rental income, they will let you re-rent. 

The first thing you can do is check out meetup.com for any investor meetings in your city. Attend events and introduce yourself to other attendees.

Secondly, you can build relationships with the property owners and ask them to add you to their online groups. They can inform you about any meetings. 

You can even share your rental arbitrage plan in the groups and explain how they can benefit from working with you.

However, be patient and genuine here. Even if you don’t get an immediate lead, maintain good relationships to open new doors in the future.

5. Speak Directly to Under-performing Airbnb Hosts

This approach is often overlooked, but it can be highly effective.

Look for struggling Airbnb hosts. These could be people who:

• Have listings with 0 reviews or poor ratings.
• Use low-quality photos and descriptions.
• Have a response rate lower than 50%.

Contact them through Airbnb or other channels. Introduce yourself and explain your rental arbitrage plan. Offer them guaranteed monthly income for a fixed period, like 12-24 months. 

This arrangement is attractive for hosts who aren’t making good money but still want to earn from their property.

When pitching to these hosts, explain how you will improve their listing, handle guests, and manage everything. Many hosts are willing to hand over their property management if it means they’ll have less work and a stable income.

Conclusion

Finding rental arbitrage properties takes effort, but it is possible with the right approach.

Start by searching rental listing sites like Zillow and Apartments.com. Ask your landlord if they allow subletting or find new landlords online.

Networking with real estate investors can also help. Another smart way is to reach out to struggling Airbnb hosts and offer them a steady income.

Always check lease terms and local laws before starting.