Owning and running a short-term rental property is appealing to many people, but the real question is how to rent Airbnb without owning the property. Not everyone has an extra house or two ready to be listed and opened up to guests. But nowadays, owning property is no longer a necessity to make money in the real estate and vacation rental industries. This article will discuss how the average renter can earn Airbnb passive income through Airbnb rental arbitrage. This effective strategy requires very little investment and can be done without a college degree.
- What Is Airbnb And How Does Airbnb Property Rental Work?
- What Is Rental Arbitrage And How Does It Work?
- Is Rental Arbitrage Legal?
- Is Rental Arbitrage a Good Idea?
- Getting Started with Airbnb Arbitrage: How to Rent Airbnb Without Owning Property
- Convincing Rental Owners to Agree to Airbnb Arbitrage
- 7 Strategies to Make Money on Airbnb Without Owning Property
What Is Airbnb And How Does Airbnb Property Rental Work?
Airbnb is a vacation rental platform where users can list their home or spare room as a place for guests to stay while traveling. It was founded in 2008 and has since grown to be one of the top vacation rental listing websites. Airbnb essentially acts as an intermediary between property owners looking to rent their spaces and travelers looking for a place to stay. Today, Airbnb has over six million listings located all over the world. If you’re looking for other ways to market your new vacation rental, please be sure to list your property on our online travel agency, Rental Trader. It is free to list and our fees are lower than most of the other competitors in the marketplace.
The Airbnb website is made up of many different listings. Clicking on a listing will show you photos of the property, along with a detailed description of what guests can expect if they stay there. Potential guests who are interested in staying at that particular vacation rental can request to book a stay there (or, in some cases, they can instantly book their stay). Airbnb will then prompt them for more information and payment. Once the host approves the guest, the stay is booked, and the dates are blocked off on the host’s calendar. While most Airbnb hosts are property owners, those wondering how to rent Airbnb without owning property should know it is not necessary to be a property owner to become a host.
After their stay is complete, guests and hosts are allowed to leave reviews for each other. Guests can comment on various aspects of the rental property, such as the cleanliness and the amenities. Meanwhile, hosts can note whether the guest was respectful and followed the house rules. Both host and guest reviews help others on Airbnb decide whether to stay at a specific property or allow certain guests to stay at their property.
What Is Rental Arbitrage And How Does It Work?
Rental arbitrage is when a person rents a property and then sublets it to another person. Airbnb arbitrage is when a person rents a property and then sublets it through Airbnb. Rental arbitrage is a great way for people to add an income stream without having to own property.
Is Rental Arbitrage Legal?
Rental arbitrage, and Airbnb arbitrage specifically, are usually legal, but it depends on the specific short-term rental regulations in the area. Those who are interested in Airbnb arbitrage should start by researching their local laws and regulations. It’s also essential to ensure that the landlord who owns the property is okay with it being used as a vacation rental. This is the best method in answer to how to rent Airbnb without owning property. Failing to discuss plans to sublet a property on Airbnb with a landlord can result in eviction.
Is Rental Arbitrage a Good Idea?
As long as those who are interested in rental arbitrage have discussed the situation with their landlord and gotten their approval, rental arbitrage is generally a good idea. Anyone who wants to jump into short-term rental hosting needs to be ready to put some time and effort into their new income stream, but in general, it’s a good idea for anyone willing to put in the work.
Getting Started with Airbnb Arbitrage: How to Rent Airbnb Without Owning Property
Interested in renting properties and listing them on sites like Airbnb and RentalTrader? Here are the steps to get started.
1. Register for a Business
Vacation rental arbitrage hosts who plan to eventually scale their businesses first need to start their Airbnb business by forming an LLC and ensuring their network, assets, and resources are all set up for success.
2. Build a Team
A vacation rental doesn’t often function thanks to the host alone. A team is usually needed, potentially including a lawyer, a cleaning crew, a property manager, and an accountant.
3. Conduct Market Research
Next, it’s time to analyze the area and determine which properties are good candidates for Airbnb arbitrage. This involves doing research to determine the competition and the average nightly rate. Learn more about the importance of location and how to complete a market analysis best location selection for Airbnb.
4. Find Eligible Properties
Now that potential hosts are familiar with their local market, they’ll need to use tools like Zillow and Rentals.com to identify currently available properties that would be profitable as vacation rentals. It’s very important to be clear and upfront when speaking with the property owner or landlord about the plans to sublet the property on Airbnb and other vacation rental sites. Those who wonder how to rent Airbnb without owning property should know that honesty with the landlord is essential.
