Rental arbitrage

Rental arbitrage is a business strategy where someone leases a property long-term from a landlord and then rents it out short-term to travelers or tourists, typically via platforms like Airbnb. The goal is to earn more in short-term rentals than the cost of the long-term lease, creating profit. It requires careful planning, including obtaining permission from the landlord and complying with local regulations, to ensure the arrangement is legal and sustainable. Essentially, it’s about leveraging existing rental agreements to generate additional income through short-term leasing.