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Airbnb Arbitrage: What It Is And How You Can Make It Work With The Landlords

Breaking into the short term rental business is a great investment choice. However, it can be a little difficult if you don’t have the ability to purchase your own property. 

You might be thinking…

“How do I get approval from a landlord to run an Airbnb?” 

“Is Airbnb Arbitrage just subleasing a unit?” 

“What is the right way to approach this situation so that I can actually make it work?"

These are all very valid concerns. However, if you’re ready to make the leap, you can build your short term rental portfolio by leasing properties. 

You just have to get prepared on how to approach the subject with your landlord…

Understand the difference between "subleasing" & "granting a license to stay" 

Airbnb Arbitrage is NOT a subleasing process. When you are creating this system, you are “granting a license to stay.”

Subleasing a property means granting your guests all of the rights of a tenant for the duration of their stay. That’s not what we’re doing here.

Instead, we're giving them a license to stay there – and that license is very restrictive.

How To Request Permission To Run Airbnb Arbitrage From Your Landlord

A great start to this conversation would be framing the situation like this:

“Hi, my company and I are looking to lease a number of properties in the area. Are you the right person to talk to about that?” 

At some point, they will ask what your company does. Your answer should be tied to two things: to whom you serve and how you serve them.

It is not where you get your customer from.

Here’s what your potential answer could look like: 

“We serve a number of families who are traveling to the area on vacation or looking for a city to relocate to. We provide clean and safe places for them to stay so that they don't have to worry about the inconveniences of a hotel. Our services allow them to immerse themselves in the area in a unique and local way. Most of our customers value convenient appliances such as a kitchen or washer and dryer. In order to fulfill those needs, we connect ourselves with quality landlords, such as yourself, so that we can give you guys steady rent, and we get to service our customers.”

You're not asking to sublease. You’re asking to enter into a partnership. 

The biggest thing to remember is that you want to talk with the decision maker within the property’s organization. Ultimately, if this property is managed by a property management team, you’d want to find the owner and speak with them.


So What If This Is A Larger Company And You Can’t Speak To The Owner?

Most of the time, owners who are using a property management service don't want to be bothered. 

When you're in a situation in which you can't get one-on-one time with the owner – and you have to work through the property management structure – you make the best with what you have. 

Depending on how big the company is, there are three levels that you've got to get through:

1. The leasing agent - The leasing agent is the person that you ran straight into when walking through the door. They are at the desk, super happy, usually on commission, and will say yes to everything.

2. The leasing agent manager - There is usually a manager of some kind, and they come with various names. Sometimes, they're called just a community manager. That person is usually responsible for the entire building in some way, shape, or form. And they're typically reporting to someone who they call a regional manager.

3. The regional manager - When I've had these conversations, they go up to at least the regional manager. If the building is small enough, but still big, you may still end up talking to the owner, as well. 

It’s totally possible for you to be able to have this Airbnb Arbitrage conversation without going through the entire property management structure. So it's not something that I would be overly stressed about. 

Yes, turning a rental property into an Airbnb will take work. 

But it's worth it. 

To learn more about expanding your real estate portfolio with purchased and leased properties…

Access the FREE Short Term Rental Blueprint video course: https://cashflowdiary.com/blueprint 

Subscribe to the Cashflow Diary YouTube channel: https://www.youtube.com/cashflowdiary 

Listen to the Cashflow Diary podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/cashflow-diary/id623140540 

Listen to the Cashflow Diary podcast on Spotify: https://open.spotify.com/show/3iJetWgP5D7lGQ03gsX6yt?si=XjUp-iA6QoO

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