5. Furnish and Decorate the Space
Once a host has rented property, it’s time to furnish and decorate the space to function as a vacation rental. In many cases, landlords don’t allow their renters to paint the walls or to use nails to hang things up, so it’s always best to have open communication about the types of decorating they consider acceptable. Command hooks are a perfect way to hang up decor without leaving permanent damage on walls, and some landlords may be okay with new neutral paint colors, but this can vary on a case-by-case basis.
6. Invest in Amenities
Guests usually expect vacation rental properties to have high-speed WiFi, extra bedding, towels, bathroom toiletries, and entertainment. Learn more about the best amenities to improve the guest experience.
7. Create Optimized Listings
A great listing consists of high-quality, well-lit photos that showcase the space and what it has to offer, as well as a well-written, detailed description of the property and its amenities. An optimized listing also takes into account the local competition by setting a similar nightly rate and adding certain aspects that make the property stand out from comparable ones in the area. This is the best method of how to rent Airbnb without owning property successfully.
8. Automate the Business
Once the listings are up, it’s time to automate some of the repetitive aspects of the vacation rental business, such as guest communications and the check-in process. Learn why home automation for vacation rental is important and how to get started. Airbnb arbitrage hosts will likely need to employ a property management system (PMS) to automate their businesses. There are some PMS available in the market. Here you will find the top 10 PMS options. Lodgify is a great choice for those starting out with a smaller budget.
Convincing Rental Owners to Agree to Airbnb Arbitrage
One problem potential Airbnb arbitrage hosts could run into is that their landlord may not be interested in their property being used in this manner. Here are three ways to sweeten the deal and convince the owner of the property to allow their property to function as an Airbnb.
I) Offer to Purchase Third-Party Insurance
Those considering how to rent Airbnb without owning property may run into unwilling property owners who don’t want their properties to be used as vacation rentals. For some landlords, the thought of an Airbnb means excessive wear and tear on their property due to more people moving in and out. Offering to get additional insurance coverage (on top of Airbnb’s protection) can make them feel better about the situation.
II) Suggest Profit Sharing
Another way to convince a rental owner to let their renters sublet their property as a vacation rental is to suggest they receive a cut of the profits. When a person benefits from a business, they’re much more invested in its success.
III) Rent Multiple Properties from Owners
Many landlords or rental owners own multiple properties. Aspiring Airbnb arbitrage hosts might want to offer to rent multiple properties and sublet them on Airbnb at once in order to expand with their landlord as they continue building their portfolio.
7 Strategies to Make Money on Airbnb Without Owning Property
There are many methods of earning extra income on Airbnb without owning property; Airbnb arbitrage is just one method of how to rent Airbnb without owning property. Learn about several different money-making endeavors involving Airbnb below.
1. Approach Homeowners
Airbnb arbitrage generally begins with approaching homeowners regarding the idea of subletting their rental property on Airbnb. The details of this process are discussed earlier in the article.
2. Rent a Furnished Home
A slightly different take on approaching homeowners is to rent a home that is already furnished. This cuts back on the expenses involved and allows Airbnb arbitrage hosts to skip a step in the process of preparing a property to become a vacation rental.
3. Co-Host with an Established Airbnb
Another way to earn money on Airbnb without owning property is to team up with a vacation rental that has already established itself in the industry. Finding a co-host allows those who don’t own property to reap the benefits of a vacation rental by taking over various responsibilities associated with the business.
4. Become a Vacation Rental House Sitter
Some vacation rental hosts who rent out a room in their home aren’t available to run their vacation rentals all year; instead, they hire a “vacation rental house sitter” to stay at their property and continue running their business as they travel and enjoy a few months of vacation. People who are wondering how to rent Airbnb without owning property can absolutely consider becoming a vacation rental house sitter; they can have the responsibilities of a host without owning any property themselves.
5. Become a Vacation Rental Cleaner
Becoming a vacation rental cleaner can provide a living wage; Airbnb requires its United States hosts to pay self-employed cleaners at least $25 per hour. Cleaning vacation rentals is hard work, but it absolutely can pay off, and some hosts even offer bonuses to their cleaning crews if they receive great reviews on the property’s cleanliness.
6. Become a Vacation Rental Property Manager
A vacation rental property manager’s job title and responsibilities mean that a person essentially takes on the tasks associated with owning their own Airbnb. Property managers can earn a substantial income and are able to earn money by managing a property without having to own it themselves.
7. Provide Airbnb Experiences
Many Airbnb guests strive to “live like a local” when they travel, and Airbnb employs “experience hosts” who can help guests do just that. Some options are to offer a cooking class with local chefs, a camping adventure in the surrounding nature, and an art class that reflects the town’s culture and art style.
Most people think that they must need property to earn from Airbnb. Now you might know how to rent Airbnb without owning property. Also, you will be able to generate some extra income by following our strategies.
Still wondering how to rent Airbnb without owning the property? Consider watching out this video: